Here are the balance sheet tables for Donald’s investments based on a 30 year investment period at two different interest rates (10% and 20%) and an 4% Annual Income from the Investment. Donald likes the flexibility of the investments as he can choose to opt out and opt in as and when he feels like…
Balance Sheet for the historical 10% CAGR Interest Rate:
| Year | Annual Investment | Invested till date | Year end Investment Balance @ 10% CARG | Annual Income from Investment @ 4% P.A |
|---|---|---|---|---|
| 1 | $120,000 | $120,000 | $132,000 | $5,280 |
| 2 | $120,000 | $240,000 | $277,200 | $11,088 |
| 3 | $120,000 | $360,000 | $441,240 | $17,650 |
| … | … | … | … | … |
| 30 | $120,000 | $3,600,000 | $19,915,736 | $796,630 |
Balance Sheet for projected 20% P.A CAGR Interest Rate:
| Year | Annual Investment | Invested till date | Year end Investment Balance @ 20% CARG | Annual Income from Investment @ 4% P.A |
|---|---|---|---|---|
| 1 | $120,000 | $120,000 | $144,000 | $5,760 |
| 2 | $120,000 | $240,000 | $316,800 | $12,672 |
| 3 | $120,000 | $360,000 | $536,160 | $21,446 |
| … | … | … | … | … |
| 30 | $120,000 | $3,600,000 | $854,554,728 | $34,182,189 |
Goals And Targets
- 30th year Goal of $850 million at the projected 20% CAGR
- 30th year Goal of $19 million at the historical 10% CAGR
Note
* CAGR – Compounded annual growth rate
* P.A – Per Annum
The historical average yearly return of the S&P 500 is 9.31% over the last 150 years, as of the end of May 2024. This assumes dividends are reinvested. Adjusted for inflation, the 150-year average stock market return (including dividends) is 6.97%. The S&P 500 hasn’t been around for 150 years.
S&P 500 1 Year Return is at 25.31%, compared to 20.34% last month and 13.97% last year. This is higher than the long term average of 6.97%. The S&P 500 1 Year Return is the investment return received for a 1 year period, excluding dividends, when holding the S&P 500 index.