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Dreaming of my retirement

Many times I day dream of my retirement and how nice it would be when I have all my accounts up to speed and finally taking fruits out and spending it for my leisure (and bills).

I have two types of dreams – one is about what everything I want to do when I retire. I want to travel. There is plenty of places in the US I have never been and want to visit.

Today, I dreamed of having a double decker coach and traveling with my wife and kids around the country in a luxury mobile home. I even drew floor plans of both levels of the coach. It was a very nice dreaming.

 

Double Decker

My dream liner – double decker RV for traveling around the country.

 
The second dream is actually about what I would do once I save enough and be at the very beginning of my retirement. It is also nice dreaming, but slightly more practical.

As you may remember I plan on retiring early with little money than what advisors recommend relying more on trading for living rather than saving and then use those savings.

 

Trading room

This could be my trading room on the upper deck. What a nice dream!

 

But with trading for living, it may be more difficult. It may be stressful. If I plan on making, for example $5,000 monthly, it can be frustrating to trade and be correct every time and make $5k every month to pay the bills.

So, many times I was dreaming of how to avoid the stress and trade with ease and no rush. The solution is quite easy.

Well, in my dreams it was very easy. I will see in near future, how easy it is going to be in reality.

I plan to retire in 5 or 6 years. My assumption is that If I double my account every year, or every year and a half (as of today I shoot for every years), I should be able to retire in 5 years.

See the table below I saw in my dreams:
 

 

If that happens and I reach that dream, I should have enough money to trade for living. With $640,000 account balance and average 45% annual profit I should make $288k every year for living.

It sounds very nice, right?

I know… bear with me, I am still dreaming. I know there are a few huge IFs in the way. But hey, it may be a realistic goal.

So I was thinking, what IF I do not make 45% in one year? What if I make less than that? One bad year, crisis in the market, and all is in vain!? So I came with a plan in my dreams to trade and make money for the next year instead of the current year.

For example, IF I really reach that nice looking amount (note that big IF) in 2019, I will continue trading (and still spinning the wheel in a full time job) in 2020 making money for 2021 year.

Well and then it is a piece of cake. In 2021 I will be making money for 2022, in 2022 for 2023 until my death.

 

Living room

A quite luxury living room. I can see my family and myself spending time here on our family travels.

 

I also plan invest regularly 10% of all proceedings from options trading into dividend growth stocks and after I retire, I will leave 10% from proceeds (or more) to reinvest in the next year.

So if that happens, and in 2020 I make $288,000 trading options, I will invest $28,800 into dividend growth stocks, take $100,800 for taxes (in the worst case scenario), take out $100,000 for spending and let $58,400 to be reinvested in the next year.

Oh, what a nice dream!

So, let’s stop dreaming, back on earth.

Today markets retreated a lot due to weak data in retail sales. I wonder what the cause was today. A warm weather this time? The intraday trading was one big slump. On a longer trend this retreat can be seen as positive move. The trend of last month was very strong, so this pullback is a healthy move. The money flow into market is still very strong, the bulls are still holding tight although today’s move weakened them a bit. Let’s see tomorrows trading if this pullback is stronger or just a blip.

I expect the markets to be negative tomorrow (which is getting my account temporarily back below my “double the account every year” dream.

Are you dreaming too about your investments and retirement? What does it look like? Today I am OK with any, even crazy ideas!

Happy trading and investing!

 
 





2 responses to “Dreaming of my retirement”

  1. CI says:

    I plan to keep saving as much as possible for the next 3-4 years. After that I think I’ll be at a junction where I’ll have to figure out if I want to continue building passive income or pay off a home. Having a paid off home would be amazing, but would be stupid if living abroad is in the cards. Luckily those tough decisions don’t need to made for a while.

    Best wishes doubling your account every year. I think that would be quite stressful at the later stages, but hopefully you will have honed your skills by then. Take care

    • Martin says:

      CI,
      Thanks. You brought a good idea about paying off the home. I completely forgot it in my thoughts. I will do the same.

      I am aware that doubling an account from 10k to 20k is a lot easier than from 300k to 600k. I also believe that by then I will have a lot more money to trade and better trading skills than today. I am actually excited about that idea and totally dedicated to it.

      Thanks for stopping by!

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