Will an investment of $140,000 be worth $9,300,000 in 45 years?

[luanvan24]

@prisha This. I spent a year doing construction work and having that as my job for 40 years would be brutal on my body. My supervisor was working for like 15 years and already had back and neck medical issues. Maybe you can do it for 45 years, but what happens if something goes wrong or your body wears down and you can’t work? Would definitely recommend more education (maybe a programming course) where you can make that kind of money with less of a physical toll

 

[davidixoye]

@luanvan24 I would most likely work at construction or electrical, and take college courses at the same time, whether online or at a community college. This way I work and get money, and at the same time can earn a bachelors to help rank up faster, and as a backup in case anything happens causing me to quit.

 

[davidixoye]

@prisha I live in Long Island, New York. Wages are incredibly higher here, along with housing costs. Those numbers are about 30k higher than current ones, but I adjusted them for the future since the job is in high demand and less people are doing it.

 

[prisha]

@davidixoye I don’t think it’s prudent to adjust anything to the way you think or hope it should go. Calculations need to be based on facts. The outputs are only as good as the inputs.

 

[davidixoye]

@prisha Agreed. Thank you for the comment

 

[togetherinhim]

@davidixoye If your ultimate career goal is to own your own company then you may want to also plan for some business classes. Sure, as you move up in the company you will learn various aspects of the business, but having a foundation may be useful. You could take them while working and use your wages to pay for them and not the 140k if you really want

 

[beneathgreyblues]

@togetherinhim Couldn’t agree more. A lot of people miss the mark on this. Although we hear plenty of stories about people who started at the bottom and made it to the top and started their own company, we rarely see the people that didn’t (survivorship bias). In order to increase your chances at succeeding in this area, some level of education in business will be extremely valuable. Can it be done without it? Sure, people have done it. Will you have far better odds with it? Definitely.

 

[davidixoye]

@togetherinhim That is exactly what I was planning to do. Work first, then over 3-4 years I can take classes online and get my bachelors degree, which would surely help.

 

[orthodox4life]

@davidixoye Without getting into the actual dollars and what your net worth will be in the future, I want to go down another path of thought.

You have a free education available and youth on your side. I recommend you go to school for one trade, and once you’re finished, go for another (or even more). Many of the trades are physically demanding and it would be good to have more than one skill set to help keep you from having to completely stop working because of an injury.

Most of the building trades will be around in the future. New ones will emerge, so keep up on what’s happening. Go back for more updated education as needed. Don’t box yourself into the current state of technology, because things will be very different in the future.

Take business classes, and make sure you understand how to structure your eventual business to minimize taxes while staying on the right side of the IRS (hire a great accountant!).

Being young (and I’m assuming able-bodied), you can do it all. Twenty or thirty or forty years from now, you’ll probably have issues like most people in that age range. Be sure to have short term and long term disability insurance. It may seem like a waste of money but it takes very little to ruin your financial future. Be smart about it.

As an aside, the building trades in NYC have a lot more rules and codes than most other places in the US. It can become very tiresome. You’ll make less money but potentially have a lot less stress to deal with if you consider getting out of the city.

 

[davidixoye]

@orthodox4life I was thinking of moving with my parents to NC. I grew up in Long Island, NY, but its way too expensive to begin life and a company.

 

[dart]

@davidixoye Inflation. The cost of those items will be significantly more in 45 years than today. Also, $10 million sounds like a lot of money, and it is, but in 45 years, it’ll feel and spend a lot less.

 

[bc1]

@dart It’ll spend a lot more like $2,000,000. Which would generate an income that’d be barely half of what he thinks his working income will be

 

[aliveinchrist99]

@bc1 CPI doubles about 30 years or so? So more like 3 or 4 mil to be fair. But 45 years is a lonnng time. Wonder what the world will be like then.

 

[bc1]

@aliveinchrist99 It’s doubled in the last 30 years, but the last 30 years have seen historically low inflation. Looking at data going back to the Great Depression it triples, not doubles every 30 years

 

[captainhobo]

@aliveinchrist99 It doubles every 25 years on average, so I think $10 mil in 45 years would equate to around $3 mil in purchasing power today. But more importantly, I think it might be a variable that OP is not fully considering so it’s important to point it out.

 

[dart]

Sorry, I didn’t realize you were you the OP. If you want to consider wage increases, you will need to increase your monthly contribution at the rate of wage increases you anticipate. If you expect a 3% annual wage increase, then Year 2, your monthly contribution needs to increase to $1,030/month and so on. That means you will have significantly more than $10m in 45 years.

 

[davidixoye]

@dart yes but wont pay increase as the cost of goods do? itll cancel out no?

 

[ethan43]

@davidixoye Not for jobs that will be automated.

 

[dart]

@davidixoye Is the cost of a tv the same today than it was 45 years ago? Of course not. All of the items OP listed will cost significantly more in 45 years.

 

[ethan43]

@dart Tv prices and almost anything technological has deflated exponentially over time. That said, financial assets and real estate have gigantically inflated over the time period

Do you remember when 42” hdtv were $5,000? Pepperidge Farm remembers. The first color tv was about $1000 released in 1954 by RCA, it had a 15” screen. Would be considered garbage even compared to a $50 LCD today. That said, I would bet real estate will be vastly more expensive 45 years from now