davidixoye
New member
Hi all,
For this situation, I put the starting amount, P, as 140,000.
The time, N, is 45 (years)
The return rate, R, is 8%
There is also an additional contribution of $1,000 each month during the 45 years.
For some background...
I am 17 years old and a junior in high school. I have a strong interest in construction and electrical. It is a high-paying job already, and with the decrease of blue-collar jobs, will be in severe demand in the future. After completion of high school, most students attend college, and then get a job, and retire. I have absolutely nothing against that, but am very young, and want to ensure I consider all options for my future. One of those options is the following...
After high school, attend a trade school for construction and/or electrical. I will pay around $10,000 for a 1-year course. After that, I will join the workforce and make around $130-150,000 after some years. The first few will obviously be lower until I get a promotion.
The major element of the "background" though is a deal I have with my parents. I am incredibly appreciative of them, and they are very generous. The deal is the following...
There is $150,000 set aside for my post-high school studies, whether that is college, university, or trade school. The only requirement is that I have to successfully graduate. If I go over the $150,000, I am responsible to pay for it all. If I go under the $150,000, I collect the remaining $ and do anything I want with it.
The current option I am looking into is attending trade school right out of high school, then working there for many years, hopefully ranking up and eventually owning my own company. I plan on investing all of the $140,000 (150,000-trade school). I will leave the money in a very conservative long-term fund and let it sit, collecting interest, over the years. When I retire at age 65, I will have been working for 45 years, and the initial $140,000 would be a lot more now. Doing a simple calculation found that if I invested the money for 45 years at an average 8% return, and simultaneously contributed $1,000 per month, the total at age 65 would be an astonishing $9,274,629.89. To some people, that doesn't even seem like that much $. But to me, that is more than I ever know how to spend. I even created a simple spreadsheet to make a super vague future financial plan, and spent around $5,000,000, between luxury housing, cars, a boat, and plenty of vacation, while giving some away. I bought a Rolls Royce, range rover, F-150, Ferrari, Tesla, 2 motorcycles, a $900,000 boat, 2 jet-ski's, a vacation house in St. Thomas, $400,000 in fun spending money for me, a $1.2 million house, $500,000 in bills and taxes, and $200,000 in vacations. So basically I have everything I have ever dreamed of. With these luxuries, I will still have $4,335,000 remaining.
I would like to know if this is truly how easy it is, to let it sit, and work during the time. Is my calculation correct, or have I missed an incredibly important factor here that will disrupt these plans?
I also want to make it clear that I understand there is a 1% chance this will happen how I envision it. I understand that many of the things I have said are subject to change, may not happen at all, etc. The 8% return I selected will almost definitely be wrong since its impossible to predict the market. There is a chance the return will be lower or higher. Maybe I cannot afford $1,000 per month. Maybe I don't truly follow through with the construction studies. Maybe I get arrested, hope not. Maybe I lose everything in a storm. The point is that nothing here is firm whatsoever. I am once again, very young, and want to explore each and every option before I make any eliminations. For this specific situation, please use the figures I have listed.
Is this truly correct? Can I retire and have nearly $10 million?
Thank you all!
P.s
I live in Long Island, New York. So if the numbers seem high, it is because everything costs a load over here.
For this situation, I put the starting amount, P, as 140,000.
The time, N, is 45 (years)
The return rate, R, is 8%
There is also an additional contribution of $1,000 each month during the 45 years.
For some background...
I am 17 years old and a junior in high school. I have a strong interest in construction and electrical. It is a high-paying job already, and with the decrease of blue-collar jobs, will be in severe demand in the future. After completion of high school, most students attend college, and then get a job, and retire. I have absolutely nothing against that, but am very young, and want to ensure I consider all options for my future. One of those options is the following...
After high school, attend a trade school for construction and/or electrical. I will pay around $10,000 for a 1-year course. After that, I will join the workforce and make around $130-150,000 after some years. The first few will obviously be lower until I get a promotion.
The major element of the "background" though is a deal I have with my parents. I am incredibly appreciative of them, and they are very generous. The deal is the following...
There is $150,000 set aside for my post-high school studies, whether that is college, university, or trade school. The only requirement is that I have to successfully graduate. If I go over the $150,000, I am responsible to pay for it all. If I go under the $150,000, I collect the remaining $ and do anything I want with it.
The current option I am looking into is attending trade school right out of high school, then working there for many years, hopefully ranking up and eventually owning my own company. I plan on investing all of the $140,000 (150,000-trade school). I will leave the money in a very conservative long-term fund and let it sit, collecting interest, over the years. When I retire at age 65, I will have been working for 45 years, and the initial $140,000 would be a lot more now. Doing a simple calculation found that if I invested the money for 45 years at an average 8% return, and simultaneously contributed $1,000 per month, the total at age 65 would be an astonishing $9,274,629.89. To some people, that doesn't even seem like that much $. But to me, that is more than I ever know how to spend. I even created a simple spreadsheet to make a super vague future financial plan, and spent around $5,000,000, between luxury housing, cars, a boat, and plenty of vacation, while giving some away. I bought a Rolls Royce, range rover, F-150, Ferrari, Tesla, 2 motorcycles, a $900,000 boat, 2 jet-ski's, a vacation house in St. Thomas, $400,000 in fun spending money for me, a $1.2 million house, $500,000 in bills and taxes, and $200,000 in vacations. So basically I have everything I have ever dreamed of. With these luxuries, I will still have $4,335,000 remaining.
I would like to know if this is truly how easy it is, to let it sit, and work during the time. Is my calculation correct, or have I missed an incredibly important factor here that will disrupt these plans?
I also want to make it clear that I understand there is a 1% chance this will happen how I envision it. I understand that many of the things I have said are subject to change, may not happen at all, etc. The 8% return I selected will almost definitely be wrong since its impossible to predict the market. There is a chance the return will be lower or higher. Maybe I cannot afford $1,000 per month. Maybe I don't truly follow through with the construction studies. Maybe I get arrested, hope not. Maybe I lose everything in a storm. The point is that nothing here is firm whatsoever. I am once again, very young, and want to explore each and every option before I make any eliminations. For this specific situation, please use the figures I have listed.
Is this truly correct? Can I retire and have nearly $10 million?
Thank you all!
P.s
I live in Long Island, New York. So if the numbers seem high, it is because everything costs a load over here.