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I have 18 years , from a middle high class from Brazil. Finishing the high school this year, debt free with plans of studying and living overseas in the next years.

I have access to about 20k dollars to invest monthly and I want to build a reliable and consistent monthly income with dividend's from other markets (U.S or Europe). Why? Because my currency is too unstable, and when ( not if) I move overseas my dividend's will give me too little money if they come in Brazilian Real.

So what is the best way to accomplish that? All the dividend's will be reinvested. My not so ambitious plan is to achieve 30-40k monthly from dividend's in about 3-4 years ( when I'm done with college ) so I can use this money to pay for more education , business ( my parent's are business owners so it's natural to me to pursue this way) and things in general , of course always saving a % to reinvest.

Is that a good plan and realistic objectives ( I want to be independent and able to buy me some things, education by myself with dividend's by my half 20's at maximum) ? How do I achieve that?

Or would be better to risk that money on stocks first to try to get more capital? I appreciate tips about courses or places to learn more about this ( especially on investing overseas) too. Thanks

And if I can't do 40k monthly with dividend's starting with 20k in 3-4 years how much I would need to achieve that? 50k? 70k?

I'm open to other suggestions too.

  • When you say 20k dollars, do you mean $20,000 U.S. per month? Or do you mean 20,000 BRL, which is a little over $5,000 U.S.? – ChrisInEdmonton Oct 13 '15 at 23:50
  • @ChrisInEdmonton Dollars. $20,000 U.S – Freedo Oct 13 '15 at 23:52
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    Note that most people would kill for $20,000 in guaranteed income each month. This puts you among the world's top income earners. As keshlam indicated, hire a professional financial advisor (not a salesperson/broker). – ChrisInEdmonton Oct 13 '15 at 23:55
  • Am I the only person that don't trust a lot financial advisors ? I'm not saying they don't give good advice especially when you are new on this field. But if they are so good on that why aren't they rich too? – Freedo Oct 14 '15 at 1:13
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    @Freedo: Maybe you should start by looking at craigslist ads in cities where you'd like to live and getting a sense of what you can get. You can get a pretty nice place in an extremely expensive city like San Francisco for about $5k per month. That leaves you $15k to do whatever you want with. If you really have that much money and want to make the most of it, you need to start by doing some research on how much money you actually need to accomplish your goals, instead of just throwing around random numbers. – BrenBarn Oct 15 '15 at 6:41
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Market rate of return averages about 8% annually (sometimes more, sometimes less or negative). To get 30k monthly -- even taking that as pretax -- you're talking about 360k yearly. Divide that by 0.08 and you need to have savings of 4.5 million--- and really you should double that for safety.. Tl;dr: forget it.

Added thought: If you really have $20k/month coming in, you really have no business asking the Internet for advice. Hire a professional financial advisor (not a broker, someone who is paid a flat fee for their expertise and has no incentives to give you less-than-optimal advice). . The money they will save/make for you will more than pay for their hire.

  • Oh sorry, I saw I didn't write that I have 20k to invest monthly, or 240k annually. Really ? I thought that dividend's were more lucrative. I can possibly win much more by investing this on my own company – Freedo Oct 13 '15 at 22:33
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    Key word: "possibly" You can also go broke investing in your own company. You can get higher returns by accepting more risk, or maybe by making managing your money into a second profession. If you really have $20K to invest monthly, that's a magnificent start toward early retirement... but not that early. – keshlam Oct 13 '15 at 22:41
  • All I want is to have a good life at my 25's . I can do even more buying buildings and reselling them latter too. Which other more risky option could give me 30k monthly? – Freedo Oct 13 '15 at 22:44
  • Will that $20k/month continue indefinitely (trust fund or something like that)? If so you only need to get your (other) net worth up high enough to provide the other $10k; divide my numbers by 1/3. (But in the real world any set of numbers will have to be increased to cover tax.) – keshlam Oct 13 '15 at 22:45
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    If you have 20k$/mo already and you can't live the good life yet then there isn't much help we can give you. – Ross Oct 14 '15 at 13:15
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It looks like you need a lot more education on the subject. I suggest you pick up a book on investing and portfolio management to get a first idea.

Dividend yields are currently way below 5% on blue chips. Unlike coupons from fixed income instruments (which, in the same risk category, pay a lot less), dividend yields are not guaranteed and neither is the invested principal amount.

In either case, your calculation is far away from reality.

Sure, there are investments (such as the mentioned direct investments in companies or housings in emerging economies) that can potentially earn you two digit percentage returns. Just remember: risk always goes both ways. A higher earning potential means higher loss potential. Also, a direct investment is a lot less liquid than an investment on a publicly quoted high turnover market place. If you suddenly need money, you really don't want to be pressed to sell real estate in an emerging market (keyword: bid ask spread).

My advice: the money that you can set aside for the long term (10 years plus), invest it in stock ETFs, globally. Everything else should be invested in bond funds or even deposits, depending on when you will need the access. As others have pointed out, consider getting professional advice.

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    It looks like Freedo needs a lot more education about real-world costs. Or this is pure trolling. I'm voting for the latter. – keshlam Oct 16 '15 at 0:21
  • Not necessarily. I've worked with (U)HNW clients from emerging markets for quite a while now, and they indeed do have a very different understanding of risk and return, mostly because they made huge amounts of money doing things they don't consider very risky but we wouldn't even touch with a stick. For them, the rationale is "I made 80% p.a. by 'just' buying and selling real estate, now I am willing to put my money in a conservative investment yielding me 10-15%". This is when the education efforts begin.. – vic Oct 16 '15 at 10:52

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