Retirement with dividends from FIIs? Check out tips from André Bacci, who has been living on income since he was 33

From a computer teacher earning a minimum wage to an investor who lives exclusively on dividends received from real estate funds. The trajectory of André Bacci – who stopped working at the age of 33 – may be a good answer to those who question whether it is really possible to retire with FIIs.

Book author Introduction to Real Estate Investment FundsBacci was the interviewee of this Tuesday’s edition (31) of the program League of FIIswhich was presented by Maria Fernanda Violatti, an analyst at XP, and Thiago Otuki, an economist at Clube FII.

In the program, Bacci detailed the strategy used to achieve financial independence with FIIs and gave tips for those planning to achieve the same objective. For those who are more pessimistic – who believe it is necessary to start with a lot of money – Bacci warns: “All my assets came from the salary I received”.

To reach the current level, living on dividends, the “country kid and state school student” – as Bacci calls himself – started out simple. In his first job, as a computer teacher, he earned the equivalent of minimum wage.

Later, he got a job as a bank clerk, but the salary didn’t change much. “It was the smallest position that existed in the agency”, he recalls. If the income was not yet the dream, the investor mentality was beginning to show signs, with Bacci managing to save up to 30% of what he received.

“One day I managed to go to the IT area [tecnologia da informação] and my salary and a half increased almost three times”, he details. “The move provided good savings”.

André Bacci and real estate funds

After consolidating the habit of saving, Bacci made his first investments in conventional funds and in his own savings. The FIIs came after some time, with the purchase of two or three shares that made a difference in the investment strategy of the bank at the time.

“I had bought a kitnet in Brasília, which even generated a legal rent of 7% per year”, he highlights. “But after I started investing in real estate, I realized the possibility of a slightly higher return”.

Thirteen years after starting to save and already receiving relevant dividends, the disciplined Bacci – who was then 33 years old – resigned from his job and decided to live permanently as an investor in real estate funds.

“What I used to do to take care of money became a hobby and, in 2013, it became my main profession,” says the investor, who claims to have built up all his assets with resources from his own work. “I had PLR (profit sharing), lots of overtime, but my patrimony is all salary”.

Why real estate funds?

An enthusiast of FIIs, Bacci defends the product especially for the most novice investor in variable income. He explains that, unlike other applications, the real estate fund is more intuitive for beginners.

“In other types of investment, you have to understand the sector, accounting concepts and other aspects of the product”, he explains. “In the case of the real estate fund, you understand the investment thesis by reading the first three pages of the management report”.

In Bacci’s assessment, a portfolio of real estate funds also does not require major changes over time. And even for those who want to make changes to their portfolio, they can adopt a simple strategy to take advantage of any market opportunities.

“Buying ‘paper’ funds – which invest in fixed income securities – when there is an increase in inflation and interest rates. When there is a drop in indicators, opt for ‘brick’ funds, which benefit from this scenario”, suggests Bacci.

Bacci’s portfolio

If anyone doubts whether Bacci himself follows the simple investment strategy he suggests for real estate funds, the investor’s portfolio confirms the speech.

Bacci’s current assets are 100% allocated to variable income, with 80% to real estate funds. According to the investor, there are at least 40 FIIs in the portfolio.

At the current moment – ​​with interest rates and high inflation – the investor says that almost 90% of the FIIs he currently owns are of the “paper” type and the rest are in segments such as development and hospitality.

For those who intend to follow the path of financial independence, Bacci recommends care as to how much to spend from dividends received from real estate funds.

To ensure the purchasing power of income in the face of inflation, he suggests reinvesting 25% of dividends from “brick” funds and up to 50% of dividends received from “paper” funds.

Following tips like these and remembering the adversities he has already faced on the stock market, Bacci reinforces his confidence in real estate funds as a vehicle for early retirement.

“I’m new to the market and I’ve faced crises like 2009 and 2013, truck drivers’ strike, Joesley Day, Covid. I can say that this real estate fund thing can take some wonderful bumps”, he jokes. “The FIIs went through some good tests and that gives peace of mind nowadays”.

Check out more analysis and tips from André Bacci in yesterday’s edition of League of FIIs. produced by InfoMoneythe program airs every Tuesday at 7 pm on the InfoMoney on Youtube. You can also review all past edits.

Discover the step-by-step guide to live on income with FIIs and receive your first rent in your account in the next few weeks, without having to own a property, in a free class.