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> "I've been working like a dog for 15 years now, and what has it gotten me, and what good has it done in the world, and how much worse would it be if I coasted
by 5350-uiop-1130 4y ago
> "I've been working like a dog for 15 years now, and what has it gotten me, and what good has it done in the world, and how much worse would it be if I coasted from here on out?"
you just exactly described me, exactly 15 years. a lot of sleepless nights dwelling on this.
why do this for another 15, will never afford a home, my savings will be worth -50% in 15 years of what they are now.
i feel like i have to do something different but stuck on that first step. if it was that easy and so on...
- dannyw 4y agoInvest your money so they'll be worth 1.07^15 (2.76x) in 15 years of what they are now.
- awesomegoat_com 4y agoYou missed the chance to include tax and inflation and tax on inflation in your algebra, sir.
- djbebs 4y agoHe included inflation, and there's plenty of tax advantaged accounts that let you grow tax free
- lotsofpulp 4y agoIf you invest in a broad market equity index fund like VOO, then you will keep up with inflation. All the inflation has to be reflected in the country’s business’s bottom lines, so it would also be reflected in their share prices.
- fegu 4y agoThis is my strategy. Global index funds. 7% is what you can expect. Inflation reduces the net yield. Research ways to avoid tax on stocks until you pay out to yourself, most countries have this in one form or another.
- lupire 4y ago"7%" is dead.
- tw98521358 4y ago7 was a lie anyway.
- goodpoint 4y ago...if you live in a country with low enough taxation on investments.
- tw98521358 4y agoWhere do I get 14-18% returns so that I can get 7 post tax and inflation real? That’s some crypto bullshit levels of growth
- gruez 4y agoWhere are you getting "14-18% returns"? The formula in the parent post uses 1.07, which translates to a yearly growth of 7%.
- tw98521358 4y agoYou need to need to subtract inflation, otherwise your real increase is negative
- gruez 4y agoright, but is there any reason to believe that 7% inflation is going to continue well into the future? The markets certainly don't think so. They're currently pricing in a 2.33% inflation rate over the next 5 years, measured by the spread between inflation protected treasuries and non-inflation protected treasuries. [1] https://fred.stlouisfed.org/series/T5YIE https://fred.stlouisfed.org/series/T5YIE
- tw98521358 4y ago2.3 is too low. This seems to be based on treasury yields that yield negative real return right now. In order to have v 2.3 you basically need to have 0 for the next 4 years if you average the previous year in.
- epups 4y agoFunny to hear this sentiment in a tech forum. If you do well in a programming career you can afford a house almost anywhere. I don't think you need to work more than 40h a week to achieve that either.
- ablob 4y agoSo the stories of having to live in a trailer in silicon valley because everything else is too expensive are all false?
- epups 4y agoIs that a fair conclusion from my comment? If so, I apologise.
- pjmlp 4y agoNot in southern Europe, unless you want to pay the mortgage for the next 30 years or something. Specially with Air BnB and pensioned foreigns driving the prices sky high.