Your road to the RFD unicorn $1 million annual income!!!

JoeBlack23 wrote: ↑ I doubt that anybody who makes that type of money wastes time in public forums like this.

speedyforme wrote: ↑ Not too interested in getting there to be honest given how most get there lol.

Having that much money would be nice but I don't think it would make a huge difference. I'm married and no plans for kids, no need for all this money anyways.

superangrypenguin wrote: ↑ Early retirement?

speedyforme wrote: ↑ Not too interested in getting there to be honest given how most get there lol.

Having that much money would be nice but I don't think it would make a huge difference. I'm married and no plans for kids, no need for all this money anyways.

speedyforme wrote: ↑ I guess so lol. I'd have to make sure I am involved in many hobbies since even when I take time off without travel, it's not always fun and games.

Traveling is a big thing we like to do but even then, it does get tiring after a while and you miss "home". But we are not always "luxury" travellers anyways so that may be the reason why we can't go on forever traveling.

I do think that sometimes living the life we have now still provides us with the perspective of the "real world". I think if I were rich I'd be a bit numb or so separated from that I may feel a bit lonely in a way tube able to connect to many people.

Statistics101 wrote: ↑ Making a lot of money isn't always about yourself. In the process, you are also adding value to your employer, clients and the community.

For example, if you created a machine that cures deadly diseases and marketed it successfully to the world, sure you are making a lot of money - but in the process you are also helping a lot of people.

Statistics101 wrote: ↑ Making a lot of money isn't always about yourself. In the process, you are also adding value to your employer, clients and the community.

For example, if you created a machine that cures deadly diseases and marketed it successfully to the world, sure you are making a lot of money - but in the process you are also helping a lot of people.

FirstGear wrote: ↑ "If you want to make $1,000,000/year sitting at home with your thumb up your ass, in theory you could be there by your late 30s, if you collect $5M and invest it aggressively for a 20% return.

If you bank and invest $3000/month aggressively for 18 years for 20% compounded yearly, then you should hit roughly this number.

In theory, if you lived in the Mom's basement for the first 4 years, were frugal, and worked a trades job from day 1 - and also worked a second part-time job, then 3K loose cash per month to invest is possible.

But to achieve 20% you must be creative and have the balls to take risks... and most people do not like to be creative, or take risks. You also are keeping your lifestyle relatively consistent over the years... and most people only like one type of consistency - the comfort of not having to take risks, or get creative and diverge from the typical social and financial fabric."

Statistics101 wrote: ↑ Easier said than done. Not many people have the investment knowledge and discipline to achieve 20% return every year over a 20 year period and a passive ETF certainly wouldn't have gotten you there. The investments I have made between 2007 to 2009 were posting a net loss until 2015. If you are identifying investments like the Oracle of Omaha, you probably have been studying the art for many years, reading financials and reports, doing DCF valuations, listening to earning calls.. chances are Joe the plumber is not doing that.

Syne wrote: ↑ This is a good point. I think most people who are rich, become so incidentally, not because they slogged through x number of hours. My most lucrative moves came from doing stuff I was obsessed about.

dante01 wrote: ↑ lol if you can achieve 20% return, it's time to drop that trades job and open your own hedge fund.

Statistics101 wrote: ↑ Easier said than done. Not many people have the investment knowledge and discipline to achieve 20% return every year over a 20 year period and a passive ETF certainly wouldn't have gotten you there. The investments I have made between 2007 to 2009 were posting a net loss until 2015. If you are identifying investments like the Oracle of Omaha, you probably have been studying the art for many years, reading financials and research reports, doing DCF valuations, listening to earnings calls.. chances are Joe the plumber is not doing that.

dante01 wrote: ↑ lol if you can achieve 20% return, it's time to drop that trades job and open your own hedge fund.

Statistics101 wrote: ↑ Easier said than done. Not many people have the investment knowledge and discipline to achieve 20% return every year over a 20 year period and a passive ETF certainly wouldn't have gotten you there. The investments I have made between 2007 to 2009 were posting a net loss until 2015. If you are identifying investments like the Oracle of Omaha, you probably have been studying the art for many years, reading financials and research reports, doing DCF valuations, listening to earnings calls.. chances are Joe the plumber is not doing that.

FirstGear wrote: ↑ Of course it's easier said than done, otherwise everyone would be doing it, and such routes to such returns and this $1M/year income we speak of, wouldn't exist.

With leverage it's a lot easier - and leverage has made many in the trades millionaires - whether it be construction, trucks, HVAC equipment, other trades equipment, real estate, stocks, etc... though certainly not many relative to how many ambition-less hands there are out there.

e.g. A vacuum truck or a semi truck can make $150,000 - 200,000/year; can find a decent used example for about $80,000. Take off $24,000 running costs (which can be a lot lower if well maintained and with luck), a operator's wage of $76,000 - and you're still $50,000 - 100,000 in the green - for forking out $80,000 to start (or if you budget ahead of time for running cost and wages, make it $180K). Taking the halfway point of the green, $75,000 profit with forking out $180K is still decent. Though it is a very high risk play; work can be inconsistent and finding a good operator is extremely difficult.

e.g. #2 - 20% down ($80,000) on a $400K property appreciating only 5% YoY, rental income of $20,000/year, mortgage interest approx. $9,000, property tax and insurance $3,000, amortized RE agent commission and legal fees (consider we sell in 3 years) of $2,500 => $25,500 profit for putting down $80,000. Though the catch is you're exposed to $400K of real estate market risk.

e.g. #3 - buying well-performing dividend stocks on margin, and using part of the dividends to pay the interest - though may be a bit short of 20% depending on what you choose.

If you want to stereotype, many trades people are not very financially literate and mindlessly dive into high-risk financial operations... a lot get wiped out, but a lot have coincidently gotten very wealthy as a reward for taking the risk.



The problem with that is you're victim to the public's fears, so you won't be able to take the same risks or have the same amount of patience.

I have, though not always with perfect consistency. Some small caps and high leverage real estate (in terms of ROI, not cash-on-cash return for the latter).

Walch1102 wrote: ↑ You're averaging 20% in a bull market. So is everyone else.
Also, averaging 20% is a lot different from compounding at a consistent 20% rate.