Here is a fun financial fantasy. Picture this:
Right after graduating from college at age 22, you manage to land a decent job paying $50,000 (in today’s dollars). You are a frugal person and tuck away $10,000 of that each year to invest. As well, since you were lucky to have caring parents, they support your college fund and you graduated with no debt. In fact, after 4 years of paid internship, you manage to have a starting fund of $10,000 (today’s dollars again).
With your financial savvy combined with luck of graduating right into the bull market, where would you be financially after 10 or 20 years?
According to my calculator, from 1982 all the way to the top bull market in 1999, you would amass a breathtaking $1.35 million at age 39. Yes, on just a mere $10,000 starting networth and tucking away $10,000 per year. Freedom 40 anyone?
What if you were starting a college fund for your newborn right at the beginning of the 1980’s market? A mere $500 starting amount and $500 each year would grow to an impressive $67,000 by the time he or she turns 18!
It is no wonder that the 1980’s bull market was coined one of the greatest bull markets ever.
Bull Market Calculator:
The following is a nifty app that shows you what your investment could have turned into had you participated in the 1980’s bull market. Remember, the past is the past and try not to dwell on the too much!