Read on Twitter
Quiz:
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
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
for answer.
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
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
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's almost $4 million!
That's not future value. That's TODAY's value of YOU.
Focus on what you control.
...but wait, there's more
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's almost $4 million!
That's not future value. That's TODAY's value of YOU.
Focus on what you control.
...but wait, there's more
Next, I'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't defer gratitude: be grateful now for now.
, I'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'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.
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.
