#19
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Re: How much $ is needed to never have to work again?
[ QUOTE ]
You can keep harping on this like a nit if you want, but the OP's stated goal will be met by 12% return on my initial stake of 200k, so when I said I'm confident of making 12 to 15 percent, taxes are insignificant and irrelevant to the question at hand. If it makes you any happier, my T-bonds in the backup 300k stake, that I also mentioned in my first post, will be pulling down 5%. [/ QUOTE ]You are confident in making 12% on the total $500,000 or just the $200,000? very rough estimates: $300,000 @ 5% + $200,000 @ 12% gives you $500,000 @ 7.8% (3/5)*.05+(2/5)*.12, x=.078 $300,000 @ 5% + $200,000 @ 22.5% gives you $500,000 @ 12% (3/5)*.05+(2/5)*x=.12, x=.225 So, I doubt you realistically think you are confident in achieving 22.5% per year on the %200,000. You must mean 12% per year with $200,000 [which is still a stretch]. If someone is not satisfied with the simple calculations, I will figure this out for compounding interest. Just give me how many times the interest compounds per year (1,2,3,4,...,n,...,infinity). |
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