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51691969 No.51691969 [Reply] [Original]

>invest all money in index funds
>live off 4% interest for the rest of my life

Nobody told me investing was this easy, I have been asking random boomers about this strategy and many of them don't even know.

All I did to acquire this information was read a book.

It's incredible how nobody knows anything about investing.

>> No.51692015

>>51691969
>market drops 50%
>panic sell
>winning at life

>> No.51692036

>>51692015
Just don't panic sell bro, the market always goes up, and if it doesn't always go up whatever investment you hold is probably fucked anyways.

>> No.51692037

you're losing 5% a year to inflation

>> No.51692064

>>51692037
only 2% right?

>> No.51692066

>>51691969
>price drops 25%
>but but muh 4% annual divvies

>> No.51692080

>>51692066
I can still take out 4% every year, the same amount, adjusted for inflation, and my index fund will stay around till I'm dead.

>> No.51692189

>read a book
chuds on this website want to burn books, not read them, and think free capital markets are a jewish trick, as such there was no point in making this thread

>> No.51692211

Did you really think Bogleheads were lying? There's a reason high income people follow the simple 3 fund approach instead of chasing moon shots and penny stocks and are able to retire by middle age.

>> No.51692253

>>51692211
tell that to japan

>> No.51692313

>>51692253
In another thread I saw that even if you did an index fund in Japan you would have at least beat inflation. Not sure if true.

>> No.51692332

>>51692211
I had no idea what a "Boglehead" was until a few days ago.

>> No.51692333

>>51691969
Not everyone lives with their parents and eats nothing but rice and bugs every day

>> No.51692408

>>51692333
But that's not how this works. You don't even need to eat rice and bugs to build a good index fund portfolio.

>> No.51693181

>>51692313
Many Japan funds like EWJ and VPL pay a decent dividend and even kept up with inflation until recently. A person could easily live off the dividends forever without selling the shares.

>> No.51693234

People used to post about this here all the time before the board got overrun by off-topic froggots

>> No.51693398

>>51692211
they used to call it
>grandpa returns

>> No.51693507

>>51692408
But you’re still going to eat the bugs.

>> No.51693522

>>51692080
Tell it to Japan.

>> No.51693543

>>51691969
>4% interest
lol boomer math for youre not getting dividends but I'm sure this stock price based on memes alone will go up forever in value

>> No.51693682

>>51693522
Japan has almost no inflation tho. Prices only started going up recently and only by a little. A person with US earnings can live like a king in Japan if they can get in.

>> No.51693783

>>51691969
>interest
Do u mean dividends? Which index pays 4%

>> No.51693818

>>51693783
Not OP but you can get around 10% yield from covered call dividend etfs like JEPI

>> No.51693882

>>51691969
>invest 5k in index funds in march
>down 20%
fuck this shit

>> No.51693937
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51693937

>>51693882
>fuck this shit
>no vision of the long game
>ngmi

>> No.51693939

>>51691969
>living off of 4% interest
>doesnt reinvest
either you have the minimum of $2mil invested or youre an idiot.
the fact that youre not reinvesting, my bet is youre an idiot.

>> No.51693978
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51693978

>>51691969
>Could make average SPX performance with 80% less capital every year regardless of SPX direction via premium selling.
>Uses boomer dividend tactics to devalue his portfolio and pay taxes on gains he didn't want to realize.
ok buddy retard

>> No.51693992

The real financial redpill is that every conventional investment is a scam, so you might as well go balls to the wall and YOLO into crypto for the highest possible reward, because as it is the system is going to stagnate or fall apart and the "guaranteed" gains of boomer investments like index funs are going to evaporate, in real terms if not nominally.

>> No.51694029

>>51693992
>system is going to fail
>wants crypto to go up so he can cash out for USD
Hmmm.

>> No.51694092

>>51691969
Do you have a greentext regarding how you invest to index funds and how you receive your money? I have $100k I want to park somewhere safe but I don't know how index funds pay you dividends monthly like that. Do I need a special bank account?

>> No.51694116

>>51694092
Dividends are paid to your brokerage cash in your brokerage account.
Dividends are fucking retarded because those dividends HAVE to come from the underlying's price.
You also have to pay taxes on them.
There are dividend-free variants of major index funds.
Do your research else you deserve to lose your 100k.

>> No.51694127

>>51693939
I haven't started withdrawing anything yet as I'm not in retirement yet, retard.

>> No.51694156

>>51694092
Nigga can't you read ? They fucking telling how to do it IN THE THREAD
>https://www.bogleheads.org/wiki/Lazy_portfolios
>youtube
Give me your fucking 100k you dont know what you doing. How these people stay have money YET IM FUCKING BROKE

>> No.51694192

>>51694156
This page doesn't say anything and just lists numbers and figures like I'm already an economic expert. I was asking for a 101 beginner type kind of guide.

>> No.51694211

>>51694192
>Buy this at % allocation.
>Buy that at % allocation.
You are unironically too retarded to own 100k.
The market deserves your money not you.

>> No.51694481

>>51694211
Whats the make it stack for index funds

>> No.51694545

>>51692253
>What are dividends
>What is global diversification

A situation like Nikkei 225 isn't that bad unless that's the only fund you have and you threw everything in at the top.

>> No.51694560

>>51694029
>wants crypto to go up so he can cash out for USD
Not really. It's more that you guarantee mediocre returns if you go straight boomer. The economy has evolved and you need to take on more rich if you want to make it.

>> No.51694580

>>51694481
For me, 2.5M. 4% puts me at 100k which I can live comfortably on. And the 4% rule is extremely converservative if you're able to make any money at all during an economic downturn.

Just wagecuck for a year or two during a recession and your principal has no risk of depleting.

>> No.51694704

>>51691969
It occasionally comes up, people referring to the Trinity study, FIRE (financial independence, retire early) and all that.

Seemed to be a pretty good plan pre-pandemic.
Now though with the looming recession, everything inflating, all other currencies that aren't called USD imploding, etc.
The "proven safe strategies" don't seem as safe anymore.

IMO this is the worst time period to invest if you are planning to go for the Trinity Study 4% SWR (safe withdrawal rate). I'd wait it out, but there doesn't even seem to be a safe place to park your net worth. Everything is in a "bubble" supposedly.

>> No.51695297

>>51691969
investing is easy, just find the cheapest or newest dextool shit, throw money at it and then wait a few weeks for it to give you a profit
crybabies are the only ones who make it complicated

>> No.51697480

>>51694580
What about inflation? We're running at maybe 10% in real terms right now. You'd be at -6% a year.

>> No.51697533

>>51693783
Pretty much every, burger ones like JEPI even 7% on average

>> No.51697577

>>51694704
A recession is the best time to invest long term, everything is down and will be back up eventually

>> No.51699065

>>51697577
True, but this one isn't as clear cut.
People are even denying whether there's a recession or not, or if one is coming or not.
Unlike 2008 where everything had a grand and quick crash, and people supposedly were able to identify the bottom. While this has been a slow grind with no end in sight.

>> No.51699077

>>51692037
2% inflation is included in the 4% rule.
Our current inflation rates obviously not kek

>> No.51701024

>>51694704
What else do I do with my money for the time being to beat inflation?

>> No.51701513
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51701513

>>51691969
>All I did to acquire this information was read a book.
Ha neeerrd I got all this info from a YouTube video

>> No.51701654

>>51693937
Adhd ridden zoomers literally cannot comprehend the future.

>> No.51701699

>>51691969
Invest in AGNC and make 14%

>> No.51701797

>>51694580
>he needs 100 k$/a to live comfortably
Good goy. You should be able to live on 20 k$/a. https://www.bls.gov/cex/tables.htm

>> No.51701813
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51701813

>> No.51701846
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51701846

>>51691969
>Inflation is up 10%
>He makes 4%
>In 2 years he has lost 50% of his purchasing power
>Boomer still thinks he's made it

>> No.51701858

>>51692211
that reason being
>they were born in the 50s or 60s and profited from once-in-a-lifetime economic opportunities before the window closed
no rational experiment extrapolates from sample size of 1
the mistake most investors make is they use "years" as n, whereas it should be "human life". the one-time performance of the previous generation has no bearing on the next generation, unfortunately

>> No.51701868

>>51691969
enjoy waging for 10+ yrs

>> No.51701897

>>51701846
The plan is to WITHDRAW 4 percent of your portfolio every year. Actual growth is more than inflation plus 4 percent in the long term.
https://www.bogleheads.org/wiki/Trinity_study_update

>> No.51701901
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51701901

>>51701654
>Adhd ridden zoomers literally cannot comprehend the future.

>> No.51701925
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51701925

>>51701901
>>51701654

They’ll make us kneel for saint Floyd to get the loaf of bread

>> No.51701935

>>51693522
>>51692253
different system

>no inflation & divvies in japan

also obviously money chases the best returns, thats why S&P500 has done so well

>> No.51701942

>>51701897
Tell me when you find an index fund spitting out >14% yield reliably every year anon

>> No.51701972

>>51701942
>in the long term

>> No.51702079

>>51693234
>before the board got overrun by off-topic froggots
You mean pajeets, shills, and bots

>> No.51702496

>>51693992
Best post itt. If you're not all-in Bitcoin you're not going to make it, guys. Do your reading.

>> No.51703394

>>51699065
>Unlike 2008
this feels a lot like 2008 to me. coping bulls and all

>> No.51703814

If you wanted dividends, you missed the boat by generations
https://investor.pgecorp.com/shareholders/dividend-information/default.aspx