49% of people voted the $0-$500 range on my poll
So let’s do some hypothetical growth of $500/month broken down year by year
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👀" title="Augen" aria-label="Emoji: Augen">
(thread)
So let’s do some hypothetical growth of $500/month broken down year by year
(thread)
For reference, here was my poll https://twitter.com/decadeinvestor/status/1309562425432309764">https://twitter.com/decadeinv...
Before I break it down, here are my assumptions:
-2% stock growth per year
-4% dividend yield
-$500/month (account starting at $0)
-DRIP
https://abs.twimg.com/emoji/v2/... draggable="false" alt="💧" title="Tröpfchen" aria-label="Emoji: Tröpfchen">
*this is all hypothetical growth, make sure to do your DD when investing
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👊🏻" title="Fisted hand (heller Hautton)" aria-label="Emoji: Fisted hand (heller Hautton)">
-2% stock growth per year
-4% dividend yield
-$500/month (account starting at $0)
-DRIP
*this is all hypothetical growth, make sure to do your DD when investing
Year 1: $6,000 account value
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $240 in divi’s
Year 2: $12,364.80
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $494.59 in divi’s
Year 3: $19,116.58
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $764.66 in divi’s
Year 4: $26,278.87
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $1,051.15 in divi’s
Year 5: $33,876.62
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $1,355.06 in divi’s
Year 2: $12,364.80
Year 3: $19,116.58
Year 4: $26,278.87
Year 5: $33,876.62
Year 6: $41,936.32
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $1,677.45 in divi’s
Year 7: $50,486.05
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $2,019.44 in divi’s
Year 8: $59,555.60
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $2,382.22 in divi’s
Year 9: $69,176.58
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $2,767.06 in divi’s
Year 10: $79,382.52
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $3,175.30 in divi’s
Year 7: $50,486.05
Year 8: $59,555.60
Year 9: $69,176.58
Year 10: $79,382.52
Year 11: $90,208.98
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $3,608.36 in divi’s
Year 12: $101,693.68
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $4,067.75 in divi’s
Year 13: $113,876.66
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $4,555.07 in divi’s
Year 14: $126,800.36
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $5,072.01 in divi’s
Year 15: $140,509.82
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $5,620.39 in divi’s
Year 12: $101,693.68
Year 13: $113,876.66
Year 14: $126,800.36
Year 15: $140,509.82
Year 16: $155,052.82
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $6,202.11 in divi’s
Year 17: $170,480.03
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $6,819.20 in divi’s
Year 18: $186,845.21
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $7,473.81 in divi’s
Year 19: $204,205.40
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $8,168.22 in divi’s
Year 20: $222,621.09
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $8,904.84 in divi’s
Year 17: $170,480.03
Year 18: $186,845.21
Year 19: $204,205.40
Year 20: $222,621.09
If we fast forward to year 30?
$481,082.14
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $19,243.29 in divi’s
What about year 40?
$947,451.71
https://abs.twimg.com/emoji/v2/... draggable="false" alt="➡️" title="Pfeil nach rechts" aria-label="Emoji: Pfeil nach rechts"> $37,898.07 in divi’s
But wait, there’s more
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤯" title="Explodierender Kopf" aria-label="Emoji: Explodierender Kopf">
$481,082.14
What about year 40?
$947,451.71
But wait, there’s more
From years 1-10, the dividend income increased by $2,935.30!!
BUT
From years 11-20, the dividend income increased by $5,296.48
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🤯" title="Explodierender Kopf" aria-label="Emoji: Explodierender Kopf">
BUT
From years 21-30, the dividend income increased by $9,557.03
THAT is the power of compounding
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">
https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">
BUT
From years 11-20, the dividend income increased by $5,296.48
BUT
From years 21-30, the dividend income increased by $9,557.03
THAT is the power of compounding
Thanks for reading this thread!
I hope you enjoyed seeing a breakdown of this hypothetical growth of $500
https://abs.twimg.com/emoji/v2/... draggable="false" alt="👊🏻" title="Fisted hand (heller Hautton)" aria-label="Emoji: Fisted hand (heller Hautton)">
@DecadeInvestor
I hope you enjoyed seeing a breakdown of this hypothetical growth of $500
@DecadeInvestor