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Re: Passive Income-----The secret to long term financial securityFor $78000 to turn into $430000 over a 28 year period requires a 6.29% compound growth rate.During this period the All Ordinaries Index grew from 1031.6 to 5394.4, so at a 6.09% compound growth rate (before fees).So on this measure alone the taxi plate wins!But, you would need to compare the total rent collected from the taxi plate (minus any "vacancy") over this period to the total grossed-up dividends from the shares accumulated over this period to see which was really the better investment.I would think that dividends have the potential to grow much faster, but don't know enough about taxi plate lease growth rates to comment further.But if I had $430,000 spare cash today I would probably put it into a few shares rather than a single taxi plate.
Re: Passive Income-----The secret to long term financial security
For $78000 to turn into $430000 over a 28 year period requires a 6.29% compound growth rate.
During this period the All Ordinaries Index grew from 1031.6 to 5394.4, so at a 6.09% compound growth rate (before fees).
So on this measure alone the taxi plate wins!
But, you would need to compare the total rent collected from the taxi plate (minus any "vacancy") over this period to the total grossed-up dividends from the shares accumulated over this period to see which was really the better investment.
I would think that dividends have the potential to grow much faster, but don't know enough about taxi plate lease growth rates to comment further.
But if I had $430,000 spare cash today I would probably put it into a few shares rather than a single taxi plate.
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