Are those all Australian based companies? I have some German companies in my portfolio because I don't pay an extra tax on the dividends from them. Does something similar exist in Australia?
I have my passive income-investments split 3 ways at the moment.
40% in local cooperativas/saving banks, making between 9 and 12% interest per year (as secure as a cooperativa in Ecuador can be...)
30% in the construction firm of a friend, paying me 20% per year.
30% in stocks in Germany, mostly growth and/or value, very little dividend until now.
I don't count the bakery as a passive income yet, since I'm still actively involved and doing quite a few things, though I wouldn't have to. If I counted it, that would be 50% of my investment, and the rest would be 20/15/15; and the interest is between 20 and 25% (that's the net profit margin).
Years ago, I calculated the minimum I would need to survive (no luxuries at all, not even beer) and keep Lily in school, insurance, and all she needs. That was $600 passive income, and I reached that a couple of years ago - not counting the bakery.
The stocks in Germany are saving up for Lily to be able to study there if she decides to do so. When I studied, it costs my mom around 25k over a lapse of 4 years, and costs have gone up a lot since then. I think I'll need at least 70k, due in around 12 years. A long way to go still, but I'm confident that my strategy will pan out that way - and maybe in 12 years my bigger holdings will pay nice dividends, so I don't even have to sell stocks.
So far my financial plan which is working out really good. During this crisis, it was the first time that I did not worry about money at all. I up fronted wages, helped with loans, and yet not once was I scared that I might not have enough. That felt really good.
Some of them are Australian and some not and there's reasons for the split, benefits as you say. I'm not sure if it's a tax saving though, probably not as income is income no matter where it's from and I live in Australia so all incomes are taxable, including crypto.
I like the sound of your portfolio and how thought out is is, well done. It's important to know what's enough and what's insufficient which helps the plan come together initially and to work longer term. I think you're positioned pretty well.
Thank you, I hope so! I still got a few more years left to make up for mistakes. Yours sound like your almost there, so close that you can already feel it. It's one great example that shows that you really execute what you preach: discipline, responsibility, forward thinking, commitment and so on. And that it's possible to have quite a bit of fun on the way. Hopefully it inspired many to follow that path, and not to chase fast fortune the easy way!
Just had a conversation yesterday with one of my boys. He makes really good money, but somehow spends it all all the time. And he's always longing to be able to do one of those great investments that everyone in his home country, Venezuela, talks about. The lotto-style schemes where people can win a car, but those who sell the tickets make the real money. Or that farm he could buy so cheaply and would produce the same amount in a year! I told him so many times to start saving, to make goals. He's immune to it. And he's a good friend, so it hurts me somewhat. But he decided his path.
I've always worked towards a goal and with a strong work ethic (discipline) have sought and attained gradual and sustained growth which leaves me where I am today, within sight of the end goal. You mention fun along the way and it's been exactly that. I have balanced it out (I think) quite well and have had a pretty good life so far.
As for that chap you mention...some need to learn the hard way and a lot of the time many people never learn. Then, it's those people who look at someone like me who has toiled for an entire lifetime to have financial freedom and feel jealousy. I have a post today coming out called, no fucks given and that's how I feel about lazy people and the situation they place themselves in. I don't give a fuck about their plight...the situations that they put themselves in due to lack of discipline and effort.
People receive commensurate to the efforts they put in. So, I'm sure your buddy will find out sooner or later, one way or another.
Same here. I don't think at all that I have more than I deserve, in monetary wealth. One day I'll inherit a house, and that's something I'm not sure I deserve - I haven't worked for it. But it'll be a comfort, and sometimes that's okay, too. And more importantly: My parents worked for it. Quite hard. And it's theirs to give away and do what they want, just as it is with mine. I guess that's the best argument I have. They want me to have that comfort. Maybe it doesn't have to be deserved.
Anyway. I agree with you about my chap, too. It's till hard to see. Maybe he'll learn some day, I hope so. But I can't help him anymore, all I can do is let it go. Thanks for taking the time for a long reply!
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