Plan Your Life

If I were to advise someone in high school what to do with their lives, I think this is what I would tell them...  

First, learn what you can in high school but have fun as well.

Second, join the Air Force after graduation and as soon as you can after you become designated with a skill, start taking college classes...

NOTE:  If you are in the Air Force, your likelihood of being sent to any war zone is next to nothing

Third, plan on remaining in the Air Force for 20-24 years...

Fourth, plan to have received a BA and MA degrees (perferrably in Education) by the time you leave the Air Force.

NOTE:  if you are 18 years of age when you graduate from high school, you will be only 38 years old after serving 20 years or 42 if you stay for 24 years.

Fifth, relocate in a Southern State and try to find employment at a Community College while you pursue a PhD in  Education.

NOTE:  Plan to work at this Community College for another 20 years or until you are 67 years old and can return with full Social Security Benefits.

So, you are now 67/70 years old and you are living in the South where is cos of living is lower than most other State and you are receiving 3 sources of retirement income:

• 20+ years from military
• 20+ years from Community College
• Full Benefits from Social Security (because you worked 40 quarters or 10 years that your paid FICA)

So...  let's just say that you are going to receive $1,500 each month from each one of those...  that will give you a retirement income of $4,500 each month for the rest of your life...  this does not include possible income from your spouse if you decide to get married.

HERE's another idea...

If you save $2.50/day and at the end of each month you put that money into a Mutual Fund...  and, if you do this for 40 years...  at the end of those 40 years you will have $500,000 that will give you a monthly income of $2,000/month for the rest of your life.

If you were to do the Air Force/Community College life plus the Mutual Fund savings, when you retired you would have an income of $6,500 each month.

The key is to plan out your life and then spend the rest of your life executing your plan...  Once you have developed a plan, you will have plenty of time to enjoy life along the way...

A Reason to Invest

from www.investopedia.com

What Is the Rule of 72? 

The Rule of 72 is a simple way to determine how long an investment will take to double given a fixed annual rate of interest. By dividing 72 by the annual rate of return, investors obtain a rough estimate of how many years it will take for the initial investment to duplicate itself.           Jun 20, 2019

from www.thebalance.com

If you're looking into investing in mutual funds, you'll want a sense of the average return before making any moves. In 2019, mutual funds in seven broad categories have averaged a return of roughly 13%, more than double the average annual return over the past 15 years.        Oct 21, 2019

SO WHAT DOES THE ABOVE INFOMATION TELL YOU?

Well...

the first thing we must do is divide 13 into 72.

the answer is 5.5 

In other words,

whatever money you have in a MUTUAL FUND will double in value every 51/2 years...

 

Is this important information to have access to?

Well...

let's run the numbers

Year 0               $5,000

Year 51/2          $10,000

Year 11             $20,000

Year 161/2       $40,000

Year 22            $80,000

Year 271/2       $160,000

Year 33            $320,000

Year 381/2       $640,000

Year 44            $1,280,000

So, if you put $5,000 into a Mutual Fund at the age of 25 and kept it in that Mutual Fund with no withdrawals for 44 years or age 69...  you will have over ONE MILLION DOLLARS...  This age is only 2 years over the government required FULL RETIREMENT AGE...

A General Rule of Thumb is that you will receive $400/month for every $100,000 invested...  so, you would have 12 - $100,000 invested or you would be receiving $4,800 each month and you would never be drawing down on the over ONE MILLION DOLLARS...

PRETTY COOL SHIT RIGHT?