I don’t know if I would assume any particular growth rate, but it will be less than the leverage times unleveraged return, due to fees and the ETF’s tendency to sell when the market goes down and buy when the market goes up.
How much is difference? Is it 1 percent? I think the cagr was roughly 15 percent for spy from 2012 to present. Would it be safe to assume yours was 22 percent with fees around 20 percent?
what was your growth in net worth since 2012? All in contributions with earnings?
How did you buy? Did you buy every month? Or did you buy all at once in a year. Did you go on margin? Also I assume this is your after tax account that has margin? Did you ever sell?
btw is this all your account? Or is half of its our wife’s? Any ohai bastards running around? Those lucky aholes. Anyways thx for sharing man, I will take a look at futures. I thought they were structured the same way as options for some reason.
I’d say that I would be interested but I’m worried if I mentioned it to the partners, suddenly the conversation would start to cover the pedophile cabal
my 2 best are the 20% in a restaurant chain my friend started 3 years ago, that one’s going to pay off big at this rate. The other was moving into a small flat in a rubbish area when I first started my career and buying 2 other flats to rent out, this was 2008 so I already made money on them on the initial deal but since then they’ve shot up. They’re both currently Airbnbs and I made £8k on each over August alone.
Where did you get down payment money on those if you just started out your career? It took me several years to save anything meaningful (I started out around the same time).
^Savings and bonus pretty much. I was living in a low COL city with a high starting salary and was living like a student. These flats were around the £100k mark at the time so it wasn’t a huge outlay.
real estate or spy? which would have made you more money at that time?
SPY total return is 171%. aug 2008 to 2018. 100k would be 271k.
how much you made on your house in terms of overall price appreciation?
was always bad with my investments
Given that the deposit was only £50k for both flats, the prices have almost doubled, interest rates have been very low whilst rents have skyrocketed, I’m comfortably above that.
yea i bet with leverage you made a lot more. i am just looking at it from total return assuming no debt. some friends and i were discussing yesterday. let me check calculation.
7% price appreciation. so 97%.
I’ll assume 7% yield growing at 3%. so lets assume 8% yield reinvested at 8% again. so 116%
deduct fees. i’d say 1% prop tax. 1% maintenance fee. so -22%.
97+116-22 = 191% total return.
so imo you made bank off this son!