Could a neurosurgeon become a billionaire from their salary of $500,000+ a year if invested properly?
No. The chances are (almost) impossible, even being very frugal.Let us assume and use a basic model:Annual Salary of $750,000 (average for whole career/year)Tax at 50%Annual Living costs at $150,000Take Home Savings $225,000Invest this at a 7% annual rate (average for the whole stock market) in something like the S%P500 and you get this:Compound interest = [math]Initial Amount * (Percentage Multiplier ^ n)[/math]Where n is the number of years.$24,935,292.37 after 30 years! That is a nice sum, but far from a billion.So let us be more frugal and only live on $50,000 per year. That gives take home savings of $325,000. 30 years later and you get:$36,017,640.42. You see, this is still far from a billion. Using that mathematical model, you would need an annual rate of 22%. That is very difficult; especially in current market conditions.But there was a huge flaw in our model. We started our career earning the average salary! Anyone who has studied compound interest knows that this is a huge flaw; the more time advances the less significant the yearly amount becomes.So using a quick excel model starting at $300k and growing at an annual rate of 5% you end up with:$31,349,426.93(Same assumptions as our first model)Now that is nice, but not quite $1bn. $1bn is a lot of money. The best way to achieve $1bn is to use your skills to develop a new drug/technique patent this and sell it.Here is a screenshot of the spreadsheet that I produced.
I am 37 years old and I have a net worth of 800k. I have no pension. What steps should I take to make sure I can retire comfortably around 65?
Too many people trying to sell you over-priced financial services with 2–5% loaded funds and all sorts of BS. DO NOT listen to them. Buy a good book or 2 on financial planning instead. 800k at 37 is very good… much better than most people out there, and most certainly plenty to retire on if it is invested into appropriate funds. Continue to add to that as you can, especially through 401k’s, Roth IRA/back-door Roth IRA, etc. Warren Buffett would tell you to buy an S&P 500 index fund, which is certainly a great way to go, but I would also suggest investing a good chunk of that into some real estate rentals or the like. Another fund option are the funds targeting a retirement year and which adjust their investment mix (stocks vs bonds) automatically according to the number of years left. So you would want something like the Vanguard Target Retirement 2045 fund, which has very low fees (unlike the funds these so-called “professionals” will put you in). Some things to absolutely AVOID (besides these so-called “professionals”): crypto currency, penny stocks, funds with high fees, stock options, commodity/currency trading, etc. Stay away from those and keep with the basics. You are well on the way to a very secure retirement. Ignore the fear mongering “professionals” trying to get you to spend money with them. They are absolutely full of crap to say that 800k at 37 isn’t enough when it’s put into funds earning 6–10%/year. BTW there are plenty of retirement calculators out there too. Google them for additional help on actual numbers needed.
Which one would you choose for retirement, $1 million in a lump sum or $5000 each month forever (annuity)?
$5000/month=$60000/yearThat, already being a decent salary considering no work is involved, is already looking to be more appealing, especially once I combine it with my actual salary.At 60K each year, the $1 million figure is surpassed at just year 17. Being 17 years old currently, I certainly hope that my life is not half-over at this point, because I have wasted far too much of it sitting through the remedial courses I’m required to take in high school.Next, assuming I retire at 65 (although considering my anticipated job security I might never retire; who wants to sit around all day doing nothing anyway amirite?), starting this month would net me $2,875,000 which, after taxes would amount to about $2.16 million. This is if it just sits in a safe in my house.However, I could probably put this into any decent savings account and be able to increase the net worth of the original investment up-to-ten-fold depending on my interest rates.For example, assuming 5% interest compunded annually, I would net approximately $11.8 million by the age of 65. Assuming 7% interest compounded annually, I would net approximately $22.6 million by the same time. This is before taxes but that’s still a comfortable living as long as I can pay for all of my regular expenses out of my salary.Next, a look at how much I could make investing in gold. I’m no expert, but based on my calculations assuming approximately 2% inflation per year (about 250% by 2065), I estimate a very comfortable lifestyle by 65 if I play my cards right.Remember, all of this has only been calculated until I’m 65 years old. I certainly hope that I will live that long, but I wouldn’t be surprised considering my lifestyle, genetics, and rising life expectancy if I lived to be 100 years old or older.Thanks for this great question, I love spending time working out complex stuff like this. To officially answer your question, I hope it would be clear that for a young person $5000/month is a much better deal in the long run.
Are undocumented workers taking the jobs of the Americans?
one of the main argument of the anti-immigrants its that they are taking our jobs however the latest statics had reveal that demographics are proving this to be wrong , i would like to remind u something ..... mister president how can u say that it is a good thing to send our jobs over sea ??? mmm well it is a good thing .....lets go back to where we were ..... latest statics had reveal the undocumented immigrants unlike the anti-immigrants usually talk about whit out studying the real fatcs usually compete whit each other instead of competing whit the Americans . second the immigrants had usually taken the jobs which the Americans had left , this started since ww2 when blacks and some white americans decided not to comeback to the fields or to the same they had done before but to better their lives by trying something else . i would like to add that most people i know from new orleans had decided not to comeback because they did not have jobs before
Are most people in the U.S. safe to retire after saving $2m?
I created a rule of thumb for retirement called the F.T.I., or "F&*% This Index" -- once it's over 1000, you can tell your boss "F&*% This" and retire. :-)FTI = Age * Net Worth / Yearly ExpensesIf you're married, you'd want to average your age with your spouse's age, and you'd want to subtract any known future expenditures from your net worth (most likely example would be college educations for your kids). Yearly expenses shouldn't include taxes or investment spending that you do, either.So what does $2M get you? If FTI = 1000, then your Yearly Expenses should be your age times $2000! If you're 60, then you're talking about $120k (which means you're taking 6% of your nest egg each year) -- although as that number starts to get higher, you probably start to run into a bigger tax bite than most retirees face.It's just a rule of thumb; you'd want to pay closer attention to the details when you're actually making the decision whether or not to quit your job. It also assumes that you plan to spend your wealth down to nothing (or close to it) by the time you die; you wouldn't be planning to leave an estate to your heirs. Your tax situation is a big factor, too; if that $2M was in regular investment accounts and had nearly $2M as its cost basis, then you'd have no tax to pay on it. If it was all inside a 401(k), however, you'd be paying significant income tax as you take it out to spend -- and the more you take out, the higher tax rate you'd pay. So, it varies.