>get a six figure job for ~5-6 years
>live really fucking frugal while gitting gud at stock trading
>save up 750k
>invest in stock market
>Make ~75k/yr by doing basically fuckall
Is this a good idea? If not, how do I improve it?
Get a six figure job for ~5-6 years
Kevin Morales
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Anthony Young
...
Liam Hughes
You are not going to make 10% returns actively trading. You are very unlikely to beat the market actively trading, and the market averages 9%.
You will be better off buying an index fund and ignoring it than actively trading, and even then you will have years where your returns are less than 0 because the market is volatile like this.
The only people I know who could reliably make returns were HFT traders, and they are really fucking smart and eventually left that industry because it was becoming too competitive.
Colton Clark
Great ideas just imaging if you put 5k in IDXG at. .10 and sold at $2
Ryan Gomez
The hard part is getting a 6 figure job, no?
Christopher Carter
Pulling 10% a year from your portfolio is monumentally stupid. Your plan is 64% likely to fail within 20 years, 77% likely to fail within 30 years, and 81% likely to fail within 40 years.
If you want your money to last through a normal retirement (~19 years on average) let alone an early retirement (could be as long as 50-60 years), you can't even consider pulling more than 4% and more likely 3%.
Please Google "safe withdrawal rates" and learn what a Monte Carlo retirement simulation is before asking stupid questions again.
Aaron Thomas
Let's say you started your idea in 2004, you save up 75k a year for 5 years... you'd have 375k in 2009.
The stock market crashes, you dump it all into the dow jones... the market gets back to normal and eventually reaches new highs due to QE...
You have now tripled your money and have over a million dollars.
Now you can spend money... and just wait for the next crash and do the same thing.
Blake Nguyen
How are you gonna get a 6 figure job and live a frugal lifestyle when you come off as someone who doesn't want to put any work in?
Jack Campbell
This.
if you can get a six-figure job... just invest 20% per year... whether it fails or not, depending on what you're looking for... long term or short term gains etc...
If you can't live with a six figure job, you don't deserve to be rich.
Joshua Harris
By the time most people pull six figures they are already stuck with a wife, two kids, a fat real estate, montage, cars and have to spend tons of money to entertain their family.
So good luck with saving 750k.
Of course, there is always the option of trading your lifetime and family against money, but many people later find out that this trade ain't so sweet after all, no matter how you slice it or dice it.
I guess maybe 3% of the people manage to get it all.
Anthony Cook
This. Just comb the market for these kinds of opportunities fuck small time trading. Rode this bad boy out from .22 to 1.44
Ayden Barnes
>and just wait for the next crash and do the same thing.
And when is the next crash?
Christian Rogers
montages can be expensive.
Jordan Foster
>save up 750k over 5-6 years
Bruh after FICA and taxes on 110k you'll only have 75k per year. If someone else pays for your car, housing, food, and utilities entirely it'd still take 10 years.
Noah Diaz
> this trade ain't so sweet after all
countless realtors, car salesmen, bankers, and desperate women would LOVE for you to think this
Wyatt Edwards
We're gonna need a montage!
youtube.com
Caleb Bailey
Realistically you'll need to make at least 2-4 milli to live off the returns/dividends.
My plan is to buy properties and rent
It's not about keeping the 6 fig job, OP wants to make a milli and live off the passive income
Oliver Phillips
If you max out your 401(k) at $18k your taxable income is $92k, which after tax looks like $64k. So your total takehome (401(k) plus actual takehome) is $82k.
Not a lot better, but living on $7k/year is plausible (if you find very cheap/free rent somewhere where you don't need a car) whereas living on 0 is impossible.
Austin Long
To add to this, I took a random savings calculator (tangerine.ca
Now, for 6 years like OP says, I actually can't do it on $82k/yr. But increasing the return to 10% as OP imagines is possible, I can do it ... by saving $91k per year.
OP, this is fucking impossible.
Luis Miller
OP, because I'm procrastinating, here's a better plan:
1. Double your time horizon to 15 years and assume you can maintain an 8% return while investing.
2. Invest $3k/mo or $36k/yr. Half of this you can get from a 401(k) so it's pre-tax income.
3. Plan to live on $30k/yr, which in the US is comfortable but not luxurious. You can watch every football game your team plays at a bar on that much money if you're reasonable about it.
To pull this off you need $48k of after-tax income, which is quite reasonable to pull off even without a highly-sought-after trade, at 25.
The result is that you have $1M at 40 years old, which is sufficient to have a 4% drawdown which will last you 30 years at 98% probability even if your income goes to zero at that instant. And this is assuming that you never increase your savings rate.
Nathan Lewis
>wife and I net about 100k a year
>currently have 120k in the bank
>buy a 450k house with 20% down (90k)
>live frugally
>pay off house in 5-7 years
is this a good plan?
Sebastian Garcia
What's the rate? Could be you should invest it instead, and take a longer downpay.
Logan Rivera
First. Study personal finance and investing.
Learn options trading.
Learn that pretty ipo is where the money is and stocks is 4 plebs.
Tyler Johnson
Why pay off the house when interest rates are so low? It's the cheapest money you'll get, just make the minimum repayments (or pay interest only) and put your cash towards other investments. Having debt is not always a bad thing
Brody Moore
nothing wrong with this plan as long as you get the 6 figure job which is typically the only roadblock besides of course, saving money like a hoarder.