Barefoot Investor is Butt Naked

I'm not expecting to be able to access my super until I'm 75+
But hopefully I'll be living in my super owned B&B for 25 years before that
 
If you would have saved your 50 cent round fifty, you could have bought 2 bags of chips today. :)

Regards Errol 43
 
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This shows what happens to your $10,000 between 1992 and 2012 if your share portfolio did as well as the All Ords and you reinvested your dividends. With reinvestment the red line your $10,000 becomes $60,000 but without it is less than $30,000.

In fact if you invested $10,000 in 1970 and reinvested the dividends in the ASX 200 index, which you can now do using an ETF, that initial outlay would now be worth $750,000. If you had opted for the USA's S&P 500 index you'd now have $1.3 million!

These kinds of results are possible for nearly everyone but you have to be committed to finding out the information that will make you wealthier. There is an amazing list of smart things you can do to get richer but most of us allow ourselves to be distracted by crap. Just look at the headlines in newspapers, magazines and websites.

These media products are simply serving up what customers want and clearly we want entertainment more then we want wealth! I think a lot of current affairs stories are virtually a real- life soapy that has virtually no positive effect on our lives. In fact, they tend to have negative impacts.

I asked an audience the other day where I was doing a speech if they preferred to be rich rather than poor and nearly everyone put their hand up to be rich. Some people were busy checking their smartphones aren't they misnamed for some people? and others were just hearing but not listening, which is not a good habit for wealth-building.

Most preferred being rich and so I then asked who watch great TV shows such as Master Chef and My Kitchen Rules and lots of people put their hands up. To that I said to them: "What a bunch of dopes!"

I know it was a risk to insult an audience but I thought I had them onside they were mortgage brokers hell-bent on becoming better at broking and richer. I then said: "If you want to be rich why would you watch those shows when you could be watching Switzer on the Sky News Business Channel instead?"

Yep, I got a good laugh but I also made the point. If you want to overload on entertainment you could end up poorer than you'd like. If you run a business and you don't read biographies of great business builders such as Richard Branson then you are a worry to yourself and a burden to others.

Business owners should get business coaches. Wealth builders should have a trustworthy financial adviser or do the reading to advise themselves. Those who want to go up the corporate ladder should read about successful CEOs, take leadership courses and develop a charismatic personality. Leaders need that sort of thing ask Tony Abbott.

Jim Rohn once said words to this effect: "Work out what you want. Find out the price. Pay the price!"

If you are reading this story and you go to our website then my moralizing does not apply to you but make sure you spread this message to people you love or lead.

Remember garbage in means garbage out and you don't end up rich with garbage unless you start a recycling business.

Published: Wednesday, December 09, 2015
http://switzer.com.au/the-experts/p...dnt-give-a-fig-about-getting-wealthy-dianomi/
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Thank you Julie - good points but remember past is not prologue. The next years in stocks may not be as kind.
 
Ronnie 666 said:
Thank you Julie - good points but remember past is not prologue. The next years in stocks may not be as kind.
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Yes indeed, but if I was in my twenties I'd be quite happy to put $10,000 into stocks. Unless the world is drastically altered the buy and hold would be fine over a 40 year wait imho.

The unassailable truth of mathematics, when known, is a boon to the young.

table_01102015-copy.jpg

Source: Barefoot Investor

(The reality is that most people learn about compound interest in reverse by buying stuff they don't need, with money they don't have, to impress people they don't care about. Yet debt robs them of their financial independence. Debt makes things more expensive. Ultimately, debt is slavery).

Hardly anyone makes it to the seventh year, which is when the compounding snowball really starts.

Yet if you can stick with it, that's when your life changes. The money starts pouring in gushes. That's when you'll crack the time code. And that's when you can truly 'tread your own path'.
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JulieW the problem with that table is
1) assumes a pretty high compound interest. Put it at 5% and the friend is better off
2) Let's say both are born in 2000; $5000 in 2015 is a lot more than $5000 in 2025.
3) Uses a static interest - if there was a big dip in those first 10 years it'd make a dramatic difference.
 
Interesting words from Bill Bonner of Daily Reckoning (US perspective)

1 January was a holiday in 2000, as it was in 2016. It was a Saturday to boot. But when markets opened on Monday, you could buy an ounce of gold for $288.

If you had done the simplest thing sell your US stocks and put the money into gold as of yesterday, you would have watched a $10,000 investment turn into roughly $37,000.

If you had stuck with stocks, on the other hand, and NOT missed the two great bull markets of 2001 to 2007 and 2009 to 2015 you would have watched your $10,000 become almost $19,000 (including dividends).

This is still much better than what most investors earned.

Most traded in and out of stocks over the last 15 years most often buying and selling the worst stocks at the worst times.

This would have gotten you only a fraction of the buy-and-hold returnand most likely a negative result.

So, guess what missing bull markets in stocks is no sin. Catching them is no virtue. And even after losing more than one-third of its value, gold is still not such a bad place for your money!
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Words backed by what data?...particularly the shares.....giving one static figure for return on shares is BS maths :rolleyes:
That post is even worse (factual data wise) than the funny graph showing 10% return year in year out for 35 years....although I appreciate the giggle
 
Stoic Phoenix said:
Words backed by what data?...particularly the shares.....giving one static figure for return on shares is BS maths :rolleyes:
That post is even worse (factual data wise) than the funny graph showing 10% return year in year out for 35 years....although I appreciate the giggle
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Whatever.
 
Kind of response Id expected.
Im happy for you to keep posting bs if you are happy for me to keep pointing it out.
 
Example
Noun

1.
one of a number of things, or a part of something, taken to show the character of the whole.
2.
a pattern or model.
..
 
Im sorry Julie but are you upset that someone is pointing out numerous posts you've made have...to be diplomatic...very dubious information which you are endeavouring to pass off as facts?

An intelligent person would have an open mind to having their cut and paste stories challenged and perhaps even a motivated person would actually read and question the swathe of information they skimmed over before posting it in future?

I use this forum as a tool for learning primarily. Having it cluttered with obvious tripe which you appear unapologetic about even once pointed out to you takes away from the primary objective I have here.

You have the right to post dubious posts but understand I will exercise my right to question them.
As a suggestion if you can not accept that perhaps question things you read before posting them.
 
You taking it personally is your cross to bear of your own making.
I question your "facts"...you get upset said questions are posed.
You really need to grow up.
We wont get into a battle of wits as its not fair for me to take on an unarmed opponent.
 
Take it easy people.

Lets try to keep the insults directed at the Barefoot Investor pls :D
 
BuggedOut said:
Take it easy people.

Lets try to keep the insults directed at the Barefoot Investor pls :D
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Why?
Because he highlighted figures that don't support the mantra? :/
 
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