Investing With As Little As $1/Day

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Let’s do this in two minutes.

Here’s some quick math to help you with your investing goals. No bullshit, no preamble. Share this with your friends to show them how easy retirement and investing can be. At 29, I’m better prepared than some 50-year-olds I know. Here’s how.

The math here assumes you’re 30 and will invest small amounts steadily until 65. That’s 35 years of growth. I invest aggressively in index funds, and I’ve been averaging around 7% annually. Let’s see what investing tiny amounts every day can do from 30-65 at 7% growth.

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• $1/day (or $365/year) = $53,988 at 65
• $2/day (or $730/year) = $107,976 at 65
• $5/day (or $1,825/year) = $269,942 at 65
• $10/day (or $3,650/year) = $539,884 at 65
• $20/day (or $7,300/year) = $1,079,768 at 65

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That’s bonkers, right? Every $1/day you put away can add $50,000+ to your retirement account? Time to bust out the ol’ piggy bank!

As for what to invest in, I can only tell you what my money’s in: the RBC U.S. Index Fund. (I also recommend TD U.S. Index Fund – e, which offers similar results, but with a lower MER.)

Depending on your goals, you might want to invest differently, so investigate options yourself and see if you can find better. All I know is I don’t worry about retirement anymore. With ~$20,000 in that index fund already and $10/day contributions, I’m anticipating ~$740,000 at 65.

Ready to do this? Calculate your numbers here, and comment with your findings below!

Not bad for a 2-minute read, huh?

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Screen Time Is Ruining Your Retirement

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*ring*

“Snffxughphlbtfuck…”

*ring*

I opened one eye. I’d slept diagonally again. Jesus, what time was it? What day was it?

*rrrrrrrrring* 

“Ugh… Hello?”

“Hello? Ben?”

I sat up groggily. “Oh, hey, Grandma. What’s up?”

“I don’t know what’s happened. The TV won’t work. I don’t know how to fix it. Can you come fix it for me?” She sounded sad and helpless. I guess when you’re retired, watching TV is a pretty big deal.

I looked at the clock. I was hoping for a leisurely office day, but so much for that. Sudden errands tend to derail hours of productivity for me.

“Sure, Grandma. I’ll be over at 2.” I hung up, and rubbed my eyes.

Man, fuck TV.

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It turned out to be a simple fix. Unplug the cable box, wait ten seconds, plug it back in. Too bad it took me almost an hour to figure out. Asking my Chinese grandma what settings she usually had her TV on turned into a linguistic nightmare.

As I drove home, it kinda bothered me how reliant she was on her TV. I mean, I know how bad TV can be for people, but especially seniors. Only three weeks ago, I posted on Facebook, “It’s happening again. Free time is turning into screen time, and I’d honestly rather be working.” Did you know the average American watches over five hours of television a day? And that the “average retiree spends 43.5 hours per week” (or 6.2 hours a day) watching it? This is especially troubling for us because, if you’re reading this blog, early retirement is something you’ve been thinking about. I don’t want to retire just to watch 6.2 hours of TV a day! Do you? I’ve lived it. It sucks.

But then, I realized there was an amazing opportunity here. If, in retirement, the average person could change their 6.2-hour TV habit into something more productive – maybe even something crazy like work – they could find themselves with more health and money! Read this. Choosing to continue work in a quality vocation is obviously better than binge-watching “Friends” for the sixth time, so why not just work? Work is good, as long as it’s quality work. (Think more “entrepreneurship”, less “being a cashier”. Loads of successful entrepreneurs are actually in their 50s or 60s.)

Now obviously, I’m not suggesting you shouldn’t prepare for a complete retirement. You should still prepare for FIRE (or at the very least, HEAL). All I’m saying is retirement tends to go only three ways: 1) You create a retirement in which you thrive, do all the things you’ve ever wanted to do, and are never bored, 2) you create a retirement that seems fun at first, only to settle into a purposeless existence where you’re bored, or 3) you go back to work. What if I told you #3 isn’t actually a bad thing, and can help cancel out the ennui of everyone who feels stuck at #2? Almost all the people I know thriving in retirement are still working in some way! The retired industrial design teacher I know found funding to write a book. The retired professor of psychology I know is wrapping up a year editing a psychology journal. Another retiree I know is building a house and continuing to add to his net worth! What I’m finding more and more as I get to know successful retirees is work is good for retirement. It opens up opportunities for personal enjoyment and enriches lives, but TV doesn’t. STOP WATCHING TV IN RETIREMENT.

Working past traditional retirement age keeps your brain sharp and “may even help stave off dementia”. Also, any decrease in sedentary activities like watching TV is a good thing. If you spent even 16 hours a week doing an entry-level job you enjoy – like what I do now for $13.50/hour – the ballpark math of it is you’d add ~$10,000 to your annual retirement income just to stay mentally and physically active through work. I think it’s a no-brainer. Sell the TV, and get a job doing whatever the heck you want! By this point, you’re financially stable enough that you’re retired, so even that ~$10,000 is secondary! And you’re most likely so experienced in your field, you could earn way more! You’re just looking after your physical health and mental wellbeing, and getting richer because of it!

The bottom line is if you’re retired and have a TV, that TV could be robbing you of the longevity and prosperity you’d gain from casual work. Even at 29, I see that happening to me now, so I’ve cut weekly TV time down to 4 hours. I’m choosing to work more, and invest more energy into my business. From now on, Netflix and PlayStation have no power over me. I sincerely doubt I’ll be 65 and wanting to play The Last of Us: Part XLIII.

Whaddaya think, TV-watching retirees? Is it time to go back to work?

How To Get Your Kid Set For Retirement

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I’ll just cut to the chase: When your kid is born, put $12,400 in an investment generating 7% interest, and they’ll be a millionaire by 65. I know that sounds crazy, and I’m making a LOT of assumptions, but you can find all the justifications for my logic in this post here. Again, this is presented as data ONLY. Listen up, new parents. It’s time to make your kids millionaires.

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All of these equal $1M:
0 – $12,400 x 65 years of 7% growth
1 – $13,200 x 64 years of 7% growth
2 – $14,100 x 63 years of 7% growth
3 – $15,100 x 62 years of 7% growth
4 – $16,200 x 61 years of 7% growth
5 – $17,300 x 60 years of 7% growth
6 – $18,500 x 59 years of 7% growth
7 – $19,800 x 58 years of 7% growth
8 – $21,200 x 57 years of 7% growth
9 – $22,700 x 56 years of 7% growth
10 – $24,300 x 55 years of 7% growth
11 – $25,900 x 54 years of 7% growth
12 – $27,800 x 53 years of 7% growth
13 – $29,700 x 52 years of 7% growth
14 – $31,800 x 51 years of 7% growth
15 – $34,000 x 50 years of 7% growth
16 – $36,400 x 49 years of 7% growth
17 – $38,900 x 48 years of 7% growth
18 – $41,600 x 47 years of 7% growth

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By this logic, you should actually reconsider sending your kids to university! The average four-year university undergraduate degree costs $84,000! DO YOU KNOW WHAT THAT CAN DO FOR A 23-YEAR-OLD? Invested at 7% interest – (I know some of you are still skeptical, so here’s further justification from someone far smarter than me) – THEY’D HAVE OVER $500,000 IN THE BANK BY 50. Wait 10 years more AND THEY’RE MILLIONAIRES. Here, crunch some numbers and get back to me. What’s especially wild is these are essentially set-and-forget investments: NO FURTHER CONTRIBUTIONS NEEDED! How are NO new parents doing this? It’s goddamn insane! Index funds, FTW!

If I’d known at 18 what I know now, I would’ve skipped post-secondary entirely. One of the richest and most successful people I know didn’t have any formal schooling AT ALL. Another friend is an artist and is set to retire with $800,000+. It turns out financial success isn’t all that linked to skills or intelligence at all. All you need is (a little) Money and (a lot of) Time!

If you completely ignored my post about not having kids, don’t ignore this one. Making a new millionaire from scratch costs $12,400 and your kids will be grateful forever. I don’t know about you, but that sounds like the best damn deal I’ve ever heard.

Wishing you and your kids riches,
Unconbentional