RoyDal's Investment Schemes – How I did it, and you can too.

[RoyDalParticipant]

A men-ber wrote me on the back channel message system, the one on our profile pages. I can’t tell if I replied a dozen times or zero! I just can’t seem to make it work, or I work’d it not wisely but too well.

Because it’s back channel, he shall remain nameless. Here is what he asked, which I have rewritten to disguise his ID. He wants to get into investing and he is also a fan of Robert Kiyosaki’s books. Real estate does not suit his immediate needs, and what do I think of stocks?

Below is the reply I either sent or didn’t.

You can’t go wrong with any of Robert Kiyosaki’s books. Especially the ones that explore the mindset of successful investors. My library is bulging with them, and there is a good chance yours is too. Also, they are reasonably priced at Amazon, and a used copy will do just fine.

For stocks, I recommend this one book. I’ve made a bundle off it. In fact, I could retire on this alone. Note Robert Kiyosaki wrote the forward.

Covered Calls and LEAPS — A Wealth Option: A Guide for Generating Extraordinary Monthly Income
by Joseph R. Hooper and Aaron R. Zalewski
http://www.amazon.com/Covered-Calls-LEAPS-Wealth-Option/dp/0470044705/

Given how pricey it is, I recommend a used copy. Just make sure the DVD is with it. Watching the DVD will save you lots of grief.

More on stocks. If retirement is decades away, then consider the Warren Buffett strategy. Buy and hold quality stocks in companies you have researched thoroughly. I’m too lazy to do the research part, but I have a few friends who are millionaires because of it.

Another friend does quite well in stocks by following the recommendations of Motley Fool. They have a massive website chock full of free info.

A word of caution regarding stocks or anything else involving money, Warren Buffett once wrote to this to his shareholders:

Indeed, if you aren’t certain that you understand and can value your business far better than Mr. Market, you don’t belong in the game. As they say in poker, “If you’ve been in the game 30 minutes and you don’t know who the patsy is, you’re the patsy.”

Edit: The first rule of rental real estate is: The property must pay for itself. The rents must cover mortgage, taxes, insurance, and expenses like cleaning, repairs, and landscaping. If a property pencils out with a negative cash flow, then it is a no-buy. Keep looking.

Society asks MGTOWs: Why are you not making more tax-slaves?

[BeerParticipant 11832]

The quick buck folks never do well..think in decades and not next month.

This is key right here with stocks as well…most the guys I know who try to day trade or who are constantly trying to buy stock they think will jump 50% in a short time usually end up losing.

I apply more of a Warren Buffet strategy myself…buy companies I think will prosper long term and just sit back and collect my dividends. Every quarter I add some money to my account, and buy more stock with that money and the previous quarters dividends collected. Since I buy more shares every quarter, and companies tend to raise dividends over time, every quarters pay out is usually a little bigger than the last.

One of the things I really like about this strategy is its easy to see the progress. If you collect 600 in dividends one quarter and 700 the next…its just like woohoo! I moved 100 dollars a quarter closer to my target amount! It also removes a lot of the stress over price per share as a short time drop in the price of a stock is irrelevant to me…as long as the company is still healthy and will continue to pay a dividend, the price per share will eventually make new highs.

Now..it’s like a pension.

The best thing about such investments is not just that its like a pension…its a pension you can start collecting right now. I worked quite a few years at a union job where I was vested in a pension fund and I get to collect it when I’m 64. What the f~~~ good is that…I’ll have passive income when I might very well not even be healthy enough to enjoy it anymore. With dividend investing or rentals, you get passive income and you get it right now. Ideally you don’t need it right now and can plow it back into more investments, but its nice to have access to that extra income stream right now as you never know what curve b~~~~ life may throw at you, or you may just not want to have to work until 64 to collect a full pension.

[rironParticipant 45]

One of the things I really like about this strategy is its easy to see the progress. If you collect 600 in dividends one quarter and 700 the next…its just like woohoo! I moved 100 dollars a quarter closer to my target amount! It also removes a lot of the stress over price per share as a short time drop in the price of a stock is irrelevant to me…as long as the company is still healthy and will continue to pay a dividend, the price per share will eventually make new highs.

mind if I ask how do you get into this kind of mentality?

Cause I’m thinking:

okay I’ll throw my money into the S&P which has had a 7% ROI after dividends, inflation, and taxes (that’s 10% before inflation) since basically the beginning of time. Which aligns quite well with the typical 10% ROI of most high-risk investments.

My understanding is that investing in equity with around 10% ROI (only about 2% of which is dividends/cashflow) is that with equity, they just kind of reinvest the remaining 8% of your money back into the company for you. So if you thinking about it technically investing for long-term capital gains is still investing for cashflow.

The problem is I’m always thinking “crap, what if I have to liquidate this?” or “if I’m buying this now, and the price happens to be artificially high then I’ll basically be getting less than 10% ROI) and fall into a capital gains mentality.

And 2% ROI feels kind of s~~~ty.

Is there a way make myself feel like I’m getting cashflow? I almost want to set up a computer program manages my investment account, that hides the value of my investment account and automatically extracts a random amount between 5-9% from my investment account every year, or 5-9/12% every month, so I can see the “income” and then reinvest it…(and the randomizer would be so I wouldn’t be able to tell the actual amount in my account)

I know REITs basically are forced to give out 90% of their income in dividends instead of reinvesting it, but the only REIT I would invest in is the vanguard REIT fund, which doesn’t pay out the dividends. (index funds because I don’t want to research stocks)

Write "What is MGTOW?" on paper money and spend it. Spreading MGTOW with complete deniability. (ノಠ益ಠ)ノ彡┻━┻

[BeerParticipant 11832]

riron wrote:

Is there a way make myself feel like I’m getting cashflow? I almost want to set up a computer program manages my investment account, that hides the value of my investment account

I look at the value of my account, I just don’t do it obsessively. Its going to swing up and down, no point getting all excited when I make a few grand or p~~~ed when I lose a few when I’m still holding the same amount of shares either way.

Other than that I plug my dividends into a spreadsheet each quarter, and divide it by 520, which is how many hours you’d work a quarter at a 40 hour a week job to give yourself a dollar per hour figure. Its going to go up way more often than it will go down, simply because you will be adding money to your accounts and buying more shares, you will be reinvesting dividends and buying more shares, and companies tend to raise dividends over time.

Every quarter I end up with a raise on my passive “paycheck.” Its not a huge amount of money right now, but when I get a 25 cent an hour “raise” just for stashing more money away, then I stop and think how at my last job 25 cents an hour would have been my raise for the year if I was still there…it makes me feel like I’m making quite a bit of progress. Its also nice when you make milestone figures…like maybe you break 1 dollar an hour, or you make more than your first job paid per hour, or more than the current minimum wage.

[SolidusXParticipant 854]

mind if I ask how do you get into this kind of mentality?

Cause I’m thinking:

okay I’ll throw my money into the S&P which has had a 7% ROI after dividends, inflation, and taxes (that’s 10% before inflation) since basically the beginning of time. Which aligns quite well with the typical 10% ROI of most high-risk investments.

My understanding is that investing in equity with around 10% ROI (only about 2% of which is dividends/cashflow) is that with equity, they just kind of reinvest the remaining 8% of your money back into the company for you. So if you thinking about it technically investing for long-term capital gains is still investing for cashflow.

The problem is I’m always thinking “crap, what if I have to liquidate this?” or “if I’m buying this now, and the price happens to be artificially high then I’ll basically be getting less than 10% ROI) and fall into a capital gains mentality.

And 2% ROI feels kind of s~~~ty.

I know REITs basically are forced to give out 90% of their income in dividends instead of reinvesting it, but the only REIT I would invest in is the vanguard REIT fund, which doesn’t pay out the dividends. (index funds because I don’t want to research stocks)

[/quote]

Ok so here is some advice @riron…. I invest heavily into all kinds of REITs… why you ask? it’s because of people’s needs which go like this: everyone needs to eat, everyone needs a place to live, and everyone needs a place to work. A REIT can fill every one of those needs. For example I invest in REITs that are all in grocery anchored properties (everyone needs to eat), I invest in REITs that only have housing rentals (the need to live), I also invest in REITs that rent business properties like offices (everyone works), lastly I invest in REITs that do it all.

I love REITs because they allow you to own property without the hassle of owning property… I pay no property tax, I don’t have to deal with upkeep and maintenance, or even renters. I carry none of the risks of owning a property but all of the benefits of owning one. REITs also allow you to get in the property game with nothing down and very VERY little in investment compared to owning a home. Lastly you have none of the long term costs like mortgage interest, strata fees, renters trashing your property, and stupid strata fees and rules. On top of not paying stupid extras that give you no value if you stick your REITs in a Tax Free Savings Account (if your canadian) all income generated from the dividends is tax free that you can reinvest back into more shares that pay you more money each month.

Is there a way make myself feel like I’m getting cashflow? I almost want to set up a computer program manages my investment account, that hides the value of my investment account and automatically extracts a random amount between 5-9% from my investment account every year, or 5-9/12% every month, so I can see the “income” and then reinvest it…(and the randomizer would be so I wouldn’t be able to tell the actual amount in my account)

This sounds like what’s called high frequency trading, which can cost millions to set up and is very high risk. I would recommend staying away from this at all costs unless you can afford the start up cost and are comfortable losing it all in seconds. When it come to making yourself feel better that is kind of up to you… remember even though REITs can go up and down in price per share it’s their dividends that matter.

Knowledge is power..... Don't waste your brain on bullshit

[Buller100Participant 2189]

Property in UK has been a winner for 20 years , I liked property as the banks would lend you money to invest at a decent rate, the debt is tax deductible , with rent increases and capital growth it’s a one way ticket.

[kythesisParticipant 17]

I just pump money into low expense ratio index funds in tax advantaged accounts. Lately I’ve been thinking about jumping into the rental game which would mean dropping the amount of cash I pump into the stock market for a while so I can purchase properties. Thanks No, I liked your ideas so much I copied your post for future reference.

[Daryll55Participant 2950]

Nice thread.

I don’t like to say much about investing, especially publicly.
If you really want to know how to invest successfully, all you have to do is find the answer to this one simple riddle:

Why do accountants wear Gold socks?

Marry again, Hell NO ! ( Even JESUS was hung on a cross just once)

[Back in BlackParticipant 1732]

Thanks Royal, Just ordered the book. Will check it out.

"Women are directly adapted to act as the nurses and educators of our early childhood, for the simple reason that they themselves are childish, foolish, and short-sighted—in a word, are big children all their lives, something intermediate between the child and the man, who is a man in the strict sense of the word. Consider how a young girl will toy day after day with a child, dance with it and sing to it; and then consider what a man, with the very best intentions in the world, could do in her place.” Quote from Arthur Shopenhauer, 17th century philosopher

[Dr. HammerParticipant 70]

RoyDal wrote:

Covered Calls and LEAPS — A Wealth Option: A Guide for Generating Extraordinary Monthly Income
by Joseph R. Hooper and Aaron R. Zalewski

That book looks interesting. My son is into this stuff, so I’ll pass it on to him. Does this strategy require a bunch of money to get started?

"Once you start focusing on moving towards something positive instead of away from something negative, you can truly begin to live."

[MarketWatcherParticipant]

RoyDal wrote:

Covered Calls

Careful, those contracts you write may end up being worth something to someone soon. Still better than just buying Calls. IMO

Good topic.

[FrostByteParticipant 19005]

As MGTOW becomes more popular, buy fleshlight stock.

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

[PrincekieParticipant 1042]

Buller100 wrote:

Property in UK has been a winner for 20 years , I liked property as the banks would lend you money to invest at a decent rate, the debt is tax deductible , with rent increases and capital growth it’s a one way ticket.

To some extent I would agree with that synopsis. Thing is that this twenty year bubble (because that’s what it is) has been propped up by cheap and easy credit, combined with various ponzi schemes (help to buy etc) and pushed onwards and upwards by lemming mentality and media bs.

The one thing you can’t beat is demographics. Most people who own property in the UK are over the age of 60. 4 million pensioners live on their own. Birth rates, even with immigration, are nearly at parity with death rates. And nearly a million homes lie empty. Add to that the rise in zero hour contracts, part-time work and so on and I think you get the picture. My prediction is that now the boomer generation is stepping off the mortal coil, and landlords are flooding the market with s~~~box properties, the housing/cattle market will start a downward slide.
There’s only so much money banks can lend out to people who haven’t the means to pay it back. If you lent someone £200,000…would it be feasible to wait 30 years to get it back at 1% interest?!

[743 roadmasterParticipant]

I have been in the stock market for years.
My Mistakes
-Penny or bulletin board stock. Just don’t. It is to easy for a single person to control a given stock. The diamond in the rough is a bigger gamble then putting money down on a roulette table.
-selling in a crisis. In an attempt to save value I have sold in a crisis. This ended up costing me more then penny stocks. Instead of buying at a basement prices sold at them.
-Market timing. The market is never going to do what you think it is all the time. You can get it right from time to time, but not all the time.
-Buying value. Unless your time horizon is 40 years out then buying something like apple is a waste of your time.
-Annuities. Almost every business offers one or more. If you run into a situation you need to use the money the cost of getting it out is painful. Not only do you have penalty for early withdraw, but when the tax man looks at what you have done then you have a nice big ass tax.
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What worked.
-Covered calls. Buy stock that has options contracts.
This is not as easy if you are not willing to put in some time into finding a little about the company. I have done it by just looking at the number of contracts being sold on a given stock. But you are still spending time in front of the computer.
-Dividend stocks. This is easy, you build value and get paid to own a stock. If you are busy with life and do not have the time to put into keeping up with the market on a daily basis this is the kind of investing I would tell you to get into.

mgtow is its own worst enemy- https://www.campusreform.org/

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