People generally don’t think the stock market will do that well over the next 30 years. Maybe 7%.
I have about $100k in retirement right now. I know I’ll need about $6M when I retire to maintain the income level I’m at now. Let’s look at an investment calculator.
See, this is pretty depressing? I have to work another 20 years. And i’m putting half my take home pay into investments, and still I have less than half of $6M. WTF.
Even if I sold the condo and added $300k to investments, it still doesn’t move the needle that much. This is really frustrating b/c it says if I make a big sacrifice for the next 20 years, it doesn’t actually matter.
Ok, so with this one, we see that if I make a big sacrifice (sell the condo), and I put my brain working on a higher annual return, then I can actually hit the goal.
And here we see that I don’t have to sell the condo if I get a significantly higher return. Although, it seems like at 14% I should be doing better than this.
Conclusions: spend more time seeking higher returns on my money. I need to make more money and get higher returns. Likely though, that growth rate is in business equity not in public stocks. The sooner I start, the better.