Thursday, October 22, 2015

Quote of the Day

July 28, 2015
How much money you need to save each day to become a millionaire by age 65

The chart assumes you're starting with zero dollars invested. It also assumes a 12% annual return.

It also doesn't concern itself with taxation, unicorns that will appear in the magical garden that you've created for yourself, the impact of monkeys flying out of your bottom, or the melt time of snowballs in hell. Other than that, the assumptions all seem fairly sound though.

In my experience, the person who starts with zero dollars has no problem at all generating 12% annual returns. Heck, that first penny provides infinite growth, and that next penny doubles the money from there.

Don't forget the most important rule of all. Once you have two pennies you can evenly diversify your investments into both stocks and bonds. One penny each! With the 30-year treasury currently yielding 2.86%, you'll probably need to focus on stocks that yield just 21.14% to hit your 12% target overall.

Easy peasy.

Say, was this article written before the recent stock market turmoil? Just curious.


Troy said...

Picked up a 2015 Nissan Leaf last week for what I think is a song . . .

Figured the low pump prices we're seeing now are equally painful to both Big Oil and EV makers . . .

Nissan's closing out the year now so running a pretty good incentive on the low-end Leaf, $215/mo 36-mo lease once you settle the front-end wheeling & dealing with the dealership.

Where I am I get $5500 in gov't rebates, so it's basically a free car ($2/day) for the next three years (Nissan even pays my charging costs when I'm out and about for the next two years).

By 2018 there should be some pretty decent EVs out, including the 2nd-gen Leaf, which should be twice as good as this Leaf. But that's advantageous for leasing, as the lessor often cuts deals to not take cars they're underwater on back.

The scheduled maintenance is essentially magic on the Leaf -- rotate tires every 7,500, change the cabin air cleaner filter every 15,000 and change the brake fluid every 30,000.

Stagflationary Mark said...


Sounds like you are in the sweet spot to become an uber driver. ;)