Saving/Investing Plan For High School Graduates....Build $2000 To $10 Million (rates, dollars)
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And for that $10 million to have the same value in 41 years as it did in 1974 or today the amount invested each year would have to increase just as you're saying median income would increase in 41 years.
If I started this plan in 1974 to have $10 million today then I'd need to adjust my yearly investment amounts if I was starting this plan today to make sure I have the same purchasing power in 41 years.
I think you need to stop.
The power of inflation... screws over the simple plans every time...
Your posted plan (in the OP) would be great if it were practical for the average person. Most 18 year olds are not in a position to be investing let alone in the stock market. It also shows a 59 year old investing $25k/year. The median household income in the US is right around $50k/year so again, not practical for many people.
Well here I am...not pretending to do anything. Good to see you're keeping it classy.
What people have to wrap their heads around is the fact the fact that the typical American consumer lifestyle is not ever conducive to saving and investing--at any income level.
I make under 50K a year and live in a high cost area. My net worth is 7X my gross income. It can be done. People just don't want to do it and then complain that it's impossible. It's impossible if you believe consumerism is the only thing that will make you happy.
We are talking about the emotional side.
I am describing the sense of hopelessness and futility.
It is very upsetting and can threaten everything else.
Yes, I totally relate to where you're coming from. I don't want to freak you out, but taxes are actually the least of it from where I'm standing....but that really is a whole bunch of other threads....I usually get accused of having a "tin foil hat" when I bring up such topics on CD.
What people have to wrap their heads around is the fact the fact that the typics American consumer lifestyle is not ever conducive to saving and investing--at any income level.
I make under 50K a year and live in a high cost area. My net worth is 7X my gross income. It can be done. People just don't want to do it and then complain that it's impossible. It's impossible if you believe consumerism is the only thing that will make you happy.
Congrats on your accomplishment. I'm not saying it can't be done, I'm saying that it isn't practical for the majority.
I'm an HR Director and hire for a living...the majority of 18 year olds are making $8/hour. There isn't a lot left over after you live off of that especially when you're only getting part time hours. Can it be done? Sure it can for someone that is focused and has circumstances that make it possible.
There are not a lot of opportunities out there for 18 year olds these days. I have 30 year olds competing for jobs that used to be held by 18 year olds.
And for that $10 million to have the same value in 41 years as it did in 1974 or today the amount invested each year would have to increase just as you're saying median income would increase in 41 years.
If I started this plan in 1974 to have $10 million today then I'd need to adjust my yearly investment amounts if I was starting this plan today to make sure I have the same purchasing power in 41 years.
I think you need to stop.
You can't have it both ways....are my examples too high or too low????
I provided realistic examples of what one needs to invest from 18 on up. I don't care what $1mil or $10mil will buy us decades down the road. I don't need to because if obtained at the ages I listed, that person is investing right.
Having a bank account, stock portfolio, art collection, or bag of gold valued at 40x the median income at any given year (by age 73) is the result of a highly successful investment plan. This is evident by the fact that most of you don't think 18 year-olds of today could even pull it off.
It's 12:21am EST right now. Pick a major US market and by 12:45 I'll provide you with a link to a Craigslist ad that's offering an easily resold item for at least a 10% discount.
Here's what will happen next: you'll stop replying and pretend to be doing things other than checking this site so as not to look like an idiot.
Good point. Giving oneself months, years, or decades to cash out makes things much easier.
You'd have to find something buy it, pick it up and then sell it to figure out your profit/loss including all of your cost. Your post is really meaningless
Can you post a link to support your median income?
Here's a link that purports to show median household income by year. In 1974, the nomial median household income was $9780, or an inflation-adjusted $47,019. As of 2012, the nominal median was $49,486 or $51,017 inflation adjusted. The inflation-adjusted median has been falling since 1996 or so.
I don't really feel like mathing it out to determine what the nominal and inflation-adjusted income will be 40 years from now, but a difference is ~$4k over 40 years says actual purchasing power is fairly stable.
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