When you work in a typical corporation, things suck. Human resources is always sending out emails reminding you to fill out whatever lame performance review forms they’ve decided to impose on you and your team. Compliance is always warning you not to trade stocks. Legal is always telling you not to throw away important papers. “Talent management” is desperately trying to convince everyone that they play a vital role in the company. Your IT helpdesk in Mumbai is full of squawking robots who don’t know their head from a hole in the ground. Marketing is telling you what colors you’re supposed to use in your PowerPoints. And then, you make it to the end of the year and the big day arrives. Compensation day! You sit down in that conference room and your boss tells you that due to the “difficult operating environment” they can’t give you a raise this year.
You know what? Screw that. Here at Quantigence we get 30 raises a year. That’s right. 30 times a year we’re going to celebrate the fact that we just got a raise. If one of our companies doesn’t give us a raise, we’re firing them and bringing another company on board that will give us a raise. No”difficult operating environments” around here.
So now that we’ve assembled our Quantigence portfolio and we’re making our monthly purchases for the next two years, let’s take a look at how our income stream would have grown in the past if he held our current portfolio. Assuming that we hold equal positions in all stocks, here’s the raises we would have received in income over the past 15 years:
- 2015 – 10.5%
- 2014 – 12.3%
- 2013 – 10.6%
- 2012 – 11.1%
- 2011 – 10.6%
- 2010 – 7.8%
- 2009 – 9.8%
- 2008 – 14.9%
- 2007 – 20.2%
- 2006 – 19.5%
- 2005 – 14.5%
- 2004 – 14.6%
- 2003 – 11.5%
- 2002 – 7.9%
- 2001 – 8.6%
- 2000 – 9.3%
Now let’s simulate how our income stream would grow for our target portfolio of $400,000 with our current portfolio yield of 2.58% starting in 2018 when we’re fully vested:
That’s really incredible. Now, let’s simulate the remaining years until retirement using the average income stream growth of 12.11% over the past 15 years:
That means that when we retire, we’ll be making well over 6 figures a year ONLY on dividends. While many people approach retirement with a great deal of trepidation, we’re going to be loving life around that time. Sure, there’s inflation to take into account, but if we stay out of ‘Murica and stick to countries in the world where prices are cheap, we can live like kings on that amount of income.
Now if we back out our projected monthly income of $13,248 using our current portfolio yield of 2.58%, we get a portfolio value of around $6.12 million. Now honestly, if we get to anywhere near that amount in 26 years, we’re going to go out and celebrate what a bunch of damn geniuses we are and throw down on one of these:
You can’t tell people what a successful career you’ve had in finance if you can’t back it up with your own beachfront villa. It just makes sense.