Need advise from MGTOW Investors

[BeerParticipant 11832]

I keep 5-10k cash in my checking account so I always have enough to pay my bills for a few months, or have a buffer should some unexpected expense arise. When I get over 10k I just transfer 5k over to my brokerage account where I’ve been accumulating shares of dividend paying stock. It seems like slow progress at first, but I’ve recently hit a point where I’m collecting >1,000 a month in dividends and it felt like winning the lottery knowing I can have that sort of passive income for life, all I have to do is not touch my initial investments.

Why do I go the stock route?

1. No work involved. Pick a solid company you think will be around longer than you’ll be alive and don’t worry about it…just sit back, accumulate dividends, reinvest as long as you don’t need the money, and enjoy as companies tend to raise them over time.

2. Stealth wealth. If you own a string of rental properties its all public record…people could look up everything you own. People will know your business. If you have 10 million in a brokerage account nobody knows what you have unless you tell them.

3. Like OldBill said…location location location. I live in a liberal s~~~ hole. I don’t plan on living here my whole life here. Knowing I plan on leaving the area eventually do I want to own out of state(country) rental properties I can’t keep an eye on? Its easier for me to just throw some money in REITs for the sake of diversification into real estate.

4. Non-stop feeling of winning. Dividend cuts from major companies are pretty rare. Over time you’ll accumulate more shares as you save more money and as you reinvest dividends, and companies will tend to raise dividend pay outs over time. I’ve had quarters where I looked at my accounts balances and thought “crap…I had more money last quarter,” but I’ve yet to have a quarter where I pulled in less dividends than the previous quarter. The ultimate plan is to live off the dividends so as long as the dividend income keeps going up it makes it easy to ignore short term market fluctuations.

[MGTOWmonkey aka No More Fucks To GiveParticipant 6635]

Beer wrote:

When I get over 10k I just transfer 5k over to my brokerage account where I’ve been accumulating shares of dividend paying stock. It seems like slow progress at first, but I’ve recently hit a point where I’m collecting >1,000 a month in dividends and it felt like winning the lottery knowing I can have that sort of passive income for life, all I have to do is not touch my initial investments.

That’s pretty impressive, how long did it take for you to earn that dividend? I have been thinking about investing long enough to have my dividend cover all my expenses and just work to invest until I no longer need to work. Just trying to get a gauge on the time frame.

Never lose sight of what brought you here.

[MGTOWmonkey aka No More Fucks To GiveParticipant 6635]

Also can anyone who uses the Vanguard 500 Index Fund chime in on their experiences. So far from my research it seems very promising but I would like some input as I’m gathering information.

Never lose sight of what brought you here.

[BeerParticipant 11832]

MGTOWmonkey aka No More Fucks To Give wrote:

That’s pretty impressive, how long did it take for you to earn that dividend? I have been thinking about investing long enough to have my dividend cover all my expenses and just work to invest until I no longer need to work. Just trying to get a gauge on the time frame.

It depends on your income and on time in the market…but I think my average yield right now is about 5%…so to get >12k per year how long would it take you to accumulate roughly 1/4 million? Its a big difference if your banking 5-10k a year or if your banking 60-70k a year, and its a big difference if you average 5% over the next few years or 15%. If you want to get an idea google for a compound interest calculator and play with some what if numbers.

That’s my exact plan though…I’ve been living pretty much lifestyle inflation free since my broke college days. The higher my income gets just means I can save more rather than buy expensive s~~~ I don’t need. Probably next year I’m going to start the year with 5k in my checking account, set all my dividends to pay to my checking account, and direct deposit my paychecks into my brokerage account and see if I can make it all year without having to transfer anything from brokerage to checking. I’d effectively be living off dividends at that point and 100% of my pay would just be going into investments. Maybe I’ll afford myself a bit of lifestyle inflation when living off dividends allows it, but ultimately I think this will be the best no bulls~~~ way to gauge when I can comfortably pull the plug on working.

[MGTOWmonkey aka No More Fucks To GiveParticipant 6635]

Beer wrote:

MGTOWmonkey aka No More F~~~s To Give wrote:

That’s pretty impressive, how long did it take for you to earn that dividend? I have been thinking about investing long enough to have my dividend cover all my expenses and just work to invest until I no longer need to work. Just trying to get a gauge on the time frame.

It depends on your income and on time in the market…but I think my average yield right now is about 5%…so to get >12k per year how long would it take you to accumulate roughly 1/4 million? Its a big difference if your banking 5-10k a year or if your banking 60-70k a year, and its a big difference if you average 5% over the next few years or 15%. If you want to get an idea google for a compound interest calculator and play with some what if numbers.

That’s my exact plan though…I’ve been living pretty much lifestyle inflation free since my broke college days. The higher my income gets just means I can save more rather than buy expensive s~~~ I don’t need. Probably next year I’m going to start the year with 5k in my checking account, set all my dividends to pay to my checking account, and direct deposit my paychecks into my brokerage account and see if I can make it all year without having to transfer anything from brokerage to checking. I’d effectively be living off dividends at that point and 100% of my pay would just be going into investments. Maybe I’ll afford myself a bit of lifestyle inflation when living off dividends allows it, but ultimately I think this will be the best no bulls~~~ way to gauge when I can comfortably pull the plug on working.

Sounds like a solid plan Beer, your outlook is exactly the type of lifestyle i’m aiming for, living off dividends.

Never lose sight of what brought you here.

[SamsquanchParticipant 4226]

Purchase a whole life insurance policy.

Minimum of 3% return and most companies max out at 7%

You can also pay the entire premium at once, so the cash value would accumulate faster.

Whole life policies are currently doing better than annuities.

[MarketWatcherParticipant]

Samsquanch wrote:

Purchase a whole life insurance policy.

Minimum of 3% return and most companies max out at 7%

You can also pay the entire premium at once, so the cash value would accumulate faster.

Whole life policies are currently doing better than annuities.

Do not do that.

[BadgerParticipant 2277]

Beer wrote:

Why do I go the stock route?
1. No work involved. Pick a solid company you think will be around longer than you’ll be alive and don’t worry about it…just sit back, accumulate dividends, reinvest as long as you don’t need the money, and enjoy as companies tend to raise them over time.

Good point, Beer. I cashed out my 401(k) from work, paid the penalty, and put the money in stocks that I control. The main stock I then bought has paid me back 2/3 of its initial price in dividends and has appreciated over 100 in its initial purchase price. Dividends are real. Companies do not generally pay them unless they have extra cash. That is the focus of the IQ Trends newsletter I mentioned in a prior post. They look at solid dividend paying stocks and wait for them to decline in price before purchasing them.

I have never investigated or invested in real estate, so I have no comments about that.

[FrostByteParticipant 19005]

Invest in an all female company that sells stuff like free-bleeder pants, Thigh slimming bands, fake booty inserts, underarm hair rollers.

If you rescue a damsel in distress, all you will get is a distressed damsel.

[MGTOWmonkey aka No More Fucks To GiveParticipant 6635]

FrostByte wrote:

Invest in an all female company that sells stuff like free-bleeder pants, Thigh slimming bands, fake booty inserts, underarm hair rollers.

C~~~ investments are “trendy” meaning investing in their crap will not pay off over time just ask the black yoga pants companies. Pretty soon flat butts (slim and fit) like in the 80’s will be back in style and i’ll loose money on the booty inserts.

Never lose sight of what brought you here.

[BadgerParticipant 2277]

Here are some more articles and links if you are interested.

If you are interested in a low cost index fund, this article might be of interest.
Paul Merriman
Fidelity or Vanguard: Which is Best?

Fidelity vs. Vanguard: Which Is Best?

John Hussman
The Iron Laws of Valuation and Speculation
https://www.advisorperspectives.com/commentaries/2017/02/06/portfolio-strategy-and-the-iron-laws

If you think you can beat the stock market by short term trading, read this first by Kevin Cook.
https://www.nasdaq.com/article/behavioral-economics-101-cm700616

Here is a review by Chris Meyer of the Thomas Phelps book, 100 to 1 in the Stock Market that I mentioned in a prior post.
https://dailyreckoning.com/the-value-of-a-thief/

[MGTOWmonkey aka No More Fucks To GiveParticipant 6635]

Badger wrote:

If you are interested in a low cost index fund, this article might be of interest.
Paul Merriman
Fidelity or Vanguard: Which is Best?

Thanks for the articles. I was leaning more towards a Vanguard Index Fund like stated in this article just to get the ball rolling and continue to contribute to it on a monthly bases to maximize the growth.

Never lose sight of what brought you here.

[BadgerParticipant 2277]

MGTOWmonkey, I suggest you monitor John Hussman at the 321gold.com website before you open the fund. He has warned people that the stock market is grossly overvalued at present. It may continue so for another year or two before correcting. If you can wait for the correction, you will be able to get MORE shares at a market bottom than you can now.

Comfort is Not Your Friend

[MGTOWmonkey aka No More Fucks To GiveParticipant 6635]

Badger wrote:

MGTOWmonkey, I suggest you monitor John Hussman at the 321gold.com website before you open the fund. He has warned people that the stock market is grossly overvalued at present. It may continue so for another year or two before correcting. If you can wait for the correction, you will be able to get MORE shares at a market bottom than you can now.

I will surely read up on this tonight. What do you think about Nadex? I have been reading on it for a few days now and seems to be legit.

Never lose sight of what brought you here.

[Author]

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