My goal is to try to hit the $5million mark in net worth before calling it a day. That would allow a low risk net passive income strategy indefinitely and something I think would be obtainable not too far in the future. I don’t care who is in office or who is running the government so long as they don’t interfere with my plans. The world’s problems are not my problem and as long as I don’t interfere with other people, I could care less. I am simply results oriented and that has been my primary focus.
Originally my plan was to hit the $10million mark so that the passive income from it could be done at very very low risk ($10 million at 2% passive return is virtually an easy slam dunk annual income of $200k/yr for doing nothing) but I don’t think I will be able to obtain that in my lifetime. Just not that lucky to hit the right investments and hit the right stock options at the right company at the right time in my lifetime. A more realistic goal is $5million returning 2.5-3% passive income ($125-200k passive income annually which can afford me a comfortable retirement lifestyle, not something lavishing.) That’s slightly higher required return than I wish for and certainly not a slam dunk, but should be obtainable annually but even if it dipped to 2% occasionally, that’s still ok . Got to work with what is practically obtainable, and one of the main reasons why I am not spending a lot right now. Wish I was younger and had gotten more done. Oh well. That will be my kids empire building goal for an easy life.
Last year’s S&P500 30% gain certainly helped cut the time down to obtain my goals significantly, and while I don’t expect a repeat this year, a decent 5% would be nice.
