[Jack Of All Trades]

Hi Guys, I usually lurk around and still a newb to game but I've fallen in love with the lifestyle you guys talk about. This is a theoretical financial portfolio I've thrown together for location independence that I'm thinking of implementing in the future.

***This is just a template based on current trends, yields, and interest rates, and currency values***

1. Living Income(passive income where-ever you go)
assuming 12k/yr, 1k/mth spending costs
yields on dividends on big blue chips can range from 2-6%, so I'll say
4% yield as income
capital needed = 300k
each increase in 1% decreases capital requirements significantly, if it's 6% yield you're looking at 200k principal
***this does not take into consideration inflation, taxes, currency fluctuations, and total apocalypse***
- under ideal circumstances you could buy brazilian 9-yr bonds at 10-11% coupon with a REAL coupon rate of 5-6%

2. debt/cash equivalents/short-term products that can be used in emergency

Cash equivalents:
US treasuries? (currently dubious, returning NEGATIVE interest rates)
*upside is these can be cashed in relatively easily
TIPS(Treasury Inflation Protected Securities)
*only 20-yr and 30-yr bonds are yielding positive interest rates at 0.39%-0.75%
**High Yield Debt** can be excluded from portfolio if you're uncomfortable with it
- corporate junk bonds yields >6% (make sure you look at the INTEREST COVERAGE RATIO on companies and their cashflow)
*sovereign debt that has a large flotation on the market:
canada, US, Brazil, China, Russia, Australia, UK, etc
**sovereign debt that's more speculative
- mongolia(>10% interest rates?), colombia, venezuela

3. Equities
**Index Funds/ETFs** - if you're lazy
Concentrated Stocks (10-30 companies) *personal favorite way 70% of equity portion in a la Peter Lynch/Benjamin Graham/Buffett way
speculative: <=10% of equity portfolio (crazy tech plays?)
active trading/opportunities in swings like earnings reports (riding the bull & bears?) 20%

4. Alternative Investments
real estate:
- farmland
- apartments
- commerical
- residential
- I know nothing about RE
Commodities
baseball cards?


The first priority would be to fill up section #1 for living income, or use it as a supplement, ex: 100k at 4% + teaching english abroad
Then would come the cash equivalents #2 which shouldn't be too much $ maybe 10-20k?
#3&4 would be something that grows over time after 1&2 are achieved. Or if you catch a big break you can pour 3&4 into 1&2 increasing passive income. Over the long run this should constitute the majority of the portfolio.

- the interest rates are just a quick grab of numbers, it's possible to get yields from REITs to about 5-10%
- I'm ignoring tax implications as well
- I'm also using pretty conservative rates, if you shop around countries and hunt for different products you can probably find better
- capital required seems high but I assume everyone here is ambitious and doesn't mind to hustle

so what do you guys think? (bear in mind this is just theory)

[Entropy]

It fucking took you long enough. jeez.

Nice compendium. Let get this rolling.

Got the syllabus:

table of contents
1. time value of money (interest theory)
- annuities(future and present value)
- mortgages
2. basic stock valuaton
- DCF models
- P/E ratio
- NAVs, etc **not sure about this might substitute
- accounting( go over balance sheet, income statement, & statement of cash flows)

3.Risk/Return
- intro to CAPM

Intro to Basic Options
- what's a call/put, graphs for profit, why they're used

(02-26-2012 02:14 PM)zeeman Wrote:  

Hi Guys, I usually lurk around and still a newb to game but I've fallen in love with the lifestyle you guys talk about. This is a theoretical financial portfolio I've thrown together for location independence that I'm thinking of implementing in the future.

***This is just a template based on current trends, yields, and interest rates, and currency values***

1. Living Income(passive income where-ever you go)
assuming 12k/yr, 1k/mth spending costs
yields on dividends on big blue chips can range from 2-6%, so I'll say
4% yield as income
capital needed = 300k
each increase in 1% decreases capital requirements significantly, if it's 6% yield you're looking at 200k principal
***this does not take into consideration inflation, taxes, currency fluctuations, and total apocalypse***
- under ideal circumstances you could buy brazilian 9-yr bonds at 10-11% coupon with a REAL coupon rate of 5-6%

2. debt/cash equivalents/short-term products that can be used in emergency

Cash equivalents:
US treasuries? (currently dubious, returning NEGATIVE interest rates)
*upside is these can be cashed in relatively easily
TIPS(Treasury Inflation Protected Securities)
*only 20-yr and 30-yr bonds are yielding positive interest rates at 0.39%-0.75%
**High Yield Debt** can be excluded from portfolio if you're uncomfortable with it
- corporate junk bonds yields >6% (make sure you look at the INTEREST COVERAGE RATIO on companies and their cashflow)
*sovereign debt that has a large flotation on the market:
canada, US, Brazil, China, Russia, Australia, UK, etc
**sovereign debt that's more speculative
- mongolia(>10% interest rates?), colombia, venezuela

3. Equities
**Index Funds/ETFs** - if you're lazy
Concentrated Stocks (10-30 companies) *personal favorite way 70% of equity portion in a la Peter Lynch/Benjamin Graham/Buffett way
speculative: <=10% of equity portfolio (crazy tech plays?)
active trading/opportunities in swings like earnings reports (riding the bull & bears?) 20%

4. Alternative Investments
real estate:
- farmland
- apartments
- commerical
- residential
- I know nothing about RE
Commodities
baseball cards?


The first priority would be to fill up section #1 for living income, or use it as a supplement, ex: 100k at 4% + teaching english abroad
Then would come the cash equivalents #2 which shouldn't be too much $ maybe 10-20k?
#3&4 would be something that grows over time after 1&2 are achieved. Or if you catch a big break you can pour 3&4 into 1&2 increasing passive income. Over the long run this should constitute the majority of the portfolio.

- the interest rates are just a quick grab of numbers, it's possible to get yields from REITs to about 5-10%
- I'm ignoring tax implications as well
- I'm also using pretty conservative rates, if you shop around countries and hunt for different products you can probably find better
- capital required seems high but I assume everyone here is ambitious and doesn't mind to hustle

so what do you guys think? (bear in mind this is just theory)

[Entropy]

Dipping your toes in china. I took this from the shitcan of buried good stuff. I like to go dumpster diving ignoring all the silly posts/thread to find gold nuggets. This was originally posted by hencrible casanova. Anyways, it dealt with investment/business in china...following 3 brits. I know it is not easy. The media/camera probably forces the chinese participant to be more honest.

But the lessons are crystal clear: find solid local talents (2)Forget the rules of engagement you've learned in the west (3) learn the local layout like the back of your hand (4)Network like crazy (5)Go off the beaten path (6)If you can, get high-placed officials to back you. or somebody connected to them. (7). Be willing to adapt to any situation. Anyways, here are the videos:

P.S. this update, by blackhawk should be included: http://www.nytimes.com/2012/02/18/opinio....html?_r=1)

[Entropy]

16 year old millionaire.

[Vice]

You forgot to mention tax-exempt municipal bonds.

There's no point in buying treasures unless you're a bank - negative yield FFS