Retirement criteria

[Konebhar6]

Now in, 11 yrs, you have close to 700k which based on above theory, you can retire. 

$3000/month, $36000/ Yr, $720,000 for 20 yrs.

[Konebhar6]

Conclusion: Now, if you look at this, your investment itself is $374K. It will double in 10 yrs. A lot of you might say its not great returns after 10 yrs. But you are not investing all 374k at once. Its growing each yr. 

Its easy to sit in front of the desk and think, I should have invested in META at 84 a few months back. If I bought 2000 stocks ($168K), its worth over 600K now. I could retire in a year. But in reality when we had the situation, not many of us would do that. Coz 84K is a lot of money. 

This model works coz you wont feel that much pain to invest @2000 every month. Instead of stocks, you can pick index funds or MF's as well.

[Konebhar6]

2nd Investment which is what I started this thread for ... Monthly Income plan. How to get to $10,000/Month alternate income. Details to follow

[Konebhar6]

Summary Investment Idea 1 - Drop by Drop Makes an ocean 

A few years back, in a casual get together, a friend made a comment. He has ESPP and RSU and the company stock price was $150-200 at that time. He had Qty more than 500 at that time as he never sold his holdings. 

His plan was to not sell stock under $1000 and move to India. He will sell 3 stocks a month meaning $3000/month to cover expenses. He would need to sell 36 stocks/yr, 360 for 10 yrs and 720 stocks for 20 yrs. He has savings, 401k to cover other stuff. We all had a hearty laugh until that stock hit 820 during covid.   

This kept me thinking, it's a good strategy. Point is to get to 700 qty of a stock with a price > $1000 when you want to retire. 

NOTE: If you get ESPP & RSUs and are confident in the company prospects, do not sell it and follow the above theory. Most companies grow multi fold over years. So unless the money is needed or you are not confident of company prospects, keep them. 

 

Here's how to get to 700 stocks & $1000/stock. I am assuming a person or a family makes 180k/yr including bonus

Salary+bonus = $180,000

401k         = -$20,000

Taxes        = -$50,000

Mortgage+Tax = -$48,000

Expenses     = -$36,000

You are left with $26,000.

Let's assume you can invest $2000/month. $24,000/yr and increase the amount by $2000 every year. To make simple calculations, I have selected 2 stocks - 

• ISRG (Pioneer in its space. No competitors. Steady growth) 

• SnowFlake (Good technology, growth stock, I believe its best years are ahead of us). 

You can replace these two with any other stocks you may like - MSFT, AMZN, AAPL, JNJ, Disney, Meta, etc. Go with frontline stocks with steady growth. Also it's a good idea to diversify - Pick a stock from diff sectors. Do not have more than 5 stocks overall. 

 

I am considering monthly SIP meaning you will buy these stocks every month.

Qty =Investment/Average purchase Price

Average Purchase Price - Average of all monthly purchases. 

Stock Symbol	Year	Ave Pur Price	Investment Amt	Qty
ISRG	2023	300	12000	40
ISRG	2024	325	13000	40
ISRG	2025	350	14000	40
ISRG	2026	400	15000	37.5
ISRG	2027	450	16000	35.56
ISRG	2028	550	17000	30.91
ISRG	2029	600	18000	30
ISRG	2030	500	19000	38
ISRG	2031	700	20000	28.57
ISRG	2032	750	21000	28
ISRG	2033	800	22000	27.5
		TOTAL	187000	376.04

Assuming the price of ISRG to be 800 at the end of year 11, your investment is worth - $300,832.

 

Stock Symbol	Year	Ave Pur Price	Investment Amt	Qty
SNOW	2023	150	12000	80
SNOW	2024	175	13000	74.29
SNOW	2025	200	14000	70
SNOW	2026	250	15000	60
SNOW	2027	300	16000	53.33
SNOW	2028	400	17000	42.5
SNOW	2029	300	18000	60
SNOW	2030	475	19000	40
SNOW	2031	500	20000	40
SNOW	2032	550	21000	38.18
SNOW	2033	600	22000	36.67
		TOTAL	187000	594.97

 

Assuming the price of SNOW at 600, your investment is worth - $356,982.

 

Now in 11 yrs, you have close to 700k which based on above theory, you can retire. 

$3000/month, $36000/ Yr, $720,000 for 20 yrs.

Conclusion: Now, if you look at this, your investment itself is $374K. It will double in 10 yrs. A lot of you might say its not great returns after 10 yrs. But you are not investing all 374k at once. It's growing each year. 

It's easy to sit in front of the desk and think, I should have invested in META at 84 a few months back. If I bought 2000 stocks ($168K), it's worth over 600K now. I could retire in a year. But in reality when we had the situation, not many of us would do that. Coz 84K is a lot of money. 

This model works coz you wont feel that much pain to invest @2000 every month. Instead of stocks, you can pick index funds or MF's as well.

[Konebhar6]

@SaradaChinnodu @Thokkalee @Galactus @beerboy17 @LungiLingaraju @HugoStrange

Investment Idea 2: Monthly Income plan

Criteria to consider for fund selection
- Diversify (REITs, Income funds, MFs based on S&P/NASDAQ, etc)
- Fund value should also increase along with monthly/quarterly divident payout. Of course based on market conditions. They should move up/down with market or whatever influences them.
- Increased dividend payouts over years (small blips here n there OK.)
- Good monthly/quarterly dividend

Working on details. Will post soon. 

 

[Konebhar6]

Fund/Stock	Name	Curr Price	Investment	Qty	Div/month	Income/Mo
PDI	PIMCO Dynamic Income Fund	19.37	50000	2581.31	0.221	570.47
GOF	Guggenheim Strategic Opportunities Fund	15.95	50000	3134.8	0.182	570.53
BSTZ	BlackRock Science & Technology Term Trust	18.36	25000	1361.66	0.169	230.12
JEPQ	JPMorgan Nasdaq Equity Premium Income ETF	48.34	25000	517.17	0.4355	225.23
JEPI	JPMorgan Equity Premium Income ETF	55.13	15000	272.08	0.455	123.8
BST	BlackRock Science & Technology Trust	33.91	15000	442.35	0.25	110.59
MO	Altria Group Inc	44	10000	227.27	0.31	70.45
VZ	Verizon Communications Inc.	32.62	10000	306.56	0.22	67.44
			200000			1968.63

[Konebhar6]

You can play around with this portfolio the way you like. Basically it takes $200K to get @2000/month income. It might sound a lot but start making monthly investments and keep increasing your portfolio.

I am yet to look into good REITs. Will post here if I find any good ones. 

FYI - I am invested in all of these. This is not a financial advice. Do your own research. 

[Konebhar6]

I have looked at UNIT, QYLD, RYLD, XYLD - Not good. 

 

[Konebhar6]

Everyone pls post any of the good MF's you are invested in. It would help others make investment decisions.

[ilakatamaflia]

Ful time unnavallaki 401k ivnstment idea bagane undhi , but maa boti jannalki em cheyyali bro , contracting lo unnvalau em cheyali mari ? Shed some ligt know ..

 
401k emo free money match undhi from emplyer , i guess tax free if u wthdraw aftrr 65 sumtihing..

IRA laa max 6500 anukuntaa gaa, itla aite vere invstmneta kaani MF dentlo pettina tax dobbatti li gaa mari .. 

plse advise

 

[Thokkalee]

27 minutes ago, ilakatamaflia said:

Ful time unnavallaki 401k ivnstment idea bagane undhi , but maa boti jannalki em cheyyali bro , contracting lo unnvalau em cheyali mari ? Shed some ligt know ..

 
401k emo free money match undhi from emplyer , i guess tax free if u wthdraw aftrr 65 sumtihing..

IRA laa max 6500 anukuntaa gaa, itla aite vere invstmneta kaani MF dentlo pettina tax dobbatti li gaa mari .. 

plse advise

Ask your employer to setup 401k even if they don’t do any match.. it is not difficult to setup a 401k… 

If you are self employed, there are options to setup 401k.. 

[Thokkalee]

On 8/3/2023 at 4:00 PM, Konebhar6 said:

Summary Investment Idea 1 - Drop by Drop Makes an ocean 

A few years back, in a casual get together, a friend made a comment. He has ESPP and RSU and the company stock price was $150-200 at that time. He had Qty more than 500 at that time as he never sold his holdings. 

His plan was to not sell stock under $1000 and move to India. He will sell 3 stocks a month meaning $3000/month to cover expenses. He would need to sell 36 stocks/yr, 360 for 10 yrs and 720 stocks for 20 yrs. He has savings, 401k to cover other stuff. We all had a hearty laugh until that stock hit 820 during covid.   

This kept me thinking, it's a good strategy. Point is to get to 700 qty of a stock with a price > $1000 when you want to retire. 

NOTE: If you get ESPP & RSUs and are confident in the company prospects, do not sell it and follow the above theory. Most companies grow multi fold over years. So unless the money is needed or you are not confident of company prospects, keep them. 

 

Here's how to get to 700 stocks & $1000/stock. I am assuming a person or a family makes 180k/yr including bonus

Salary+bonus = $180,000

401k         = -$20,000

Taxes        = -$50,000

Mortgage+Tax = -$48,000

Expenses     = -$36,000

You are left with $26,000.

Let's assume you can invest $2000/month. $24,000/yr and increase the amount by $2000 every year. To make simple calculations, I have selected 2 stocks - 

• ISRG (Pioneer in its space. No competitors. Steady growth) 

• SnowFlake (Good technology, growth stock, I believe its best years are ahead of us). 

You can replace these two with any other stocks you may like - MSFT, AMZN, AAPL, JNJ, Disney, Meta, etc. Go with frontline stocks with steady growth. Also it's a good idea to diversify - Pick a stock from diff sectors. Do not have more than 5 stocks overall. 

 

I am considering monthly SIP meaning you will buy these stocks every month.

Qty =Investment/Average purchase Price

Average Purchase Price - Average of all monthly purchases. 

Stock Symbol	Year	Ave Pur Price	Investment Amt	Qty
ISRG	2023	300	12000	40
ISRG	2024	325	13000	40
ISRG	2025	350	14000	40
ISRG	2026	400	15000	37.5
ISRG	2027	450	16000	35.56
ISRG	2028	550	17000	30.91
ISRG	2029	600	18000	30
ISRG	2030	500	19000	38
ISRG	2031	700	20000	28.57
ISRG	2032	750	21000	28
ISRG	2033	800	22000	27.5
		TOTAL	187000	376.04

Assuming the price of ISRG to be 800 at the end of year 11, your investment is worth - $300,832.

 

Stock Symbol	Year	Ave Pur Price	Investment Amt	Qty
SNOW	2023	150	12000	80
SNOW	2024	175	13000	74.29
SNOW	2025	200	14000	70
SNOW	2026	250	15000	60
SNOW	2027	300	16000	53.33
SNOW	2028	400	17000	42.5
SNOW	2029	300	18000	60
SNOW	2030	475	19000	40
SNOW	2031	500	20000	40
SNOW	2032	550	21000	38.18
SNOW	2033	600	22000	36.67
		TOTAL	187000	594.97

 

Assuming the price of SNOW at 600, your investment is worth - $356,982.

 

Now in 11 yrs, you have close to 700k which based on above theory, you can retire. 

$3000/month, $36000/ Yr, $720,000 for 20 yrs.

Conclusion: Now, if you look at this, your investment itself is $374K. It will double in 10 yrs. A lot of you might say its not great returns after 10 yrs. But you are not investing all 374k at once. It's growing each year. 

It's easy to sit in front of the desk and think, I should have invested in META at 84 a few months back. If I bought 2000 stocks ($168K), it's worth over 600K now. I could retire in a year. But in reality when we had the situation, not many of us would do that. Coz 84K is a lot of money. 

This model works coz you wont feel that much pain to invest @2000 every month. Instead of stocks, you can pick index funds or MF's as well.

Good analysis anna.. but I see an issue in investing in individual stocks instead of funds.. some of these stocks may or may not live after 10-15 years.. you never know what will happen to a company in the long term.. 15-20 yrs back best companies anukunnavi, they either don’t exist or became stagnant and lost value.. also down the line, Chinese stocks will globally dominate US stocks ani na guess.. US companies are not innovating much now.. 

401k and IRA ki contribute chesthe, monthly easy ga nearly 2400 save chesthunnatte.. per person.. if both are working, that is nearly 5K per month.. 4K in funds and 1K in stocks.. that is nearly 60K per year savings.. 

I would say that the additional 2k per month saving would be difficult for most people.. and even if they save it, better to put some in funds and some in stocks.. 

[Konebhar6]

34 minutes ago, Thokkalee said:

Good analysis anna.. but I see an issue in investing in individual stocks instead of funds.. some of these stocks may or may not live after 10-15 years.. you never know what will happen to a company in the long term.. 15-20 yrs back best companies anukunnavi, they either don’t exist or became stagnant and lost value.. also down the line, Chinese stocks will globally dominate US stocks ani na guess.. US companies are not innovating much now.. 

401k and IRA ki contribute chesthe, monthly easy ga nearly 2400 save chesthunnatte.. per person.. if both are working, that is nearly 5K per month.. 4K in funds and 1K in stocks.. that is nearly 60K per year savings.. 

I would say that the additional 2k per month saving would be difficult for most people.. and even if they save it, better to put some in funds and some in stocks.. 

Its a theoretical concept. You can replace the stocks with any MFs or Index funds. Still same concept - To get to 720k Savings over a period of time.

Chinese companies will never prosper unless china becomes a democratic country. I understand they have good technology, but Too much of Govt Control and lack of transparency. People/countries outside of china "hate/do not trust them to let them into their countries. I once bought a chinese stock GURE (produces bromine) and made decent profit. Read a lot of articles, did a lot of research. There is so much of chatter about it. Funny thing is, no one knows whether the company exists or not.  I sold the stock when they announced they found natural gas in their bromine mines and would pursue that

 

 

 

[beerboy17]

36 minutes ago, Konebhar6 said:

Its a theoretical concept. You can replace the stocks with any MFs or Index funds. Still same concept - To get to 720k Savings over a period of time.

Chinese companies will never prosper unless china becomes a democratic country. I understand they have good technology, but Too much of Govt Control and lack of transparency. People/countries outside of china "hate/do not trust them to let them into their countries. I once bought a chinese stock GURE (produces bromine) and made decent profit. Read a lot of articles, did a lot of research. There is so much of chatter about it. Funny thing is, no one knows whether the company exists or not.  I sold the stock when they announced they found natural gas in their bromine mines and would pursue that

 

 

 

anna neeku dandam.. looks like you do a lot of research on the stock...

[Konebhar6]

3 minutes ago, beerboy17 said:

anna neeku dandam.. looks like you do a lot of research on the stock...

Yeh I do lots of research. Have tons of excel sheets with models/financials/numbers. But research does not equal making money.

Mana research chusi, oka sari tella director inferior feel ayyi ... "I am dumb in these matters. I only know - AAPL, Amazon, JNJ and I don't know when to sell them, so I kept annadu." Sometimes, not knowing too much is good. Go with basic common sense.