The Problem with Dividends #Podcast

Passive income is often considered a very important aspect of personal freedom and autonomy. An easy way to generate passive income is through dividend investing. However, while living off dividends is a great safety net to allow you to generate income without any work, there are two main problems, namely a lower capital gains and tax inefficiency.

2 thoughts on “The Problem with Dividends #Podcast”

  1. Go easy with Bitcoin, cryptos, emerging markets etc, safe stocks might be boring but you sleep better…
    There is a old rule called the 100 rule where you subtract your age and that gives you the percentage of high risk you should have in your portfolio.
    ie A 70 year old would have 70% in low risk investments and 30% in more medium to high risk….
    Tax wise….I’m married so income splitting does the job, also when you sell some bad shares, take some profits from your good ones so you pay no tax on the profits as the losses offset the gains.

    20K a year income…you need to own your own home and have no debts.
    Also factor in health insurance and a car IMO……
    Think 25K is needed which means capital of 500k working at a 5% return…..

    Living overseas cheaper?…I know people who do it…6 months in the Greek islands, 6 months in Aus….house in Aus gets rented when they are in Greece so extra income is generated…

    Liked by 1 person

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