Update On My Journey to $250 Million
If you’ve been following me for a while, you might remember this post I wrote:
Well, obviously it hasn’t been that long since I’ve posted it, but for those of you following along, here’s a progress update.
Refresher on how I’m planning on accomplishing this
To be on target to hit my goal, I have to hit $2 Million by age 40.
I’m 31 now and my wife is 30.
We are currently a little north of $1 million, if we count our home equity.
Given that our combined income will be between $300K – $400K per year for the next 10 years, getting another $1 million under our belt in 9 – 10 years doesn’t take a big stretch of the imagination. My thinking is that we’ll hit this mark within the next 3-5 years, easily.
Which will mean that we’ll be way ahead of schedule in hitting my $250 Million life-time goal.
If we decided “oh to heck with all of this” and wanted to slow down and not work so hard, we can retire in the next 5 years. Or semi-retire today and work side gigs until we get to $2 million. I don’t see this happening though because we’re still young, have a ton of human capital, and neither of us want to stop working.
If I hit my goal of living until age 110
I actually think I’m going to live longer than this, barring Jesus returning before this time. I think with the exponential advances in medicine, nano tech, and other fields, I believe we may be able to live for a very long time.
So according to the graph below, I am on track to hit close to $250 million by age 110, with a projected monthly income of approximately $256,000! I think I’m ok with that projection!
The only downer here that I can see is that my initial forecasted annual return on my investments in my previous article was 7%/annually, but here it’s using 8.9%. So that’s on the fairly high side if you’re conservative about future returns.
But the big difference is that here I’m actually retiring at a certain point (age 80 – which, I believe, is tomorrow’s age 50) whereas in my previous article I didn’t foresee retiring (which is actually close to what I believe will actually happen because working brings fulfillment for me).
If I don’t hit my goal of living until age 110, but do live until I’m 90
I’m still fine. I’d be hitting close to $130 – 140 million if I live 20 years less than what I’m aiming for. And according to the graph below, I’ll have a projected monthly income of approximately $606,000! Since I’ll be dying 20 years “earlier.”
I’m sure most of you would agree that the big majority of people don’t need this kind of money. This is a stupid amount of money. What’s the point of having between $100 million – $250 million at the end of your life? Take everything to the grave with you? So this is just a numbers goal for me because I’m a highly competitive person; so I like to have concrete targets that I can aim for.
My wife and I will need to think of ways, in the coming years, on how we’re planning on spending this money wisely and generously in the years to come. Because I am not planning on just leaving everything to my children (for their sake).
How are you doing with your retirement goals? Is your nest egg healthy? Do you even have a goal or are you just winging it? What are some things you can do more of, or better, to increase your chances of hitting your target(s)? Do you have any other aspirations you want to hit with the money you will have down the line (i.e. philanthropy) or are you solely focusing on exiting the rat race as soon as possible (i.e. reaching FIRE)?