Accumulation of $1.2mil for passive income of $5000 per month.
How achievable is it?
The initial part is always slow. Assume I invest $40,000 yearly, the first year interest is only $2000.
With more money invested and the interest will increase to $39,200.
Subsequently, the interest itself will exceed my principal amount that I regularly invest.
Compound interest is very important.
A lot of people ask me why I DCA regularly. The above is my reason.
If I invest $20,000 per year, I will only expect to achieve half the results. It means I have to reduce my expected expenses when I start to retire.
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