8% annual average return is not unrealistic for the US stock market.
I did it using this method. I worked hard and lived within my means for 5 years. You'll quickly realize that after taxes a million isn't close to retirement money in the Bay area.
I did it using this method. I worked hard and lived within my means for 5 years. You'll quickly realize that after taxes a million isn't close to retirement money in the Bay area.
Edit: adjusted ambiguous wording about S&P gains
That's a bit disingenuous to use the generational market lows of 2009 as your starting point. It would be like using the all-time highs of 2000 and the 2009 lows as your range. Then the cumulative returns would be negative ( including dividends ).
> However I think it would be foolish to presume that the stock market will continue to post those kind of gains forever.
It's impossible for any economy/market/whatever to maintain a 16% return every year.
Right, I did that on purpose, just as a way of showing that luck (in terms of accidental market timing) has a huge impact on returns. As I said in top comment, even 8% is not sustainable, let alone 16.