How To Retire In 20 Years

If someone were to ask me “how do I make a million dollars a year?”. I would respond with “you need to make $2740.00 per day”. We could then take this a step further and say that you need to make about $115.00 every hour. We could go another step further and assume that you only want to work 10 hours a day, in which case you would have to earn $274.00 every hour.

$274.00 every hour, 10 hours a day, for 365 days.

Does making a million dollars seem more tangible or more untouchable?

I think the secret to earning $1'000'000 in a year is in the compounding of interest and not in associating a monetary value with time.

Let’s do some more math. In 2017, the 20 year average return on the S&P 500 was 9.85%. That means that in order to earn $1'000'000 in a single year you would have to have $10'152'284.26 invested, assuming the average return of 9.85%.

So let’s say you have some savings, $30'000 and you can afford to add $1000.00 to your trading account every month. How long would it take you to make $1'000'000.00? Assuming the 20 year average return rate of 9.85%, it would take you just over 20 years.

If you’re in your early 20s, this means that you could easily be a millionaire before your 50th birthday. On top of that, you could retire with a six figure income as well. Assuming a 9.85% return, $1'000'000 would see you earning $98'500.00 in capital gains each year.

So save and invest. Investments don’t have to be in stocks,bonds, or real estate either. You can invest in a business you started or invest in cars that you know you could flip for more. Financial freedom or the ability to live more financially comfortable starts today. Stop buying dumb shit.