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Those two goals are only separated by about a decade of normal work, which is not even much more time than it takes to bring a startup to an exit. If you can p

Those two goals are only separated by about a decade of normal work, which is not even much more time than it takes to bring a startup to an exit. If you can put 1-2.5M dollars into investments you can pull safe returns of enough to live on indefinitely and never need to work again. Making >$200k a year and being frugal it is not that hard to put together 1-2.5 million dollars in capital. At 10 years of 250k with a 40% tax rate and 30k in annual expenses with 7% average returns, you pull down about 70k in capital gains at 5% returns in year 10 (so you can keep 2% extra nominal in to keep up with the fed's inflation target and maintain that purchasing power forever). $70k is less than you made, but is more than enough to live on without working for the rest of your life.

astura 8y ago
You're completely missing the point. > being frugal ... 30k in annual expenses Requires budgeting and is a bit of a standard of living lower than most people would prefer. Especially if they got kids. Plus how you going to live in SV on $30,000 a year when rent alone is that much? > 7% average returns So requiring those 10 years are during a bull market. There's a big difference between "work at a startup for a good salary living an average life for 10 years" and "live in a shoebox with 10 other guys, eat nothing but lentils and beans, and own no possessions for 10 years"
- thucydidesofusa 8y ago
  >Plus how you going to live in SV on $30,000 a year when rent alone is that much? By working for one of the companies that offers: * a shuttle (so you don't need a car) * food perks * a phone And if you're taking the shuttle you can live in cheaper areas or select the cheapest areas available and/or live with roommates. You can get below $24k/yr on rent and easily live on a $6k/yr or $500/mo budget.
- sobani 8y ago
  > > 7% average returns > So requiring those 10 years are during a bull market. If your bull market includes the 2008 crash, then yes. "The last decade provided an average return of 6.88% in the stock market. The lower return takes into account the tremendous loss the market took in 2008." https://www.creditdonkey.com/average-stock-market-return.html https://www.creditdonkey.com/average-stock-market-return.htm... (question 2)

astura 8y ago

You're completely missing the point. > being frugal ... 30k in annual expenses Requires budgeting and is a bit of a standard of living lower than most people would prefer. Especially if they got kids. Plus how you going to live in SV on $30,000 a year when rent alone is that much? > 7% average returns So requiring those 10 years are during a bull market. There's a big difference between "work at a startup for a good salary living an average life for 10 years" and "live in a shoebox with 10 other guys, eat nothing but lentils and beans, and own no possessions for 10 years"

thucydidesofusa 8y ago
>Plus how you going to live in SV on $30,000 a year when rent alone is that much? By working for one of the companies that offers: * a shuttle (so you don't need a car) * food perks * a phone And if you're taking the shuttle you can live in cheaper areas or select the cheapest areas available and/or live with roommates. You can get below $24k/yr on rent and easily live on a $6k/yr or $500/mo budget.
sobani 8y ago
> > 7% average returns > So requiring those 10 years are during a bull market. If your bull market includes the 2008 crash, then yes. "The last decade provided an average return of 6.88% in the stock market. The lower return takes into account the tremendous loss the market took in 2008." https://www.creditdonkey.com/average-stock-market-return.html https://www.creditdonkey.com/average-stock-market-return.htm... (question 2)