3 ms·
Your numbers are off: - average long-term return on the stock market is 8-12% - full-time wealth management means no more tech job, means no need to live in t
by falsedan 12y ago
Your numbers are off:
- average long-term return on the stock market is 8-12%
- full-time wealth management means no more tech job, means no need to live in the bay area, means $100k p.a. nets you a comfortable lifestyle
You're looking at $1-1.5MM before retiring to the quiet life.
- DennisP 12y agoThat's the average long-term return over the past century or so, but not necessarily the return over any particular 30 or 40 year period. Sometimes it's quite a bit lower, and it's probably a good idea to take that into consideration. Periods that start with PE ratios as high as they are now tend to do especially poorly.
- k3strel 12y agoAlso remember that what matters are real returns after inflation and taxes. The S&P 500 has returned 11% a year since 1983, but 6% after taxes and inflation. http://www.thornburginvestments.com/pdfs/TH1401.pdf http://www.thornburginvestments.com/pdfs/TH1401.pdf
- marktangotango 12y agoI agree with these guys, the real return is lower, and the years that are negative to 4% will be diminish your nest egg unless you eat raman in those years. A millionaire eatinv raman? Maybe.
- falsedan 12y agoThe quiet life does not include Maseratis and penthouses. That nest egg should support you for 40-50 years, and then you'll be dead so leaving a remainder would be suboptimal.