The title may scare you, as I do not have that many assets as of yet, but I feel that I can obtain my ultimate goal by the age of 40.
Some information about me:
-19 year old rising junior majoring in Mathematics and Economics at the University of Notre Dame
-Plan on heading into the financial industry after college, possibly a mutual fund accountant or into equity research, the I-banking tip doesn't really seem like it would fit me
-I have been budgeting out much of my planned expenses for when I graduate and have estimated around 25,000 in a city and 20,000 in a more rural area (ignoring, perhaps ignorantly, some major one time expenses). This combined with an expected starting salary of around 65,000 leaves me about $20,000 a year after tax to invest. My plan involves trying to invest 20% pretax money and 30% aftertax money every year into a Roth IRA, 401(k) (if offered) and brokerage/taxable accounts.
-I created a calculator on Excel to try to estimate my retirement plans using different rates, historical rates and the variance in those to obtain reasonable goals and expectations about my plans.
-Books I have read include: The Millionaire Next Door, A Random Walk Down Wall Street, Value Investing, The Evolution of Cooperation, Liar's Poker as well as many economics (not finance) related books
-Books I plan to read include: Security Analysis, The Intelligent Asset Allocator and Beating the Street (Peter Lynch)
As far as my investing (not personal finance issues) goes, I feel the more I learn (taking classes at schools, reading Burton Malkiel
) the less I know. This is not
to mean that I am overwhelmed with the wealth of knowledge out there, but that I am torn between index funds and individually investing. As of now, planning my accounts I would invest about 50% in US index funds, 40% in international equity, 5% bonds, 5% cash as I feel I can handle a large amount of risk at this age.
According to my calculations, at the rate I would be going, by the age of 40 I would have between 1.8 and 2.4 mill, assuming I get no
raises and no
promotions / bonuses, which I obviously expect will grow to the point where I can save a much larger dollar amount than would previously be able to. Assuming the raises / promotions at 3-5% a year would give a reasonable estimate of 4 to 5.4 mill by the age of 40. Obviously, things in personal finance come up as I hope that my health will be able to hold out and I will eventually be able to have children and a family (probably the largest investment left to make) which will make things as of now far less predictable.
Just thought I would like to introduce myself to these boards, and am still wondering if I am the youngest person on these boards... it could be possible.