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How much money should I earn to retire by 30?

Discussion in 'BlackHat Lounge' started by IMOHolic, Dec 31, 2012.

  1. IMOHolic

    IMOHolic Newbie

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    I am 20 right now and I wanted to know how much should I make from IM so that I can retire and live a comfortable life without working much later. I want to work damn hard as I have 10 years to reach 30 years of age.
    This is just to have some target in my mind rather than just focusing on making money.

    After 30, I dream of traveling the world with my wife and kids :p

    PS: I am already making 4k a month. So don't underestimate my potential :)
     
    Last edited: Dec 31, 2012
  2. starcity83

    starcity83 Regular Member

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    $750,000
     
  3. subster

    subster Elite Member

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    believe me you will be much more satisfied to find a job that fullfills you, than huntinh a dream that is almost impossible for the most and even reached in the most cases a guarantee to get unlucky.
     
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  4. elecsho

    elecsho Power Member

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    focus on achieving enough money for your own small offline business.
     
  5. howard_hughes

    howard_hughes Elite Member

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    retire at 30? that wud suck. stop working for money, yes. stop working altogether? not really.

    30 is just 6-9 years from when most people start. Thats the time when you just start getting really good.

    Just my thoughts.
     
  6. toptoptop

    toptoptop BANNED BANNED

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    Well I think you can't earn that amount of money in IM specially while it gets harder day by day.
    It is just a dream.
     
  7. bananaman5000

    bananaman5000 Regular Member

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    it depends on how you want to do it.

    if you make around 6 million, you can put it in dividend paying blue chip stocks, and live off of about 80-150k per year with no work required on your part

    making 6 million in 10 years is about $1,500 a day? don't forget to add the government's cut of 35% plus 13% social security, and 3% medicare.
     
  8. IMOHolic

    IMOHolic Newbie

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    And this is coming from a Jr VIP. Keep your head up high and nothing is impossible. Dreams are conquered only if you have the courage. I literally dream't of making 4k a month and you see I am successful. If you know how to outsource and scale then it's not impossible at all. :)
     
  9. bigbong

    bigbong Jr. VIP Jr. VIP Premium Member

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    You would need to cover 60 years or so of expenses. Since most secure investments today barely return enough to cover inflation, just forget about it. Try instead to create something that can run mostly on its own - either a fully automated service online or a company big enough for you to employ someone to run it for you. That way you have a steady cashflow rather than to try to build an enormous pile of savings in just 10 years.

    Trust me; it's more fun too. Eventually you'll tire of doing nothing and you will have a business to go back to.
     
  10. Reyone

    Reyone Elite Member

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    You'll be bored as hell, at 30 you are still young.
     
  11. ActionTaker

    ActionTaker Power Member

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    Start off by betting 1000 on red, if you win put your winnings on a color. Do this 15 times in a row. If you pull it off, you'll have ~32,8 million = enough to live off. You have 0.003% chance of doing it.

    I think you're being rather optimistic about your capabilities of getting that money.
     
  12. avi619

    avi619 Jr. VIP Jr. VIP

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    You can't really retire..when the money is still rolling in.
    Who wants to leave money on the table?
     
  13. christianbed

    christianbed Jr. VIP Jr. VIP Premium Member

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    Time value of money problem. What you need to decide is how much you want by 30, either as a lump sum, or as an annual amount for x years. Typically, these calculations are done with a financial calculator or with Excel financial functions.
    • You need to determine # of years before you are 30...that will be your N variable
    • You need to assess a reasonable amount of interest earned on the money as you put it into the bank...that is your I or I/YR variable.
    • You need to come up with a number you want in the future...like 1,000,000...this will be your FV (future value)
    • You need to come up with a number you have at present to earn I%...this is your PV (present value)

    So, let's say I want $1mil, I have 8 years until I'm 30, and I can assume a 3% interest rate. That tells me I'd have to invest $789,409.23 now in order to have that $1mil. (that is solving for PV)

    Or we can do it this way, say we want $1m in 8 years, but only have $30,000 to invest. We'd want to know what interest rate we would need to reach our goal. The answer is 55.01%, compounded annually. (that is solving for I) So, you'd look for projects that would get that return.

    Or, we can do it another way. Say you want $1m, you have $30,000, and can get 3% interest...you can ask how long it would take to reach your $1m goal, and the answer (solving for N), would be 118.63 years.

    If you like, you can put more details up here, and I'll do the math for you...(assuming I remember to revisit this thread!)

    As it stands, given your details: assuming you save $20,000/yr and get a consistent 3% interest rate for 10 years, you'll have $229,277.59 Up that rate to 9%, and you'll have $303,858.59. Up your savings to $40,000/yr, at 3% you'll have 458555.17 and at 9% you'll have $607,717.19. If you save $40,000/yr and want $1mil in 10 years, you'll need to make 19.24% every year.

    --In case you were wondering, this is the kind of stuff you do with an MBA in Finance-- ;-)
     
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    Last edited: Dec 31, 2012
  14. IMOHolic

    IMOHolic Newbie

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    With retirement i mean't I want to stop busting my a$$ online for hours a day and enjoy later. Ofcourse I wont let the passive income stop. Will let it keep rolling until I can
     
  15. antsaoo

    antsaoo Supreme Member

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    It really depends what you want to do when your 30. If you just want to lay on beach in thailand or drive super cars and fly jets do coke from girls ass crack on huge yach the figures will be little different.

    There is no real answer. Your best bet is to bust your ass working now and live minimaly while investing your moneys to something which will give you passive income.
     
  16. bigbong

    bigbong Jr. VIP Jr. VIP Premium Member

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    You need to take into consideration that the price of a nice ass crack really has gone up lately. You can go for one of the Chinese knockoffs but there is no manufacturing control - and health and safety production material checks are minimal. You never know what sort of shit you might inhale.
     
  17. CriminalMind

    CriminalMind Regular Member

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    this Im is addictive and challenging so i wont retire because i love what i m doing plus u cant say no the money if you see yourself making money i dont think u will retire
     
  18. albertofd

    albertofd Regular Member

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    If you are smart, and you dont waste your money you can live very well with 1,5 USD million, i wait you invest fine the money. Buy a house of 350000$ and invest 1 million. 150000 for fun.
     
  19. AudioMacOSX

    AudioMacOSX Junior Member

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    I had the exact same goal of retiring by age 30 but i didn't start until I was 24. I'm now 32 and haven't yet retired. I had calculated that I would need $2.2 million to feel safe that I could live the rest of my life and never have to work again. This was based off of living in a $350k house, living a middle class lifestyle, earning a return of 8% per year and an inflation rate of 3.5% and assuming I'd live until the age of 100. One thing I didn't factor in though was the escalating cost of healthcare and any potential future health problems. I recommend you run a variety of different retirement calculators like this one: http://www.mutualofomaha.com/tools/...t-planning/how-much-saving-for-retirement.php
     
  20. Danny1111

    Danny1111 Elite Member

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    to retire at 30 or any age you really need - 2 million dollars

    that way you can invest in a bank deposit in Australia at 4-4.5% with next to no risk

    ie $80,000 - $90,000 a year after taxes I'd say that's 5,000 AUD a month

    Aud/Usd is like 1.0350 against the USD -- so it's in your favor

    If you take higher risk / higher reward in shares etc that would get you probably 100,000-120,000 a year
    or if interest rates end up going up again in australia you could get a higher return.

    Your not going to live some baller lifestyle on that - but there are many countries you could move too - that would make
    it a comfortable stress free life.

    cheers