2012-04-24, 09:55 PM
Causalien.... Too complicated, I'm buying GICs
2012-04-25, 12:23 AM
Originally Posted by 1.5M
Please demonstrate how to achieve an 8% average annual net return for 8-11 years running. Thanks.
2012-04-25, 01:07 AM
Yeah, I am not known to be good at teaching.
2012-04-25, 06:18 AM
Meant to be a joke. ie advice which may on the service seem reasonable but in reality is totally useless. Another example, plant your corn early. I was trying to poke fun at a previous post.
Originally Posted by Causalien
2012-04-25, 07:06 PM
2012-04-27, 05:36 PM
I am not saying that one can get 8% growth using GICs or mutual funds. And of course mandatory pensions are not compatible with a plan of becoming financially independent as fast as possible. Also I am not saying one would get 8% growth (or even above 0%) every year. That's an average over a longer period.
Originally Posted by Mall Guy
The average annual return rate of SP500 (SPY) since 1950 was 11% before inflation, including dividends (SP500-historical-real-total-returns). The return of other indexes like Russell 2000 (IWM) is slightly better. A covered call strategy in SPY or IWM would reduce the volatility (in rrsp or tfsa).
Also if one learns to speculate using derivatives, higher returns are attainable with relative low volatility using hedge-fund type strategies in non-registered accounts.
2012-04-30, 04:19 AM
Doing fairly well. I would estimate about 30% is from getting lucky and buying a house in hot housing market simply because we were having kids. We wouldn't have been able to buy the house if we hadn't been saving diligently for several years. Another 30% is due to working hard and saving, spend less than you earn. We both went to university, got practical degrees with good jobs. The remainder comes from starting and selling a company which required huge amounts of work and stress and came very close to failing.
Having money hasn't changed our lives except we worry about money less and get nicer hotels when we go on vacation. We still buy used cars, our house isn't beautifully renovated, and I still cut our lawn myself. We still get stressed about our jobs, worry about our kids, get frustrated when we're stuck in traffic or burn dinner. Overall having more money hasn't made us that much happier than we were 15 years ago.
Our assets are invested in a mixture of high interest savings accounts, ETF's (VTI and XIU) and dividend stocks along with our primary residence.
My advice would be to work hard and get jobs in fields that pay well and you enjoy, work hard and save. Once you've got that sorted out read, learn and think about other investment opportunities. I've thought about real estate investments for years but never took the plunge. I read and research tons about investing and have done reasonably well in the markets. I dipped my toes in the water with some consulting and working for a small company before taking the plunge and starting a business with some partners.
Last edited by ibli; 2012-04-30 at 04:21 AM.