5 Ways to Get Monthly Income without working — Transcript

Full transcript

1. 0:00So may I come in? No. Thank you. I want
2. 0:03to work. No, I'm busy. Sir, I want to
3. 0:05work from home.
4. 0:08I have created this Jingala portfolio
5. 0:10which will give me 50,000 dividend
6. 0:13income per month. I'll work from Manali.
7. 0:16I'll work for you as well. But
8. 0:19but it's okay. We have a lot of work.
9. 0:28Okay. So 50,000 per month passive income
10. 0:31from your portfolio.
11. 0:32>> Correct.
12. 0:32>> And [music] this portfolio has three Oh,
13. 0:36>> what size stocks? Yeah.
14. 0:37>> It has five problems.
15. 0:39>> Problems?
16. 0:40>> Yeah. Just minor tweaks. We'll fix those
17. 0:43five problems together and you'll figure
18. 0:44out your 50,000 per month in passive
19. 0:46dividend income. Yeah. Yeah. Yeah.
20. 0:48>> You are helping me.
21. 0:48>> Of course, I'll help you.
22. 0:50>> So the first thing I see over here is
23. 0:51how you constructed this portfolio.
24. 0:54>> Look, so I ran this query. M
25. 0:56>> this is dividend yield is greater than
26. 0:593%.
27. 0:59>> Okay.
28. 1:00>> M 3% is what I'm getting as income of
29. 1:03the portfolio.
30. 1:04>> Correct.
31. 1:05>> Value of the portfolio.
32. 1:06>> Value of the portfolio and market
33. 1:08capitalization is greater than 10,000
34. 1:11crores.
35. 1:11>> TMA what you got a result of stocks.
36. 1:13>> Correct.
37. 1:14>> Which meet this criteria.
38. 1:15>> Correct.
39. 1:15>> So that list is the problem. How you
40. 1:18construct the portfolio really matters.
41. 1:20So can I tell you how to do this?
42. 1:22>> You'll tell me stocks.
43. 1:23>> Yeah. But before I do that,
44. 1:25>> TELL ME STOCKS.
45. 1:25>> YEAH.
46. 1:26BASICS. Can you tell me what this is?
47. 1:29>> It's a chart.
48. 1:30>> What chart is this?
49. 1:32>> Bar chart.
50. 1:32>> No, this is called inflation.
51. 1:37Inflation, let's suppose, is at 6%, is
52. 1:40pretty good case scenario. And your
53. 1:42dividend yield is 3%. Now, if you're
54. 1:45going to live your life off of dividends
55. 1:48and Mahai is 6%. Then that value of that
56. 1:5150,000 per month is reducing every year,
57. 1:53right?
58. 1:53>> I'll add more funds.
59. 1:56Totally I understand but it's not a good
60. 1:5810 20 year plan to inflation you have to
61. 2:01actually [music] account for agreed
62. 2:02right
63. 2:02>> this I'll write okay fair
64. 2:04>> okay so what you'll write over here is
65. 2:064% dividend yield
66. 2:08>> okay
67. 2:08>> minus
68. 2:106% inflation
69. 2:12>> real return is minus 2%.
70. 2:17But you'll tell me stocks now.
71. 2:18>> I will. I will. But this you should
72. 2:20know. Basic thing you should know.
73. 2:21>> Okay. I know. I know. Yeah, we know.
74. 2:22>> I think you need to understand another
75. 2:24thing that you'll eat into your money.
76. 2:26Can you guess what it is?
77. 2:27>> What?
78. 2:28>> Tax. So when you earn money from
79. 2:33dividends, you actually [music] pay tax
80. 2:35based on tax slabs.
81. 2:37>> Huh?
82. 2:37>> So if you are in the 30% bracket, you
83. 2:40will pay 30% on the dividends. Oh, I'll
84. 2:45add more stocks. I'll increase the price
85. 2:47to 50,000.
86. 2:48>> No, no, hold on. So, if your dividend
87. 2:50yield is actually 4%. 4% minus 30% is
88. 2:54your actual return minus inflation. But
89. 2:56my point is you will have to pay tax on
90. 2:58it. All of it is not yours. Let's
91. 3:01suppose gross dividend income annual
92. 3:03[music] is 6 lak. That's 50,000 a month.
93. 3:06>> 50,000 a month.
94. 3:07>> Also, by the way, dividend is not paid
95. 3:09monthly. Did you know that?
96. 3:10>> 50,000 a month.
97. 3:11>> Dividend is not paid monthly. It's paid
98. 3:13either as an interim dividend salar at
99. 3:17the end of the year. So it's not a
100. 3:18regular income.
101. 3:19>> I'll calculate that amount. I'll divide
102. 3:21by six. It'll be 50,000 per month. We
103. 3:24all get it. Continue.
104. 3:26>> So this six lakhs that you earn.
105. 3:28>> Mhm.
106. 3:28>> From dividends has this calculation
107. 3:316 lakhs a year
108. 3:33>> 50,000 a month.
109. 3:34>> 50,000 a month. Income tax 30%. So tax
110. 3:38is 1.8 lakhs. There's health and
111. 3:40education says another 7,000. Total tax
112. 3:42payable is 1.87 lakhs. So
113. 3:45>> on six lakhs
114. 3:46>> six lakhs which means six lakhs minus
115. 3:481.87 lakhs you actually earn 4 lakh
116. 3:5112,000.
117. 3:52>> But I'll also add more funds. I'll add
118. 3:54more stocks. Dividend will rise.
119. 3:56>> Sure. But your expectation was dividend
120. 3:58yield 50,000 per month.
121. 4:00>> I I I knew it.
122. 4:02>> But here's the catch. You won't actually
123. 4:05pay 1.87 lakhs.
124. 4:06>> Really?
125. 4:07>> Yes. So before the company pays you the
126. 4:09dividend they deduct a 10% TDS mean
127. 4:1260,000 they will cut and this TDS can be
128. 4:14subtracted from your total tax that you
129. 4:16need to pay. So basically now you will
130. 4:19pay about 1 lakh 27,000 in taxes on your
131. 4:23dividend income but the tax doesn't end
132. 4:25here.
133. 4:27>> One stock name and then we continue.
134. 4:29>> Sure I'll just write it. Yes.
135. 4:30>> The name of [music] the stock is
136. 4:33[cough and clears throat]
137. 4:33okay let's finish the tax bit. So the
138. 4:36tax bit is if you have a tax liability
139. 4:39of more than 10,000 rupees [music] a
140. 4:41year outside of your salary etc. then
141. 4:44you have to pay something called
142. 4:45advanced tax.
143. 4:49Advanced tax advanced tax is because
144. 4:51you're not depositing your earning car
145. 4:53tax to the government. So the government
146. 4:54says four times a year every quarter
147. 4:58earning please this is called advanced
148. 5:01tax. You will have to do that or else
149. 5:03there is a penalty. So, so far we talked
150. 5:05about three things.
151. 5:05>> Yes, sir. Inflation, income tax,
152. 5:07advanced tax, not one stock, only one
153. 5:10genuine question.
154. 5:13>> 4% minus
155. 5:15>> 30% of 4%.
156. 5:17>> Is equal to 2.8%.
157. 5:19>> What is this?
158. 5:20>> This is your actual return after tax
159. 5:23if you're aiming for 4%. But there's a
160. 5:25problem with this 4% also. I will just
161. 5:28explain right now. You know, there's one
162. 5:30more thing you can add to this entire
163. 5:32mindset. Of course. Okay. I just need
164. 5:35one stock. One stock and then I'll
165. 5:37listen to you very quietly.
166. 5:38>> Okay. You know what? Skip that. We'll
167. 5:40just do the stocks.
168. 5:42>> Done. Yes.
169. 5:43>> All right. So, this is your original
170. 5:46query.
171. 5:47>> This is my query. Yes.
172. 5:48>> These are all the stocks. So, I want
173. 5:50I'll point and you tell me what dividend
174. 5:53yield each
175. 5:53>> 5.75.
176. 5:54>> This
177. 5:55>> 54.5
178. 5:56>> this
179. 5:57>> 7.4
180. 5:595.2 2 3.1 6.4.
181. 6:03>> So we are not being very greedy right
182. 6:04when we say 4% because you dividend.
183. 6:07>> Correct.
184. 6:07>> So let's have a look at those stocks. So
185. 6:10this is the first one in 2009. What was
186. 6:13the price of this stock?
187. 6:14>> 500.
188. 6:15>> And what's the price right now?
189. 6:16>> Oh, this is 580.
190. 6:18>> So it's not moved.
191. 6:20>> Agreed.
192. 6:20>> Let's see another stock.
193. 6:21>> Dividend.
194. 6:23>> Uh this is this is very high. Doesn't
195. 6:26matter. Let's look at another stock. In
196. 6:282009, what was the price of this stock?
197. 6:30>> Uh, roughly 200 rupees.
198. 6:32>> And where is it right now?
199. 6:34>> 235.
200. 6:35>> Yeah.
201. 6:35>> What's the dividend yield of this stock?
202. 6:37>> Pretty high. Let's see one more company.
203. 6:40Oh, I know which one to show.
204. 6:41>> Sir, I have a feeling scam up.
205. 6:44>> No, no, not at all. I'm here to help
206. 6:46you. Okay, let's look at this. What was
207. 6:48the price of this stock in 2011? Yeah.
208. 6:50400.
209. 6:51>> 400. And what's the price right now?
210. 6:53>> 500?
211. 6:53>> No, it's 400 actually.
212. 6:55>> It's exactly 400.65. 65
213. 6:57>> dividend yield of this stock
214. 6:58>> pretty actually one of the highest over
215. 7:00here. Do you see a pattern?
216. 7:02>> Yeah.
217. 7:02>> What's the pattern
218. 7:03>> that I'm not going to Manali and
219. 7:06scamming me
220. 7:06>> is not about scamming you. This is about
221. 7:08understanding you do not buy a stock or
222. 7:11create a portfolio to create
223. 7:15dividend earning. [music]
224. 7:17You create it for capital appreciation.
225. 7:19Take a look at this stock over here. Uh
226. 7:21this company in 2009 what price was it?
227. 7:251,5 rupees.
228. 7:26>> What price is it right now?
229. 7:28>> 1,700. [music]
230. 7:29Uh,
231. 7:29>> no, 11,200.
232. 7:30>> Yeah, 1,200. So, I'm not saying that
233. 7:33will happen with you. But in an ideal
234. 7:35scenario, that's what you want. You want
235. 7:36capital to appreciate. You want the
236. 7:39stock to go up. This is too much. Maybe
237. 7:40this is a bad example. But you want
238. 7:42capital, you want a good fundamental
239. 7:44company, low debt, etc., etc., all those
240. 7:47things. You do not choose a stock
241. 7:51because it's giving dividends. Dividend
242. 7:53class. company makes money, it has
243. 7:56profit, it should take this profit,
244. 7:57reinvest in R&D, reinvest in employees,
245. 8:00reinvest in growth, experiment and grow
246. 8:02the company. When the company grows,
247. 8:04then the capital also grows. But when
248. 8:07it's taken that profit and it's given it
249. 8:08back to shareholders to grow,
250. 8:11you get my point. If you're looking at
251. 8:14high dividend companies, they're not
252. 8:15reinvesting their profits. There is a
253. 8:17chance that the capital is also not
254. 8:20growing, therefore the stock price will
255. 8:22also not grow. Sir H.
256. 8:26If it's actually 4% dividend yield and
257. 8:28you want 6 lakhs a year, you'll need 1.5
258. 8:31crores. 1.5 crores.
259. 8:33>> Yes.
260. 8:33>> How?
261. 8:34>> I have five lakhs and you'll give me
262. 8:351.45 crores.
263. 8:37>> He doesn't have 1.5 crores.
264. 8:38[clears throat]
265. 8:39So, and this 4% dividend yield is also
266. 8:42not possible. It is, but the stocks may
267. 8:44not be the best growth stocks. And you
268. 8:46have to optimize for capital
269. 8:47appreciation, not dividend yield. Also,
270. 8:51actually, I'll explain it. Um uh you
271. 8:54have a friend
272. 8:54>> of course you are now penal paper.
273. 8:57>> Okay so basically this if it's a 4%
274. 8:59dividend yield you need 1.5 crores. If
275. 9:01it's a 1% dividend yield you need
276. 9:056 crores.
277. 9:06>> 6 crores.
278. 9:07>> So dividend thinking is out. Let me
279. 9:09explain what you should think. Let's
280. 9:11suppose there are two options. First
281. 9:13option is you expect a 12% CAGR which I
282. 9:17think is fair from stocks or index or
283. 9:19whatever you're investing. And [music]
284. 9:21second is you're optimizing for
285. 9:24dividend. Let's suppose it's 3%.
286. 9:27>> Let's assume. And then you have five
287. 9:28years. Year 1, year 2, year 3, year
288. 9:31four, year five. Now you tell me 3% over
289. 9:365 years.
290. 9:38How much is this going to be over 5
291. 9:39years? 5 multiplied by 3 15. Yeah. 15%.
292. 9:43[music]
293. 9:44And 12%
294. 9:47over 5 years is how much? 12 * 5? 60
295. 9:51>> no c agr compound
296. 9:5612% compounded
297. 9:58>> 76%.
298. 9:59>> All right 76% [music]
299. 10:01that's almost
300. 10:03>> 80%.
301. 10:04>> Yeah it's almost 80%. Now you are trying
302. 10:06to optimize for this versus this. You
303. 10:08know why? Because you don't have
304. 10:10patience. This is paid out every year.
305. 10:13Then you're greedy and you can't wait
306. 10:15this 5 years, 7 year, 10 year period
307. 10:17because of your impatience. you will not
308. 10:19make this money. Your next nasal will
309. 10:21also not make money, which is the entire
310. 10:23point. And this 12% actually makes so
311. 10:26MUCH MONEY OVER SO MUCH period of time.
312. 10:28We've done so many episodes, but you
313. 10:29always come to find a way to make
314. 10:31short-term income possible.
315. 10:35It's okay.
316. 10:37It's okay.
317. 10:44So,
318. 10:46I'm giving you some work. You do it
319. 10:48basically.
320. 10:53Enjoy life.
321. 10:58[laughter]
322. 11:01Life's good.