How to build a portfolio that generates $2000 per month
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- Опубликовано: 21 июл 2024
- How big a portfolio do you need to generate $2,000/month? How long will it take for you to build this portfolio? What should you consider putting into this portfolio? I’ll attempt to answer these questions into today’s video. Sign up to my weekly newsletter: sanjee.substack.com
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My website: www.sanjeensen.com
Timestamps:
0:00 - Intro
1:40 - How big a portfolio do you need?
2:53 - Examples Portfolio sizing
5:23 - How long will it take to build the portfolio?
6:42 - Parameters for building a portfolio
8:16 - Examples Time to build
9:46 - What to invest in?
13:30 - What worries me
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Useful links:
Australian Government website on personal finances: moneysmart.gov.au
Disclaimer:
The information provided in this video is general in nature only and does not constitute personal financial advice. You should also consider seeking the advice of an investment advisor who holds an Australian financial services (AFS) licence or is a representative of an AFS licensee. Be sure to work with someone who understands your investment objectives and tolerance for risk. Your investment advisor should understand these products, be able to explain whether or how they fit with your objectives, and be willing to monitor your investment alongside you. There are some Amazon Affiliate links above - if you purchase from there, at no additional cost to you, I will earn a small commission for each sale. 
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Answer: you need at least $500,000
Interesting video Sanjee thanks for sharing your perspective. Definitely something to take into consideration when planning your portfolio
Hi Sanjee I have found your videos engaging and informative. What I particularly like is you talk to the audience rather than at the audience. Well done, and thank you !!
I have been asking this question for the past year, and it has stopped me from buying anything (silly, I know). You have asked a really good question and you've helped me to make my decision. I am starting where I want to end up! Thank you for your videos, I always learn so much!
You are very engaging, relaxed and natural in front of the camera. I only started with ETFs recently and I find the content on your channel simple to understand and very informative. Keep it up! ... and thanks! Subscribed.
Awesome video as always Sanjee - This topic is always top of mind for me mate. As of recent I’ve concentrated my portfolio in solid businesses & ETFs with good income returns for the long term - I also take a more conservative number of 5% for modelling, but usually my actuals land at 8% p/y. Also, it never hurts to go after a couple growth stocks which may shoot off!
This has been a very helpful video, thanks!
Great video with interesting questions to answer...
Love your content. Well presented, thorough and most importantly - very helpful.
Thanks Hugh!
Good video mate!
Great video, this is exactly how I am investing I've set goals out with 500/month etc. There are a few shares that pay monthly divideneds but i also mix it with those that pay quateraly and bi-annualy.
Good channel with some great content. You are right I haven't seen much Australian content addressing this issue. Ive noticed some of the American channels talk alot about Aristocrat stocks which have paid dividends for at least 25 years straight, so they tend to be much more income focussed.
Awesome video. I learned a lot from this 😀 definitely going to subscribe to this channel.
Great video. Thank you!
Glad you liked it!
Mistake I made was targeting 5% income or dividend to start with..I think holding good companies with track record of dividend growth is better..if you have time on hand that is.
good video mate
Awesome stuff young fella
Thanks Bob!
Thanks for the content. You are great at speaking into the camera and making your topics sound engaging. Keep up the good work.
Love your work mate😊
Thank you! Cheers!
This is why VHY and VAS are so attractive as the income is their from day 1. Majority of income is franked. Never have to sell the portfolio to generate income at a later date.
But VAS is not 100% franking. Only 49% now
I am new to investing at ripe age of 53 yrs! Enjoyed your video which was easy to follow. Thanks
Thanks so much!
Thanks for a good video. Selling down a portfolio is maybe not such a big deal from a tax perspective, when you are retired and not earning at all, or as much as you were in your peak earning years? It may therefore make sense to focus on capital growth when you are younger and avoid dividends (and the taxes thereon). I accept that everyone is different though.
Interesting video mate Im enjoying your channel
Thanks so much!
Great video
Thanks!
Got some thoughts too
great content! is there any more on tax and super?
"The dividend statement or distribution statement you receive from the company paying the franked dividend must state the amount of the franking credit and the amounts of the franked and unfranked parts of the dividend.
Under the imputation system, dividends paid on certain shares that are classified as non-equity shares (for example, some redeemable preference shares) are treated as unfrankable distributions for imputation purposes. As a consequence, these dividends cannot be franked."
Great content Sanjee. So if i put money it VAS with the long-term goal of passive income short-term goal for growth is that the right move in terms of the type of ETF ? not looking for finical advice just checking if I understood you correctly lol
Thanks Sanjee always great content to share. I would like a really BOLD video sharing dividend and capital gain relating to tax return and how to avoid more tax? Assure lots of people will love to know these useful information.
I am investing only in BHP. For $180000 they provide the half yearly dividend. That is $2.5 per share.
Great video and Thank you. I watched it couple of times and replayed few bits again and again to understand and digest. I have same questions on income vs growth ETF and tax implications . I posted this question to you on your latest video few weeks back. Looking forward to great content.
Excellent comparison. I've started regular investment in managed funds, ETF and a few direct shares past 3 years. I'm focused towards dividend income generation and reinvestment rather than growth to increase my portfolio naturally. I'd rather have returns now via dividends than wait for potential growth at later date. Yes, paying taxes on the dividends is unavoidable but the overall investment grows over time, which I'll continue to enjoy dividen income cash out at retirement with lower tax brackets. 😉
Hi Anthony - you’re thinking is like mine. Which ETFs & managed funds did you select? No Index funds?
Hey Casa. Just like Sanjee, I've been investing in VAS and VGS ETFs. I've also invested in Vanguard Australian index and Lifestyle Index funds. I don't think these funds are open for new investments now but they have similar funds under the new Vanguard Personal Index funds. Given the unit prices have dropped this week, this will be a good time to buy more units if you have some cash to spare :)
@@cassd7208 hello sir ! Can you just guide or help me with the dividends thing … i really want to invest in those …. But i just need someone to help me start with that ? Please !
Hi Sanjee, I am using Kuvera app and I invest in Indian market for now mainly in Nifty 50 Index fund. I am confused on how to start investing similarly in Australia and which app would be best to invest and use for long term? Thank you.
I see it as you will have to pay the tax regardless
While young I want to do things to reduce my taxable income, although while older, maybe working part time, it won’t be as important. So don’t see the big issue with selling shares to buy shares with high dividends and have to pay that extra tax then
You probs know about this now but look into DSSP with LICs like AFI, no tax implications for dividend payouts.
Great callout Brandon!
This is what I need to do…!
After 65, the pension amount is $3600 for a couples. If I have $700000 in bank govt don’t provide pension. If it is less than that they minus the dividend amount and only balance amount i get as a pension.
It would be nice if there was a decent growth asset that could switch over to dividend income. If you ever find a product/products that would do this, I would love to hear about it/them.
PS love all the videos
prob somthing like cbus mate
Hey Sanjee, love your videos. can you please make one to explain how etf would compound interest? also wondering how VDHG would reinvest dividends.. I never got a letter letting me opt in/out? cheers!
I’d also like an answer to this.
Get in touch with the registry ie computer shares and they will guide you through their platform to reinvest dividends
Can you live off selling the market returns? I imagine it’s a stupid question for a number of reasons including tax, but I’m just wondering if people use that as a strategy?
Reinvesting dividends limits you to shares that offer DRPs. Of course you can take it in cash and then buy more shares, but you’ll pay tax and brokerage fees each time
You pay tax anyways on a drip fund regardless if you get it as cash or not
hey sweetheart can i have a list of the books you are reading?. I see atomic habits (i love it), the others are blurry.
Great video! As of now I'm doing 100% growth, but as I get older I'll start buying more income shares. What are your thoughts on WAX and WAM? I've been looking at them for a while and might get them as my income shares.
Wondering what growth etf you bought?
Very interesting. My gut says I want to build a large portfolio and then sell it completely in my 50 so I can retire early and then from there cash out my super at 65
Im tossing up whether i want to just set my super to high growth/risk 100% allocation and invest separately in Vanguard, or Just pump as much as I can into my super... I do like the flexibility of being able to retire a bit earlier than 67 and roll my super into the vanguard when/if i hit that age threshold. Decisions decisions.
Mix of both is good so you can sleep better at night.dividend stocks and growth means you win win😎👍
Great call out Greg!
very year inflation rate 7 to 9% so if gain only 5 % you can't achieve your financial goal (freedom) have to beat the market ratio atleast 10 to 15 % have to be.....
You need both
What are few example of "growth assets" and examples of "dividend assets"? Are there ETFs in both these categories?
VGS (world ex Australia) is a popular one. Targeted towards capital growth with a low dividend yield of roughly 2%
That part though when you were like what are you gonna do 😂 c**ts f**ked 😂
Hi Sanjee, I really appreciate the amount of depth and structure that you put into your content. Do you offer/know of anyone that offers ETF specific mentorship? Thanks! 😁
@@miguelrooney610 thanks!
how do you get your company become public listed in australian stock exchange
Hi Gilda, it's quite an expensive process. I believe you can find more information here: www2.asx.com.au/listings/how-to-list/listing-requirements
Another stratergy is; I invest my money at the casino. I have a roulette table portfolio and depending on my luck I can 10x my money in one night.
hahaha 🤣
you need $700,000 invested getting 3.5% yield to get $24,000 a yr in divvies BEFORE tax
After 65, the pension amount is $3600 for a couples. If I have $700000 in bank govt don’t provide pension. If it is less than that they minus the dividend amount and only balance amount i get as a pension.
Great video. I rang vanguard today and changed from my VGS ETF to the identical managed fund because they had a dividend reinvestment plan where the ETF did not. The fees were cheaper
VGS does have a DRIP option?
Wait did you invest through an app? Were they ETFs like through vanguard? Sorry I don't rlly know much tbh
Hi Japper, I invest through CommSec
@@SanjeeSen thanks man! Mostly like ETFs??
If you dividend reinvest, do you have to pay tax on this? Or only once you start receiving the income?
Hi Oz, yeah unfortunately you have to pay tax on any dividend regardless of whether it came to you as cash or reinvested shares. The ATO has an article on it: www.ato.gov.au/Individuals/Capital-gains-tax/Shares-and-similar-investments/Dividend-reinvestment-plans/
Great content
you can contact her on TELEGRAM @investwithlauranoah
Unless you are FIRE just leave the dividend income for super.
How to leave them for super?
💌
Great video Sanj, regarding your question about how to build a portfolio; my current opinion is to do the following:
1. target growth assets that have low or no distributions for the majority of the building phase
2. rebalance the portfolio by purchasing less volatile assets a few years out from ‘retirement'
The reasons for this are as follows:
1. Tax is a major drag on portfolio performance, someone in the 39% tax bracket; receiving a 4% dividend, will be paying an additional 4% x 39% = 1.56%
2. Selling assets is a very tax efficient way to fund retirement due to the 50% CGT discount and the fact that you will be in a lower tax bracket
On a side note, I think people don’t want to sell investment fund units in retirement because of the notion that their portfolio will be depleted however if the individual fund units’ values are small relative to funding requirements this is untrue. The growth in value of the remaining units will act to maintain the overall portfolio value.
Yes I read an interesting article from DAN BORTOLOTTI on money sense that explains this principle well and actually shows you how it performs over a period of time
Great content Sanjee. I’ve really been enjoying your videos
I think there’s a few flaws with this theory though.
- You haven’t allowed for inflation, so yes to earn $2k/week NOW you’ll need a portfolio of $500k but to do in the future 10 or 20 years you’ll need a higher number.
- I could be wrong here but 5% dividend yield seems quite high for stock (I’ve usually seen 2-3%) which again means portfolio has to be even larger
As a beginner how a million dollars was achieved by a wonderful broker ,from a reputable firm.if you wish to focus in other thing life ,i advice you invest with a great broker like her.
@Lenard Russ yes i can leave her contact info open here, search on web ''GRACE EMBERLYN SATULLI''
@Rapheal koh she handle Oreck corporation in 2016, she is smart, also good on she does
Scam?!
$300k today will not be worth the same value in 10 years time.
Too talkative Dude! Topic and the content are misleading! You could discuss with your screen on display.
QYLD, USOI. You need about 200,000 USD, anything else can be invested in growth/meme/crypto.