Last week I had a super-good appointment with my financial advisor and we decided (after much research over the last several weeks) that it would be good to make a few investment changes; it was my decision but based on research my adviser (in conjunction with my accountant) had done and his suggestions. I did some due diligence and decided I liked the recommendations. I thought I'd share some...not the names of the companies, just (loosely) what they do and why I'm moving into them.
Below are some of where I'll be investing in the short and long term. I have not listed company names, just what they do and why I'm moving into them.
The investments
Infrastructure stock: Gas transmission and distribution infrastructure across Australia. Faces less regulation and high returns from organic expansion that increases existing network suck as the East Coast grid and moving gas from Queensland to other states.
Rail freight: Rail transportation of coal, iron ore and agricultural products. Very stable earnings from long-term contracts and infrastructure assets.
Commercial property: The company focuses on large (huge) format retail properties leased to one of Australia's largest retailers. Very stable and solid capital growth potential.
Securities exchange: Trading, clearing and settlement services, strong regulatory standing and consistent revenue from market activity.
Transport fuel: This company has a majority market share of all transport fuels sold in the country and performs in-house refining meeting 1/3 of its needs. A reliably profitable and fast growing stock.
Mining: A single (global) company mining iron ore, copper and petroleum. Strong cash flow and dividend yield plus solid exposure to global commodity markets.
Data: This company operates data centres across Australia, cloud computing and digital infrastructure and benefits through sharply rising demand for storage and connectivity.
Energy: A major energy company in electricity, gas and renewables, this stock provides income and strong growth opportunities.
Medical: A global player with strong sales around the globe through rising health awareness. (Can't say exactly what as it may give up the identity of the company)
Medical diagnostics: Pathology and radiology company offers defensive earnings with exposure to strong healthcare growth.
Telecommunications: Mobile, broadband and enterprise service company with massive and growing infrastructure and a strong dividend yield.
Various share fund groups: These focus on identifying undervalues companies, diversification across the market cap and an investment process designed to participate in up markets while protecting in down markets.
It's vague and incomplete, my descriptions and reasons, just a few words from the 107 page statement prepared by my financial adviser which was very detailed, specific and clear as to what and why. Each of the above, and some I have not listed above, will have a portion of my total investment and the strategy is reasonably aggressive which means it's growth oriented; I'm willing to accept some risk. It's difficult to make projections but the numbers we discussed are certainly encouraging. Naturally, the situation is evaluated many times a year and adjusted as needed.
I'm also making some changes to insurances like income protection and life insurance which is incredibly costly; we've determined, due to other factors like cash at hand and investment properties, that it's not a value-added spend.
The end game
Total and utter financial independence in 4.5 years; this means, I'll never have to work another day (that I don't want to work) in my life and be able to maintain my current standard of living and them some. It's something that makes me feel very happy to think of and something I've been working towards since I got my first job 42 years ago as a 13 year old. I sometimes can't believe it's on track, it seems quite surreal, but it is on track and the reason is a lot of hard work, discipline, tough decisions, going without and ensuring that I have the right people around me.
I do not factor my crypto holdings into my financial position because magic internet money can be gone as fast as it appeared. Some may remember Hive went to $3.21 in 2021 and now? Well, now it's chump change and almost worthless...but I have a lot of it, and others as well, and at the right time it'll all be sold off...until then I do not count a cent of it as "money". What I do count is the many investments I've made up until this point, all of which have brought me to where I am. It's not always been a smooth road but it's one that's always moved in generally the right direction and I expect more of the same from here on; the numbers are bigger is all.
Tell me about your financial plan, how it has been, how it's going and what you've done to improve it and secure your financial future. Or tell me why you have no financial plan how how you think that's going to work out for you.
Design and create your ideal life, tomorrow isn't promised - galenkp
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Image(s) in this post are my own
Life has kicked me in the testicles too much to say I have a strong financial plan. I have zero hope for US So ial Security. I do have a modest pension from the library, a little gold, a little silver, and a very modest standard of living. Time will tell. Chronic illness makes long-term planning a challenge, and achieving goals even more so.
One of th biggest problems is the rapid change that occurs around our best-laid plans and the "big players" at the top of the food chain who move the goal posts to suit their own needs leaving us to deal with it. I'm not sure it used to be this difficult back a while, but even the most robust plan can come undone easily these days and if there no time to recover then lifestyle suffers.
That sounds like a good mix in your portfolio. Looks as though several might have some pretty juicy dividends?
Yeah, it's designed that way...some juicy juiciness and sustainability. It's this portfolio that'll get me to the places I want to go and Florida is one of those. (You promised me scones so I'm coming to claim them).
Seriously though, the way things are...it's exciting really. I mean, I started working at 13 years of age with nothing but the most vague idea about life and have moved from there, through the fire (literally) and the ups and downs to where I am today. It's good to see the culmination of that work...of only I was in this position at 32 years old. Oh well, I'm still rockin' it...just more slowly. Lol.
Oh yeah, 'if only we knew then what we know now' is a common refrain 😆. So many times I've thought about that. Yep, I'd say you're still rockin' it....as for me, I just sway now, as the rockin' makes me feel like I'm gonna fall 🤣
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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My Financial plan is...
The seat of my pants
The skin of my teeth
Nah... I have everything riding on this agricultural homesteaded tree farm and my life partner. She has a pretty good setup. Let's just hope she keeps me around till the end.
Lol, if my financial adviser looked like that I'd feed him cat biscuits instead of money.
Tracking app has the registered/certified check delivery today. Will be taking to our bank to see if it is legit and await funds to clear. $27k
I will be rolling it into that Lonestar or another Kay-Dubbya. L👀king @ this one right now. My Dodge Dually had a cummins in it. Seemed like a good engine. Both these trucks I am considering have the red engine.
Do you have any knowledge/feedback about Cummins Engines?
https://trucktrailorequipment.com/product/2019-kenworth-w900l-sleeper-truck/
Good looking Kenworth, you'd make it look better from the driver's seat! I've got no real "working" knowledge of the Cummins engine other than that I've never heard a bad word spoken about it and a lot of good words. Strong, tough and durable are things I've heard.
Thank You. What You have heard is what I wanted to hear.
I can tear em apart and put em back together just fine. Reliability is what I do not know. But I have heard the same as You.
I reckon you'll not go wrong with some of your know-how, good and regular maintenance and the occasional spoon of chocolate pudding.
That's what I admire about you, you always think ahead. I see a lot of people following you here, and I really hope they read and are inspired by what you do...
By the way, you're right not to consider cryptocurrencies as money, hahaha, especially right now when the bull season should be here, but it's actually the worst time of the year. I still think this world will remain stable over time... Happy start of the week Dr. Galenkp! 🙏
Sorry, I missed this comment until now.
I'm not sure I'm the right person to follow from an example perspective but I have done a lot of things, made many mistakes and learned along the way which has left me in a good position. It's been a lot of work, physically and mentally (emotionally too) and I think maybe that's one of the most important lessons. Discipline and effort.
Precisely what you say is what I find an example to follow; at least you inspire me greatly. Thanks for the feedback Galenkp 🙏
It is good to see someone prioritizing investments not crypto related. The diversified portfolio is also good for minimizing risk
I started a series on hive here on turning hive rewards into real life investments (mutual funds and stocks).
However, my main plan hinges on my recycling factory and scaling it up to national standard. That can retire me within years if everything goes to plan
I hold a reasonable amount of crypto and I'm ok with that, but making it a central anchor of my financial plan seems fraught with danger and I've always been an advocate of diversification. People make comments about Hive being their vehicle to retirement and I can't help but to think that's crazy...it's as crazy as living off it day to day now rather than stockpiling for the future.
Anyway, good luck with your business plans and process, hopefully your hard work is repaid.
Thank you. I hope the hard work is repaid too.
I have no financial plan because euthanasia is cheap and accessible. :)
Don't worry about cheap, come hunting with me and it'll be free.
Two go out, one comes back.
I'll just stand well clear of your hobby aeroplanes. :p
I have my financial plans. How much of the advisor's hundred odd pages were legalese? I think I'd personally go a mix of VDHG exchange traded funds, some REITs, and keep enough balance in cash to ensure after tax expenses were covered and the rest would just be cream.
It was a very legit document actually, comprehensive and thorough. I've not said much in this post of course, just a few basics in respect of one part of my plan which is fairly diverse.
I don't believe you have no plans but if you actually do not...well, that's one way to go.
I do have plans, I just won't be sharing the details publicly. :)
If all goes well, I only need another 5-10 years of work, too. :)
At this point Hive is my financial plan. I believe that I will either sail this ship to the moon or sink with it to the bottom. In first case that is great. In second case I hope that I will still be able to afford a rope...😛
In the future I may save up and buy a camera. Maybe that would improve the quality of my content. I also buy Hive when I can. It seems that I will likely be able to reach even my crazy HP goal this year-20k. But I will fail to reach my HBD goal that was 2k. Now I have 1164. Maybe next year I will invest more in HBD and less in HP...
Hive isn't much of a financial plan mate, you need to find something more solid.
You are right. It is a bit better than lottery ticket but still hardly a plan. Too much outside influence.
Not much better than a lottery ticket, just a bit.
Well, your investment plan sounds impressive, and long term investing is way better than the short term. Financial Independence in half a decade is a good idea and I hope your plan works out well and you hit this target.
From that point you can push forward to becoming a multimillionaire or even a billionaire, I mean planning the kind of financial elevation that would make it possible for your kids and grandkids to be financially settled, and not go through the financial hassles you went through. Keep going, you'll definitely achieve. Remember to plan for contingencies also.
I'll never be a billionaire but I'll have a comfortable lifestyle that affords me the opportunity to have hobbies, travel a lot and continue the standard of living/income I have now which is enough for me and my partner.
I've put a lot of effort into it for my entire life all with the intention of going into the last stages of it in a comfortable position. I'll die eventually, but not before I've lived an intentional life.
Your moves sound solid and diversified. Though relying on stocks for retirement income sounds a bit more risky than the traditional fixed income investments such as bonds and CDs...
My investments are mostly stocks and real estate. The basis of my retirement is my defined benefit pension which will provide over 70% of my final average salary at 62. I have stocks in my 401K on top of that and a bunch of debt free real estate.
I also don't count my crypto investments as anything. Despite a solid position in Bitcoin, Etherium and other cryptos.
It sounds like you have a solid plan, much better than some I know.
My stuff here...it's the interwebs so I've not gone to any great detail on purpose... suffice it to say, I'm pleasingly diversified.
Lot of varieties in investments I see, I can't agree more on the mining and energy, with ai and such energy will be so needed, so rare earths
... Then I know it's not really etic but surely with the international tensions investments on arm companies will probably pay off... I don't have investments around, priority is to buy a house so I can't put money here and there or risk stuff, beside some sport trading and hive I got nothing else
I think the big take away is the importance of having a strategy and if that involves property then that's not a bad thing, I have a few myself and it's worked really well.
That always, I'm a heavy planner as you might have guessed by now
By the way, did you like the prank post? 😄
I've been flat out this weekend and haven't had a chance to respond to that post if yours, I will though. Yes, I liked it.
Then it was a good weekend! I'm glad you liked it, whenever you can
That mining move might be a good deal for you if whatever the agreement is between the US and Australia is accurate and actually happens. I always take my advisors recommendations with a grain of salt. I know he is in the space and likely knows a bit more than me, but I also know he likely gets commissions based on recommendations, so I always do my due diligence and research what he is suggesting before I make the move. I have a feeling before too long he is going to be reaching out to me to see if I want to start diversifying in a new direction. That's usually what happens when I get to a certain point with one of my funds. I feel the same way about my crypto holdings as you do.
The scope of this countries' mining operations don't rely solely on America so I think it's a solid move and one that has proven to be lucrative for many, many years.
If you are not certain your adviser knows more than you it's time to find one who does. Also, as for the commission's, mine is set up differently, it's law, so that's not a situation we have to navigate. I've always worked on the rule of thumb that if there's doubt about the adviser then find one that removes that doubt; too much rides on having the wrong one opposed to the right one.
That's cool that you guys don't have commissions like that. I wish we had laws like that here. My brother in law is an accountant with a very successful firm and I usually run most of my investment stuff by him. I actually think he and I share a lot of similar investments despite being through different places. Actually, I think he works with a guy who has a minimum amount you need to have invested and I don't meet that requirement.
Markets have been pretty good this year and for that I am thankful surely. Of course, volatility works both ways, for but now, my preferred style is to stay diversified across different assets. I have a mixture of individual companies for my own interest but I also have some index ETFs which are more passive.
Diversified investment strategies are preferable and safer which is why I've always not just diversified on the markets but also across metals, property, art, bonds and other things...vehicles on occasions too. The worst investment plan is having no plan or going all-in on one thing.
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STOPJusto estaba pensando en diversificar mis Hive Tokens más allá de las recompensas de blogging. Suena a que tuviste una experiencia super productiva con tu asesor.
A nosotros los de la blockchain esto de investigar antes de invertir nos suena mucho ¿verdad? ¡Nunca hay que meterse en un pool de liquidez sin leer la documentación primero!
¿Estás mirando empresas que son como los "nodos validadores" de ese ecosistema? Es decir, las que proveen la infraestructura básica que todos necesitan, sin apostar por una aplicación específica que pueda quedar obsoleta.
Si no es mucha molestia y sin dar nombres, ¿tu asesor te habló de cómo equilibrar ese tipo de inversiones "tradicionales" con assets más... digamos... descentralizados como los que conocemos aquí?
¡Un saludo y gracias por compartir tu experiencia! Es inspirador para los que estamos llegando.
I don't read or speak Spanish which is why this post is written in English.