Retirement criteria

[Konebhar6]

Here's how to get to 700 stocks & $1000/stock. I am assuming a person or a family makes 180k/yr including bonus and ESPP+RSU (if sold)

Salary+bonus  = $180,000
401k                 = -$20,000
Taxes               = -$50,000
Mortgage+Tax = -$48,000
Expenses         = -$36,000

You are now left with $26,000. Let me know if these assumptions are OK? 

[Spartan]

2 minutes ago, Konebhar6 said:

Here's how to get to 700 stocks & $1000/stock. I am assuming a person or a family makes 180k/yr including bonus and ESPP+RSU (if sold)

Salary+bonus  = $180,000
401k                 = -$20,000
Taxes               = -$50,000
Mortgage+Tax = -$48,000
Expenses         = -$36,000

You are now left with $26,000. Let me know if these assumptions are OK? 

~ 26K is also the federal limit for ESPP.

even if your salary is 300K base, you cannot buy more than 26K worth of ESPP.

[Telugodura456]

On 8/2/2023 at 1:36 PM, Konebhar6 said:

My plan is to retire by 55. Below is the criteria

1. Keep aside money for kids higher education (Check) 

2. Work on an alternate income stream that provides 10K USD/month (in-Progress)

3. $500K - $750K in 401k (Check)

4. House in India, House in USA (Check)

5. No debt (except house in USA)

Live 6 months in USA and 6 months in India. Want to go around India, explore different states. May be on a bike with like minded people. I was fascinated in my recent visit to Bangkok by the Indian influence. Would like to visit Thailand, Vietnam, combodia, burma, north-east states. Re-visit some history books.

Take small vacations with family to Europe, South America, etc during my time in USA.

Setup Mango farms, or some other fruit farms with a small house in the small amount of agri land we have. 

did well on 401k. 

[Konebhar6]

3 minutes ago, Spartan said:

~ 26K is also the federal limit for ESPP.

even if your salary is 300K base, you cannot buy more than 26K worth of ESPP.

These numbers are for next set of calculations. I am assuming the salary and the expenses. I am not taking into consideration ESPP or RSU. They are set aside.

[beerboy17]

6 minutes ago, Konebhar6 said:

Here's how to get to 700 stocks & $1000/stock. I am assuming a person or a family makes 180k/yr including bonus and ESPP+RSU (if sold)

Salary+bonus  = $180,000
401k                 = -$20,000
Taxes               = -$50,000
Mortgage+Tax = -$48,000
Expenses         = -$36,000

You are now left with $26,000. Let me know if these assumptions are OK? 

 

ok... so you are saying you need to buy ~26k stock every year , but the point is how to find the right stock that can stay for $1000 above for 20 plus odd years..

 if am confused or confusing you... 

[Konebhar6]

3 minutes ago, beerboy17 said:

 

ok... so you are saying you need to buy ~26k stock every year , but the point is how to find the right stock that can stay for $1000 above for 20 plus odd years..

 if am confused or confusing you... 

Coming there, I am not done yet. Just gave a pause to see if any comments on the Salary and expenses and $2k/month investment is OK? I will make adjustments in my calculations based on that.

[shaktimaan]

32 minutes ago, Konebhar6 said:

A few years back, in a casual get together, a friend made a comment. He has ESPP and RSU's and company stock price was $150-200 at that time. He has Qty more than 500 at that time as he never sold his holdings. 

His plan was to not sell stock under $1000 and move to India. He will sell 3 stocks a month meaning $3000/month to cover expenses. He would need to sell 36 stocks/yr, 360 for 10 yrs and 720 stocks for 20 yrs. He has savings, 401k to cover other stuff. We all had a hearty laugh until that stock hit 820 during covid.   

This kept me thinking, its a good strategy. Point is to get to 700 qty of a stock with price > $1000 when you want to retire. 

Shopify?

[Konebhar6]

8 minutes ago, Telugodura456 said:

did well on 401k. 

Boond boond se sagar banta hein (Drop by drop makes an ocean). I always maxed out 401K. I don't check it often. However got lucky couple of times and lost opportunities too but happy overall.

The theory I am suggested is based on this principle.

[LungiLingaraju]

21 hours ago, toranam said:

Done!

Em PM chesnavo endho .. naaku chesey.. tension tho poyelaga unna … adedo ikkada veyochu kada 

[LungiLingaraju]

29 minutes ago, Konebhar6 said:

These numbers are for next set of calculations. I am assuming the salary and the expenses. I am not taking into consideration ESPP or RSU. They are set aside.

ESPP endhi anna 

[Konebhar6]

3 minutes ago, LungiLingaraju said:

ESPP endhi anna 

Konni companies lo, they offer this program. You can put max 10% or 15% of salary into buying the company stock. At the end of every quarter they offer the stocks at a discount of 15% of (lowest price on first day or last day of quarter). Some companies offer stocks to be purchased at 15% lower than the price during whole year or in last two years. 

Depends on company. Never ever let go of this opportunity if your company offers this.

[Konebhar6]

Let's assume you can invest $2000/month. $24,000/yr and increase the amount by $2000 every year. To make simple calculations, I have selected 2 stocks - 
    - ISRG (Pioneer in its space. No competitors. Steady growth) 
    - SnowFlake (Good technology, growth stock, I believe its best years are ahead of us). 
You can replace these two with any other stocks you may like - MSFT, AMZN, AAPL, JNJ, Disney, Meta, etc. Go with frontline stocks with steady growth. Also it's a good idea to diversify - Pick a stock from diff sectors. Do not have more than 5 stocks overall. 

Calculations to follow..
 

[beerboy17]

7 minutes ago, Konebhar6 said:

Let's assume you can invest $2000/month. $24,000/yr and increase the amount by $2000 every year. To make simple calculations, I have selected 2 stocks - 
    - ISRG (Pioneer in its space. No competitors. Steady growth) 
    - SnowFlake (Good technology, growth stock, I believe its best years are ahead of us). 
You can replace these two with any other stocks you may like - MSFT, AMZN, AAPL, JNJ, Disney, Meta, etc. Go with frontline stocks with steady growth. Also it's a good idea to diversify - Pick a stock from diff sectors. Do not have more than 5 stocks overall. 

Calculations to follow..
 

 

this is good thanks for bringing it up.. again it comes to overall stock picking and that comes with good amount of risk and reward as well  

 

[Konebhar6]

I am considering monthly SIP

Qty =Investment/Average purchase Price

Average Purchase Price - Average of all monthly purchases. 

Stock Symbol	Year	Ave Pur Price	Investment Amt	Qty
ISRG	2023	300	12000	40
ISRG	2024	325	13000	40
ISRG	2025	350	14000	40
ISRG	2026	400	15000	37.5
ISRG	2027	450	16000	35.56
ISRG	2028	550	17000	30.91
ISRG	2029	600	18000	30
ISRG	2030	500	19000	38
ISRG	2031	700	20000	28.57
ISRG	2032	750	21000	28
ISRG	2033	800	22000	27.5
		TOTAL	187000	376.04

Assuming the price of ISRG to be 800 at the end of year 11, your investment is worth - $300,832.

[Konebhar6]

 

Stock Symbol	Year	Ave Pur Price	Investment Amt	Qty
SNOW	2023	150	12000	80
SNOW	2024	175	13000	74.29
SNOW	2025	200	14000	70
SNOW	2026	250	15000	60
SNOW	2027	300	16000	53.33
SNOW	2028	400	17000	42.5
SNOW	2029	300	18000	60
SNOW	2030	475	19000	40
SNOW	2031	500	20000	40
SNOW	2032	550	21000	38.18
SNOW	2033	600	22000	36.67
		TOTAL	187000	594.97

 

Assuming price of SNOW at 600, your investment is worth - $356,982.