I run financial models in my spare time…
Financial models that have absolutely NO impact on my decision making or how I add value to the world.
Can anyone say, “Investment banker.”?
Billionaire Case Fundamentals
So today I decide to run one for YOU.
It’s about becoming a billionaire starting at age 30 with a net worth of $1,000,000 and an assumption that you’re pulling in $1,000,000. That may sound unrealistic but it’s not. Only if you follow the advice on this blog and in my courses. I promise you, it’s not some pie-in-the-sky. In fact, it’s pretty doable.
Assumption #1 – You Pay Zero Taxes
Basically, you keep all your money (legally) within an offshore corporate structure at a 0% corporate tax & investment income jurisdiction. Meaning, you technically don’t own that money. And you never pull it out so you don’t incur personal tax liabilities which are massive in most jurisdictions.
Assumption #2 – You’re Not an Idiot with Your Money (Helicopters, Planes & Mansions)
Ever read “The Millionaire Next Door”? I haven’t, but I know most rich people are humble – like Warren Buffet. They do NOT blow their money on cocaine, hookers & $10k/night hotel suites. If you’re in the latter category, it will put a serious dent into how your investment grow.
You only get to pull out $100k per year (completely tax free if you’re a US citizen living outside of the US for more than 330 days a year) between ages 30 and 45. Next, we increase that to $150k until you are 70 and then you withdraw $200k per year. Still very good money but not what you picture when you think of the “billionaire lifestyle”.
This is where I got the “closet” billionaire from as people might not even know you’re a billionaire…
Assumption #3 – Growth Rates
I’ll assume that you’ll continue working. And since you’re a capable individual, your net income increases 5% every year. This is also very realistic.
Also, your investments yield 9.11% per year. Once again, you’re investing all the money you make. This is also realistic as long as you control your emotions and have a prudent, smart investment strategy.
Conclusion – “When Will I FINALLY Be a Billionaire?!”
Check it out:
Download the spreadsheet here: https://digistrats.s3.amazonaws.com/Blog/Billionaire_Projections.xlsx
It’ll take 45 years but you’ll be one before you die.
What’s the moral of the story?
First of all, work hard and CONSISTENTLY produce long-term results. Seriously, everyone wants to get super-duper rich in 5 years doing NOTHING. Work hard. Add value. And you’ll get there.
Trust me, I understand. Even I complain, but I just stick to it…
Secondly, save your money. Don’t go around blowing your cash.
And trust me on this one:
Even if you don’t want to become a billionaire, it’s always important to keep an untouched stash. Who knows? Maybe you get sick and need surgery that costs $1,000,000; so that mil should be liquid.
It doesn’t matter whether this simulation is realistic or not. What matter is that it’s semi-realistic and it shows you the possibilities; if you work hard and stay consistent.
Keep chipping away! I’m hoping that through my teachings, programs & material, I could help at least 1 guy become a billionaire!