'How Much Does Your Money Make Per Hour?' This Man Calculates And Shares Retirement Account's 'Hourly Wage' Based On 40-Hour Work Week [Yahoo! Finance]
Apple Inc. (AAPL)
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Source: Yahoo! Finance
The discussion began with a 31-year-old high school teacher who runs an online teaching business. He treats his investments as if they were an employee working a 40-hour week. By applying a 7% return rate to his $250,000 in retirement savings , he found that his money effectively earns about $8.50 per hour. Don't Miss: The average American couple has saved this much money for retirement — How do you compare Can you guess how many Americans successfully retire with $1,000,000 saved? The percentage may shock you He explained, "It's simple math, but it's fun for me to imagine my money as a person who works 40 hours per week, 52 weeks per year and gives me their entire paycheck." The column added to his spreadsheet worked as motivation to keep adding, saving and eventually getting raises. This approach resonated within the community, sparking a discussion about the potential of passive income and intelligent investments. Participants admired the method's simplicity and effectiv
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