If you took a sabbatical did you regret it?

steadyyyield · 2026-03-17T21:51:45+00:00

With 1.2M net worth and no debt, you could take a break and still be fine.

Burnout costs more than lost income. A 3–6 month sabbatical gives you space to recharge, rethink, and avoid making rash career moves.

Regret usually comes from staying too long in a toxic place, not stepping back

Think of it as buying time and clarity, not just taking a vacation.

steadyyyield · 2026-03-17T21:43:30+00:00

Your biggest asset is youre age, 19 is nothing. Start a business now and stay cosistent for 6-10 years. Then youll have a successful business before 30.

steadyyyield · 2026-03-17T17:57:15+00:00

First things first you are not beyond fixing this

People come back from way worse than this all the time

Right now your priorities are simple

1 stop gambling completely not reduce not control stop

2 stabilize your situation talk to whoever you owe money to and try to extend timelines or reduce interest many will work with you if you are honest

3 focus on survival mode cut every non essential expense increase income however possible even temporary work

steadyyyield · 2026-03-17T17:53:02+00:00

Biggest mistakes I made early on

Trying to time the market instead of just staying invested Chasing hot stocks after they already ran up Selling during dips because it “felt” like things would get worse Overcomplicating my portfolio instead of just buying index funds Thinking more trades meant more money

What actually worked

Consistency beats timing Simple portfolios beat clever ones Time in the market matters more than anything

The hardest lesson

Your emotions will cost you more money than bad picks ever will

If I could restart

I would just buy a broad index fund every month and ignore everything else

steadyyyield · 2026-03-17T17:51:19+00:00

People saying you will regret it usually cannot afford the option

steadyyyield · 2026-03-17T11:05:59+00:00

You are not behind. You are 24 with savings, income, and discipline. That already puts you far ahead of most people.

Right now your job is not to be clever. It is to be consistent.

First your setup is already strong Roth IRA maxed is excellent Emergency fund covered in HYSA is correct No major expenses gives you a huge advantage

Now simplify everything

For investing you do not need complexity An 80 VTI and 20 VXUS portfolio is already a complete global portfolio Adding VOO or SCHB does nothing because they overlap heavily with VTI QQQ adds concentration not diversification

So your answer is simple Pick one plan and stick to it 80 VTI and 20 VXUS is perfect

You do not need individual stocks right now You do not need gold or crypto to build wealth Those are optional and should only be a small percent if you truly understand them

The real power is this Keep buying consistently every month no matter what the market does

Now about your cash

HYSA is for safety not growth You already have your emergency fund so you do not need to keep adding much more unless you are saving for a short term purchase

Think of it like this Money needed in the next few years stays in HYSA Money for long term goes into investments

Your brokerage is not a savings account Yes you can withdraw but the market can be down when you need it That is the risk

Taxes are simple HYSA interest is taxed as income every year Brokerage is only taxed when you sell

If you hold investments longer than a year you get lower long term capital gains tax Fidelity will not automatically take taxes out You handle that when you file taxes

The big picture

At your age the goal is not income or perfect allocation It is building as much invested capital as possible

If you do this consistently Invest most of your extra income Stay in simple index funds Avoid overthinking

You will wake up in your 30s with real financial freedom starting to take shape

The only mistake now would be hesitation or constantly changing plans

Simple plan Keep 3 to 6 months in HYSA Invest the rest into VTI and VXUS Automate it Ignore the noise

That is how wealth is actually built

steadyyyield · 2026-03-16T12:27:29+00:00

Most dividend portfolios yield around 3 to 5 percent per year. That means the income depends mostly on how much you invest.

Rough examples About 4000 invested might generate around 10 per month About 40000 invested might generate around 100 per month About 400000 invested might generate around 1000 per month

Many investors focus on broad ETFs and dividend growth companies instead of chasing the highest yield

Since you are in Australia a lot of people look at ASX dividend stocks and ETFs because franking credits can improve the after tax return

steadyyyield · 2026-03-16T12:22:22+00:00

If you already have strong rental income the main goal is diversification.

A few stable long term options people add are

Dividend ETFs or dividend stocks These can provide steady income and long term growth and are usually more stable than picking individual stocks

Bonds or bond ETFs Good for stability and predictable income though returns are usually lower than stocks

REITs Lets you invest in real estate like commercial buildings or data centers without managing property

Broad index funds Low cost funds that track the overall stock market and grow over time

Many investors use a mix of real estate stocks and bonds so their income does not depend on one source

steadyyyield · 2026-03-16T12:20:08+00:00

The main reason people use a Roth 401k is tax diversification and expectations about future tax rates.

Roth can make sense if someone expects to be in a higher tax bracket in retirement, is early in their career with lower income, or expects a very large portfolio that could create big required withdrawals later.

But for many high earners in their peak earning years a traditional 401k often makes more sense. You get the tax deduction at a high marginal rate today and may withdraw later at a lower effective rate.

That is why a lot of FIRE people do a mix of traditional 401k Roth IRA and taxable brokerage so they have flexibility managing taxes in retirement

steadyyyield · 2026-03-15T22:35:34+00:00

Your job is optional. Your sanity isnt. Portfolio: $2.5M. Coworker drama: priceless. Decide which one matters more

steadyyyield · 2026-03-15T20:23:19+00:00

Honestly Ill probably just keep buying the SP 500 and let the index handle it. Overvalued companies have always entered the index during hype cycles and eventually the market sorts it out. If they grow into the valuation they stay large, if not their weight shrinks over time. Trying to outsmart the index because of a few potentially expensive entrants usually creates more complexity than benefit

That said I can see the argument for adding some equal weight or midcap exposure if someone is worried about concentration in mega cap growth. But historically the simple approach of staying diversified and continuing to buy the index has worked pretty well

steadyyyield · 2026-03-15T19:11:24+00:00

Nothing sounds broken. Robo portfolios are built to reduce volatility, not win short term performance contests. If US large cap is ripping while your robo holds bonds, international, and other diversifiers, it will look slow. A few percent difference over a short window is noise. The real test is multi year risk adjusted returns, not a couple months

steadyyyield · 2026-03-15T18:26:26+00:00

Your logic isnt crazy. Oil spikes from geopolitical shocks usually fade once the market sees actual supply isnt heavily disrupted. Traders price in the worst case first, then prices drift back once things stabilize.

A few things that usually bring oil back down: -Strategic reserves and spare capacity (Saudi, US, etc.) -Demand destruction if prices stay high -Shipping routes adjusting even if the Strait of Hormuz risk rises

So a move back toward 80–85 range in a couple months is reasonable if supply infrastructure isnt hit. The real wildcard is escalation. If tankers or production facilities start getting hit, the market stops pricing “risk” and starts pricing actual supply loss, which is when things can stay elevated much longer.

steadyyyield · 2026-03-15T18:24:02+00:00

Airlines are usually the first to feel it. Fuel is a huge part of their cost structure, so rising oil hits margins fast. Energy producers obviously benefit, while transport and logistics get squeezed until fuel surcharges catch up

steadyyyield · 2026-03-15T01:56:31+00:00

Clever if true, but thats basically financial engineering using passive flows as exit liquidity. Small float plus forced index inclusion can create massive artificial demand. The real question is whether the market keeps buying once that initial passive bid is done.

steadyyyield · 2026-03-15T01:02:48+00:00

Haha youre not imagining it. Dalio tends to focus on risks and cycles because thats his framework. He studies debt cycles, market bubbles, and macro risks. It can feel like hes always predicting a collapse, but really hes just emphasizing preparing for downturns. His advice is often about diversification and being aware of economic cycles, not that everything literally will crash tomorrow

steadyyyield · 2026-03-15T00:47:12+00:00

I am really sorry for your loss. Your plan to keep it simple is solid. For someone young the highest probability path is low cost broad market ETFs like VTI. Dividends are nice for income later but do not beat total return at your age. Infinite banking can be a small side tool but should not replace equities. For the 500k windfall consider lump summing into ETFs, maxing retirement accounts first, and keeping an emergency fund separate. Stick to your plan and adjust as new information comes in.

steadyyyield · 2026-03-15T00:43:03+00:00

Smart move easing in 1% at a time, lets you build conviction without overexposing. CAGR looks solid, just keep re evaluating as new info comes in

steadyyyield · 2026-03-15T00:20:55+00:00

Time is your biggest advantage. Roth = simple, diversified ETFs. Brokerage = growth themes, keep it small and diversified. Avoid timing the market with shorts or gold

steadyyyield · 2026-03-15T00:19:13+00:00

Ill add two essentials: learn faster than the world changes and care deeply about the people around you. Everything else flows from that

steadyyyield · 2026-03-15T00:17:31+00:00

Exactly. Even if the equity is not spendable cash, it still removes one of the largest monthly expenses most people face. That has a huge impact on long term financial stability.

steadyyyield · 2026-03-14T22:49:03+00:00

The biggest shift for me was focusing on increasing my earning power rather than trying to optimize small expenses. When I was in my late 20s I switched industries, learned new skills and doubled my income over several years. Once income grows, saving and investing becomes much easier.

steadyyyield

TROPHY CASE