Quote:
Originally Posted by NorCalAthlete
I got 7.5, which I think is fairly easily attainable (if that's representing a percentage and not a multiplier). That's with a very moderate estimate of living expenses, as my only real vices are not particularly extravagant.
That being said, I'm more of the fatFIRE ambition, so if I could hit well beyond 7.5 (%? X?) growth rate I think 10 years is feasible to live a pretty decent, if not extravagant, life. We're talking modest house, BMW, golf, and a couple vacations per year. Also, I don't know that I'd fully retire anyway even if I could - I get bored easily. What I think it would mostly do is give me enough financial flexibility to explore more career options and entrepreneurship. Ideally, I could grow it enough to make a full time (or at least part time) job out of angel investing and mentoring / teaching / helping small businesses and such.
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The math above gives a number of one plus the required portfolio growth rate, to achieve the targeted value by the targeted date.
((Net worth target in 10 yrs)/(today’s net worth))^0.1 = A number larger than 1.0, if your net worth today is below your target net worth in 10 years. Subtract 1 from this number, and that is the required growth rate needed to achieve your target in 10 years.