Following other thread about investing!
I started investing in ETFs from 2016. I hold 5 etfs only.
VTS
NDQ
TECL
VAS
TCHI
Plan is to continue to withdraw 5% every year from my balance for the next 5 years and increase to 8% - 10% annual withdrawal after 5 years. I don't own any individual stocks or any investment properties. I spend 8 months of the year living outside of Aus and 4 months in QLD.
meanwhile my home loan is still 75% unpaid balance ðŸ˜
How long did it take you to think of this troll thread?
that seems a pretty low value to be retiring on. Are you managing to grow that by being very frugal or planning to switch to an age pension once you get to eligiblity age or just planning to die young?
Yeah, quite low when look at the future value factoring taxes and inflation and withdrawing 5-10% every year.
Can you please talk more about you journey to this position?
Income? Investment habits? etc
Start? when? Sustained investment processes?
@OP I would also like to know and any tips how/where you started?
Open an investment account, regularly put a portion of your income in the ETFs he mentioned in the same manner. Hope it compounds in the same way or better. You can run your own numbers using a compound interest calculator.
Addit: don't get married or have kids. Retire and become a lady boy in Thailand
do you rent in sydney?
What's your weighting for each and how much dividends do you net?
Also as you are 4m in Aus this would mean you pay non resident tax right?
75% US and 25% VAS and China Tech
Good stuff
Downside all the china stuff is dead atm
any plan starting a family or stay single till the end?
any future investment plan?
No family.
Just staying as is single.
can we get into etfs via commsec? not really with my shares.
I like the idea of having done an AMA in the past… it's the idea of having to sit there for an extended period and respond to questions I don't like. This guy nailed it.
Thanks for not going into investment property and destroying housing for the rest of AU.
First Well done mate! Congrate!
1.What is your current allocation to each ETF, and what considerations led you to these specific allocations?
2.How satisfied are you with each of your ETF choices, especially considering recent performances ( TCHI, for example, which may have been challenging in the past couple of years)?
3.Which ETFs would you recommend now or which one you would still choose to own?
4.When you started investing in shares in 2016, how much did you initially invest, including any lump sum from the sale of your investment property?
Screenshot or bs
Designing a screenshot is not high-tech.
How are the ladybois
How many sleepless nights did you have worrying about the markets collapsing? Aren't you bored without a job?
He's a truck driver. He would be bored with a job.
At the start i did every single day.
After i saw huge red days like during covid and 2022…and the recovery i understand that it just recovers and if i am long enough it's not going to $0
Math doesn't add up, unless OP received gifts/inheritance from family.
I'm thinking that house money he put in the market was gifted. Either way if he kept that house, he probably would've been financially in the same situation as he is now as he doesn't have to capital gains tax.
I had 220k in the markets in 2015 and when i sold my property in 2015 i had an additional 420k into the markets which i put in 3 months after selling the property
$650k in 2015
Assuming 8% return per annum NET (inclusive of any taxes paid along the way): 1.08^9 = 2
650 x 2 = $1.3m
Where did that other $1M come from? If you are able to save that much from salary, then I'm assuming you are probably living with parents or parents providing mortgage/rent free housing.
I had $250,000 position in TECL on June 2020 and only recently sold a huge chunk of it and put 80% of it into VTS. I also had $100,000 position in FMG @ $9 and sold that as well after deciding to keep it all into etfs.
@Tavelalot: Ok, that's plausible then. Congrats on winning your bet!
I have a similar portion of my net worth allocated to stocks and bonds. However, I prefer to keep mine in a combination of VDGR and VDBA, which gives me peace of mind and helps me sleep peacefully at night.
How will you save for retirement with only 2.4m?
That 2.4m when he's in his 60's will be like having 200k in the bank. Inflation will eat him alive.
generally you'd hope that the index would keep up with inflation and the idea is to live off the income (depending on dividends and % returns could be anywhere from 2-8%)
You are probably wrong..but check back in 20 years. Inflation works on superfunds as well. Most aussies have super which they hope beats inflation! Kind of same principle only difference is i don't need to hit retirement age to have access to funds.
How much is you total net worth?
Op, where is the proof?
sounds like a FIRE's dream. the obvious question would be are you married/do you have kids? living expenses are cheap in asia/SEA but if you throw private international school fees the income from a 2.4mil portfolio doesn't get you that far
Member Since
29/08/2024
nice try
How much did you invest and how much of that are gains, how did you choose the portfolio?
Why didn't you switch to EFTs pay good dividend? Good one pays a good return that is close to 5% plus capital growth. Why withdraw?
I wasn't sure if that was what OP meant.. on FIRE principles you really shouldn't draw down at all on your principal at age 39. I suspect he means withdraw pre-income, ie. reinvest dividends
Which ones are those?
Doesn't seem to be many replies here
"Yeah you can ASK me anything, but i won't ANSWER anything"
Says above he's trying to motivate people, not sure what he is trying to motivate them about tho!
Good job. Hope you're enjoying retirement!
This became an AMA without any answers though. lol
increase to 8% - 10% annual withdrawal after 5 years
What's the reason? I think this rate is close to your ETF return rate. The current 5% sounds more reasonable considering inflation.
Winning. Source: Charlie Sheen.
Do you have a family and children? If so, when did you start?
Posts AMA and only answers 5 questions.
How did you start getting into ETFs and any recommendations for someone who is a noob.
This one is easy. The best time was yesterday, the next best time is today. Just start buying, start with small parcels if you are nervous.
Start with VGS.
Good achievement, you've escaped the rat race with some smart savings and investing. But definitely not achievable by everyone. Congrats, and f**k you!
Fellas, you're dealing with a former truck driver. Writing is a skill. He probably drove an autoshift Road Ranger.
Fundamental questions are:
What did you do before you "retired"?
What job/career/income?
Do you have any dependants?
How did you accumulate $2.7m in ETFs, you mentioned you held property and then sold it?
Was it a PPOR and therefore, mostly taxfree?
Is this where you gained most of your wealth?
What is your current income from ETF and expenses?
how do you handle your four months in Australia? where do you keep all your stuff: furniture, car etc? how to rent for only 4 months?
Do you sleep at nights?
"How do you sleep at night?"
"on satin sheets with a fair maiden whose beauty would make you weep with envy"
… in other dreams … ?
Do you have a house as well? As that 2.75mil will only get you a modest house in a capital city without much to spare.
How much of the $2.37m is initial capital vs growth/returns?
VTS - 18% 1yr, 83% 5yr
NDQ - 17.8% 1yr, 117.9% 5yr
TECL - 55% 1yr, 399% 5yr
VAS - 10% 1yr, 19% 5yr
TCHI - -17% 1yr, -39% 2yr
All very solid (except for TCHI). I really need to start investing some money…..
perfect time to start. OP is selling a course you might be interested in.
Just running the numbers for people:
OP claims they earnt $160k/year driving trucks and saved 70% of their income which is equal to $81,200 after tax. Assuming OP put $6767/month (81200/12) into ETFs every year since 2016 to 2024 with a growth rate of 12% pa, it leaves him with $1,082,228. That means OP would've had to own a property at 31 that had 520k in capital available after tax for it to have grown to $1.3m with ETFs.
Either it's fake (most likely) or OP is leaving out some crucial details like how big an inheritance/leg up from family they got.
The major gain was from TECL I guess, which has grown 27 times in 8 years, growth rate was 50% pa
If OP had put $20k in each VTS, NDQ, TECL, VAS in Jan 2016 (TCHI was not available then) and stopped, $80k would be $747k today, and $577k is TECL alone
In the case of TECL it appears the fund is highly leveraged (3x) in order to magnify gains. However, it also means if things go south, the losses also get equally magnified.
High risk for (potential) high reward.
It also seems TCHI is down 39% over the last 5 years, so that one isn't working out well at all.
Assumes salary is constant which is also unlikely
'earning 160k driving a truck' - and saving 70% of income - and not mentioning any family, I'm guessing didn't have too many dependents so free and breezy single life can find easy companionship in SEA - 'love you long time' or until the money runs out …
''i worked really hard and saved everything for 5 years and was finally able to afford a downpayment with a 500k gift from family'' seems to be the usual inspirational stories shared around
The real trick here is "no children".
can I say congrats and f**K you? or that is not allowed here.
;)
How much from the property sale? Interested to know how much that lump sum played a part. Did you DCA it is in, if so how did you break it up and over how long? Or did you balls out plonk the whole amount in?
Technically AMA is ask me anything but does not guarantee an answer. For that it should be something like Ask me anything and i might reply (AMAIMR)
To be fair when I first joined up I would only log on every few days but now I’ve got certain alerts setup. Also a lot of the comments on this post and others are not helpful, so OP would miss the genuine questions and not know which one to reply to first.
OP thought the website was called OzBragging not OzBargain. ;)
So inspiring, especially how you haven't answered any of the peasants questions
I have?
Like mine?
Just a boring troll thread it seems.
What kind of AMA is this?
You can AMA but i wont respond
For all the people saying i will run out of money in 10 years and so on…..i really don't know when i will DIE….so i wanted to retire as early as possible to enjoy the younger years of my life.
Since most of you know when you will die judging by the comments, continue to work until 67 years of age and you should have a solid retirement travelling and not working when you are in your 70s and 80s and 90s.
Not about knowing when you will die, average age is a good benchmark, your planned withdrawal and base amount should see you with very little left long before u reach average death age. Many are fine with that approach, you just need to be aware you will be reliant on pension if you live an average or above average life.
Of course, some people don’t mind working if it brings them satisfaction of some kind.
I do agree about the travel. Get it in while you are young enough to enjoy it.
Question: What is the reason you get up in the morning? (Your raison d'etre).
"AMA but I only respond about money"
You need significantly more money because the inflation demon is always a lingering threat… At 35, I'm still working and have approximately $3.9 million spread across various countries and asset classes.
A lot of my peers are selling cybersecurity exploits for $1-3m a pop on Zerodium and other brokers. My goal is to sell at least 5-10 in my lifetime.
I did have 220k in the market before 2016 and i sold my property in 2015 and had 420k that i put into the market