It haunts when one starts thinking and calculating forward. We all have money sitting in banks. Which hardly gives any return. On the other hand, we do have money growing on 401K. The average rate of return is between 5% to 11% annually, which is no doubt tax-free if withdrawal after 65 years of age when we retire.
The question is if we take our average life span to be 80 years. We still have 15 years more after retirement. And assuming one would have $250K to $400K on 401K at the time of 65 years. How long will that last?
With today’s inflation and assuming our houses are fully paid off and no mortgage, we would still need at least $5,000 per month to lead a normal lifestyle. Which means we would need 900K for the next 15 years. Here we are assuming NO MEDICAL issues and not too much of traveling etc. And if we are sick only God can help us. That’s how scary it it.
So we are still short to reach 900K in which ever way we look at it.
Here I am proposing PASSIVE INCOME. The passive income I am proposing there would be no time involvement required once the algorithm is configured to meet expectation. Passive Income could be targeted for Long, Swing or Intraday. Depending on when one needs the cash to be withdrawn from Broker’s account.
What is the take from these two presentations?
*One can easily control both gain and loss. Just got to tighten or loosen the configuration to minimize risk and keep getting returns.
*In this strategy explained (Intraday), money can be taken out any day like the way we would do from the bank. But the difference here, money grows here and not in banks. Intraday is risky and not recommended to people who do not know or understand stock market and it’s behavior.
* Long term investment ( 3 to 5 years) with very tight configurations could be recommended for growing idle cash. Swing Trade (1 to 6 months) too could be an option but relatively risky. Knowledge is important and trying it out on simulation is key.
* There is no wrong or right answer, all depends on investors risk to gain appetite.
* Good news is once an investor gets result from a configuration can lock it and run for ever.
*My advice and recommendation would me always available to meet your investment goals.
* Please CLICK HERE TO ENROLL and start the conversation.
*Please CLICK HERE to open account with Interactive Broker.