100k in ten years

droopsnoot

100kintenyears wrote: »

I've also done a bit of research on stocks and shares and apparently it takes more luck than poker to get it right.

That can be the case, especially if you're looking at individual shares (buying shares in specific companies). I would imagine the majority of people (though I have no stats obviously) look at investing in funds rather than specific shares. A fund will typically have shares in many different companies, so you're less exposed to the risk of sticking all your money in one company just before they tank.


I'm not advocating anything specific, just pointing you to some other places to read and research. The 'savings and investments' board on here can offer some good ideas and interesting discussions.

smdabs

I am concerned that you are setting yourself up for a disappointment.

The reality of life has to be thought about here...

Having a 10 year plan is admirable, but life doesn't usually quite work out exactly as to plan (especially as you don't seem to actually have a plan of action as it stands, you just have a monetary figure in mind.)
I understand you've thought about job prospects and are planning to work on it, and you have also been made aware of needing 'life experiences' which you seem to be happy to bypass in order to reach your target (And i am all for being single-minded, famous for it in fact! )

However... what about other factors....what if you enter a relationship - and it turns long term etc? I highly doubt they would be comfortable living with a man and his parents... I doubt they'd even be comfortable with the thought of it!

What if your parent's financial circumstances change and they can no longer afford to pay your way? (FYI - you are 25, at least try and be slightly less selfish and think... is it FAIR to your parents to foot your bill into their retirement? Have you thought about their financial/retirement/pension plans? I dont imagine they involve paying for you.)

At some point, over the next 10 years, you WILL be paying rent and bills somewhere - its inevitable. It's life.

Instead of having this 100k - 10 year (somewhat unrealistic given circumstances and seeming work ethic) goal, have you thought about making a shorter plan of action to plan for your CURRENT financial circumstances as they stand? - Plan for 10k in a year... or 20k in two... then let it build on that as then you can genuinely plan your finances around this and you know where you are at all times.

And by the way, this isn't me trying to talk down to you as being older and wiser.... I am 24 myself. I don't live at home currently as i am self employed and live wherever the work takes me however i know i always have my room back at home.

However, I have been paying rent from the age of 16 (had to say goodbye to my EMA!) and i have worked ever since - even whilst studying. At that time, this was because they were trying to teach us a proper work ethic. Since then however, due to various factors, they were no longer (and still aren't) in any position to help me or my sisters financially - to the point where it has been myself bailing them out of some of the debt to help ease their living. Things happen, circumstances change - such is life.

Maybe it is because of my career choice (currently in banking and studying my Financial Advice qualification), or maybe its because I've been living in big bad world for a while now, but i just worry that you really aren't thinking in a realistic way.

Hopes and dreams are all good and well... but you have to work for them, not take handouts from your parents until your middle aged - whilst completely disregarding your parents goals and finances just to suit yourself.

Broken_Biscuits

you need to read up on compound interest.

http://news.fool.co.uk/Your-Money/guides/the-miracle-of-compound-returns.aspx

if you stick with the 1% returns not only are you getting stung by inflation each year but you are also losing huge amounts of growth over a 10 year period.

about 650 a month was the required target assuming 5% returns. That shoots up to closer to £900 a month needed because your below inflation returns are crippling your bank balance!

you sound a bit scared of stocks and shares. That's fine. Id leave them alone if you are not comfortable, but you really do need to look into high interest current accounts. Without compound interest you will miss your 100k target.

paramaniac1

100kintenyears wrote: »

I want to earn and save 100k in ten years through hard work and frugality

Current balance: £678

Starting with £678 and saving £200 a month for 10 years would get you £100,000 if you managed to make an annual return of 26% on your savings and the money was compounded (no withdrawals).

If you increased your monthly savings to £400 then you would require an annual return of 13%.

As a lump sum of £678 with no extra contributions you would need an annual return of 64% per annum compounded.

I would say the £400 a month at 13% is possible on the stock market.

[Deleted User]

paramaniac1 wrote: »

Starting with £678 and saving £200 a month for 10 years would get you £100,000 if you managed to make an annual return of 26% on your savings and the money was compounded (no withdrawals).

If you increased your monthly savings to £400 then you would require an annual return of 13%.

As a lump sum of £678 with no extra contributions you would need an annual return of 64% per annum compounded.

I would say the £400 a month at 13% is possible on the stock market.

How would one get a yield of 13% on the stock market?

Broken_Biscuits

by taking massive risk.
meaning that there is a tiny chance of achieving your goal and a very big chance of ending up with next to nothing. Shocking, unrealistic advice, especially to an amateur.

best to try and lose the least points in the markets than win the most especially over a 10 year timescale.

paramaniac1

Broken_Biscuits wrote: »

by taking massive risk.
meaning that there is a tiny chance of achieving your goal and a very big chance of ending up with next to nothing. Shocking, unrealistic advice, especially to an amateur.

best to try and lose the least points in the markets than win the most especially over a 10 year timescale.

Sorry that I shocked you. Hope you are ok?

The question was whether £678 could be grown to £100,000 in 10 years. The answer is yes, with regular monthly contributions and an annual return of 13%.

For example, Chipotle Mexican Grill has increased by an annual rate of 37% from Jan 2006 until Jan 2015 (9 years) so there are companies out there that can achieve that return, obviously the difficulty is picking them. There are not many other investments that can achieve that rate of return which is why I recommended the stock market.

100kintenyears

Thanks for all the advice.

I've been thinking of the most sure fire ways to make a big profit with the least risk involved. I wonder if anyone thinks actually attempting to become a poker player might be a good idea?

Winning an '£150 entry' tournament gets you £20,000. I was thinking of perhaps saving for three to five years until I reach the £50,000 mark and during that period spending my free/investment time in playing poker online with no real money involved before then putting the plan into action and entering real tournaments.

Obviously considering the amount of people who play poker online, once I get to a good level in the game I'll be playing against people who would be top poker players if they had the get in funds available or people who perhaps were real poker players at one point but took one bet to far.

Until only recently I was playing a lot of free poker online games and attaining a good level but ironically felt it was eating up too much of my free time and tried to find more productive hobbies.

I'd say it was no more than 30% luck, so over an extended period I don't see too much risk in this plan especially as I would have mastered every hand and had come some way to gaining the 10,000 hours you need to be a master in anything by the time I step into an actual casino.

Wizzbang

100kintenyears wrote: »

Thanks for all the advice.

I've been thinking of the most sure fire ways to make a big profit with the least risk involved. I wonder if anyone thinks actually attempting to become a poker player might be a good idea?

Winning an '£150 entry' tournament gets you £20,000. I was thinking of perhaps saving for three to five years until I reach the £50,000 mark and during that period spending my free/investment time in playing poker online with no real money involved before then putting the plan into action and entering real tournaments.

Obviously considering the amount of people who play poker online, once I get to a good level in the game I'll be playing against people who would be top poker players if they had the get in funds available or people who perhaps were real poker players at one point but took one bet to far.

Until only recently I was playing a lot of free poker online games and attaining a good level but ironically felt it was eating up too much of my free time and tried to find more productive hobbies.

I'd say it was no more than 30% luck, so over an extended period I don't see too much risk in this plan especially as I would have mastered every hand and had come some way to gaining the 10,000 hours you need to be a master in anything by the time I step into an actual casino.

You can't be serious! Good luck to you, if that's your route to financial independence! I cannot believe you even suggested that. Gamblers anonymous anyone? Fast lane to debt and addiction. It sounds like you are very addicted to making money, probably is time to get out in the real world!!!!

Sugarplum634

100kintenyears wrote: »

Thanks for all the advice.

I've been thinking of the most sure fire ways to make a big profit with the least risk involved. I wonder if anyone thinks actually attempting to become a poker player might be a good idea?

No!

I can't believe you even possetted it as possibility. Not only do you intend on living off your parents for a decade as they hit retirement (your choice, but not the best one IMHO) but now you want finncial success by a long term gambling plan.

People have made sensible suggestions: sorting your interest rates out, looking at ways of boosting your income (PTC, surveys, extra job, cutting your budget). Try earning an extra £10 a day - there are threads on here that support that idea.

The enterance to the real world is this way.

Entry requirements: a bit of commonsense and SMART goals (that's specific, measureable, achievable, realistic and timed) A long term gambling solution is not SMART, or smart or even vaguely sensible.

Let us know when you've stopped living in a dream world and you might find this site is helpful.