A follow up from my newbie thread - 12 year goal
Hi guys, as per Winner69's suggestion I've come up with some ideas on what I would like to achieve and what I can contribute towards achieving this.
I am 28 years old. I have $150k to invest. I can contribute at least $20k annually towards investing.
Below is a spreadsheet I came up with. The tax rate I am using is 28%.
Year |
Cash Injection |
|
Age |
|
Initial |
150000 |
|
1 |
20000 |
$182,240.00 |
29 |
|
Average Interest |
7.20% |
10.00% |
2 |
20000 |
$216,801.28 |
30 |
|
|
|
|
3 |
20000 |
$253,850.97 |
31 |
|
|
|
|
4 |
20000 |
$293,568.24 |
32 |
|
|
|
|
5 |
20000 |
$336,145.16 |
33 |
|
|
|
|
6 |
20000 |
$381,787.61 |
34 |
|
|
|
|
7 |
20000 |
$430,716.31 |
35 |
|
|
|
|
8 |
20000 |
$483,167.89 |
36 |
|
|
|
|
9 |
20000 |
$539,395.98 |
37 |
|
|
|
|
10 |
20000 |
$599,672.49 |
38 |
|
|
|
|
11 |
20000 |
$664,288.91 |
39 |
|
|
|
|
12 |
20000 |
$733,557.71 |
40 |
|
|
|
|
|
|
|
|
|
|
|
|
Year |
Cash Injection |
|
Age |
|
Initial |
150000 |
|
1 |
20000 |
$188,360.00 |
29 |
|
Average Interest |
10.80% |
15.00% |
2 |
20000 |
$230,862.88 |
30 |
|
|
|
|
3 |
20000 |
$277,956.07 |
31 |
|
|
|
|
4 |
20000 |
$330,135.33 |
32 |
|
|
|
|
5 |
20000 |
$387,949.94 |
33 |
|
|
|
|
6 |
20000 |
$452,008.54 |
34 |
|
|
|
|
7 |
20000 |
$522,985.46 |
35 |
|
|
|
|
8 |
20000 |
$601,627.89 |
36 |
|
|
|
|
9 |
20000 |
$688,763.70 |
37 |
|
|
|
|
10 |
20000 |
$785,310.18 |
38 |
|
|
|
|
11 |
20000 |
$892,283.68 |
39 |
|
|
|
|
12 |
20000 |
$1,010,810.31 |
40 |
|
|
|
|
From my research it appears growth mutual funds target an average of 10% per annum before tax. Looking at some of the better performing funds e.g. Milford, have been achieving close to 15% over the last 5 years.
What are your thoughts on this?