SD_S2K

desired early 30's with this estimated pay will not enable you to retire. I am in similar position to the stated person and I cannot retire anytime soon. If you live anywhere but BFE Iowa or some place cheap, you need $2-3million AT LEAST to retire, and have income for the next 50+ years. Probably even more. In this day and age a couple million is nothing, especially with that time horizon to have to draw from it.

Expensive, and aggressive, but realistic. $500k buys a LOT of house in most places, in some, probably more than he would need. In San Diego, right now, that buys a decent older 3 bed house. A year ago it would not have. It would buy you a pretty sick condo near the beach or downtown nightlife also.

Where does this guy live?

trainwreck

yup, you cant even live in the ghetto for 500k in the sf bay area. i pay $1000 a month to live in the ghetto. albeit, a trendy ghetto, but cars still get broken into every month and there are bums galore...

magician

Bum means different things in different places.

trainwreck

^ lol the gross kind.

by gross i mean sleep on the street and ask you for money and smell like poo poo.

if i were mayor of san francisco, 1st thing i would do is put the all bums and pigeons into a rocket and blast them off into outerspace. hippies would be next to go.

lOOkatme

there are a lot of income trusts and other high yield investments which yield 10% on average with diversification.

$3 million at 10% is $300,000/yr....you can't live off $300K pre-tax money?

and not all of us live in CA...I used to live in huntington beach, but left because the quality of life is much lower there than many other places.

SD_S2K

Do the math dude. 120k plus an increase every few years, does not equal 3million in ten years or less, not even if you save 100%, which is impossible. If he saved 30-50% he would not get even close.

Then you claim 10% returns. Please post the names and tickers of these income trusts, and their 10-20 year histories. In the current market and foreseeable future, 10% "guarantees" are going to be tough to come by.

you are posing a lot of hypothetical situations and numbers, and not taking real figures, rates of return, tax, etc into the equation.

lOOkatme

actually I'm not.

I am not saying this guy can have 3 million by his 30's....I was responding to another saying $2-3 million is enough for retirement.


which is plenty to retire on....all you would need to do is live off the income/distributions and not touch the principal amount at all.


Look into REITS which offer 7% yield.

There are investments that you can get into which deals with loans given to construction companies for a brief period while building.....then the loan is paid back when the building is done and paid for. These loans pay a dividend of 10-11% a year. My dad is in retirement right now getting these returns as we speak. its pretty low risk as well. A group runs the investment (I forget the name of it, but I can get the name if you want it, its not a ticker symbol or anything, his advisor told him about this investment)

Energy income trusts....they will pay higher and higher dividends when looking forward. some of the high payout dividends have been very high in the past....and are growing in the future.

TICKER (DIV.)
PWE (14.7%)
COSWF.PK (9.1%)
HGT (9.1%)
SJT (7.9%)
BPT (13%)
PBT (9.9%)

The above payout based per share....so a lower share price yields a higher payout. hence these go up and down with share price. they also go up and down with oil/NG price as well. and I see higher oil and NG prices in the future...obviously with the seasonal dips.


I am sure there are a lot more options then just those above....look around and they are out there.

furthermore.....most stocks payout in regards to share.....so if you can get in at low prices...and the dividend yield keeps increasing with time.....you can get huge returns on your intial invested capital.....

like one of my chinese coal investments....I bought at a very low price....it appreciated roughly 300% above my price....and my payout on the initial amount was over 15%.

I have a few like this. and many others becoming like this......compounding is great.

WyattH

That just seems crazy high... Affordable, yes. Reasonable, I think not.

WyattH

+11111

midnightsunset

The only advice you need...

If gainfully employed... max out 401k +20-30% (assuming employer offers company match)

If BFS, IRA is a no brainer...

Making 100k+, it doesn't take much in the way of simple smart savings to have a decent retirement.

If your friend is looking to buy for investment....STOP!!!!! Leave that to the experts. I lost 50k so far on my investment home and will maybe break even in the next 3 yrs before having to relocate for promotion.

Buying a home is always a good investment "IF" you don't plan on moving for 7-10 yrs. You may lose some equity during that time, but are guaranteed to pull a profit if you wait it out long enough.

And lenders have no choice but to keep the consumer honest today with the foreclosure rate at a record high.