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1 Million by 35?

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  • runj
    replied
    Originally posted by SavingAdvice View Post
    I'm half way there almost 500k in assets at 29. Any ways I can do it faster? I was thinking of doing side jobs or working another job after work.

    Good progress but be careful. Dont be too ambitious in doubling the amount soon and lose it instead

    Leave a comment:


  • SavingAdvice
    replied
    Break down of assets:
    30's Somethings Finance: 1st Post!

    You guys are funny, i dont do anything illegal to gain my money..

    Leave a comment:


  • KTP
    replied
    Originally posted by jpg7n16 View Post
    Then it's a good thing I never claimed that bonds were 'practically guaranteed' to return anything.

    And I would begin investing in bonds at that time.

    Like you, I feel that stocks are the best investment out there. But I don't claim that a simple options strategy will 'practically guarantee' you double digit returns. Especially not one that limits your upside and not your downside.
    Ok, fair enough. The OP asked for a way to do it faster. Aside from increasing his production of the product in the other picture, I think the covered call method would be the safest way in the current market to turn $500K into $1mil in 7 years. Bonds just are not going to do it at 3% to 5% yield, and small caps might get you there faster, but also you might end up with $250,000 in 7 years. A mixture of bonds, small caps and large caps might get you there, but I think would hold more risk for about the same reward as just buying large caps and increasing the dividend return by writing the covered calls. My method is to never write a call on a stock I own that represents less than I originally paid for it. This keeps me from having a declining stock that never recovers because I kept limiting my upside with the covered calls. I would also only write covered calls on value stocks that pay dividends, such that I still make money even in a flat boring market.

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  • jpg7n16
    replied
    I wondered why they called you the greenskeeper.

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  • greenskeeper
    replied
    Originally posted by disneysteve View Post
    How did you manage to accumulate half a million dollars at age 29?

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  • jpg7n16
    replied
    Originally posted by KTP View Post
    Ok, I will play that game too!

    What if you put it in bonds and interest rates spike to 1980s levels and your bonds lose 30% principal value?
    Then it's a good thing I never claimed that bonds were 'practically guaranteed' to return anything.

    And I would begin investing in bonds at that time.

    Like you, I feel that stocks are the best investment out there. But I don't claim that a simple options strategy will 'practically guarantee' you double digit returns. Especially not one that limits your upside and not your downside.

    Originally posted by KTP View Post
    I'd put it in large cap stocks and write 6 month covered calls for just a little out of the money. This will practically guarantee you a 7% to 15% return including dividends.

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  • KTP
    replied
    Originally posted by jpg7n16 View Post
    Unless of course the market falls 30-40% again.

    Then you'd still lose 25-35%.


    There is no such thing as a 'practical guarantee' in the market.
    Ok, I will play that game too!

    What if you put it in bonds and interest rates spike to 1980s levels and your bonds lose 30% principal value?

    The only sort of safe place to put it is in 5 year CDs, where you *just* might break even against inflation.

    The suggestion of large caps and covered calls is pretty conservative, while still taking advantage of a bit of positive potential. In the last few downturns, the large caps have mostly all sprung back, staying at the 25% to 35% loss range for less than a couple of months at most. Especially true of value large caps paying dividend (with exceptions like C, GM, etc., but the case could be made that they were not really value stocks to begin with).

    Leave a comment:


  • jpg7n16
    replied
    Originally posted by KTP View Post
    I'd put it in large cap stocks and write 6 month covered calls for just a little out of the money. This will practically guarantee you a 7% to 15% return including dividends.
    Unless of course the market falls 30-40% again.

    Then you'd still lose 25-35%.


    There is no such thing as a 'practical guarantee' in the market.

    Leave a comment:


  • QueenOphelia
    replied
    What is the asset breakdown? Cash, real estate, stocks? Retirement vs. liquid?

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  • disneysteve
    replied
    How did you manage to accumulate half a million dollars at age 29?

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  • KTP
    replied
    I'd put it in large cap stocks and write 6 month covered calls for just a little out of the money. This will practically guarantee you a 7% to 15% return including dividends. No, you won't get a 17% return like we all did last year, but you most likely will not see much of a loss either, depending on the value of the large caps you choose. I am starting to do this myself with some of our portfolio. It feels safer than just buying and holding an index fund.

    And bonds....bonds scare me MUCH more than holding a value company like Microsoft, Coke, Merck...

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  • bjl584
    replied
    Wait. If you can get 8% on that 500K you will have a Million in about 7 years. Give or take.

    Leave a comment:


  • Snodog
    replied
    Thats quite an achievement!

    At the young age of 41 I am working on my 2nd million (I gave up on the 1st million).

    Seriously you are doing very well I'm not sure you need another job. Don't forget to enjoy life.

    Leave a comment:


  • SavingAdvice
    replied
    I like to feel secure i guess money does solve a lot of problems. Its mostly for my family as well soon to have a kid in 5 months.

    Leave a comment:


  • jpg7n16
    replied
    A lot of income, or a lot of luck.

    Any particular reason you need $1 million so fast? Some particular goal in mind, or just for the heck of it?

    Leave a comment:

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