I live in California which has decently high COL but I still save a lot.
I max out my pre-tax 401k with company matching every year. In addition, I also pay approximately 3k$ monthly for my costs, meaning I have a total of 36k cost for rent, food, transportation to and from work not including entertainment/travel.
I'd estimate I comfortably can do 20-30k$ max for entertainment/travel a year.
That means I'm looking at 66k in costs for everything I need annually. With 370K USD annually, assuming I get taxed at 40% flat rate, then I have 222k - my costs = I save annually 150-160k
150-160k annually can mean at 10% return 15-16k each year. Alternatively I could do heavier investments pretty well (I'd estimate I can maintain this minimum compensation for 3-5 years, with expectation being for it to rise moderately, maybe to 500k over next two years)
In addition, I've been working at various comp over past 2 years in which I managed to pay off 40-50k of my student loans, give a few loans to parents for buying a home, save 75k in 401k all pretax, and save about 155k cash.
After having saved this cash and realizing I'm not getting much out of it sitting in a bank account, I'm looking to invest it in something that will either grow in value over time or something to generate passive income streams to eventually give me freedom to stop working later in life.
I hope that with 5-6 years of investing this money and getting a good rep I can take an easier job in consulting or something where I work part time while using my passive income streams to give me a good baseline of income (ideally while I live in a low income tax state like Florida or maybe abroad somewhere cheap).
Are there any obvious/non-obvious things I should be considering doing as I save and invest?
Submitted August 21, 2017 at 01:03AM by dragonlord562 http://ift.tt/2vVMRNV
