Author Topic: Passed $300,000 this Friday in investments  (Read 1715 times)

Gin1984

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Passed $300,000 this Friday in investments
« on: March 13, 2021, 02:41:40 PM »
I've been tracking our investments since 2014.  And slowly but steadily we increased them from $65,000 in 2014 to now 2021 having $302,000.  This does not include cash or our house.  I'm pretty pleased to cross that line.

swashbucklinstache

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Re: Passed $300,000 this Friday in investments
« Reply #1 on: March 13, 2021, 03:44:53 PM »
Nice, congrats!

You basically have a person working a full-time job at $14.08 an hour just contributing to your stash! =)

302000 dollars / 2080 hours * 9.7% = 14.08

marty998

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Re: Passed $300,000 this Friday in investments
« Reply #2 on: March 13, 2021, 06:02:30 PM »
Nice, congrats!

You basically have a person working a full-time job at $14.08 an hour just contributing to your stash! =)

302000 dollars / 2080 hours * 9.7% = 14.08

This is an interesting perspective. Never considered it that way (assuming 9.7% is your long run rate of return!)


swashbucklinstache

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Re: Passed $300,000 this Friday in investments
« Reply #3 on: March 14, 2021, 06:58:23 AM »
Nice, congrats!

You basically have a person working a full-time job at $14.08 an hour just contributing to your stash! =)

302000 dollars / 2080 hours * 9.7% = 14.08

This is an interesting perspective. Never considered it that way (assuming 9.7% is your long run rate of return!)
Yeah! Just for fun of course. That's about the nominal return for US stocks historically, and I think nominal is right given that salary is nominal =).
To say this another way, which is really crazy...
Federal minimum wage is $7.25 an hour. In 133 working days (approx. 188 days calendar days), OP's money makes as much as a minimum wage worker earns in a year(!).
133 = (2080 / (302000 / (7.25 / 9.7%))) * 260, where 260 is working days to get 2080 hours and you can replace with 265 to get calendar days.

302k produces income at the US federal poverty level for 2 people ($17,420) at a 5.8% safe withdrawal rate. Said another way, OP could easily ensure to most likely never be in poverty for the rest of their lives, even if they completely retired right now to live off the stache. I think that's worth a round of applause in and of itself.
https://aspe.hhs.gov/poverty-guidelines

Even more, if they didn't save another dime and never saw social security / pensions they'd be about 27 years away from making more than the something like 60% of Americans under 400% of the FPL, using a 4% withdrawal rate.
https://www.kff.org/other/state-indicator/population-up-to-400-fpl/?currentTimeframe=0&sortModel=%7B%22colId%22:%22Location%22,%22sort%22:%22asc%22%7D

Or if OP were feeling super generous, they could go down to the local orphanage and give $15,000 each to 20 newborns (plus 2k for OP's per diem =) ). Why 15k? Because in 65 years, that should be enough for each of those kids to be worth 1 million 2021 dollars at 6.7% returns!
(300,000 / 20) * 1.067 ^ 65 = $1,015,730

cool7hand

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Re: Passed $300,000 this Friday in investments
« Reply #4 on: March 14, 2021, 07:19:11 AM »
Impressive. Most impressive.

Erma

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Re: Passed $300,000 this Friday in investments
« Reply #5 on: March 14, 2021, 07:42:58 AM »
Congratulations

Full Beard

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Re: Passed $300,000 this Friday in investments
« Reply #6 on: March 15, 2021, 02:54:01 PM »
Very cool!  Way to go!!

mbk

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Re: Passed $300,000 this Friday in investments
« Reply #7 on: March 19, 2021, 12:17:43 PM »
OP, congrats!

Your timeline is similar to mine. Had $49,000 in retirement accounts in 2014 and hit the $300,000 mark last month.

E.T.

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Re: Passed $300,000 this Friday in investments
« Reply #8 on: March 22, 2021, 10:58:15 AM »
Congrats! It didn't occur to me but I hit the same milestone last week. Celebrating with you!

I loved @swashbucklinstache breakdown of $300k, that's a really motivating way of looking at things.

 

Wow, a phone plan for fifteen bucks!