zumbafanforever
New member
Hypothetical:
Why? Why not?
What are the advantages/disadvantages?
Would you change your mind if this started at 16 years old instead (an extra $73k, which will enormously compound over the coming decades)?
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For me, I would strongly, strongly consider it, because:
a) $182,500 (5 x $36,500) is much more than I made between 18-23 (as a uni student), so I would get a nice 5-year head start
b) following on from point a), the power of compounding can work heavily in your favour if you play your cards right early on (i.e. building an ETF portfolio)
c) I was fortunate to not move out of home until my late 20's, so I could keep expenses relatively low to maximise point b)
d) the freedom of not having to work is (obviously) very, very appealing. This would allow me to never have to sacrifice family time, pursue hobbies, partake in activities which are fulfilling and maximise my health
e) the current aged pension is about $27.5k/year (I believe) so you will comfortably exceed that in your 'retirement' years
- Starting from 18 years old, you are paid $100/day into your bank account, 7 days/week, tax-free for the rest of your life (increasing to match inflation).
- You are not allowed to earn or receive any additional money, except for passive investments such as HISA, term deposits or ETFs (e.g. can't invest it into a business or property or highly speculative assets).
Why? Why not?
What are the advantages/disadvantages?
Would you change your mind if this started at 16 years old instead (an extra $73k, which will enormously compound over the coming decades)?
--
For me, I would strongly, strongly consider it, because:
a) $182,500 (5 x $36,500) is much more than I made between 18-23 (as a uni student), so I would get a nice 5-year head start
b) following on from point a), the power of compounding can work heavily in your favour if you play your cards right early on (i.e. building an ETF portfolio)
c) I was fortunate to not move out of home until my late 20's, so I could keep expenses relatively low to maximise point b)
d) the freedom of not having to work is (obviously) very, very appealing. This would allow me to never have to sacrifice family time, pursue hobbies, partake in activities which are fulfilling and maximise my health
e) the current aged pension is about $27.5k/year (I believe) so you will comfortably exceed that in your 'retirement' years