Two Plus Two Newer Archives  

Go Back   Two Plus Two Newer Archives > Other Topics > Business, Finance, and Investing
FAQ Community Calendar Today's Posts Search

 
 
Thread Tools Display Modes
Prev Previous Post   Next Post Next
  #19  
Old 04-16-2007, 06:10 AM
Liquid Shat Liquid Shat is offline
Junior Member
 
Join Date: Apr 2007
Posts: 1
Default 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).
Reply With Quote
 


Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 01:50 AM.


Powered by vBulletin® Version 3.8.11
Copyright ©2000 - 2024, vBulletin Solutions Inc.