Life after TSLA

[ke6jph]

Thought I would start a thread to look for opinion, thought, discussion on using TSLA to generate a pool of cash to then use to invest for generating income for retirement. This income would supplement our S/S payments and wife's pension.

Specifically looking for general ideas for me (or anyone else) to research and perform due diligence on.

All of my TSLA is in an IRA (I have a Roth with 315 shares and the balance in a regular IRA with approx 1600 shares.)

My timeframe for retirement depends on the value of TSLA and a potential rate of return on the cash after sale of the stock.
(Initial thoughts of 1.2m to 1.5m @ 4% pretax would work great for us)

Thank you, Mark.

 

[Johan]

So you're banking on selling TSLA at about 600-700 and then going for a safe investment with a return of 4% per year to live off the rest of your life?

 

[ke6jph]

Leaving the final price open for now. But yes, options for a safe return. This is new territory for me. Thought about a financial advisor, but still seems like a crap shoot.

 

[ke6jph]

Really unsure about a "real" rate of return that can be expected. Just speculation on a "safe" return with that amount of capital investment.

 

[anticitizen13.7]

All of my TSLA is in an IRA (I have a Roth with 315 shares and the balance in a regular IRA with approx 1600 shares.)

First, I have to ask what else makes up your portfolio, and what % of the total is in TSLA.

While I am very enthusiastic about the prospects for Tesla Motors, I generally warn people not to put all or most of their hard earned nest eggs in one basket. Random events (Black Swans) can happen, and they are often completely unpredictable. I've seen friends and co-workers take some really bad hits because they didn't diversify. Think losses in the 500k to several M range during the 2000 and then 2008 meltdowns.

My timeframe for retirement depends on the value of TSLA and a potential rate of return on the cash after sale of the stock.
(Initial thoughts of 1.2m to 1.5m @ 4% pretax would work great for us)

Something like the Vanguard Wellesley Income Fund (Vanguard - Vanguard Wellesley Income Fund Investor Shares) might be a good starting for people who want income.

Vanguard Index funds are a simple and stable way to get income too. On just dividends, I'd guess 2.5% per year on a 50/50 mix of stock and bonds.

 

[ke6jph]

First, lurking way more than posting, I have come to value the diversity and knowledge that has found its way to this forum. I also take full responsibility for my investment decisions. To answer your question directly, 99.9% tsla and .1% scty. I was able to accumulate 65% of my tsla thru buying and selling scty and kndy at the " right" time-mostly by luck? with money from my 401k's from past jobs. I am "all in" and monitor this forum, stock market and world news several times a day. I have no delusion that $500, $800 or $1000 a share is obtainable by the time I retire but, am very enthusiastic about the possibility.
What I am looking for is, as you offered, is / are investments to provide income from my principle to supplement our income in retirement. Even if it all "goes away", my wife an I will be fine. I am Trustee to our family trust and will receive the majority in cash.......
Hope this does not sound like I know it all, I just like to plan ahead and research.
Thank you, Mark

 

[Discoducky]

Hmm, hadn't crossed my mind, but while we are in the topic, ID sell some around $500 or so all thing being equal. The true value of the companies (not a typo) hasn't been realized IMHO. There is so much sustainable transportation to make and storage to supply.

 

[uselesslogin]

I liked the information in this article. I hope to someday use the four asset portfolio with a 3. 5% withdrawal rate.

AAII: The American Association of Individual Investors

 

[anticitizen13.7]

Even if it all "goes away", my wife an I will be fine. I am Trustee to our family trust and will receive the majority in cash.......

That's the most important piece of information. Because you aren't dependent on your IRAs, and your family has a trust and pension to fall back on, that makes your allocation in TSLA a lot less risky.

Since I have neither a trust nor a pension, I've kept my IRA and 401(k) strictly in broad index funds!

 

[Yonki]

Right now, Fidelity is paying out 3.75% annually (distributed monthly) on all the TSLA shares in my IRA. You could use that to either buy more TSLA or start socking it away in something less exciting (VTI is my "safe" choice).

Read more in the Tracking Short Interest thread.