Well Well…

It has been a long time since I have posted. I’ve been busy… really busy… these days I am a full-time Realtor, moving into my own office in February (or as soon as they get around to finishing it). Expect to see some posts on the real estate market in the coming months.

As much as I enjoy real estate–I get to spend all day talking on the phone, going to parties, and meeting new people–what I’d really like to be doing right now is day trading.

There is an introductory finance formula I have been reflecting on recently… like most introductory finance formulas, it is an oversimplification… it ignores compounding, taxes, and other sundries… but let’s dream for the moment, shall we…? The formula is:
$Well Well...$

where

$Well Well...$ is years to retirement
$Well Well...$ is savings rate
$Well Well...$ is return on investment

In other words, if you save half of your income and achieve a 20% return on investment, you can retire in five years without a reduction in your standard of living. If you can save 20% of your income and achieve a 100% return on investment, you can retire in four years…. If you save half of your income and achieve a 100% return on investment, you can retire in a year. If you can save 80% of your income and achieve a 50% return, you can retire in six months.

It sure would be fun to be a full-time day trader, wouldn’t it?

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