Passive income thread

[KeytoFreedom]

anyone care to advice on reits.....are reits prices at risk due to rising interest rates environment especially those with high debt? will you consider investing in reits etfs instead?

 

[RMCWMR]

anyone care to advice on reits.....are reits prices at risk due to rising interest rates environment especially those with high debt? will you consider investing in reits etfs instead?

I thought that is common sense? Reits finance their property via bank loans and when interest rates goes up, that eats into profits which means lesser div to be distributed hence lower div. yield.

 

[havetheveryfun]

anyone care to advice on reits.....are reits prices at risk due to rising interest rates environment especially those with high debt? will you consider investing in reits etfs instead?

thats why you try to find reits with low debt

but it isn't that straightforward, if not you won't be seeing reits still doing so well even when interest rates have been rising for the past 2-3 year

this is because reits are ultimately still a business, and they have the ability to raise rentals or do AEI to justify charging higher rentals and so on. and in a rising interest rate environment, it usually means the economy is doing well (or at least decent), so there will always be willing buyers even when the price is higher, as long as the price is right

 

[revhappy]

How is this?

 

[homer123]

slightly >1mil

Homer123, can help to indicate the vested amount in your table?

Very well done. Mine is about 15k to 18k yearly.

 

[tangent314]

Not exactly
Let me eleborate
As mentioned I am in for long term
1. So most stocks it’s a one time brokerage fee and the I get to hold them for Long time. I buy an average of 3-5k of stocks every week. So 1momth its $120 brokerage fee or so, which is still very acceptable
2. Etf. Take note this investment only pays dividend 2x a year. And it’s yield is perhaps 3% plus minus. That’s not preferable for me, because when I grow old, I would want my portfolio for give me cash at least once a month. Now I simply reinvest it every week or so. One will most likely need to liquidate the etf slowly to meet his expenses. This is not preferable in a down market as it would equate to dollar loss averaging. My overall risk is not too indifferent from that of the etf because of the many counters it’s has, but I am able to do compounding now with the cash flow I get, and use the same cash flow for old age when I need to.

If you purchase $16k worth of IWDA every month with IBKR, brokerage fee is just around about US$10 per month.

With an accumulating ETF like IWDA, dividends are automatically reinvested, so compounding happens automatically.

There is nothing wrong with drawing down from the ETF every month during retirement.

 

[SBC]

slightly >1mil

JSK. Congrats.

 

[limster]

So in reality, and contrary to what you claimed, it is actually more efficient to buy and own the individual stocks yourself than to buy ETF!

In reality, some of those people who push ETFs to others in this forum are also holding dividend shares! There are some here that always make 'recommendation' but never disclose their portfolio.

I and many other investors like dividendwarrior etc prefer to "say what I do" and share what they buy. Other don't share, but say you must "do what I say!"

My view is that there are many ways to invest, no single right answer. If only one right answer, then no need to have a discussion forum already.

 

[Medeline]

Bookmarked for reading.

 

[cook123]

If u notice a lot of companies which pay dividend do so at a certain timing or roughly so
For example Sph 5 n 12, SingTel 1 & 8 steng 5 & 9 sia 8 & 11 and the list goes on. So i don’t buy the stock when it declares dividend cos then the price will usually correct upwards already.
And someone said etf can be liquidated to meet one needs for retirement. Yes, of course, when market is good it can, and when ur etf is millions also can. But for most, 1m might be hard to achieve already. Pple who have gone through the Long periods of recessions when market is being depressed for a prolonged period will be fearful of liquidating their etf. It’s easy to say just liquidate etf for expenses but during prolonged bear periods, it will get fearful. One might even need to rejoin the workforce not by choice

 

[homer123]

No SK.. I am old and going to retire ..many younger forumers here are investing right and doing better than me.
I lost a lot of money between 1990 to 2008 because no investment concept .During that era , most investing forums were for spreading rumor. I lost on Clob, penny stocks, s-share and internet unicorn.. Completely stop investing from 2008 to 2013 after losing too much.. From 2014, I started learning about investment and read financial blogs on passive income . I realized I need to do something about my finance and prepare retirement.

JSK. Congrats.

 

[Maeda_Toshiie]

In reality, some of those people who push ETFs to others in this forum are also holding dividend shares! There are some here that always make 'recommendation' but never disclose their portfolio.

I and many other investors like dividendwarrior etc prefer to "say what I do" and share what they buy. Other don't share, but say you must "do what I say!"

My view is that there are many ways to invest, no single right answer. If only one right answer, then no need to have a discussion forum already.

Two points:

1. For one, Shiny doesn't go round buying a whole bunch of individual shares; most of his portfolio are in ETFs.

2. Stock picking is for those who are financially savvy and have the time to study individual stocks. Most people who come in to ask for advice have neither. It is irresponsible to tell folks on the street who have neither the time nor inclination to learn securities analysis to go pick stocks.

Below clearly illustrates why most people should just buy broad market indices and hold them! Not attempt to pick stocks!!!

No SK.. I am old and going to retire ..many younger forumers here are investing right and doing better than me.
I lost a lot of money between 1990 to 2008 because no investment concept .During that era , most investing forums were for spreading rumor. I lost on Clob, penny stocks, s-share and internet unicorn.. Completely stop investing from 2008 to 2013 after losing too much.. From 2014, I started learning about investment and read financial blogs on passive income . I realized I need to do something about my finance and prepare retirement.

 

[limster]

Two points:

1. For one, Shiny doesn't go round buying a whole bunch of individual shares; most of his portfolio are in ETFs.

2. Stock picking is for those who are financially savvy and have the time to study individual stocks. Most people who come in to ask for advice have neither. It is irresponsible to tell folks on the street who have neither the time nor inclination to learn securities analysis to go pick stocks.

Below clearly illustrates why most people should just buy broad market indices and hold them! Not attempt to pick stocks!!!

1. Thats good, then i'm not referring to him.

2. Even if not financially savvy, I still assume a basic level of intelligence and diligence in investing one's hard-earned savings. If you are basically saying that people who ask for advice have no knowledge, refuses to spend time learning, and who needs to be spoonfed, then Shiny's recommendation also won't work. Opening 2 brokerage accounts (IB and local account) to alternately buy IWDA, ES3, MBH.... is not so simpur.

3. I 100% agree that Shiny's portfolio is a very valid alternative, but not the only way (I don't think he has gone so far as to say that is the only way)...unlike some who attack other ways that people are investing.

 

[existential_reality]

Just on that

1. I don't think limster is referring to Shiny buts its apparent who it is in reference too.

2. Investment of financial instrument investments does not suit everyone, for example those who get too emotional about price fluctuations. Simply pushing advise to buy etf as a buy and forget about it approach to these individuals is also irresponsible.

Two points:

1. For one, Shiny doesn't go round buying a whole bunch of individual shares; most of his portfolio are in ETFs.

2. Stock picking is for those who are financially savvy and have the time to study individual stocks. Most people who come in to ask for advice have neither. It is irresponsible to tell folks on the street who have neither the time nor inclination to learn securities analysis to go pick stocks.

Below clearly illustrates why most people should just buy broad market indices and hold them! Not attempt to pick stocks!!!

 

[limster]

Just on that

1. I don't think limster is referring to Shiny buts its apparent who it is in reference too.

 

[tangent314]

2. Investment of financial instrument investments does not suit everyone, for example those who get too emotional about price fluctuations. Simply pushing advise to buy etf as a buy and forget about it approach to these individuals is also irresponsible.

We have no problem recommending bonds to people that are emotional about price fluctuations. Surely you can't be suggesting that these people should be stock picking?

People here do need to be wary about others that come into here and talk about how they are doing with a stock picking strategy suggesting that others should try it too. We need to stop to consider that there are professionals out there doing that for a living and most of them are not beating the index benchmarks.

 

[existential_reality]

Reading thru the post most times its alot more than bond being offered, in most times its more equity etf being prompted as primary approach almost a sure win (as quoted)

"Below clearly illustrates why most people should just buy broad market indices and hold them! Not attempt to pick stocks!!!"

Awhile ago someone asked about buying property, I offered some advise which was put down and again equity etfs was used as a based comparison on returns etc etc. Honestly if someone asked and seem comfortable around property as an investment is it rationale to put it down and switch to an instrument he may not be comfortable with?

From what I seen those who do stock pickings are sharing their views with their various theories and precaution, I don't see them advocating as it sure win method.

I support what Limster said in post #235 especially points 2 & 3

We have no problem recommending bonds to people that are emotional about price fluctuations. Surely you can't be suggesting that these people should be stock picking?

People here do need to be wary about others that come into here and talk about how they are doing with a stock picking strategy suggesting that others should try it too. We need to stop to consider that there are professionals out there doing that for a living and most of them are not beating the index benchmarks.

 

[Summer78]

Return of 27% over 9years
Means cagr of around 2.7%pa
Means din really make money if factor in inflation

That’s because he starts with a low investment base?

 

[Summer78]

Not exactly
Let me eleborate
As mentioned I am in for long term
1. So most stocks it’s a one time brokerage fee and the I get to hold them for Long time. I buy an average of 3-5k of stocks every week. So 1momth its $120 brokerage fee or so, which is still very acceptable
2. Etf. Take note this investment only pays dividend 2x a year. And it’s yield is perhaps 3% plus minus. That’s not preferable for me, because when I grow old, I would want my portfolio for give me cash at least once a month. Now I simply reinvest it every week or so. One will most likely need to liquidate the etf slowly to meet his expenses. This is not preferable in a down market as it would equate to dollar loss averaging. My overall risk is not too indifferent from that of the etf because of the many counters it’s has, but I am able to do compounding now with the cash flow I get, and use the same cash flow for old age when I need to.

$3-5k per week? That’s $12-$20k per month....

 

[Summer78]

I am going to be 30 this year. Now my savings in Citibank maxigain is giving me $250/mth at 2.5% per annum interest.

Congrats on your $120k spare cash. I dun think I had that much money when I was 30...