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i invested close to the ETH ICO. just $10k or so, but that gave me a windfall of $3.5m (I sold in early to mid-December). im not super conservative with my mon
by charliecat 8y ago
i invested close to the ETH ICO. just $10k or so, but that gave me a windfall of $3.5m (I sold in early to mid-December).
im not super conservative with my money (i.e., i don't do t-bills, and other "super safe" investments).
i am just dollar cost averaging into index funds, like ive always done. I anticipate that I'll get anywhere from 5% to 15% per year, compounding.
i also have pre-tax income of roughly $500k. i still abide by my financial plan as if my windfall didn't exist. we save about $100k a year.
im around 31, so im hoping that the combination of these two will lead to enough accumulation in wealth by the time im 40 that i can retire early and live off investment income.
by my current calculations, assuming increases in compensation (and retirement contributions) that match inflation, and based on my current war-chest, I should have between $8.1m to $19m by the time I reach my 40s. If I average out investment gains to 8% compounding, we're looking at $10.5m.
By that point, 5% gains should give me around half a million to live off of every year. And anything higher is icing on the cake.
And I can definitely live very well on that budget. That's basically life now. And life is good.
i'm not going to tell u what to do, but just sharing my experience.
other people made a lot of money doing similar bets in crypto. they decided to launch crypto funds, buy altcoins, do more investing.
i just recognize that i got very, very lucky, and decided to take cash off the table. ill still do some risky betting with my money, but that's with a very, very small % of my investment capital.
- deleted 8y ago[deleted]
- charliecat 8y agonote this isnt incompatible with "upgrading" your life. it's all about setting a sensible financial framework and living within that framework. if that framework permits private jets and lambos, go for it. but if it doesnt, dont. bankruptcy and financial ruin happen when you spend money blindly. but if you work within the framework you set, it shouldnt be hard. because i strive to live within my existing framework, i havent upgraded anything. my close friends and family say im being cheap, but i think im just being smart with my money. you obviously got a bit more, so framework can be a bit larger. Good luck :-)
- tinktank 8y agoWhat are you doing that you have a take-home of $500K?
- charliecat 8y agoI work in venture and my wife is a consultant.
- tinktank 8y agoDamn. How do I get into venture? I'm ecking out a living as a chief architect.
- charliecat 8y agoMy path is 1% hustle and 99% luck. Given how lucky I've been, and worried about regression to the mean, I play things relatively conservatively :-)
- tinktank 8y agoGood on you. I might ask for some lottery ticket numbers at some point :)
- madeuptempacct 8y agoSince we are talking about money, I might as well ask - what's your take home as an architect. Seems to peak out at around $180,000 in flyovers. Any other architect, feel free to contribute.
- Animats 8y agoI invested close to the ETH ICO. just $10k or so, but that gave me a windfall of $3.5m (I sold in early to mid-December). Wow. You got out at the top. ETH has dropped 90% since then.
- ascar 8y agoIsn't index funds risky for living off year-to-year returns given they have up to 50% drops occasionally? Especially if you assume up to 15% return which sounds super optimistic too me. E.g. You would have made 0% return off the S&P500 between March 2000 and March 2013. That's 13 years! That would burn through 5,2 million off your capital at your expense rate of 400k
- deafcalculus 8y agoYou ought to put some in t-bills and FDIC insured CDs. Putting all of it in index funds is too risky.