Addition to investing goals, $1 million here I come!
I’ve been doing some thinking and some math. I’ve figured out that I can have $1 million in 5 years if I start with $25,000 and earn an average return of 6.35% per month (76.2% per year), compounded monthly. I believe this is achieveable since I’m already earning more than that. If I reach that goal I’ll be a millionare before I turn 30.
My investments are rapidly approaching $25,000 so I’ve almost met that goal. The problem is that I’ve been living off of my investments. If I continue withdrawing enough to pay the bills I won’t be saving enough to reach that goal. This leaves me with a few options.
Option one is that I can find enough stuff to sell to raise my investments to more than $25,000. That means I would need to earn less per month, leaving me with (hopefully) enough money to live off of. I do have a lot of extra stuff I can sell, including my ‘89 Mustang that’s been in the garage for 2 years.
Option two is to find a job *shutter* that earns me enough money to live on. I could even find one that earns me enough extra to grow my investments faster. I hate working for other people so this is my least favorite choice.
The third option is to find a way to get a greater return on my money. That would leave more money above and beyond the required 6.35% per month. While this would be a very nice option I don’t think it’s going to happen. It may be possible once my account grows larger. A few extra percent a month isn’t much with $25,000. With $100,000 it’s enough to live on.
So right now it looks like I need to raise some extra money. I haven’t figured out how much yet but it’s quite a bit. I’m willing to do whatever it takes to become a millionare before I’m 30.
on May 6, 2006 at 5:32 pm
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I sure hope that you also consider the risk of HYIP investments.
many folks have lost everything they own on those scams…
make sure you really know the folks in person you invest with.
read this b4 you lose everything you own.
http://www.cftc.gov/opa/enf98/opaforexa15.htm
best regards,
wolfgang
on May 7, 2006 at 8:02 pm
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Thanks for the reply. I’m well aware of HYIPs. For those who don’t know HYIP stands for high yield investment program. If you ever see anything calling itself that stay far away as it is a scam.
I’ve been a member of TalkGold for a year and have made (and lost) considerable money in them. It didn’t take me long to figure out that 99% of them are scams. Luckily I was smart enough to earn back my early losses rather quickly and quit those scams.
The investments I referred to in my post are real. Most of them are traders or autotraders that work with power of attorney over brokerage accounts.
on May 14, 2006 at 5:39 am
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Hello Dan,
It seem I’m travelling down a similar sort of financial path as you (except I currently have a paying day job, having left uni about 2 years ago).
Looking back through your blog you mentioned some things about trying a few self trading strategies including Options trading, A few forex strategies, etc. How have those been going for you?
I assume when you say “Most of them are traders or autotraders that work with power of attorney over brokerage accounts.” you are saying that most of you income and capital growth is derived from Managed Forex accounts? Are you willing to say what Organisations / Managers have you invested with? I’m also in the market for Managed Forex and Managed Futures accounts.
Thanks
on May 15, 2006 at 8:08 am
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I’m still reviewing the traders and autotraders. I will post more information when I’m done with my due diligence. My options trading has been going well. I’ve been expecting a declining market for some time now. I have an open June bear spread that is in the money and I had a long put trade that I closed in the money a few weeks ago. I haven’t been doing much forex trading. I was long on the dollar on Wednesday for the Fed rate increase and made 20 pips. That was the first forex trade I’ve done in months.