How to retire at Age 35 by Consuming less

Quote from DWad : 6. You DON'T UNDERSTAND how a split works. In general, you get twice as many shares at HALF the price. So from your example, after 3 splits you have 8 shares worth $2.63. That means you still only have $21 worth of stock, and you DIDN'T MAKE ANY MONEY. 7. Even with your ridiculous example (which is impossible, as splits don't just double your money), you're saying that you have a 96% ROI each year. That's still SIGNIFICANTLY LESS than the 10% per month that you quoted earlier (which, by the way, would be a lot more than doubling your money each year, just an FYI). 8. To put this in perspective a little more, you bought stock at $41, it's now up to $50 after 4 years. That's really not that great. It's not bad, but it's NOWHERE CLOSE to 10% per month (it's not even 10% per year, sorry bro).

Soooo Facebook was one Company and one example of Long Term Capital Gains, Stock Split potentials, and the passive income from dividends.

There are Millions of Companies to chose from, to buy low, then later sell High, and to collect dividends on.

Now if the DWad was patient after his split, and didn't sell right away for half price, his stocks usually go back to pre-split prices in a few weeks to a few months. If the company keeps earning and profiting that is.

Nope, still wrong. Saying that a stock "usually go back to pre-split prices in a few weeks to a few months" is just incorrect. Please support your made up facts with sources.

Also, how do you get an ROI of 61.4% per year on dividends of 2% per year?

Another note, this is just another example of a POSSIBLE scenario. It is unlikely that any stock will give shareholders 8 times the amount of shares, and increase the share price by 900% over 25 years.

Hey Vicious, quick question for you:

How much money have YOU PERSONALLY made by investing, in what time period? Have you ever lost money in the stock market?

How much money have YOU PERSONALLY made by investing, in what time period? Have you ever lost money in the stock market?

How much money have YOU PERSONALLY made by investing, in what time period? Have you ever lost money in the stock market?

How much money have YOU PERSONALLY made by investing, in what time period? Have you ever lost money in the stock market?

How much money have YOU PERSONALLY made by investing, in what time period? Have you ever lost money in the stock market?

How much money have YOU PERSONALLY made by investing, in what time period? Have you ever lost money in the stock market?

Did you get rich off the stock market?

Quote from DWad : So now I'm kinda confused. The Calc BC exam is the harder one, I would guess that it's supposed to be equivalent to 2 college classes, so 8 credits seems reasonable enough. Lit 1/2 are 3 each, so 6 credits total. Makes sense. Why does US History give you 6 credits, Physics gives you 8, and Bio gives you 8 as well? Are these number chosen completely arbitrarily by each school? And why should you get more credit for taking 1 college-level class and passing the test during high school than you would by taking the same class in college? Or did your school just have inflated amounts of credits, so you might take around 24 or 30 credits per semester, whereas at my school I basically took 15 credits every semester until I graduated (4 years, 120 total credits necessary for my degree). Edit: just re-read your post. If those 7 classes worth of college courses you took in high school count for 3 semesters, that's definitely weird. The numbers just seem a little weird to me..

Calculus and Biology were the only AP courses. Scoring a 4 on the biology exam exempts you from Biology 1 and 2, which would include labs for a total of 8hrs. The same is true for scoring a 4 on the Calculus BC exam which exempts you from Cal 1 and 2 plus the labs.
This is pretty standard credit at major universities.
The other courses as detailed in my outline were actual college courses.
Physics was 1 and 2 through Ball State University. 3hrs per semester and there are labs adding an 1hr of credit each semester for a total of 8hrs.
US history is a 2 semester course at most universities. This course was through Texas Lutheran University for 6 credit hours.
I have a BSME and during my attendance that required 136 credits. Some of the above actually did not directly apply to my degree, since at my university you essentially start with engineering courses freshmen yr.
The three semesters comment is based on what is considered a full time course load. Its common to say 12 hours of credit per semester is considered a full time. Most people in my degree never took above 12hrs, since the outside work load is hard to handle. Average time for graduating when I attended for a ME degree was 6yrs. I'm sure coming in with credits helped me finish in 4 and attain scholarships.

Basically, the OPs claim is not unrealistic and many people do come into college with 30-40 credit hours. In some degrees (engineering) and top universities this is actually expected and you probably would not be accepted into the college without it.

Quote from jostle : Calculus and Biology were the only AP courses. Scoring a 4 on the biology exam exempts you from Biology 1 and 2, which would include labs for a total of 8hrs. The same is true for scoring a 4 on the Calculus BC exam which exempts you from Cal 1 and 2 plus the labs. This is pretty standard credit at major universities. The other courses as detailed in my outline were actual college courses. Physics was 1 and 2 through Ball State University. 3hrs per semester and there are labs adding an 1hr of credit each semester for a total of 8hrs. US history is a 2 semester course at most universities. This course was through Texas Lutheran University for 6 credit hours. I have a BSME and during my attendance that required 136 credits. Some of the above actually did not directly apply to my degree, since at my university you essentially start with engineering courses freshmen yr. The three semesters comment is based on what is considered a full time course load. Its common to say 12 hours of credit per semester is considered a full time. Most people in my degree never took above 12hrs, since the outside work load is hard to handle. Average time for graduating when I attended for a ME degree was 6yrs. I'm sure coming in with credits helped me finish in 4 and attain scholarships. Basically, the OPs claim is not unrealistic and many people do come into college with 30-40 credit hours. In some degrees (engineering) and top universities this is actually expected and you probably would not be accepted into the college without it.

Ah ok, the credits make a little more sense now, I didn't realize that those were literally 2 courses each. Normally when you say 'oh I took a Biology class', it means you took.. 1 biology class .

But regardless, OP was saying you could take like 8 AP classes during school. My school didn't actually offer that many AP courses, and some of them overlapped, so you literally couldn't take every AP course they offered. Not to mention most people just don't have the drive or the brain to take that many AP classes. Taking college-level classes in the summer is certainly one way to get your credits early, but I'd rather enjoy my summers off from school .

Thanks for the response though.. one of the few in this thread that actually made any sense.

Quote from norcaltransplan : What happens when you encounter a cyclical bear market? If you invest in equities that produce a 10% return in a few days or weeks, your beta will be correspondingly higher and adds excess risk for your 150k/300k/600k portfolio. For honest investment advice, your strategies should emphasize how to calculate Sharpe ratios, expected returns, and strategies for diversification to hedge against unexpected nastiness like downturns, rampant inflation, etc. And, no, gold is not the automatic answer.

How about Selling High? Then looking around for a discount.

Or Patience because you are not desperate for income because not all your income is tied up in a mortgage or needs to be spent on that BMW?

Lol,

If your good enough you can make 10% per month with 25 Stock Position Portfolio Plus Dividends from these Stocks. But it requires at least 4 hours of monitoring/trading per month..

Or sometimes you just want to focus on Dividends, and capital gains long term so you can get away from the hassels of the Markets.

Quote from DWad : Nope, still wrong. Saying that a stock "usually go back to pre-split prices in a few weeks to a few months" is just incorrect. Please support your made up facts with sources. Also, how do you get an ROI of 61.4% per year on dividends of 2% per year? Another note, this is just another example of a POSSIBLE scenario. It is unlikely that any stock will give shareholders 8 times the amount of shares, and increase the share price by 900% over 25 years. Hey Vicious, quick question for you: How much money have YOU PERSONALLY made by investing, in what time period? Have you ever lost money in the stock market? How much money have YOU PERSONALLY made by investing, in what time period? Have you ever lost money in the stock market? How much money have YOU PERSONALLY made by investing, in what time period? Have you ever lost money in the stock market? How much money have YOU PERSONALLY made by investing, in what time period? Have you ever lost money in the stock market? How much money have YOU PERSONALLY made by investing, in what time period? Have you ever lost money in the stock market? How much money have YOU PERSONALLY made by investing, in what time period? Have you ever lost money in the stock market? Did you get rich off the stock market?

Soo you should do some research and see that every split in the history of the Stock market reducing in half it's price only to return to full price sometime in the future.

Thus I am correct, and you should stop fearing bananna splits.

Coca Cola just split on August 13th, and oh yes, their stock price has only $1 to go reach pre-split prices...this includes their latest dividend. And it only took a little over 1 month.

Dwad have you read Warren Buffets latest letter, he tries to tell all investors about splits, dividends, long term capital gains over 20 years and 8000% returns, but none seem to comprehend what to do still.

They hesitate because they are stuck in bad habits of buying latte's every day.

They hesitate not working because they are fearful they will get bored.

They hesitate because their boss says so.

They hesitate because the media says so.

Quote from ViciousTide : If your good enough you can make 10% per month with 25 Stock Position Portfolio Plus Dividends from these Stocks. But it requires at least 4 hours of monitoring/trading per month..

Seriously man, enough with the dividends! If that's the ultimate, just hand your cash over to some CFA and have him/her DRIP it. No trying to figure the rest out.

The stock market is not a form of savings. It's a casino. I've posted trades on here that banked 10-20% in less than one day. It's not about how much, it's the risk one is willing to take. And you don't have to buy high, sell low or know the fundamentals or make sure the CEO is nice church-going fellow, you just have to understand how human emotion and how game theory works. Robots and sociopaths thrive in the casino; the nice guys with real sound intentions just get rolled over. This idea that you're "up" or "down" in your investments over time was invented by the WS vampires who've made a shit tone of money on delusional, misdirected, ignorant suckers.

Quote from ViciousTide : If your good enough you can make 10% per month with 25 Stock Position Portfolio Plus Dividends from these Stocks. But it requires at least 4 hours of monitoring/trading per month..

Is this real life? "If you're good enough" must be a huge understatement.

10%/month compounding for 10yrs would give you 92709 times your original asset.
So you'd be close to a billionaire 10 yrs later if you start with merely 10,000 in asset.

I think Buffett's ROI avg out to be 18% annual return? something like that.

I think I now know the reason why my dad never really tell me about the stock market.

You can't be a bull in everything. There are times when it's a bear's market. Of course you'll talk about companies that are still successful like Exxon. Hindsight is always 20/20!! What about the companies that have failed? Ever heard of Enron? What about Lehman Brothers?

The truth is, the stock market is a gamble no matter how you look at it. Even if you keep your stock long term, there's no saying that you'll get a 7% annual return. Is 15 years considered long-term? Remember the tech bubble that I told you? 1997? Let's say you manage to buy Microsoft's stock at the start of the bubble in 1997. It was $30/share. Year 2000 comes along and the share price went up to $60/share. It will be amazing to know that you should sell right then and there in year 2000, but no one knows the future. The tech bubble popped and Microsoft's share fell to around $20 by the end of 2000. Would you hold or would you sell? Microsoft's stock is $30/share in 2012. It hasn't increased since its pre-bubble price.

Now... tell me, how would you live off $0 that you have made in 15 years? You think the stock market is a money making a machine? What about the fx market?

This is how you sound right now:

I'll tell you a big secret that I've read in a book. There's this place called a "casino" and in this place, there's a money making machine called "Roulette". If you put $1 in it and win, you can win as much as $30! I have an idea! what if we save our money everyday, and put it in the game. I'll put $2 a day. $2 is not much right? Your starbucks coffee is $2 a day right? Live without your coffee for a month and you can buy as much coffee as you want for life!!

You're probably right if Warren Buffet gets 8000% return after 20 years. That's 25% return in a year. Then again, he's one of the richest man on earth. What's the earth's population again? Last time I checked, it's 7 billion people. He's the top 10 out of 7 billion people. Hell that's a lot smaller number than winning the lottery.

And where in the world are you getting this magic 10% per month number? Are you fully aware of the term compounding? If you can consistently get 10% per month, you'll triple your money in a year. Get 1000% return in 2 years. Even if you trade really well, there's no way that you can consistently get 10% per month.

TLDR; Putting all your savings in the stock market and living off it is a stupid idea.

lol @ all the idiots gettin trolled

I can't believe you guys are tryin to use facts and logic against a prolific liar and troll, lololol

Quote from travathian : lol @ all the idiots gettin trolled I can't believe you guys are tryin to use facts and logic against a prolific liar and troll, lololol

No, I think we've found the troll.

There are a lot of great ideas here. Stop being such a consumer parasite, take more responsibility in your environment, needs > wants, spend less, live more. Who can logically argue with that? If there are practical tips everyone can use, it has applicable value and is thread-worthy. Like I said before, the OP's mistake is to share his outlook with others in attempt to receive some praise. Why the F do you think the nation is in such a mess as a whole? Trickle-down irresponsibility and complacency anyone?

Despite the fact that the original poster is a troll, I feel the majority of advice in this thread is extremely dangerous for longterm financial planning. I realize that most people do not like to research diversification strategies and ways to minimize tax liability in their free time, so I feel like I'm performing a little public duty by trying to make people aware of low cost funds, expected returns, and projected nest eggs.

Quote from kidroach : I think I now know the reason why my dad never really tell me about the stock market. You can't be a bull in everything. There are times when it's a bear's market. Of course you'll talk about companies that are still successful like Exxon. Hindsight is always 20/20!! What about the companies that have failed? Ever heard of Enron? What about Lehman Brothers? The truth is, the stock market is a gamble no matter how you look at it. Even if you keep your stock long term, there's no saying that you'll get a 7% annual return. Is 15 years considered long-term? Remember the tech bubble that I told you? 1997? Let's say you manage to buy Microsoft's stock at the start of the bubble in 1997. It was $30/share. Year 2000 comes along and the share price went up to $60/share. It will be amazing to know that you should sell right then and there in year 2000, but no one knows the future. The tech bubble popped and Microsoft's share fell to around $20 by the end of 2000. Would you hold or would you sell? Microsoft's stock is $30/share in 2012. It hasn't increased since its pre-bubble price. Now... tell me, how would you live off $0 that you have made in 15 years? You think the stock market is a money making a machine? What about the fx market? This is how you sound right now: I'll tell you a big secret that I've read in a book. There's this place called a "casino" and in this place, there's a money making machine called "Roulette". If you put $1 in it and win, you can win as much as $30! I have an idea! what if we save our money everyday, and put it in the game. I'll put $2 a day. $2 is not much right? Your starbucks coffee is $2 a day right? Live without your coffee for a month and you can buy as much coffee as you want for life!! You're probably right if Warren Buffet gets 8000% return after 20 years. That's 25% return in a year. Then again, he's one of the richest man on earth. What's the earth's population again? Last time I checked, it's 7 billion people. He's the top 10 out of 7 billion people. Hell that's a lot smaller number than winning the lottery. And where in the world are you getting this magic 10% per month number? Are you fully aware of the term compounding? If you can consistently get 10% per month, you'll triple your money in a year. Get 1000% return in 2 years. Even if you trade really well, there's no way that you can consistently get 10% per month. TLDR; Putting all your savings in the stock market and living off it is a stupid idea.

Just made 15% this month.

Last month 12%. Month before that 11%. Etc.

It's tough to teach the method i use because a lot of people don't care to know, A lot of people overconsume so they have no money to invest to begin with, then a lot of people get emotional over money because they are not FI.

Let's just say it's a month to month method, with a little monitoring via writtien computer programs i wrote myself for alerts.

Putting all your savings in a House and not living off it is a stupid idea.

Quote from norcaltransplan : Despite the fact that the original poster is a troll, I feel the majority of advice in this thread is extremely dangerous for longterm financial planning. I realize that most people do not like to research diversification strategies and ways to minimize tax liability in their free time, so I feel like I'm performing a little public duty by trying to make people aware of low cost funds, expected returns, and projected nest eggs.

You sound like you get commission from funds, annuities, or 401k hedge fund promotions.
Lol.

If you can persuade 250 Million americans to invest their extra cash into your 401k until they die or the age of 65,

Then you'll have 125 Trillion dollars to play with Today at 1% yearly fees for your "Management" of the funds. That's 1 Trillion dollars you can make per year.
at 0.13% fees, that's 100 Billion doallars you can make per year.

Now you see how the Hedge Fund Managers get 2 Billion dollar salaries don't you?

Plus 401k's only give 25 fund choices in their 401k too that are overall picked, made exclusive, and created by the Hedge Fund managers.

I rather have my money taxed now and be in control of it, rather then it be taxed later and fee'd per year until i turn age 65.