151. I Opted Out Of Retirement

5:52pm, March 18th, 2024, Desk, UT

I opted out of my retirement investments. I no longer am putting money into my retirement plan.

Here’s why in a nutshell: 

If you invest $200 per month starting at age 20 with an average annual return of 7% compounded monthly, you could potentially have $824,200 by age 60 (the numbers could be off, I don’t care enough to make them exact. It’s for illustrative purposes only).

That’s 40 years. That’s 14610 days. That’s on average, $56 a day.

You’re telling me that in order for me to make the same amount of money by investing into my retirement, I only need to sell two $28 (profit) products per day? 

First off, how many businesses do you know who are 40 years strong ONLY making $56 a day. Probably 0. Meaning they probably make a shit ton more than that and a lot earlier too. 

Second, why settle for $824,000 by age 60 (which, if you spend 50k a year, will only last you 16 years. What about age 76-100+?) when you can quite literally run a business for 20-40 years and reach a point where you could take home $824,000 per month. Or even a week.

Think about that.

And I get it, we all have different desires, visions, goals, aspirations, you name it. I get that, and that’s okay. But that seems so blatantly obvious to me what the better option is.

I’d rather pocket $100 per week in myself than a fund that gives me 8%. You can take $100 a week and invest into 5 books. All it takes is one sentence in one of those books to give you enough information or confidence to get you to $100,000 a year. Then $1m a year. Then 5m a year. Then $1m a month, etc. And I’d be the one in control the entire time too. I would call the shots. 

Of course this alls pounds great on paper, it’s a lot harder work with more “risk.” But I think it’s a bigger risk not taking any risks at all. 

Disclaimer, do not do anything I said in this podcast. Consult your financial advisor before making any financial decisions. Everything in this podcast is for entertainment purposes only and should not be taken seriously.