Just curious, anybody doing this as a main source of income?
Planning to. At least my trade returns now surpass my 9-5 income and I will gradually reduce hours in my day job. But I don’t see the urge to quit fully for now, so I keep riding the double-income…
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Nice! I’m assuming I have a very large account.
Trying not to be snarky, but I’m retired and my #1 source of income is portfolio withdraws. Which is likely to be true of many P123 members.
Welcome to the forum,
Rich
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Yes. My wife and I retired in 2022 (at the ages of 64 and 59) because I was making enough from investing using Portfolio123 to render continued paychecks largely unnecessary. It took me about seven years of using Portfolio123 to get to that point.
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I could but my 9-5 is actually enjoyable and a bit more buffer wont hurt.
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That’s amazing. I’m only 29. I’m looking to grow my account hopefully over the years before I fully retire and live off my investments.
It’s a goal of mine.
I’m aware you have to have a very large account assuming you live in an expensive country.
It is also a function of your expenses. Either a large account or a small monthly outflow, or of course both
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This will give you some idea of what percentage of your entire portfolio you can safely withdraw annually. It accounts for inflation if you want as well as giving you the likelihood of running out of money (for different withdraw rates and life-expectacies). You have to pay to upload P123 simulations, but I would caution against that until you have some out-of-sample data anyway: Monte Carlo Simulation
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Well, it helps! Let's say you can compound at 30% and you want to retire with $5M in 8 years. How much do you need to start with? The math is relatively simple: x*(1.3)^8 = 5,000,000, so x = $613,000. How long would it take if you start with only $25,000? Again, the math is simple: 25,000*1.3^x = 5,000,000. 1.3^x = 200 so x = ln(200)/ln(1.3) = 20.19 years. I was compounding at a significantly higher rate than 30%, and although I started with only $160K, I was able to inject a great deal of additional cash using cash-out mortgages.
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While we read that withdrawing 3 to 4% per annum is safe I assume that if you want perpetual wealth on a long term basis, accounting for 1.5-2% before tax is more realistic (if you are able to make 30% per annum this is a different story, but I do not think this is safe to take it as granted on a long term basis), assuming some level of diversification (for exemple Europe/USA, gold, real estate and some cash). Also noting that if you stop working and depending of your country you might have plenty of new issues such as healthcare system, etc. And your compounding has to be after tax. So many headaches… I like looking at this website: https://portfoliocharts.com/
Yes. Perhaps the most important thing to do as far as managing your money is concerned is to move as much of your assets as you can into Roth IRAs. Tax-free compounding makes a huge difference.
For me, where I am that means keeping stocks more than six months. Making things more difficult.
The tax question also comes down to your location flexibility you could:
a) Become Non-Dom in Cyprus and pay no taxes
b) Live in Switzerland and pay no capital gains tax if you dont churn much (6 months holding period)
c) Be very rich to begin with and negotiate with the Italian/Portugese authorities to relocate…
Disclaimer: This is (obviously) not tax advice 
and there are more options like company in Budapest etc
Unless you are American. You pay taxes no matter where you move.
Best is middle east.
ha thats true
So, i’m looking to start with your crazy returns + small caps USA portfolio.
Question 1: Do i need to have a paying portfolio123 account with your strategy?
Question 2: Would the 85 USD a month plan be good enough to start and scale? In other words with the 10 year backtest be good enough for building a strategy or it’s best to get 15 years backtest?
Thanks!
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Even free Portfolio123 accounts can subscribe to and follow Designer Models.
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More historical data is always better, but 10 years is still enough to be useful. The choice depends on your budget. Going from 10 years to 15 is beneficial but going to 20 is more beneficial because then you have the 2008 recession data. You can always upgrade to 20 at any time once you have gotten comfortable with the platform if you plan on investing a lot of time building models.
There are other differences in the Backtest plan (10 yrs) vs the Portfolio plan (15 yrs) besides the additional data. The main difference is that the Portfolio plan lets you create simulated and live 'Strategies' while the Backtest plan can only use the Screener and do backtests in the Screener. Backtests done using Simulated Strategies are more realistic then Screener backtests because Strategies have independent buy and sell rules. And the rebalance process in a live Strategy is much more efficient then trying to manage a portfolio using the Screener. You could schedule a call with us if you would like us to show you the differences between the 2 plans.
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