Saturday, November 2, 2013

The Master Plan

In an earlier post ("Opportunity Cost for Investing"), I have blogged about the forecasted projection of my investment goal. The asumptions made was based on a 30-year period with annual $15K capital injection on a constant 6% yield without compounded income from reinvestment.

I would like to revisit the scenerio with compounded income. To have a more practical assumption, the investment period will be based on the same 30-year period but with a constant annual $10K capital injection and income reinvestment on a constant 5% yield.

The result paints a better and more achievable outcome. The monthly passive income that can be achieved at year 30 is about $2768, which is higher even with 1% yield lower (5% vs 6% yield) and 33% capital injection lower ($10K vs $15K) without income reinvestment.

If we perform the projection on a constant 6% yield, the outcome is a significant improvement to a monthly passive income of $3952.

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