Readit Newsdiverted247 commented on Ask HN: If you were to switch career, what would you do? · Posted by u/bsvalley
Roast Coffee. Done.
diverted247 commented on Ask HN: What is a way of making residual income with $5K a month? · Posted by u/hanyoon
That doesn't take into account inflation. Presuming you do keep paying $350/month and not increasing that with inflation, that gives you $1,229,998.43 for 40 years.
If you apply the same U.S inflation rate as seen from 1965 > 2015 to cover a 40 year period, that gives you a cumulative inflation rate of -86.7%, leaving you with the equivalent value in todays money of $163,249.36
You might be a millionaire in 40 years, but you're not going to be rich..
Inflation 1926-2014 was 2.93% annualized
Inflation 1970-2014 was 4.15% annualized
Via IA-SBBI in Morningstar.
You are correct that inflation plays a big role, it always has, it always will. One argument for equites is in their ability to digest inflation (raising prices and returning ever higher earnings). There are many choices here, some simple (S&P500) and some more advanced. End of the day, if you are not making a return ahead of inflation, you are falling behind.
Here is a snapshot of annualized returns from IA-SBBI: https://www.dropbox.com/s/l7gmcynm3tggnrw/Screenshot%202015-...
https://VestU.com provides investment courses, model portfolios, webinars for individual investors. We launch in Jan 2016 and are finishing up the courses now. The material is based on our co-founders experience managing investments at the B level for endowments (University of Texas System), Boards (BHI,CAM), and foundations (Meadows Foundation, Others) for over 40+ years.
diverted247 commented on Ask HN: What is a way of making residual income with $5K a month? · Posted by u/hanyoon
At the start of every month, buy $350 of the S&P500. At year 40, you should have over $1M and at year 50 over $2M.
diverted247 commented on How to make $1M #investment #education vestu.com/articles/how_to... · Posted by u/diverted247
VestU.com is a investment education startup. We are focused on providing clear, unbiased investment education for individual investors. The curriculum is based on 45 years of institutional investing for endowments and foundations. We are in private beta with our Kickstarter backers and are now posting some articles public on the site.
The courses walk you through investment principles, investment assets, and portfolio implementation. Simple overview... Get the market return, get it for lowest cost possible, enhance returns by investing where the market historically outperforms, rebalance annually.