Name: Anonymous 2011-12-05 4:19
Petroleum engineers can easily earn around $120000, student counsellors can live on $20000 a year so we'll deduct this amount and use the rest for investment.
http://graphicsweb.wsj.com/documents/NILF1111/#term=
Typical large stable growing companies like Chevron usually double their share price every 10 years.
http://finance.yahoo.com/q/pr?s=CVX+Profile
Chevron stock has increased from 42 to 100 in the past decade, which is 90% higher adjusted for inflation. 2 more companies off the top of my head, Halliburton has increased by 10 to 36 (+180% afi) and ExxonMobil 40 to 80 (+60% afi). If you had divided your capital evenly among these you would roughly double your investment every decade or around +7% per year which is reasonable for low risk.
So, after 2 years of finding work, gaining experience and paying off student loans you start saving and buying low risk stock and after 8 years you are already a millionaire, even if you're a shitty engineer and only have $60000 to spare a year it will only take 4 more years. By this point you will already have your foot in the door, access to options, dividends insider information and financial resources unavailable to ordinary folk, returns are going to be a lot higher than 7% and you are guaranteed to hit the top 1% before you retire, more likely you will reach it within 10 years.
You're not looking at 20 years of miserly frugality, the estimates I made were pretty conservative and there's nothing stopping you skimming off the top of your investments if you feel reaching a net worth of $10000000 isn't so urgent, though you might want to note the fact that many people spend their entire lives on $20k a year without any prospect of lifting off as you will. There is also the chance you will develop the skills and entrepeneurial spirit to start your own business or gain an executive position and far exceed what the exponential function can yield for us here.
You're welcome.
http://graphicsweb.wsj.com/documents/NILF1111/#term=
Typical large stable growing companies like Chevron usually double their share price every 10 years.
http://finance.yahoo.com/q/pr?s=CVX+Profile
Chevron stock has increased from 42 to 100 in the past decade, which is 90% higher adjusted for inflation. 2 more companies off the top of my head, Halliburton has increased by 10 to 36 (+180% afi) and ExxonMobil 40 to 80 (+60% afi). If you had divided your capital evenly among these you would roughly double your investment every decade or around +7% per year which is reasonable for low risk.
So, after 2 years of finding work, gaining experience and paying off student loans you start saving and buying low risk stock and after 8 years you are already a millionaire, even if you're a shitty engineer and only have $60000 to spare a year it will only take 4 more years. By this point you will already have your foot in the door, access to options, dividends insider information and financial resources unavailable to ordinary folk, returns are going to be a lot higher than 7% and you are guaranteed to hit the top 1% before you retire, more likely you will reach it within 10 years.
You're not looking at 20 years of miserly frugality, the estimates I made were pretty conservative and there's nothing stopping you skimming off the top of your investments if you feel reaching a net worth of $10000000 isn't so urgent, though you might want to note the fact that many people spend their entire lives on $20k a year without any prospect of lifting off as you will. There is also the chance you will develop the skills and entrepeneurial spirit to start your own business or gain an executive position and far exceed what the exponential function can yield for us here.
You're welcome.