Brian811 questions thread.

[alexchia01]

This is not correct, at least not as a generalization.

York Water Company (symbol YORW on the New York Stock Exchange) has been paying dividends to its stockholders every year, without fail, since 1816. If you want a bigger name, ExxonMobil (symbol XOM) has been paying dividends every year since 1882, when it was known as Standard Oil. And I'm just barely scratching the surface. There are lots of stocks with 100+ years continuous dividend payments.

REITs, at least the modern ones, were only born in 1960 in the United States. (Thank you, President Eisenhower.) Singapore wasn't a separate country in 1960, but Singapore later adopted roughly similar legal constructions.

There. Is. NOTHING. Magical. About. Real. Estate. It's just another sector.

Everyone has their own investment style.

You like stocks, so you invest in stocks.

I like REITs, so I invest in REITs.

There is no right or wrong, as long as you make make money.

So what if a company pay dividend for 100 years. This does not make it better.

So what if REITs are new. This does not mean its bad.

The market is vast and full of different opinions. This is what makes it great.

If everyone has the same ideal, who can make money?

Be open minded friend.

 

[BBCWatcher]

You like stocks, so you invest in stocks.

Yes....

I like REITs, so I invest in REITs.

....And those too!

There is nothing magical about real estate. It's just another sector.

Do you eat hamburgers exclusively -- only hamburgers, every meal? I don't.

 

[Shiny Things]

Hihi just asking dividends from stocks and REITs vs vivowealth which pay a lifetime income which is more stable please?

It's a tradeoff. Endowment plans give lower returns, but more stable; stocks give the highest returns, but with less stability in the price; REITs are somewhere in the middle.

NTUC Vivowealth only guarantees about a 1.5% yield (the higher numbers it touts are "non-guaranteed), and you have to wait five years for it to kick in.

ExxonMobil stock yields nearly 4%, plus you get capital growth, but the dividend isn't guaranteed, and you might lose money on the stock (but over a very long period, 20-30 years, you're very unlikely to lose money unless XOM goes bankrupt).

 

[Brian811]

Hihi shiny things so you mean one single can really survive on 200K reits portfolio if live frugally?

 

[wealth_farmer]

That’s not a fair question because frugality is defined differently by different people. Let’s talk numbers instead.

Assume a yield of 10% on your 200k REITs portfolio (which I think is too generous), can you live on 20k if dividends a year, or SGD 1,666 a month. Can you survive on that?

On the other end of the scale, let’s assume 6% dividend yield (personally I wouldn’t plonk money down on REITs for yields less than this), on 200k portfolio, that would be 12k of dividends annually, or SGD 1k per month. Can you live frugally on SGD 1k per month?

Note that your portfolio would not stay at 200k constantly so those theoretical values would fluctuate too.

Hihi shiny things so you mean one single can really survive on 200K reits portfolio if live frugally?

 

[havetheveryfun]

Hihi shiny things so you mean one single can really survive on 200K reits portfolio if live frugally?

u know the ans bro, u already surviving on 300k+ portfolio

 

[alexchia01]

Yes....


....And those too!

There is nothing magical about real estate. It's just another sector.

Do you eat hamburgers exclusively -- only hamburgers, every meal? I don't.

Nobody said anything magical about real estate.

 

[Dividends Warrior]

There is nothing magical about real estate. It's just another sector.

I don't need real estate to be magical. I just need them to be stable. More specifically, I need them to provide stable, boring rental income. I don't ask for much.

Building my 'landlord portfolio' of malls, offices, hospitals, nursing homes, warehouses, distribution hubs & data centres.

 

[Dividends Warrior]

Hihi shiny things so you mean one single can really survive on 200K reits portfolio if live frugally?

Allow me to let you in on a secret - it is never enough.

When I reached a $100k portfolio, I told myself $200k would be enough. After I achieved a $200k portfolio, I convinced myself $300k would be definitely enough. When I finally arrived at $300k, I persuaded myself to push for $400k.

Now, my portfolio has just crossed the $400k mark. Guess what? It is still not enough! Hahaha!

 

[fr33d0m]

Hihi shiny things so you mean one single can really survive on 200K reits portfolio if live frugally?

Absolutely not.

REITs are a depreciating class of assets, e.g. its NAV decreases after every payout, at least in Singapore as they pay more than what they earn.

Part of the return from REIT is return of the capital, the actual return on capital is lower than the yield.

So unless you live in a world of deflation for the next 50 years, you have no way of living off a 200K REIT portfolio.

 

[Eternit]

I don't need real estate to be magical. I just need them to be stable. More specifically, I need them to provide stable, boring rental income. I don't ask for much.

Building my 'landlord portfolio' of malls, offices, hospitals, nursing homes, warehouses, distribution hubs & data centres.

Wow impressive. DW any suggestions for a newbie like me who just starting out. Only a student now can put in around 5K... Currently only have some STI ETF and ABF bonds.

 

[Perisher]

I don't need real estate to be magical. I just need them to be stable. More specifically, I need them to provide stable, boring rental income. I don't ask for much.

Building my 'landlord portfolio' of malls, offices, hospitals, nursing homes, warehouses, distribution hubs & data centres.

JSK portfolio, all 400k in stocks?

 

[Wood41]

Lol
Look at the magic with gain for enbloc.
Many become multimillionaires .

 

[Shiny Things]

Hihi shiny things so you mean one single can really survive on 200K reits portfolio if live frugally?

lol nope

No matter what you invest in, a safe withdrawal rate from a $200k portfolio is about $6k a year.

 

[Brian811]

Wow impressive. DW any suggestions for a newbie like me who just starting out. Only a student now can put in around 5K... Currently only have some STI ETF and ABF bonds.

Hihi Dividend warrior you dont scared the market will crash and all reits fall to zero?

 

[wealth_farmer]

Wow 6k annually. I was being waaaay too optimistic

lol nope

No matter what you invest in, a safe withdrawal rate from a $200k portfolio is about $6k a year.

 

[Dividends Warrior]

JSK portfolio, all 400k in stocks?

$400k in stocks.
A couple of 99.9 gold coins.
3% cash warchest.

 

[Brian811]

$400k in stocks.
A couple of 99.9 gold coins.
3% cash warchest.

Hihi Dividend Warrior may i know why dont you buy an annuity please?

 

[Dividends Warrior]

Hihi Dividend warrior you dont scared the market will crash and all reits fall to zero?

Buy not scared.

Scared not buy.

 

[Dividends Warrior]

Wow impressive. DW any suggestions for a newbie like me who just starting out. Only a student now can put in around 5K... Currently only have some STI ETF and ABF bonds.

A student with $5k who already vested in STI etf? I would suggest continue to DCA on STI etf until you graduate and find a job with stable pay.