11-01-2021, 11:34 PM
(11-01-2021, 07:39 PM)fenders53 Wrote: Waaaay back in the day I didn't have two nickels to rub together and the economy was horrible. Immediately after I got married I made a chart and told my wife we will invest each month, and try very hard to increase the amount as we could, no matter how hard it was, never go backwards. The first monthly investment was $25.Some very good points here; thanks for the tips. The portfolio I have is pretty solid, so no real worries there. I may have to re-evaluate what the timeline really is though.It started a habit. Of course I had to accelerate the contributions.
-I worked side gigs early on and added extra money.
-First home was very modest and paid it off in 12 years. Paid my current home off in about 10 years.
-When I got a good job I contributed 10% to 401K. Increased that about 1% a year.
-We had some new cars and such, but vacations were modest. We lived below our means most years, but had a decent life.
-I invested in growth stocks. Not just dividend stocks. Endured a few crashes, made some horrible mistakes. But I never gave up and I kept my commitment to increase the contribution for about 30 years.
I recommend you publish your plan now with real numbers and goals. It's quite possible you will see some 5 year periods with next to no gains from the market. You have to keep feeding it, and feed it a little extra when you feel like quitting. The last two years have been fantasy investing. Folks with no real clue what they are doing are tearing it up like this is easy. If you want multi millions without waiting until you are 75 you'll have to be prudent. Don't chase FOMO, but don't chase yield traps that don't grow. Dividends are fun, but you don't need high income now. It will hurt your total return soon enough.
Get started on the what if calculator. Punch in your contributions and assumed returns. I used 6-8-10%. I had +40% years and almost a decade not much over 4%. It worked out but I invested hard when it was depressing. I had an employer match so it made it look like progress. Winning is fun but not when you make your real money.
There isn't a chance the returns of the past few years are sustainable. Plan for that time.