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Quiz:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="❓" title="Rotes Fragezeichen-Symbol" aria-label="Emoji: Rotes Fragezeichen-Symbol">
You make $100k/yr. Tax 40%. Spend $40k. Save $20k. Spending grows 5% p.a. Discount Rate 5%. 40 years to retire.
Sc 1: Salary Grows 5% p.a.
Sc 2: Salary Grows 7% p.a.
Scenario 1 vs 2: what is the dif in your personal DCFhttps://abs.twimg.com/emoji/v2/... draggable="false" alt="❓" title="Rotes Fragezeichen-Symbol" aria-label="Emoji: Rotes Fragezeichen-Symbol">
Think about it before scrollinghttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">for answer.
You make $100k/yr. Tax 40%. Spend $40k. Save $20k. Spending grows 5% p.a. Discount Rate 5%. 40 years to retire.
Sc 1: Salary Grows 5% p.a.
Sc 2: Salary Grows 7% p.a.
Scenario 1 vs 2: what is the dif in your personal DCF
Think about it before scrolling
Before giving you the answer, this is why I say, for most people, your own earnings (& savings habits) are your biggest investment position.
You own the control stake of a great business - Ticker: YOU.
Make choices that drive your value up = huge impact: https://twitter.com/compound248/status/1386642114310811660?s=20">https://twitter.com/compound2...
You own the control stake of a great business - Ticker: YOU.
Make choices that drive your value up = huge impact: https://twitter.com/compound248/status/1386642114310811660?s=20">https://twitter.com/compound2...
Answer:
In Scenario 1, the DCF of YOU is worth $800,000.
In Scenario 2, the DCF of YOU is worth $1.95 million.
At 9% growth in income (Sc 3), it& #39;s almost $4 million!
That& #39;s not future value. That& #39;s TODAY& #39;s value of YOU.
Focus on what you control.
...but wait, there& #39;s morehttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">https://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">
In Scenario 1, the DCF of YOU is worth $800,000.
In Scenario 2, the DCF of YOU is worth $1.95 million.
At 9% growth in income (Sc 3), it& #39;s almost $4 million!
That& #39;s not future value. That& #39;s TODAY& #39;s value of YOU.
Focus on what you control.
...but wait, there& #39;s more
Nexthttps://abs.twimg.com/emoji/v2/... draggable="false" alt="👇" title="Rückhand Zeigefinger nach unten" aria-label="Emoji: Rückhand Zeigefinger nach unten">, I& #39;ll show what your savings can be without heroic returns - but a key to all of this is disciplined savings.
As Buffett says, "Success is getting what you want. Happiness is wanting what you get."
Enjoy life on its terms. Don& #39;t defer gratitude: be grateful now for now.
As Buffett says, "Success is getting what you want. Happiness is wanting what you get."
Enjoy life on its terms. Don& #39;t defer gratitude: be grateful now for now.
Your investing prowess matters!
Reinvest your future CF streams @ a CAGR above the discount rate to create a supernova: a moonshot for your $4 mm DCF.
Reinvest @ 8% net on your annual savings & the undiscounted future value in 40y:
1: $9.8mm
2: $20.9mm
3: $38.5mm
Go get it.https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤠" title="Gesicht mit Cowboyhut" aria-label="Emoji: Gesicht mit Cowboyhut">
Reinvest your future CF streams @ a CAGR above the discount rate to create a supernova: a moonshot for your $4 mm DCF.
Reinvest @ 8% net on your annual savings & the undiscounted future value in 40y:
1: $9.8mm
2: $20.9mm
3: $38.5mm
Go get it.
