MossRoad
Super Moderator
- Joined
- Aug 31, 2001
- Messages
- 58,014
- Location
- South Bend, Indiana (near)
- Tractor
- Power Trac PT425 2001 Model Year
Earth to Moss....Where are you going to get a SAFE 5% return....pray tell :confused3:
I've been averaging well past double 5% for the past 25 years with the exception of 2008, when I lost about 30% of my net worth. I stayed the course, kept investing, made it all back within a couple years and doubled it shortly thereafter. I don't react to panic buying and selling. I never try to time the market. I dollar cost average, always investing 15% of my income. My wife does the same. We came up with a plan when we got married and have stuck to it. I think we need to keep investing even when we retire. We try to double our net-worth every 7-8 years. I have 15 years until retirement. The last two doubles before retirement is when the big numbers start showing up.
Here's some examples of working towards a goal of doubling your net worth every 7-8 years.
Double your net worth every 8 years starting at age 20 with $15k starting point.
20 = 15,000
28 = 30,000
36 = 60,000
44 = 120,000
52 = 240,000
60 = 480,000
68 = 960,000
Now try it from age 18
18 = 15,000
26 = 30,000
34 = 60,000
42 = 120,000
50 = 240,000
58 = 480,000
66 = 960,000
You get there two years earlier.
Now double your net worth every 7 years instead of 8 starting at age 20 with $15k
20 = 15,000
27 = 30,000
34 = 60,000
41 = 120,000
48 = 240,000
55 = 500,000
62 = 1,000,000 (you passed the 8 year doubling plan 4 years early)
69 = 2,000,000
Start at age 18 and double every 7 years....
18 = 15,000
25 = 60,000
32 = 120,000
39 = 240,000
46 = 500,000
53 = 1,000,000 (you passed the 8 year doubling plan 16 years early)
60 = 2,000,000
67 = 3,000,000 (you got a million dollars more two years earlier than if you started at 20)
This stuff is doable if you start young and stick with your plan. I didn't start until I was mid-twenties. That's why I started my kid at 18. She'll have way more than us way before us. :thumbsup:
