Summitthunting
Well-known member
Hypothetically speaking, you receive $35,000 from a medical settlement. You want to go to Africa on a family vacation/plains game safari in 10 years, having some left for other stuff. How do you invest the money?
African Investment?
- Thread starter Summitthunting
- Start date
noharleyyet
Well-known member
Define steady stream. No sarcasm intended.
L. I. Yankee
New member
Real Estate......
I'll give you an example, say you have 35k as stated above. You take 10k of that and invest in a high dividend paying stock. Just for an example lets says it's a reit currently trading at $20/share and pays a 10% dividend, which isn't to hard to find on a reit. You invest your 10k into that reit which gets you 500 shares, paying $2 per share in dividends each year. That's 1k/year in dividend payments on that 10k investment. Over the next 10 years, assuming the dividend stays the same you have now added 10k(1k/year) to your initial investment.
Now you still have 25k left to invest. You can pick another reit if you want, but I'd go against that, or look at a utility say you find a utility trading at $40/share paying 4% dividend and you take another 10k and put it that.Now you have 250 shares of that utility paying $1.6 per share or $400/year in dividend payments.
Still have 15k left, can take another 10k put that into something like a gold stock, trading at $30/share paying only 1% dividend, this will also help protect your other investments in-case of the market tanking. Now you have 333 shares of the gold stock only paying 1% dividend which only comes out to about 30 cents per share or just under $100 per year. You have 5k, left which you can keep in cash, put into a bond or if you feel you want to take a chance put it into a new/emerging market or company. But w/the dividends alone on the other three stocks you're bringing in $1500/year or 15k after 10 years. It might not be that home run play were you double or triple your money but you wont lose your a$$ either. On the 30k you have invested it's a 5% return each year on the dividends alone, that doesn't count any profit you could come up w/from the stock price increasing. Can you get a higher return, sure you can but this is just simple example of what you can do w/35k and a 10 year plan.
Summitthunting
Well-known member
Would love to go now but I'd really like to take my wife and 2yr & 4yr old boys. In ten years they'd both be able to hunt with me.
noharleyyet
Well-known member
Thanks for the detailed reply Brian.
jryoung
Well-known member
Africa can most certainly be a trip of a lifetime, but waiting and planning ten years with $35k you could have 7-10 lifetime of hunts in the same period. Do what’s best for you and your family, but don’t overlook your other possibly closer, more frequent options.
On a funny side note, when I graduated HS in 1995 we had a couple thousand dollars raised from our Senior party to put away for our ten year reunion. We put it into a 10 year CD and earned something like 4%, not bad. Had we invested in Starbucks (fitting for a school in a Seattle suburb) we would have taken advantage of 3, 2:1 splits and had something in the neighborhood of $15k…needless to say we drank well booze instead of top-shelf that night.
pseshooter300
Member
What are you looking to spend on a plains game hunt?
Summitthunting
Well-known member
I'm thinking the plains game will be around $8000-$9000. The entire trip with airfare, Kruger tour, etc. will be around $20,000-$25,000, a lot of cash but something I have always wanted to do.
That's assuming prices are comparable to todays...
That said, if your financial situation is anything like mine and this is what you choose to do, make sure you put that money where you absolutely can't get to it until the time for the trip comes. Otherwise a car will break down, you'll need a new roof that insurance doesn't cover, kids will need braces, etc and the $$ will be gone.
That said, if your financial situation is anything like mine and this is what you choose to do, make sure you put that money where you absolutely can't get to it until the time for the trip comes. Otherwise a car will break down, you'll need a new roof that insurance doesn't cover, kids will need braces, etc and the $$ will be gone.
pseshooter300
Member
I know some people that been to a place called limcroma safaris you might want to check them out it is in the Limpopo region of Africa
Sorry to be the bearer of bad news, but 5% dividends plus profit over 10 years may be a little optimistic. Figure to stay maybe 2% ahead of inflation. If your investing goal is a trip to Africa, take it now. Things can change dramatically in 10 years.
Not sure what you're looking at but 5% dividends is very much doable over 10 years. Especially if you invest in a reit or a utility. I've been averaging just under 11% in dividends since 2000.
Straight Arrow
Well-known member
I understand your passion for the ultimate African hunting experience, but I have to say maybe rather smugly, as a father whose kids are now through college and successfully out on their own, that investment would gather alot of funding for tuition by the time a 2-yr old and a 4-yr old are ready for college. I spent many weekends working and worrying about enough money for raising my kids right and providing for their education ... when I would rather have been out hunting. 'Just sayin.
Disclaimer... Don't look to the internet as a source of quality financial advice.
While I do not necessarily disagree with bluechip dividend paying stocks like REIT's and utilities, I can also show you plenty of them that have gone belly up over the last 10 years too. Are you confident enough in your ability to choose them wisely, or clairvoyant enough to pick the right ones? I'd personally feel more comfortable with a diversified portfolio of various ETF's investing in many different types of stocks and bonds, and yes, dividend payers included.
It depends on your financial situation. Is $35K now a lot of money to you? As in, will it make a substantial difference in your life, and more importantly your kid's future lives? If not, and you have plenty of money to take care of other needs, sure, go hunting and have a great time. If it is, then think hard about the expenditure.
If you are in the latter camp, I'm with Straight Arrow. Put the money in a 529 acct and invest in an age based portfolio of mutual funds. That's less of a crap shoot than winging in on a handful of stocks. A quality education will give your kids a much better head start in life than a trip to Africa, and I've been there. As awesome as hunting the dark continent is, the one thing I am most thankful for in my life is the higher education that my parents encouraged me to get and financially assisted with. I can say with 100% certainty that I would not be where I am today if it weren't for that fact. Actually, I likely would have never been able to afford that African safari if it weren't for my education and the good job it provided. Just food for thought...
While I do not necessarily disagree with bluechip dividend paying stocks like REIT's and utilities, I can also show you plenty of them that have gone belly up over the last 10 years too. Are you confident enough in your ability to choose them wisely, or clairvoyant enough to pick the right ones? I'd personally feel more comfortable with a diversified portfolio of various ETF's investing in many different types of stocks and bonds, and yes, dividend payers included.
It depends on your financial situation. Is $35K now a lot of money to you? As in, will it make a substantial difference in your life, and more importantly your kid's future lives? If not, and you have plenty of money to take care of other needs, sure, go hunting and have a great time. If it is, then think hard about the expenditure.
If you are in the latter camp, I'm with Straight Arrow. Put the money in a 529 acct and invest in an age based portfolio of mutual funds. That's less of a crap shoot than winging in on a handful of stocks. A quality education will give your kids a much better head start in life than a trip to Africa, and I've been there. As awesome as hunting the dark continent is, the one thing I am most thankful for in my life is the higher education that my parents encouraged me to get and financially assisted with. I can say with 100% certainty that I would not be where I am today if it weren't for that fact. Actually, I likely would have never been able to afford that African safari if it weren't for my education and the good job it provided. Just food for thought...
Similar threads
