What age can I retire?

Question

I am a single mom of two boys with take home pay after tax USD 75,000. I am soon to be 34 years old. After paying mortgage, education cost, car maintenance, living cost , etc I am left with USD 30,000 which goes straight to my stock investment that gives roughly 10% intrest.

When can I realistically retire with USD 2,000,000 net worth?

Thanks

Answer 1

In response to the first answer, I have to say saving is definite no-no. The interest you get doesn't cover inflation. Couple that along with the declining value of the USD and the current prices of oil, you can forget about saving.

By stock investment, do you mean you're only in the stock market? If so, do you have a diversified portfolio? I mean, if you really want high gains, the stock market is a difficult place to do so. 10% returns, to be frank, isn't a lot. I've seen silver, gold, the precious metals, sky rocketing in the past five years, with silver going up by approx. 100%. I mean, look at gold. After the US stopped backing its currency against gold (197?), its value increased twentyfold. You can do so much better than 10%. It really boils down to the control you have over the investment. Remember, the problem with owning paper assets is that you have almost no control over the stock price. Yes, you might hit a value investment, and sell it off when you retire, but what's there to guarantee that some unprecedented factors get involved and cause the stock price to crash?

I would recommend transitioning to hedge funds and real estate. These have much higher ROIs, and you get really high tax breaks. Think about it. Real estate - you get steady cash flow (rental), depreciation is taken care of by the government (high tax breaks), amortization (your tenant pays off your mortgage), appreciation of property due to decreasing value of the USD, and bankers will especially be happy granting you a loan to purchase real estate (guaranteed returns). Can it get any better than that? Besides, a paint over, some DIY in the property, maybe changing the zoning, you can really control how much you get from real estate.

Look for more abandonned parts of the US. Think about how the value of land can increase. Just go around and look at different properties. I'm sure you'll find one that gives high returns at the end of the day.

Answer 2

If you save 30k a year at 10% you'd have $2,142,082 at age 55,  thats not including taxes you'd pay though on the interest, no idea what the tax rate is.

Also I think 10% is not a realistic rate in this economy.