Author Topic: Blog post: The only way to get rich.  (Read 3147 times)

Patrick

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Blog post: The only way to get rich.
« on: September 16, 2013, 05:56:11 pm »
Comments relating to the new blog post "The only way to get rich.".

Yes I know it's not showing yet. I'm still editing, but I needed the link here  O:-)

Edit: Ok it's live now - http://www.investorchallenge.co.za/the-only-way-to-get-rich/
« Last Edit: September 17, 2013, 08:44:42 am by Patrick »

Moneypenny

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Re: Blog post: The only way to get rich.
« Reply #1 on: September 17, 2013, 10:33:57 am »
I've downloaded your 'How much to save to get rich in a hurry'-table and will give it a prominent space in my 'bucket list'-book.

Thank you for reminding us of these basic truths, I think most of us are either too lazy or too preoccupied to think it through ourselves.  Now it's in my memory bank and once things are there, its for keeps.

I'll invite you to my yacht for champagne to thank you once I'm a billionaire, in 20yrs time - hopefully still young enough to enjoy the moment. :D
Veni, vidi, vici

Orca

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Re: Blog post: The only way to get rich.
« Reply #2 on: September 23, 2013, 05:09:36 pm »
A 5% SAFEMAX? This will put most people that have no pensions into early graves.
If you have a provident fund or do your own savings for pension then you will need R6m to retire safely taking my needs into account. ie.
I need R25 000 pm and if this is 5% then I will have to have capital of R6m to stay 90% safe.
Now while I'm withdrawing the R25k pm, my R6m will be in Index funds making gains of say 25% py.
Then I give me a 6% increase pa and after 20 years I will have R115,769,878.43 left.
This will give me good leeway for bear markets and crashes. Problem is, how many of us will have R6m to retire on?
Most certainly not me. My aim is R2m and this is more than most people I know retire on.
So my Portugal move is now out the question.    :wall:
I started here with nothing and still have most of it left.

Orca

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Re: Blog post: The only way to get rich.
« Reply #3 on: September 23, 2013, 05:18:46 pm »
A good, well written article. Did you copy that or write it yourself Patrick?

What Index funds do you have in mind?
I started here with nothing and still have most of it left.

Patrick

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Re: Blog post: The only way to get rich.
« Reply #4 on: September 23, 2013, 06:27:01 pm »
A good, well written article. Did you copy that or write it yourself Patrick?

What Index funds do you have in mind?

Yeah I wrote it. Just note, the SAFEMAX was calculated using a mix of stocks, bonds and cash. Going all equity would give you a higher SAFEMAX, but the experts incorrrectly consider that higher risk. The 4% figure I consider a pessimistic safe figure for myself.

For my ETFs I'll most likely go for a mix of INDI, midcap and something based on the US all share. I haven't worked out what ratios yet though.

Orca

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Re: Blog post: The only way to get rich.
« Reply #5 on: September 23, 2013, 08:59:24 pm »
You should post them somewhere where you can make money. Can't think where but well done.  :TU:

I would never add bonds and cash into my portfolio as they are a ballast to my flight upwards. As are RA's and other Micky Mouse stuff. Equities have long been and proven to outperform everything else over years. So I would go for 100% Indi. Perhaps add some Rafi.

Going for divi ETF alone warrants massive capital to make a living off it. 
I started here with nothing and still have most of it left.

Icarium

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Re: Blog post: The only way to get rich.
« Reply #6 on: September 25, 2013, 05:27:35 pm »
So at my current savings rate of 20% of my nett salary, I should be able to retire in comfort by the time I hit 74...

(For the purposes of this post I'm ignoring the fact that I also pay 16.5% of my gross into a company mandated pension fund, so hopefully I'll be able to retire a bit earlier :P)