How much of a return will I get for investing 300 dollars a month in Mutual Funds for 20 years?
Until your portfolio swells above a few hundred thousand, the most component is how much you save--not your rate of return. Your rate of return can be stellar (above 10%) or less than desireable (less than 5%), but your ending portfolio value will not be affected that much by the return you get in the early years. Once you accumulate several hundred thousand (there's a mathematical number that you cross but I've forgotten it--it may be closer to a million) then your return starts to really matter much more than your contribution rate. Regardless, in answer to your question, no one knows how much you'll have. It depends on the funds you pick and how they perform. You could invest in stocks/funds your whole life only to have the market crash right before you retire. But if you put away $300/mo you will have a lot more money than if you never saved at all, regardless of your return!
I am retired and have investments worth 800k, I had about 1m but lost 200k in a bad investment. Should I chase it or forget it?
I am retired and should have more than 1m now and the title of millionaire which would make me so happy if not for a rogue company stealing 200k of my precious nest egg. It was a property deal in Dubai but they never built it after the 2008 financial crisis and have been stringing us along but the building hasn't even been started. They won't give the money back and tell lie after lie and are rude and always hang up the phone. A lawyer online said after I scanned him the documents that the developer has a bad reputation and I should come to Dubai and pursue this in the courts. However, I earn about 60k a year from my investments and spend about 30k, so I don't really need the money. However, what they did was wrong and on principle I want things made right. My question is should I forget about this money because it will cause me a lot of stress and I don't need the money, or should I pursue this because whats right is right? I am in my mid 40s.
How should I invest $200k in cash to achieve early retirement in 10 years? I am 30 years old, make $110k per year, am married with no kids, do not own a house, and live in SC.
If I were you, I would split the $200K. Make two $100K down payments on two multifamily (apartment) properties. If you pick the right properties, you should be able to generate between $8 to $15K in cashflow. In a few years, with some value-add improvements, you should be able to leverage those properties, with a 1031 exchange, into a bigger property or properties with more units. You may be able to leverage one more time within your 10 year timeframe. By that time, you should be generating more than your current income and have built up equity as well. I talk about this type of scenario in a recent podcast I did entitles, “If I had $100,000 to Invest in Real Estate…” Check it out: 090: If I Had $100,000 to Invest in Real Estate…I hope that helps answer your question. Best, bill
May I request you to answer my perpetual retirement plan problem?
Well!!!!!!!! Let P₀ and X₀ be the initial amounts. P₀ = P and X₀ = X Let P(n) be the balance at the end of a year P(1) = (P₀ - X₀) (1 + r) P(2) =( P₁ - X₁) (1 + r) = { [ (P₀ - X₀) (1 + r) ] - X₀ (1+i) } (1 + r) = P₀ (1 + r) ² - X₀ (1 + r) [(1+r) + (1+i)] Similarly, P₃ = P₀ (1 + r) ³ - X₀ (1 + r) [ (1+r)² + (1+i) (1+r) + (1+i)² ] Thus, General Function for balance at the end of year n, P(n) = P₀ (1 + r)ⁿ - X₀ (1 + r) [ (1+r) ⁽ⁿ⁻¹⁾ + (1+r) ⁽ⁿ⁻²⁾ (1+i) + ....... + (1+r) (1+i) ⁽ⁿ⁻²⁾ + (1+i) ⁽ⁿ⁻¹⁾ ] ==> P(n) = P₀ (1 + r)ⁿ - X₀ (1 + r) ∑ { (1+r)^(n-k) (1+i) ^(k-1) } [k = 1 to n] ==> P(n) = P₀ (1 + r)ⁿ - X₀ ∑ { (1+r)^(n+1-k) (1+i) ^(k-1) } [k = 1 to n] As Lim (n -> ∞) P(n) = 0 ==> P₀ (1 + r)ⁿ - X₀ ∑ { (1+r)^(n+1-k) (1+i) ^(k-1) } [k = 1 to n] = 0 ==> P₀ (1 + r)ⁿ = X₀ ∑ { (1+r)^(n+1-k) (1+i) ^(k-1) } [k = 1 to n] ==> P₀ = X₀ ∑ { [ (1+i) /(1+r) ]^(k-1) } [k = 1 to n] ==> P₀ = X₀ S say Again, ∑ { [ (1+i) /(1+r) ]^(k-1) is a geometric series First term A= [ (1+i) /(1+r) ]^0 = 1 Ratio T= (1+i) /(1+r) As r > i, T = (1+i) /(1+r) <1 Now, Sum of Geometric Series up to n terms S = A ( 1 - T^n ) / ( 1 - T) = ( 1 - T^n ) / ( 1 - T) Now, T<1 ==> As n --> ∞ , T^n --> 0 ==> S = (1-0) / ( 1 - T) = 1 / ( 1 - [(1+i) /(1+r)] ) =(1 + r) / (r - i) Thus, P₀ = X₀ (1 + r) / (r - i) ==> P₀ = X₀ (1 + r) / (r - i) THIS IS THE SIMPLIFIED SOLUTION!!! Specific Solution: x = 50000, r = 8%, i = 4% ==> P₀ = 50000* (1 + 0.08) / (0.08 + 0.04) = 1350000 SOLVED!!!
Do electrical engineers work with their hands and wire stuff themselves alot?
Electrical engineers do not typically do hands-on work. Electricians or electronics technical workers do that sort of thing. Electricians are one of the highest paid trades, especially considering pension and retirement health care benefits. An electrician or power lineman in Alaska, where I live, can earn $150k to $200k per year. If you enjoy hands on electrical work, go down to your nearest IBEW union hall and have a talk with them. You can work and do the training at the same time and after four years become a journeyman and make a very good salary without a college degree.
Would you rather make $200,000 doing a job you enjoy or making $500,000 doing a job you don't like?
Time is money, money is time. Your retirement age depends on your savings. Your savings depend on your disposable income. Early and larger savings make you retire much faster. Even if you do not retire you earn your financial freedom earlier. In today’s world people spend almost as much time in retirement (plus their earlier life) as their work life. So making sure that you can enjoy those years as well is very important.People who were born before 1990–80s grew up with the mantra of “you do not need to love everything you do” whereas newer generations have the freedom of choosing things they love. This is because the previous generations provided them with the basics to survive or at least to have the confidence that things will be alright if they choose what they think is more meaningful.Jobs like anything else are priced by supply and demand. If there were lots of people who could/would do the $500K job it would not have been a $500K job. So from a macro level by choosing the $200K job even though you were qualified for and offered a $500K job you harm the general economy and violate the “rational” decision making assumption of the macro economics. To correct that mistake the price of that job will go up even further and it will start paying even more. So the question would be: “What is the salary that you would accept for a job that you don’t like versus a job you like that pays $200K.” That number would be different for everybody.There is a bigger philosophical question: Is your job an extension of your life and does it need to seamlessly fit to the rest of your life or it is just a means of getting resources for you to live the life you want? Is it possible to separate your personal life from your job in such a way that you can maximize your satisfaction by doing a boring job but having a great personal life?Also consider the additional condition: “ How would your answer change if you know the economy would crash in 5 years (or 25 years) and most people would loose their job (fun and boring)?”Being from the 70s I would take the $500K job. I would do it until I could not. I would spend extra to learn ways to separate my work life from my personal life and would make lots of friends with people who work at $200K jobs that they love so that I can be infected with their happiness as well.
Where can someone retire with $200,000 and live comfortably?
With 200k, assuming it is $200,000, it depends on your age. If you are 65 or under it is tough, unless you know you will die within 10–20 years, because:The evidence shows you can only safely withdraw 4% per year if you think you will live 30 years or longer. So 8k based on 200k. That is about $650 a month. It is livable in Thailand and some SE Asian countries, but it isn't comfortable. I would aim for at least double 200k, if not more.However, for a 10–15 year retirement, 200k is fine in many countries, including:ThailandCambodiaSome parts of MalaysiaSome European countries like Bulgaria3. Also remember, costs like health insurance can be high in retirement. Look for ways to save in retirement too.Some reading/listening:10 most effective ways to save moneyAdam Fayed is creating Videos and podcasts about financial freedom and passive income | Patreon
Why are big cities usually more blue (Democrat leaning) than rural areas?
All elections are simply advance auctions on stolen goods. (1) The question becomes who gets the stolen goods and who get stolen from. People in rural areas are more stoic and want less help prefering to suffer in silence and are more stoic. People in cities see more poverty and see the differences between rich and poor more acutely. The Rich feel guilty and the poor are envious. The party of the poor, also tends to get more power, when more poor people are created. The best way to create poor people is to tax the rich. So, we have two tiers. The rank and file democrats who want to help the poor and can only think of one way to do that - government The second tier is the upper level democrats who know taxing the rich will slow the economy but choose to tax anyways because they get more people who will vote for democrats. Please note, when you tax corporations, they CEO does not pay the taxes out of his pocket and a corporation is not a person. All corporate taxes are passed on in 3 ways. They make employees work harder for less. They make customers pay more for less. They make shareholders earn less on investments. Why Unions vote for people whos policies will make them work harder for less is beyond me. Making Elderly people believe you are trying to help them and take away their means to save for retirement is criminal. Forcing mothers and fathers to not be able to save for weddings and college educations is just plain evil.
How do I invest $200,000 cash to get a passive income of $3,000 per month?
The short answer is this... you can't.$3,000 per month = $36,000 per year$36,000 per year as a return on $200,000 = 18% ROIThat kind of return is actually practical in some real estate investments, and some high-yield investments, but the key is that it won't be easy, and/or it won't be guaranteed.Both of these things undermine the idea of your income being passive. A good example of a passive investment is one where you own shares in a REIT that owns top-notch properties - or you invest it in government bonds - or you own something that is low-maintenance and low-risk.That balance is actually easier than you think to strike. But you won't get a very good ROI from it. I think that with a $200k investment, you can more realistically earn a 5% return at maximum, which only works out to $10,000 per year, or $833 per month.