🚀 go-pugleaf

YOu are not going to buy a car because you cannoy afford one. At any rate
your calculations are false since they don't take taxes into consideration.

Huggy wrote in message <36b0932d.2918099@news.sprint.ca>...
>
>
>I am not going to buy a car.   I am not going to get a university
>degree.  Why ?  Because I can make money fast.   Over 50 years, $10000
>grows next following (unless government sucks my money to share it to
>those "in need" because they don't know how to save a penny a day).
>$10000 is 1/8 th of cost of international students requiring to obtain
>bachelor's degree.   Assume investor does not invest anymore money
>(which is unlikely... so figure will be a minimum return)
>
>
>$11000  0.1908% (rates are annually compounded)
>$12000  0.3653%
>$13000  0.5261%
>$14000
>$15000
>$16000
>$17000
>$18000
>$19000
>$20000  1.3959% (double your money with 1.3959%)
>$25000
>$30000
>$35000
>$40000
>$50000
>$60000  3.6485% (it is about current rate for one yr cashable G.I.C.)
>$70000
>$80000
>$90000
>$100000 4.7129% (it's about current 10 yr G.I.C. rate)
>$200000
>$300000
>$400000
>$500000 8.1383% (a poorly done bond fund is about here)
>$600000
>$700000
>$800000
>$900000
>$1000000 9.6478% (a fair return on bond fund)
>$2000000
>$3000000
>$4000000
>$5000000 13.2347% (~average for balanced fund)
>$10000000  14.8154% (~ good return for global bond/stck funds)
>$100000000 20.2264% (good return for US growth/index)
>$1000000000 25.8925% (good return for sector funds)
>$10000000000 31.8257% (~about any excellent funds)
>
>=======
>
>Follow-up Question:
>
>One international student decides to quit studying for bachelor degree
>and decides to invest money instead.   A typical student spends about
>$80000 for bachelor's degree and $40000 for master or PHD.
>
>1)  One international student decides not to purshe bachelor's degree
>nor master's degree and invests $120,000.     About how long does it
>take to reach a million with a yearly compounded rate of 4.5% ? (about
>current long term G.I.C. rate)        10% ?
>
> With 4.5% rate, about 45-50 years.
> With 10% rate, about 20-25 years.
>
>2) Based on calculation on 1) above, is it likely that he is going to
>get a million dollar in his pocket before he dies ?  Assume he is 18
>years old at present and life expectancy in his cuontry of origin is
>75 years old.
>
>
>
>2)  One international student decides not to purshe bachelor's degree
>and invests $80,000.    He manages to achieve 8% yearly compounded
>average for his investment.   Find when the investment reaches a
>million, 2 millions, 5 millions and 10 millions
>
> 1 million 25-30 years
> 2 millions 40-45 years
> 5 millions 50-55 years
> 10 millions 60-65 years
>
> Current money market rate (i.e.   cash equivalent fund) is
>about 4.5%-5%.   By having 1 million dollars, he will be generate an
>income of $45000-$50000 without working.   Based on this calculation,
>is it going to likely that he retires early ?   He is currently 18
>years old and assume he gets first million after 25 years later.
>
>
>
>3)  Canadian student spends about $32,000 to obtain bachelor's degree
>and this includes the living expenses.     One student decides not to
>pursue bachelor's degree.    a)  Assuming he invests in guaranteed
>funds at the rate of 5% per annum, find out when his investment
>reaches 1 million.    b)  The return return depends on the type of
>investment.   This student takes a risk and invests in one canadian
>and global government bond fund.     He manages to achieve 10% per
>annum.   Find out when he sucks his first million in his pocket.
>c)  government decides to take some of his investments because others
>aren't making money fast and ask government for their pension and
>health care.   After 35 years, he has a million but government
>intensionally takes a half of it by saying government must do
>something for those in need.      He receives $500000.   Assuming
>money market or banker's acceptance rate is 5%, find out his monthly
>income by investing $500000.    Do you think government or outsiders
>can destroy his life by taking a half of profit ?   Explain.
>
> a) about 70 years
>
> b) about 35 years
>
> c) based on 5% per annum and assuming monthly income depends
>on this rate, he will be able to still generate $25000 automatically.
>Monthly income is about $2083.    Even after taxation, it's unlikely
>that they can destroy his life and therefore government / outsiders
>must take more money from him.    With 75% taxation on return, he
>still generates about $12500 a year or about $1041 extra cash per
>month.   So, answer is no, no one can destroy his life unless
>government or outsiders take all of his money by saying he is an
>asshole.
>
>
>5)   A new car costs $35000.   One person can buy a car but decides
>not to buy a car.   He instead invests $1000 a month.   He also saves
>the operating cost of car by not having a car.  This amounts extra
>$300 a month so he invests $1300 in total.   He keeps investing for 3
>years.    Assuming a return of 6% per annum, find his return after 30
>years.
> About $200000
>
>
>=-=-=-=-=-=-
>
>Caution:   In Canada, some investments are not guaranteed/protected by
>Canada Deposit Insurance Corporation or by any other third parties.
>Author will not take responsibility of your investment.   Historical
>performances are NOT future performances.
>
>
>
>================
>
>(c) 1999 by Masataka Noda.  All rights reserved.   May not be
>reproduced without written consent.
>http://www.radiotelephone.net/moneymkr.htm
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>
>