Every $1 You Invest Now Will Be Worth $7.61 in 30 Years

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Pepeco
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Every $1 You Invest Now Will Be Worth $7.61 in 30 Years

Mensaje por Pepeco » Vie Feb 21, 2020 12:16

Para darnos un poco de ánimo: Every $1 You Invest Now Will Be Worth $7.61 in 30 Years.
For example, suppose an individual is able to have $100,000 invested in broad stock market index funds by age 30. Even if they make no additional contributions, this $100k will blossom into $1,067,658 (assuming 7% ann. returns) by time they turn 65, making them a millionaire at retirement without investing a dime after age 30.

This individual could then use more of their income to enjoy their lifestyle during their 30’s, 40’s, and 50’s instead of putting it towards retirement contributions.

There is actually a name for this investment & lifestyle approach: Coast FIRE. The whole idea is to accumulate enough money at an early enough age that you no longer need to invest any more to achieve financial independence by age 65 (or whatever you define as a retirement age). Once you have enough money invested, you can simply “coast” your way to retirement.

In this post, I want to share some fascinating data around investment growth and the idea of Coast FIRE, including:

How much will each $1 you invest be worth 30 or 40 years from now?
How much do you need invested by age X to have $1 million by age 65?
How much could investment returns impact these calculations?
"There seems to be some perverse human characteristic that likes to make easy things difficult." - Warren Buffet. Hazlo simple.

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kakadeluxe
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Registrado: Vie Feb 22, 2019 11:26

Re: Every $1 You Invest Now Will Be Worth $7.61 in 30 Years

Mensaje por kakadeluxe » Vie Feb 21, 2020 13:06

Gracias @Pepeco me ha gustado el blog, tiene muchos artículos interesantes para leer. Me acabo de leer varios como el que deja de trabajar, las matemáticas que apoya su decisión, la regla del 4%. Hay mucho que leer.
"El interés compuesto, la octava maravilla del mundo", Mayer Amschel Rothschild.
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Jm2t
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Re: Every $1 You Invest Now Will Be Worth $7.61 in 30 Years

Mensaje por Jm2t » Vie Feb 21, 2020 20:55

Super interesante. Gracias por el aporte. Me gusta mucho este otro artículo en el que habla del coast FIRE:
Traditional retirement says you need to work at a soul-sucking job for 40 years.

Early retirement says you need to work at a soul-sucking job for 10-20 years, depending on your savings rate.

Coast FIRE says you need to work at a soul-sucking job for as little as 4-8 years.

The benefit of Coast FIRE is that you can leave a shitty job as fast as possible and still be able to fully retire one day. And while you still have to earn income to cover your expenses on the road to financial independence, you can often do so by working at a less stressful job.

This allows most people to gain a better work-life balance quickly, rather than waiting a decade or two until they have enough to be completely financially independent.

If you don’t find the traditional retirement path appealing, you may want to consider early retirement.

And if you don’t find the early retirement path appealing, you may want to consider Coast FIRE.
No conocía este concepto y me parece interesante, sobre todo para los que tenemos la suerte de que nos encante nuestro trabajo.
La incertidumbre es una posición incómoda, pero la certeza es una posición absurda.
—Voltaire

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kakadeluxe
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Re: Every $1 You Invest Now Will Be Worth $7.61 in 30 Years

Mensaje por kakadeluxe » Sab Feb 22, 2020 09:06

Interesante lectura de este articulo: What is Barista FIRE?
Barista FIRE: Withdraw 4% of your portfolio each year to cover a percentage of your expenses and work at a job you enjoy (e.g. as a barista) to cover your remaining expenses.
....
By using this approach, she could quit her full-time job and enjoy much more freedom in her daily life long before she achieves financial independence. Best of all, by only withdrawing 4% of her portfolio each year, there’s a high probability that she will never deplete her portfolio.

Things to Keep in Mind
If you do choose to pursue Barista FIRE, keep the following things in mind:

1. You have to strike a balance between sticking it out at your job to build your portfolio and leaving sooner to gain freedom.

The longer you remain at your job, the higher your portfolio value will be when you quit, which means you’ll have to earn less money through active work to cover your remaining expenses.

If your job is soul-sucking, it may make sense to leave sooner rather than later. On the other hand, if you enjoy your day job and you have a healthy work environment, it may make sense to stick it out longer to build up your portfolio.

2. If you want to achieve complete financial independence at some point, you’ll need to earn more than just “enough” from your barista-type gig.

In our example from earlier, Jessica could quit her day job with $400k and withdraw $16,000 from her portfolio each year while earning just $24,000 to cover her yearly expenses.

However, she would need to earn more than $24,000 per year if she slowly wants to add to her portfolio each year so that it could eventually grow to a point where it could cover all over her expenses.
"El interés compuesto, la octava maravilla del mundo", Mayer Amschel Rothschild.
Tu Dinero * (1 + i)↑n

Pepeco
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Re: Every $1 You Invest Now Will Be Worth $7.61 in 30 Years

Mensaje por Pepeco » Lun Feb 24, 2020 11:32

Tengo un blogroll muy interesante, saco un hueco, lo exporto y lo comparto.
"There seems to be some perverse human characteristic that likes to make easy things difficult." - Warren Buffet. Hazlo simple.

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kakadeluxe
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Re: Every $1 You Invest Now Will Be Worth $7.61 in 30 Years

Mensaje por kakadeluxe » Lun Feb 24, 2020 14:39

Pepeco escribió:
Lun Feb 24, 2020 11:32
Tengo un blogroll muy interesante, saco un hueco, lo exporto y lo comparto.
Esperando, esperando,
y no tardes mucho :lol: :lol: :lol: es broma.

Mientras sigo leyendo artículos, como este que me ha gustado: Understanding the Curvy Nature of Compound Interest
"El interés compuesto, la octava maravilla del mundo", Mayer Amschel Rothschild.
Tu Dinero * (1 + i)↑n

Depe
Mensajes: 111
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Re: Every $1 You Invest Now Will Be Worth $7.61 in 30 Years

Mensaje por Depe » Lun Feb 24, 2020 20:34

Jm2t escribió:Super interesante. Gracias por el aporte. Me gusta mucho este otro artículo en el que habla del coast FIRE:
Traditional retirement says you need to work at a soul-sucking job for 40 years.

Early retirement says you need to work at a soul-sucking job for 10-20 years, depending on your savings rate.

Coast FIRE says you need to work at a soul-sucking job for as little as 4-8 years.

The benefit of Coast FIRE is that you can leave a shitty job as fast as possible and still be able to fully retire one day. And while you still have to earn income to cover your expenses on the road to financial independence, you can often do so by working at a less stressful job.

This allows most people to gain a better work-life balance quickly, rather than waiting a decade or two until they have enough to be completely financially independent.

If you don’t find the traditional retirement path appealing, you may want to consider early retirement.

And if you don’t find the early retirement path appealing, you may want to consider Coast FIRE.
No conocía este concepto y me parece interesante, sobre todo para los que tenemos la suerte de que nos encante nuestro trabajo.
Me acabo de enterar de que desde que pedí le reducción de jornada hago Coast FIRE!

Mucho más cool que decir que no quería trabajar tantas horas, jeje.

Enviado desde mi Mi A1 mediante Tapatalk


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Jm2t
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Re: Every $1 You Invest Now Will Be Worth $7.61 in 30 Years

Mensaje por Jm2t » Lun Feb 24, 2020 21:00

Depe escribió:
Lun Feb 24, 2020 20:34
Jm2t escribió:Super interesante. Gracias por el aporte. Me gusta mucho este otro artículo en el que habla del coast FIRE:
Traditional retirement says you need to work at a soul-sucking job for 40 years.

Early retirement says you need to work at a soul-sucking job for 10-20 years, depending on your savings rate.

Coast FIRE says you need to work at a soul-sucking job for as little as 4-8 years.

The benefit of Coast FIRE is that you can leave a shitty job as fast as possible and still be able to fully retire one day. And while you still have to earn income to cover your expenses on the road to financial independence, you can often do so by working at a less stressful job.

This allows most people to gain a better work-life balance quickly, rather than waiting a decade or two until they have enough to be completely financially independent.

If you don’t find the traditional retirement path appealing, you may want to consider early retirement.

And if you don’t find the early retirement path appealing, you may want to consider Coast FIRE.
No conocía este concepto y me parece interesante, sobre todo para los que tenemos la suerte de que nos encante nuestro trabajo.
Me acabo de enterar de que desde que pedí le reducción de jornada hago Coast FIRE!

Mucho más cool que decir que no quería trabajar tantas horas, jeje.

Enviado desde mi Mi A1 mediante Tapatalk
O Barista FIRE, depende de lo que tengas ahorrado. Si realmente tienes ya suficiente para ser IF cuando te jubiles y te costreas todos tus gastos con tu trabajo actual serías Coast.

Sin embargo estas variaciones técnicamente no serían FIRE, por la parte de retire early, no?
La incertidumbre es una posición incómoda, pero la certeza es una posición absurda.
—Voltaire

Pepeco
Boglehead
Mensajes: 167
Registrado: Vie Ene 04, 2019 17:12

Re: Every $1 You Invest Now Will Be Worth $7.61 in 30 Years

Mensaje por Pepeco » Jue Feb 27, 2020 13:15

Por si os interesa, otro artículo en la misma línea de uno de mis blogs favoritos, Banker on Fire: http://bankeronfire.com/the-real-path-t ... -to-wealth
"There seems to be some perverse human characteristic that likes to make easy things difficult." - Warren Buffet. Hazlo simple.

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