Quote:
Originally posted by Porsche-O-Phile
with any luck have it become my primary method of earnings within five years.
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What annual return are you counting on making, net after commissions, fees and costs? What pretax income would you need? And what's inflation? Suppose its 10%, $100K, and 3%. That means capital of $1400K. Suppose its 20%, $100K, and 3%. That means capital of $590K.
How many people can consistently make 20% net annual returns, in good markets and bad. Think about it. Suppose you need 20% returns. In year X you have a bad patch and lose -20%. In year X+1 you need to make +80% to get back on track. If you instead make +20% in year X+1, your income may be roughly back to goal but you've just depleted your capital.