Comments on: How Much Should You Save to do a Derek Foster? http://www.canadiancapitalist.com/how-much-should-you-save-to-do-a-derek-foster/ Helping you invest and prosper Sun, 12 Feb 2012 00:54:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: You CAN Argue With Results! « Daily News http://www.canadiancapitalist.com/how-much-should-you-save-to-do-a-derek-foster/#comment-200062 You CAN Argue With Results! « Daily News Sat, 12 Sep 2009 10:24:29 +0000 http://www.canadiancapitalist.com/2007/10/01/how-much-should-you-save-to-do-a-derek-foster#comment-200062 [...] into the future?  These aren’t easy questions, and a number of commentators have questioned this.  Again, I believe Derek Foster is sincere in his confidence in his investing strategy and is [...] [...] into the future?  These aren’t easy questions, and a number of commentators have questioned this.  Again, I believe Derek Foster is sincere in his confidence in his investing strategy and is [...]

]]> By: You CAN Argue With Results! http://www.canadiancapitalist.com/how-much-should-you-save-to-do-a-derek-foster/#comment-198179 You CAN Argue With Results! Tue, 18 Aug 2009 09:13:51 +0000 http://www.canadiancapitalist.com/2007/10/01/how-much-should-you-save-to-do-a-derek-foster#comment-198179 [...] into the future?  These aren’t easy questions, and a number of commentators have questioned this.  Again, I believe Derek Foster is sincere in his confidence in his investing strategy and is [...] [...] into the future?  These aren’t easy questions, and a number of commentators have questioned this.  Again, I believe Derek Foster is sincere in his confidence in his investing strategy and is [...]

]]> By: Eric http://www.canadiancapitalist.com/how-much-should-you-save-to-do-a-derek-foster/#comment-169602 Eric Fri, 21 Nov 2008 17:26:55 +0000 http://www.canadiancapitalist.com/2007/10/01/how-much-should-you-save-to-do-a-derek-foster#comment-169602 Hello bloggers, I've started initiating my 6yr old boy to the finance world. He has his own little bank at home in which he keeps currency from dozens of countries, he has his own savings account in which he follows and deposits funds. I want to investigate the possibility of investing directly in blue chip companies(DRIPs). What do you suggest for a 6 yr old? I want to incorporate a 'fun' factor, something to get him really excited about it .... more so than he already is. Looking forward to your insight, Regards, Eric Hello bloggers,

I’ve started initiating my 6yr old boy to the finance world. He has his own little bank at home in which he keeps currency from dozens of countries, he has his own savings account in which he follows and deposits funds.

I want to investigate the possibility of investing directly in blue chip companies(DRIPs). What do you suggest for a 6 yr old? I want to incorporate a ‘fun’ factor, something to get him really excited about it …. more so than he already is.

Looking forward to your insight,

Regards,

Eric

]]> By: Johnny Nemonic http://www.canadiancapitalist.com/how-much-should-you-save-to-do-a-derek-foster/#comment-125409 Johnny Nemonic Thu, 03 Apr 2008 18:41:48 +0000 http://www.canadiancapitalist.com/2007/10/01/how-much-should-you-save-to-do-a-derek-foster#comment-125409 hey guys, derek foster has testicles in his mouth hey guys, derek foster has testicles in his mouth

]]> By: Billy http://www.canadiancapitalist.com/how-much-should-you-save-to-do-a-derek-foster/#comment-69558 Billy Wed, 03 Oct 2007 22:45:22 +0000 http://www.canadiancapitalist.com/2007/10/01/how-much-should-you-save-to-do-a-derek-foster#comment-69558 Some pessimism is a good thing in retirement planning. I'm pretty sure that I would not want to try to live on 20K either... Some pessimism is a good thing in retirement planning.

I’m pretty sure that I would not want to try to live on 20K either…

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/how-much-should-you-save-to-do-a-derek-foster/#comment-69499 Canadian Capitalist Wed, 03 Oct 2007 13:15:01 +0000 http://www.canadiancapitalist.com/2007/10/01/how-much-should-you-save-to-do-a-derek-foster#comment-69499 Billy: Fair enough. I guess calling a glass half-full or half-empty depends on your perspective. I just take a slightly pessimistic view :) Billy: Fair enough. I guess calling a glass half-full or half-empty depends on your perspective. I just take a slightly pessimistic view :)

]]> By: Billy http://www.canadiancapitalist.com/how-much-should-you-save-to-do-a-derek-foster/#comment-69486 Billy Wed, 03 Oct 2007 11:20:08 +0000 http://www.canadiancapitalist.com/2007/10/01/how-much-should-you-save-to-do-a-derek-foster#comment-69486 CC I agree that he could not have done it on $2400/year for 12 years. There must have been more to it than that. However, retirement should be possible on 500K -- if you are willing to live on 20-25K/year (which DF is). Using your link to FireCalc gives a 73% success rate. Assuming the proper dilligence in choosing the stocks he should survive. CC
I agree that he could not have done it on $2400/year for 12 years. There must have been more to it than that.

However, retirement should be possible on 500K — if you are willing to live on 20-25K/year (which DF is). Using your link to FireCalc gives a 73% success rate. Assuming the proper dilligence in choosing the stocks he should survive.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/how-much-should-you-save-to-do-a-derek-foster/#comment-69398 Canadian Capitalist Wed, 03 Oct 2007 00:18:37 +0000 http://www.canadiancapitalist.com/2007/10/01/how-much-should-you-save-to-do-a-derek-foster#comment-69398 Billy: First, investing in solid blue chips with a long history of raising their dividends is a very good strategy, especially when they are purchased at depressed prices. My problem with DF's strategy is two fold: 1. Gathering up a decent nest egg enabling an early retirement is not as easy as he makes out to be. DF himself achieved it by taking risky bets that are not suitable for everyone. The leveraged bets worked for him; doesn't mean it would work for everyone. 2. The withdrawal assumptions he is using are quite aggressive. If you are willing to supplement your investments income with a bit of work, early retirement is achievable with a $500K portfolio plus a fully paid off home. If you really want to stop working, I think you really need $1m or more. Billy: First, investing in solid blue chips with a long history of raising their dividends is a very good strategy, especially when they are purchased at depressed prices. My problem with DF’s strategy is two fold:

1. Gathering up a decent nest egg enabling an early retirement is not as easy as he makes out to be. DF himself achieved it by taking risky bets that are not suitable for everyone. The leveraged bets worked for him; doesn’t mean it would work for everyone.

2. The withdrawal assumptions he is using are quite aggressive. If you are willing to supplement your investments income with a bit of work, early retirement is achievable with a $500K portfolio plus a fully paid off home. If you really want to stop working, I think you really need $1m or more.

]]> By: moneygardener http://www.canadiancapitalist.com/how-much-should-you-save-to-do-a-derek-foster/#comment-69395 moneygardener Wed, 03 Oct 2007 00:03:46 +0000 http://www.canadiancapitalist.com/2007/10/01/how-much-should-you-save-to-do-a-derek-foster#comment-69395 Personally, I do not think it is unreasonable to assume that dividend growth will out pace inflation. Perhaps I have not beeen around for long enough but I find it hard to imagine a world were companies like JNJ, PG, GE, MCD, RY, TD, MFC etc. will raise their annual dividend at an annual clip of less than 4%. When it comes to income trusts, it gets a little murkier, especially with the coming tax laws. Foster must be at least a little bit concerned about what will happen with Trusts such as Pembina, and Canadian Oil Sands, and Penn West or whichever trusts he owns that are not REITS. The withdrawal rate problem is not as simple as some people here are insinuating, although with a diversified portfolio of mainly dividend achievers I believe you could confidently withdraw the yield forever and not deplete value. Personally, I do not think it is unreasonable to assume that dividend growth will out pace inflation. Perhaps I have not beeen around for long enough but I find it hard to imagine a world were companies like JNJ, PG, GE, MCD, RY, TD, MFC etc. will raise their annual dividend at an annual clip of less than 4%.

When it comes to income trusts, it gets a little murkier, especially with the coming tax laws. Foster must be at least a little bit concerned about what will happen with Trusts such as Pembina, and Canadian Oil Sands, and Penn West or whichever trusts he owns that are not REITS.

The withdrawal rate problem is not as simple as some people here are insinuating, although with a diversified portfolio of mainly dividend achievers I believe you could confidently withdraw the yield forever and not deplete value.

]]> By: Billy http://www.canadiancapitalist.com/how-much-should-you-save-to-do-a-derek-foster/#comment-69394 Billy Tue, 02 Oct 2007 23:33:53 +0000 http://www.canadiancapitalist.com/2007/10/01/how-much-should-you-save-to-do-a-derek-foster#comment-69394 CC I only asked because you are using your assumptions about the world and not his. As I recall his axioms for buying stock were something like this: - buy stocks that have a consistent history of paying dividends -buy stocks that have a consistent history of increasing their dividends -buy stocks in companies that you feel are 'recession proof'. I think his examples were big banks, electricity or utility companies and REITs (he seemed to be particularly enamored of reits holding retirement homes/elder care facilities). -only buy stocks and never sell them. You want to live off of the passive income (dividends/distributions). You do not need to worry about the current value of your portfolio. -only buy stocks that you feel are 'on-sale' (and meet the other criteria). I seem to recall an example of the big 5 banks in 2000 which were at a low. As well, the book had other advice that very much reminded me of Your Money or Your Life (live frugally, figure out how much your really need when your subtract the taxes, work expenses etc, pay off your mortgage). I don't recall seeing skepticism about YMoYL in the same league as I see for DF. Is it that you disagree with the premise entirely, the claim that he did it on $200/month or the claim that he can live on $25K or so a year? CC
I only asked because you are using your assumptions about the world and not his. As I recall his axioms for buying stock were something like this:
- buy stocks that have a consistent history of paying dividends
-buy stocks that have a consistent history of increasing their dividends
-buy stocks in companies that you feel are ‘recession proof’. I think his examples were big banks, electricity or utility companies and REITs (he seemed to be particularly enamored of reits holding retirement homes/elder care facilities).
-only buy stocks and never sell them. You want to live off of the passive income (dividends/distributions). You do not need to worry about the current value of your portfolio.
-only buy stocks that you feel are ‘on-sale’ (and meet the other criteria). I seem to recall an example of the big 5 banks in 2000 which were at a low.

As well, the book had other advice that very much reminded me of Your Money or Your Life (live frugally, figure out how much your really need when your subtract the taxes, work expenses etc, pay off your mortgage).

I don’t recall seeing skepticism about YMoYL in the same league as I see for DF. Is it that you disagree with the premise entirely, the claim that he did it on $200/month or the claim that he can live on $25K or so a year?

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