Dayum.. I hate you. That was certainly a nice gamble on health care that paid off.. Do you think it's reached its peak? 30% YTD in one sector seems ripe for a correction.
It was something like 40% in 2013. So I dunno. I bought it at like 56 and it is at almost 100 now, and it pays dividends too.
Your retirement investment needs to at least grow by 3%/a in order to mean anything. Even then, it won't mean shit years from now.
Did I, or did I not convey the point with my abbreviation?
Oh god the glorious kids excuse. I've seen try raising "X" kids used on pay levels from 10 an hour all the way to 180k salaried....
I use Vanguard and have an aggressive portfolio that is actively managed and I have only made about 7.8% this year so far. (29% in 2013)
VGHAX has a pretty insane YTD considering overall markets this year.
I feel like you didn't read anything I said outside of "retire at 42." I literally explained everything you mentioned. First, $40k covers my current expenses PLUS gives a buffer of about 5-10k (depending on how my expenses change in retirement). Second, I said that took inflation into account with everything (used a 3% rate). It's an inflation adjusted draw of $40k a year indefinitely. Third, I said that my "retirement" was just that I didn'thaveto keep working. It's "fuck you" money so that I can do whatever I want. I can take a year off and be fine, and then dick around with a part time job if I want to buy something retarded. Or not. It doesn't matter. It's just about having enough money where I don't have to work anymore. That's "retirement" to me. Maybe calling it "financial independence" is better for you?Your retirement investment needs to at least grow by 3%/a in order to mean anything. Even then, it won't mean shit years from now.
Just to give you a small idea...I'm 42. I live in one of the lowest COL areas in the US. $40k is poverty money here NOW. What thee fuck you think $40k is going to get you years from now? Retiring at 42 might sound neat...but the reality is you are still 3 years away from peaking out on your salary. That's $375k for basically pressing palms and looking at young secretaries all day. The majority of my work isn't work at all, and I get paid well for it.
Houses? I have 5. All of them pay for themselves, and the rentals pay most of my main mortgage.
Retiring at 42 is such a dumb idea. You should be relaxing, not retiring.
It can be hard to correlate personal rates of return vs overall fund numbers when you are actively investing throughout the period. For example a fund may be up over the previous 12 mos. but someone buying a piece every friday during that 12 months may be at a wash. If you are still in the early part of investing and balances haven't grown very large means the money going in currently weighs more on your returns than the money that is already there. The only part of your 401k that will match the fund returns is the balance you had at the time those comparisons started. I'm probably wording this poorly. This effect of timing though will diminish over the years just keep investing and you'll see that when the balances are significantly larger than your current contributions your personal rate of return will more closely follow the funds overall performance.