There are countless investment strategies out there, with every expert claiming theirs is the best. For anyone new to investing or aspiring to become wealthy, it can feel overwhelming. So, let's break down the ๐ณ๐ฌ/๐ฏ๐ฌ ๐ฅ๐๐น๐ฒ in a way thatโs easy to understand. Once your portfolio has grown to a few million, the goal is to protect and continue growing it while also enjoying some profits. After all, youโve worked hard, shown patience, and stayed disciplined to get here! ๐ช๐ต๐ฎ๐ ๐ถ๐ ๐๐ต๐ฒ ๐ณ๐ฌ/๐ฏ๐ฌ ๐ฅ๐๐น๐ฒ? Simply put, it means you should reinvest ๐ณ๐ฌ% of your portfolio and only spend ๐ฏ๐ฌ% annually. By reinvesting ๐ณ๐ฌ% you ensure that your portfolioโyour โGolden Gooseโโkeeps growing and producing more profits. If you withdraw too much, it can harm future growth and reduce your portfolio's overall value. ๐ ๐ฅ๐ฒ๐ฎ๐น-๐๐ถ๐ณ๐ฒ ๐๐
๐ฎ๐บ๐ฝ๐น๐ฒ Letโs say you want to earn ๐ฅ๐ฑ๐ฌ,๐ฌ๐ฌ๐ฌ a month (R600,000 a year) from your portfolio. According to the ๐ณ๐ฌ/๐ฏ๐ฌ ๐ฅ๐๐น๐ฒ, this R600,000 represents ๐ฏ๐ฌ% of your total portfolio. So, to maintain this income, your portfolio needs to be worth ๐ฅ๐ฎ,๐ฌ๐ฌ๐ฌ,๐ฌ๐ฌ๐ฌ (R600,000 x 100/30). Now, letโs assume that after withdrawing ๐ฅ๐ฒ๐ฌ๐ฌ,๐ฌ๐ฌ๐ฌ in the first year, you're left with ๐ฅ๐ญ,๐ฐ๐ฌ๐ฌ,๐ฌ๐ฌ๐ฌ. If your investments grow by 200% over the next year, your portfolio would increase to ๐ฅ๐ฐ,๐ฎ๐ฌ๐ฌ,๐ฌ๐ฌ๐ฌ. In year two, youโll withdraw ๐ฏ๐ฌ% again, which would now be ๐ฅ๐ญ,๐ฎ๐ฒ๐ฌ,๐ฌ๐ฌ๐ฌ, or ๐ฅ๐ญ๐ฌ๐ฑ,๐ฌ๐ฌ๐ฌ ๐ฝ๐ฒ๐ฟ ๐บ๐ผ๐ป๐๐ตโa nice raise from year oneโs R50,000. And your portfolio is still growing! ๐๐ผ๐ป๐๐ถ๐ป๐๐ถ๐ป๐ด ๐๐ต๐ฒ ๐๐๐ฐ๐น๐ฒ At the start of year three, your portfolio would be worth ๐ฅ๐ฎ,๐ต๐ฐ๐ฌ,๐ฌ๐ฌ๐ฌ after your withdrawal. If it grows by 200% again, by the end of year three, your portfolio will be ๐ฅ๐ฑ,๐ด๐ด๐ฌ,๐ฌ๐ฌ๐ฌ. Youโd then withdraw ๐ฏ๐ฌ%, or R2,646,000, which gives you ๐ฅ๐ฎ๐ฎ๐ฌ,๐ฑ๐ฌ๐ฌ ๐ฝ๐ฒ๐ฟ ๐บ๐ผ๐ป๐๐ต. As you can see, by protecting and reinvesting ๐ณ๐ฌ% of your portfolio, it continues to grow, and so does your income! ๐๐ฒ๐ ๐ง๐ฎ๐ธ๐ฒ๐ฎ๐๐ฎ๐ The ๐ณ๐ฌ/๐ฏ๐ฌ ๐ฅ๐๐น๐ฒ ensures that your portfolio never runs out of funds and keeps growing, along with your monthly income. Keep in mind, this simplified example doesnโt account for market downturns or taxes, so be sure to do your own research. However, based on past performance with Crypto, NFTs, and Private Sales, a 200% annual return is realistic and achievable.