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3 Fool-Proof Options To Financial Freedom (And Why I'm Taking Option 3)
On Life and Business
With Jake Erickson
April 30, 2023
If in 25 years you could choose between retiring with an annual income stream of $23,000, $46,000, or $150,000, which would you take?
I spent the last 10 years of my life learning Finance in an accredited investment program and from great mentors. I’ve done the math many times over.
So what do these income streams cost you? We'll assume a conservative 3% annual distribution:
Let's say you invested $1,000/month for the next 25 years: By the end of the period, you’d accumulate $760,000 (assuming a 7% compounded annual rate of return). You could draw $23,000 annually, but you’d be forced to sell yearly if your expenses exceed $23,000.
Let's say you invested $2,000/month for the next 25 years: By the end of the period, you’d accumulate $1,518,000 (assuming a 7% compounded annual rate of return). You could draw $46,000 annually, but you’d be forced to sell here and there.
Let's say you invested $10,000/month for the next 20 years: By the end of the period, you’d accumulate $4,920,000 (assuming a 7% compounded annual rate of return). You could safely draw $150,000 annually while allowing your portfolio to grow.
Financial freedom requires work. But if you had five years (from today) to find a way to double your income, and I believe anyone can accomplish that feat if they set their mind to it, wouldn't that be worth it?
Imagine the type of life that'd bring you and your family.
Imagine the type of person you'd become.