The Early Retirement Planning Guide: The Assumptions
- You will be investing $2000 every month and will not be withdrawing any money for the next 5 years.
- For simplicity, we have normalized the return on investment value. It means the first year’s principal amount and the returns accrued for the next 5 years will be paid off in the 6 years, and consecutively 7th, 8th, 9th, and 10th year for investments made on the 2nd, 3rd, 4th, and 5th year. Also, the year sum that you’ll be expecting 6th year onwards will be the same.
- Uncertainty is everywhere but that does not mean everyone is dying tomorrow. The same is applicable when you are investing. Sometimes you’ll lose money but that doesn’t mean the market is always volatile and you’ll lose money every time.
- Any business if executed correctly will give you an ROI of more than 20% a year.