brock_h t1_iuiggv6 wrote on October 31, 2022 at 4:04 PM

Here's a fun fact for you. If you took that $90K now at 26, invested it in a total stock market (or S&P500) index fund returning 7% per year on average (and compounding annually), and left it until you're 56 WITHOUT EVEN ADDING ANY ADDITIONAL MONEY, you'd have around $700,000 at that time. That's a good start for your retirement money. Best to not spend it since you have a job that can pay the bills. You can treat yourself from your wages.

ArdenSix t1_iuj56zz wrote on October 31, 2022 at 6:48 PM

That's insane, I can't wait to start stacking my brokerage account next year

lrrc49 t1_iuj7b1g wrote on October 31, 2022 at 7:02 PM

Now imagine investing that into an etf that pays a dividend!

poe_todd t1_iujcwch wrote on October 31, 2022 at 7:40 PM

I know! You'd have even less money! The tax drag alone pretty much guarantees that.

lrrc49 t1_iujeb9c wrote on October 31, 2022 at 7:49 PM

In what world do you live in that getting paid a dividend results in you having less money? Yeah you have to pay income tax on but its still a fraction of what you make.

All my dividend paying funds are doing better than index funds and I get paid every quarter on top of the returns. but sure invest in index funds that are still heavy on meta and Tesla lol