would you work if ...

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rayonline

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#171773 30-Apr-2015 17:25

You are mortgage free, 300k in stocks? Like many doing a general office job. Not that I have reached there yet but that's the plan to be financially independent.

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#1294455 30-Apr-2015 17:36

Yes, because 300k in stocks is not money in the bank, which is what you need to live off...

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#1294458 30-Apr-2015 17:42

Brumfondl: Yes, because 300k in stocks is not money in the bank, which is what you need to live off...

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... and stocks can devalue overnight for no particular reason.

I lost 85% on my stocks in the recent recession.
The stock market is a casino.
Only gamble on what you can afford to lose.

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bazzer

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#1294460 30-Apr-2015 17:49

What's the dividend yield? I wouldn't think it would be enough to live off (for myself, for the rest of my life).

Currently I have a "job". If I won (big) Lotto I would definitely quit my job. I guess I would still "work", but I don't know exactly what I'd do, whatever I liked I guess.

When will I give up my job? Certainly, as you suggest, I'll want to pay off my house first. By then I'll probably have a decent chunk in my Kiwisaver too, so that's great (but no good for current expenses). I'll need to work at least a few more years. I'd think I'd need at least $1m in investments before I could consider retiring.

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#1294461 30-Apr-2015 17:50

yes otherwise you will be broke by the next day

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#1294476 30-Apr-2015 18:17

rayonline: You are mortgage free, 300k in stocks? Like many doing a general office job. Not that I have reached there yet but that's the plan to be financially independent.

Yes. Couldn't live off so little.

Inphinity

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#1294494 30-Apr-2015 18:46

Yes, if that is all you have, absolutely. Unless those stocks pay some ridiculous dividends or consistently perform well, where are you getting any income from? No mortgage doesn't mean no bills. Now, if you said no mortgage and $3mil in stocks, maybe a different story depending on your spending habits. I should note that by 'work' I am including self-employed/operating a business type 'jobs'.

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#1294495 30-Apr-2015 18:46

Not enough, depending on how many years you have left on the clock of course. IF you manage to liquidate your stocks, 300K only gives you 6 years living at 50K per annum. I guess it kind of depends on your lifestyle. Even at 25K per annum that is still only 12 years...and then what?

Lazy is such an ugly word, I prefer to call it selective participation

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#1294499 30-Apr-2015 18:53

Inphinity: ... Unless those stocks pay some ridiculous dividends or consistently perform well, where are you getting any income from? ...

Ridiculous dividend = dodgy / massive risk = massive losses (sometimes overnight)

EDIT Been there.

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rayonline

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#1294512 30-Apr-2015 19:32

If it was that bad, you won't have so much funds in the stock market. Nor would you have Kiwisaver, if it was that bad mum and dad would know, and all these other life insurance those that have a component invested on the market.

One can also sell some shares in batches when funds are needed. Unlike a house when you have to sell the whole thing.

#1
http://www.forbes.com/sites/laurashin/2013/10/03/how-mr-money-mustache-retired-at-age-30-and-how-you-can-too/

#2
Rent out the house and head to a cheaper country.

#3
Take up part time work in a area one is passionate about.

Just looking at the NZX index it offers a way better rate than a savings account. Sure you have bumps but given long term ...
https://nz.finance.yahoo.com/echarts?s=^NZ50#symbol=^NZ50;range=5y

pctek

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#1294514 30-Apr-2015 19:33

Had stocks once.
Brierly, Goldcorp etc.

So much for that..............

rayonline

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#1294518 30-Apr-2015 19:38

I would never buy shares off a financial company like Brierley or those modern companies that went bust. Get them directly off the market so you hold the title. Also no ongoing management fees to pay. Diversify, if 10 companies, one loses half value that's 5% down.

http://www.stuff.co.nz/business/money/68109527/the-us8-million-janitor-life-and-times-of-ronald-read

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#1294530 30-Apr-2015 20:12

How does one learn about stocks?

tdgeek

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#1294540 30-Apr-2015 20:30

joker97: How does one learn about stocks?

Read financial pages, learn about P/E Ratio, accept that for every optimistic buyer, there is a pessimistic seller. Its about growth, company grows, your shares grow.
I'll look for a tutorial URL

Easier said than done. Plenty of super basic info, nothing detailed. I had a book, back in the day, bound to be a paperback or ebook somewhere?

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#1294544 30-Apr-2015 20:43

pctek: Had stocks once.
Brierly, Goldcorp etc.

So much for that..............

My neighbour is ex Brierly. You'd like his $4 million house and vineyard...!

He got a hefty payment when he left the Board I believe.

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#1294570 30-Apr-2015 21:15

How much is the freehold property worth? It could be worth 2k to over 1 million, it makes a huge difference. It really depends on how many years you are going to live for, your age now and when you will get your super to supplement any interest you get. Also if you are supporting others. There are so many factors to look at and you would need financial advise, which you would need anyway if all your savings are in stocks.

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