I can’t sleep, so I’m running some numbers in my head. I have a mutual fund that I plan to invest in, and wanted to make some financial goals and projections for the next 10, 20, and 30 years. I turn 30 this year and I’m likely to start a new job that will last for at least 1 year, so long term planning is probably a good idea at this new phase in my life.
My primary goal is to retire as soon as possible by living off of the earned interest. This is how I plan to invest. I have 3 different investment plans, based on various estimates on what my discretionary income will be. The plan is that I will reinvest all interest until I retire. I marked the retirement age, along with the estimate for what the interest income will be. The conservative assumption is the baseline, where my current salary is at roughly $40k per year with $200/mo as discretionary income available to invest. I want to keep my expenses at approximately this level until I retire. The aggressive goal is what I plan to strive for assuming the next 10 years go well, and the middle is a realistic goal I believe I can achieve.
Conservative: $200/mo only
- 10 yr income: 7,250
- 20 yr income: 21,750
- Retire at 56: 43,450
- 30 yr income: 58,000
Estimated: $1500/mo for 1 yr, $500/mo after
- 10 yr income: 14,700
- 20 yr income: 45,800
- Retire at 48: 41,250
- 30 yr income: 107,300
Aggressive: $1500/mo for 3 yr, $3000/mo after
- 10 yr income: 43,300
- Retire at 40: 50,950
- 20 yr income: 123,000
- 30 yr income: 311,300