Bichon Frise wrote:
The OP is investing $36,000 AND $400/month * 10years = an additional $48,000, or $84,000 total.
Got it, my mistake. I took the $400 a month to be the derived income. 4 or 5% is then a more reasonable number. I stand corrected if this is the case, and Stannius could very well have a better estimate than I.
Yes I think that was the confusion.
$35k giving spendable income of $400 per month AND growing to $120k would take a 21% growth rate. I Love the Nineties!
$120k giving spendable income of $400 per month is right about 4%, which is exactly the rule of thumb "safe withdrawal rate". Of course that's assuming OP gets to the target number.
I am not sure if $35k growing to $115k +/- 5k is "swing for the fences" crazy or not. Everybody talks about how we should expect lower stock market returns for the forseeable future... but long term average is 12%, which would be just enough. It's up for debate anyways, not a foregone conclusion either way.
Without knowing what the OP plans to do with the money, and how flexible those plans are, it's a bit hard to advise...
But $35k + $400 every month, turning into $120k in 10 years, seems really quite achievable.