Itsallaguess wrote:Pastcaring wrote:
I don' t go along with silly acronyms and theories etc
I have 3 sources of income, rent from properties, private pension, and dividend income.
Living off dividend income alone would be no problem at all, it is 6 figures.
One company makes up 40% of capital, I always thought it was around one third so I checked it, I was very surprised as I do no work at all for investing
Perhaps the way to look at it is if you have a few million and you lose half of it, no problem at all
If you have a few hundred thousand and lose half of it, big problems.
Aim high. Turn off the daily bullshit noise and think for yourself
I try to think for myself whenever I can.
In this particular situation, I think it's sometimes easy for people to give advice to dismiss investment risk if they've got capital and income in abundance, and from a number of diverse sources.
But it's clear that not everyone is in such a good financial position, and as such we often have to manage capital and income-diversification in different ways, suitable for the situation that we
are in.
It's not bullshit - it's a sensible approach to portfolio-investment.
I wish you the best of luck with your approach, but do you think you might be a little bit less dismissive of other people's investment ideas where they might be in a completely different situation to your own?
Cheers,
Itsallaguess
If you want average returns minus costs I would fully agree with you.When I started I didn't want that,thus dismissive entirely of what the salesman wants to sell me.
I started small,using borrowed money and understanding leverage and compounding .
My view of risk is following the crowd,far too risky for me .Your view of risk will probably be the exact opposite of mine.
Things occur because I did nothing at all for decades,leave it alone to compound.
As I have explained if you want to become a millionaire then tomorrow spend £ 100,000 .You will need equity in a house to borrow that money,I fully understand why people are not going to do that.Compound that for 25 years at reasonable rates and it is almost impossible not to be a millionaire.You will also pay a lot in fees and charges to the salesman.
Use the money you would be paying weekly/ monthly/ annually to reduce that loan as quick as you can.
What you think is maximum risk from day one,I think is maximum return from day one.I am well aware that people are not going to do what I did. I have pointed out over and over by looking at the shareholder break down
The mega wealthy borrow far more than that.The entire Westfield empire was started out in 1955 ish by borrowing a ( for then) largeish amount of money,the equivalent of a house mortgage today.Buy a corner shop,buy another corner shop to rent out.
Then borrow the equivalent of 75-- 80 years average wages.An amount far too great for what were then bank managers.
An amount that large had to be negotiated with head honchos,all of which was refused.How dare an immigrant van driver think he knew better than the financial whizz kids.Try try and try again.Eventually he got it,Westfield is now owned by Unibail Rodamco.I will be selling out off that in July,after the dividend
You will never become wealthy by following the crowd,you will never become wealthy by saving up .
Otherwise no problem at all with what you have said,have a well diversified portfolio,you will get average returns minus costs.Put enough in and you will retire comfortably.