How much money do you need to invest to get a return of $1000/mo to support a basic NEET lifestyle?
I'd only count on about 7-10% return before taxes. People can get more, but it's high risk and therefore not suitable for NEETing.
You need stable income to live off of.
>>1246925
so $171,428?
>>1246913
Say a really good dividend stock pays a 10% dividend. You'd need $120,000 in those stocks to return $12,000 a year (or an average of $1,000 a year).
So probably a minimum of $120,000. Of course there's going concern of the company maintaining that dividend and that also ignores the potential loss on price of a stock, but besides that.
>>1246936
Can you just invest in multiple companies to reduce that risk? Like a three 5% dividend companies and three 15% dividend companies?
>>1246936
*or an average of $1,000 a month
I should really proof read my posts >:)
>>1246936
No dividend stock pays 10%
He can expect to average 7.7% on index funds over time , this isnt rocket science /biz/
If you're worried only about passive income and not capital appreciation, buy bonds. You can get a 10% 30 year corporate issue in a very safe company
>>1246932
Yea, about that. Let's say between 150 and 200k, edging more toward the higher end.
But, honestly, living on 1k a month takes some doing. And, if you have any strikes against you (e.g. student loan debt, medical problems, live in a more expensive area, etc), it may not be able to be done at all.
>>1246960
/pol/ said to never buy bonds.
>>1246952
They do:
http://www.dividend.com/dividend-stocks/high-dividend-yield-stocks/
Most of them are very risky companies, though. Lots of going concerns whether they'll be able to keep the companies alive, much less their dividends.
For less risky companies, he's probably looking at 5-7% yields, which simple math says he's investing between $170k and $240k for $1k average monthly return.
OP, dividend yield is just simple math. You can look at the dividend earning stocks, decide which ones interest you, and do the math to calculate how much you'd need to invest to get $1k average a month.
>>1246948
Why wouldn't you be able to invest in multiple stocks? Not sure I understand the question.
>>1246963
>/pol/ said to never buy bonds.
Most of /pol/ is in highschool or barely graduated highschool.
>>1246963
/pol/ is dumb.
If you want good passive income with the lowest risk of capital loss, longterm corporate bonds in companies like Exxon or GE are the way to go.
You buy one for a thousand dollars. They pay you a percentage every quarter. At the end of x years, they give you a thousand dollars back. You can also sell them if you want
The advantage of stocks over bonds is that both value and dividends will (hopefully) go up with inflation, they're also a lot more liquid.
Instead of buying bonds you might as well blow your 200k in a decade or two because it won't be worth shit in 20+ years anyway.
>>1246980
How do I into bonds?
4% rule gives $300,000. Less if you want to be paranoid about the market or really can't make side income somehow.
>>1247004
most brokers have them. Fidelity has the best selection I believe, but I could be wrong. There isnt an exchange like the NYSE or NASDAQ for bonds, though. You buy them direct from a company or broker and you generally need a thousand dollars per, unless they are trading at a significant discount
>>1246913
>How much money do you need to invest to get a return of $1000/mo to support a basic NEET lifestyle?
I've been working on this myself and I think you need at least 300k for a basic NEET lifestyle. However you can also go NEET lite. So get a full time job, save up 125k, then go part time NEET.
>>1247048
I want full bodied NEET, no fillers.
I'm interested in this as well. I'm 22 and I currently have around $125k USD saved up and I make around $100k a year. I live in the EU so I can freely move to cheaper countries.
I have read that historically the stock market has had a return of 7%, is this too optimistic? I want around $2k to spend freely a month.
>>1247054
So do I, but half neet is better than no neet. And no planning equals no neet.
>>1247062
No its 7.7% over all time but you need to account for sown markets - if yourr 100% stock and the market crashes you need a seperate wad of cash to live off of until it recovers or youll spend the nest egg
Frabkly youd be better off with rental properties and having someone else manage them. For 300k you could leverage into a million dollars worth easy and beat the shit out of a 7.7% return average
>>1247062
it's not too optimistic but safe withdrawal rate is 4%
$1000/month is $12k/year or $300,000 total
>>1246913
>trinity study
>4 percent safe withdraw rule
>you need $12,000/yr
> $12000 / .04 = 300,000k
EZ
>>1247076
sry meant $300,000
here is link btw https://en.wikipedia.org/wiki/Trinity_study
>>1247078
Thank you, I'll read that.
>>1247079
yes, it means that you withdraw 4% of the initial investment the first year and then increase your withdraw amounts with inflation
4% works for 30 years almost always, and works longer if the stock market does well
3% works "indefinitely" almost always
also http://www.firecalc.com/
Now that you guys are helping me anyway could someone tell me if there is a way I can try investing with small amounts, just for fun and to get an understanding of how it works exactly?
Are there reliable sites where you can do this? Buy cheap stocks just play around with it to get a feel of it?
>>1247093
How small of an amount?
Really, the best way to invest is to buy and hold index funds for the long term (10, 20 years or even longer). It's very boring and easy to do.
>>1247098
I know, I don't plan on doing this with big amounts where I need a reliable return. But this thread: >>1239507 got me interested in buying some low priced stocks, just for fun to see how well they can do. I don't really mind if they lose value. It'd just be about $1k. I just think it would be fun to buy and sell some stocks, sort of like a game.
>>1247102
If you wanna play it like a game, the iphone app robinhood is the way to go.
If you just want to buy and hold to maximize long-term wealth, you can open a vanguard roth ira (if you have a job) and buy a "Target Retirement 2060" fund or whatever with $1k.
>>1247104
I don't have an iPhone but I'll see if it's available on Android. Can you actually buy stocks through the app? I thought it was just a stock price tracker or something.
I'm self employed so I don't have a job.
>>1246913
>Invest 5k in mobile burger Van and basic equipment
>work for a few month
>hire someone
>profit
>buy another burger van
>more profit
>>1247093
If you just want to play around, many institutions offer simulation accounts/services.
>>1246913
Depends. We need to know the country and tax structure.
But a guess is: Capital * 0.04 (return you can widraw after taxes) /12 = 1000
So around 300k should do it. A pretty low sum but 1k a month is also low desu
>>1246965
You can't really analyze dividends like this. A dividend is ultimately whatever the company wants to pay whenever they feel like paying it. When a company pays a stable and regular dividend they can get a reputation for reliability, but when you see something dropping 10% dividends you are always looking in the past. Chances are good that either just a one time thing or their share prices have crashed since the last payout so if the price has cut in half it looks like the "dividend rate" has doubled. Then the dividend gets cut and people are surprised.
As a general rule of thumb you can't count on any dividend above 5% to continue into the future and the only companies that can support 4%+ dividends long term are utilities, energy companies, and government contractors.
>>1246913
you need at least 120k assuming 10% p.a
ideally, you need 150k to keep inflation in check, by not spending all your profits and re-investing some of that residual income
>>1247850
>you need at least 120k assuming 10% p.a
It must be fun pulling numbers out of your ass.
You cant even get 10% every single year and you dont account for any taxes. Good job dingus.
>>1247062
100k?/what do you do?
>>1247859
thats because youre a retard with no financial IQ.. Lending Club makes 12% p.a on average across all their loan classes. And thats even from a pleb lending website
Finding stocks that go above 10% is easy as fug
>>1247867
>people with years of education and an entire career working with stocks cant outperform the stock market but dingus from a korean noodle board can do it every single year
What a time to be alive!
>Finding stocks that go above 10% is easy as fug
Just keep it up breeeh
>>1247048
sweet, as a math major i only need to work one year
>>1248166
Nigga do yourself a favor and go for double what you have planned. An extra few years is worth it to ensure you don't run out and end up with a mcjob for 20 years.
>>1248162
>implying 10% net yearly is impossibru
not sure where you got your education, but stay retarded brah
>>1246913
+- 150 K
>$1000
>basic
I thought the true NEET way was to be a shameless parasite. Why work for 20 years to save up this money if you're going to live in poverty-level anyway. Besides if you do this, by the time you have enough you're only getting to live half of your life as a NEET.
