How Much Money You Really Need To Go Full Time Stock Market Investor

Link to join StockHub free investing discord server: Want to join our free STOCKHUB discord chat? Here is the link

Today i want to answer one of the questions i get more than any other question out there it’s how much money do you need to actually go full-time as a stock market investor where you don’t need any other income sources you don’t need to have a job you don’t need anything you just focus full-time on investing in the stock market and that’s what you do like how much

Money do you need to get to that level i want to share with you guys data mountain kind of like how you should think about it all right which is some people’s goal some people just want to be a full-time investor and that’s awesome i also in the second part of the video i’m gonna share with you with you my story so basically there was a time in my life i wanted

To go full time as a vester and i went ahead and did that for about a year year and a half i want to share with how that went with you guys my mentality around then i also want to share where at the end if there’s any plans on me going full-time as an investor again if i care about that or anything like that guy so we’ll share all that hit a thumbs up if you enjoy

Today’s video all right so if you want to know how much money you need to basically make it as a full time stock market investor your the first thing you gotta think about is you gotta think about well what’s the average return you can get consistently in the stock market alright what’s your return you can get consistently and i can tell you if you just have one

Year or two years that are really good i wouldn’t get hyped out on that okay being you can’t like if you got let’s say 50% in return one year great and that’s awesome for you but the chances you can get a 50% return consistently a very very slim okay it’s not very realistic out there but sometimes you can just knock out on the ballpark but the question is what

Can you do consistently what is your return on average okay what is your return on average per year that’s the big question you got to ask yourself okay so here there are two ways to kind of think about this all right and if you want to make it full-time as a stock market investor this thing about the stock market on average goes up around 8 percent per year ok

7 8 percent per year so if you’re good if you’re good in the stock market you’re like you’re you’re you know an above-average investor you can probably get on average around a 10 percent number per year now some yours you should i’ll perform that maybe you get up to a 20 percent or maybe even above a 20 percent depending on how the market goes but also some years

You’ll probably break even some years you might even take a loss okay so 10% new you’re probably doing pretty good okay so for our numbers we’re gonna break out we’re gonna assume 10% for some of them and then if you’re a great investor like you’re gonna be like on the route the mount rushmore of investors okay if you’re a great investor you can consistently get

20% on average per year okay so i’m years you’ll do a little worse than that but some years we’ll get 30 40 maybe even 50 percent gains okay so we’ll kind of break out both these numbers if you’re if you’re a good investor all right which you’re doing better than the market and if you’re a great investor in the stock market and you’re basically knocking out of the

Ballpark get back in the day warren buffett consistently got about 20% per year now warren buffett he really doesn’t get 20% per year but you got to understand it’s a different game for warren buffett now he’s having to invest tens of billions or hundreds of billions of dollars whatever he makes an investment so amount of companies he has to even pick from is a

Very very small amount compared to his earlier days back in the 60s 70s and 80s when he could basically invest in almost any company out there all right but 20% per year consistently like you are our great investor you’re unbelievable okay so let’s think about this for a minute you know some people think like $100,000 will cut it okay some people think 100,000

Like that’s enough you you can be good on 100k you know and we’ll kind of break up these numbers for like united states buddy even like thinking about like living expenses united states it can differ a lot like out here in las vegas like a home like you know my wife and i and the kids live in like a home like this in vegas is really cheap compared to like la like

La that this home would probably be three million dollars we’re out here it’s much much cheaper than that so even in the united states the price is for you to live and just live like an average life or normal life or something like that it’s very different okay so let’s say you get a 10% gain you know on average with 100k here you’re basically only making about

See also  Emblem Corp. (TSXV: EMC, OTCQX: EMMBF) Sales Increase 281% to .3 Million in Q3

10k okay and even if you’re getting you know a 20% gain on the hundred thousand dollars that’s only 20k per year all right after taxes taken out then you’re down to you know somewhere around 8 k and somewhere around maybe 16 17 k there okay that’s not enough to live off of unless you with your parents or something like that it’s just so unrealistic okay especially

In the united states maybe there’s some parts of the world you could live off eight thousand dollars or sixteen thousand dollars per year but united states like it’s just you just not gonna happen okay and you’ll not be able to do anything with that so 100 k completely out of it that’s so unrealistic like don’t even don’t even try that okay let’s bump it up a bit

Let’s say maybe about what about five hundred thousand dollars okay what about five hundred thousand dollars well five hundred thousand dollars if you’re getting ten percent per year five hundred thousand dollars then you’re doing you’re making about $50,000 per year you know that you can go ahead and have if you’re getting a 20% gain on that that’s a hundred

Thousand dollars okay now once again after taxes all sudden you’re looking at you know maybe forty two k somewhere around there roughly and here you may be looking at about eighty five thousand dollars somewhere around there okay after taxes which is not bad and some people could live off that okay some people can live off you know if you don’t have a family you

Don’t live in a very expensive market in the united states you can live off a four to two thousand a year or eighty five thousand dollars a year okay you’re certainly not gonna be able to live a lavish lifestyle and the main issue i kind of personally have with this is you have no extra you’re gonna have no extra money to go ahead and put back into stocks okay so

It’d be nice if you can get to a place where you’re making enough money where you could live a little nice lifestyle and maybe support you not only yourself but a family or something like that and then have more money to go ahead and deposit into your account so that five hundred thousand over time becomes five fifty and then six hundred and then eight hundred

Then a million and so on and so forth so at a half a million still you’re not you’re not cutting the mustard okay even with the ten or twenty percent gain in my personal opinion you can probably support yourself you’re a single person and a cheap market or something like that that’s fine but you’re not really building any extra which is what you really need to do

Because here’s the thing eventually you’re gonna have a bad year where you actually have a negative return and then you’re gonna have to sell stocks at that prices because you need money to live off of or something like that okay so five hundred thousand you know half a million dollars it’s still not enough in my personal opinion to cut it all right so let’s bump

This up let’s say a million dollars all right let’s say a million dollars and this in my opinions when you start to maybe get realistic remember this is just a million dollars invest in the stock market alone okay just in stock market alone know at this point a million dollars if you’re getting a 10 percent return now we’re talking about you’re getting a hundred

Thousand dollars in basically proceeds that you can sell off of stocks and make profits or dividends or whatever so after taxes that’s around eighty five thousand right and if we’ve got a million and we’re getting a 20 percent gain now we’re talking about 200k so and after taxes you’re probably looking at something around let’s say a 170 160 170 case so we’ll say

165 k there so know you’re starting to get to a place where it’s starting to make sense but even still now i’m not a big fan of this okay generally you got a million dollars just in stocks to your lifestyle you’re gonna want to live you’re probably gonna want to have a nice car in a nice house and eating nice meals and things like that so even at this stage like

Like you’re really not gonna have any extra money to funnel back in here because you’re probably your living expenses are probably just going to be more that’s generally just what happens and we nelson you become a millionaire you’re getting up to those type of numbers you know you don’t want to just live in you know or at least most people don’t just want to live

In an average house to drive an average car or something like that so i would say for the average person if you if you are content with driving a you know a 2004 toyota camry and living in you know in a very very average house and and those type of things and that’s great and maybe you can probably make it off of a million dollars but if you have if you want to

See also  Penny Stock to watch: American Premium Water Corp (HIPH)

Take up your lifestyle i’m just telling you it’s a million dollars it’s not gonna cut it but i would say this is a first number where if you live really really cheaply like you this kind of can start making sense because you can live really cheap and you can maybe funnel some money back into stocks here and there okay it just depends on your own situation the the

Amount of money in my opinion when i think is the ultimate like the perfect amount of money to like really start to like think about this is i think the perfect amount of money is around two million dollars okay but here’s the catch you also in my opinion should have $500,000 just and a savings account that is what you live off of for your living expenses okay so

If you’re living a decent lifestyle you could live off this money and not get any return on investment for you know many many years and you would be okay because this is where your living expenses emmons so essentially this means you really have about 2.5 million dollars two million dollars is in the stock market a half a million dollars in a savings account or

Something like that that it covers all your living expenses so you don’t have to ever worry about selling stocks or something like that and here’s how the numbers break down for this so a ten percent gain on this is obviously about two hundred thousand dollars that’s about one hundred and sixty five k or so after taxes if you’re getting 20% consistently and you

Great investor you’re making about four hundred k per year that’s you know roughly let’s say 325 k or somewhere around there after taxes we’re talking about big numbers where one your not your this money is basically able you’re able to just funnel this back in so you can build up that account bigger and bigger and i’ll send that that two million dollars can go

To two million one hundred and sixty five thousand dollars or two million three hundred and twenty five thousand dollars and you’re not having to count on that because you got this half a million that you’re able to you know support yourself and your family if you have a family and things like that okay so in my opinion 2.5 million dollars is the ultimate number

Where i feel like don’t in most parts of the world you know and you can make an argument that maybe in new york city if you live there or los angeles maybe that wouldn’t even cut it okay but i would say most parts united states most parts of the developed world if you have two million dollars in stocks and you can consistently get 10 to 20 percent per year and

You got a half million in the bank like you’re gonna be good you’re gonna cut it okay so that’s the number i would say for me personally i’d probably want to have at least 5 in stocks alone before i would start doing because i just tell you our living expenses are quite expensive even though we live in a cheap part it’s just you know having a family and you want a

Little nice lifestyle like it gets pretty expensive alright no i won’t tell you that’s the numbers okay i’m gonna tell you i went full-time as a stock market investor for about a year year and a half time this was after i left quick trip when i was 24 years old somewhere around there and i wanted to leave it in what i didn’t realize is it wasn’t so much i wanted

To just focus full-time on stocks it was also the fact that i think i was so done with quick trip my job i had at that time and i was just i just wanted to live my own life and make my own moves and do my own decisions and i think that really forced me into like a mentality of all i want to go full-time so bad okay and then i went full-time and at first it was

Amazing okay the first few days the first few weeks of going full-time as a stock market investor were absolutely amazing it was a great feeling okay but it wasn’t just so much a great feeling because i was going full-time as a stock market investors mainly a great feeling because i was i left though the workplace i was working out that i was just kind of done

And i wanted to wake up at whatever time i wanted to wake up on and do those type of things okay and so i started out this journey as being a stock market investor full time and what i found first off i didn’t have nearly enough money okay i’ve gotten consistently 30 to 40% gains per year okay so how i was thinking i had $200,000 in stocks okay i had $200,000 in

Stocks and our expenses were super cheap back there back then i didn’t have well when i first left the workplace i didn’t have a kid at that time or anything and you know also my wife had an income so we just lived a very modest lifestyle at that time we were living in like a two-bedroom apartment in charlotte north carolina and so why we’ve hardly spent any money

See also  My #1 Advice to all Investors Right Now

And so i thought $200,000 if i can get consistently gains i got for several years in a row 30 to 40 percent gains then maybe i’m clearing you know 60 k per year or something like that maybe 80 k per year which at that time was enough money for me okay because once again our living expenses were super cheap so i thought you know 200 k wasn’t being to be enough and

It wasn’t even nearly enough because what ended up happening was i got scared that it wasn’t enough i started actually working out the numbers and i realized i might have messed up here and then i started margining money out and then i started trading more way more often not just because of the margin but because also they had all this free time okay this is something

If you work if you work a normal job okay you work a normal job for 40 maybe 40 plus hours a week your mind as can assumed with that job in kind of what you have to do there and whatever you’re doing okay or if you have your own business you’re probably working 40 plus hours a week that your mind is consumed owes and you get all that time back and austin you got

A lot of free time and that can be fun but it can also hurt you because basically nelson you’re starting to think maybe i should be trading more often and also i’m looking at other stocks more often i’m like dang the stock just went up 10% today now why didn’t i buy that stock and also think you start thinking maybe i should start trading more often then you’re on

Margin and it’ll just was not it was not a conducive experience okay it was not something that was good in the end for me although i thought it was be able to be good so i can tell you most people want to go full time as a stock market investor mainly because they probably don’t like their job in the end and they’re like they don’t like what they do okay i can tell

You nowadays i love what i do so much that i literally care zero percent about going full-time as an investor okay if i had twenty million dollars fifty million dollars 100 million dollars i probably still wouldn’t care about going full-time as an investor and the reason being is i love what i do nowadays i wake up excited every single day to like make a youtube

Video i make a youtube video almost every single day i love they like having my private stock market membership group in the discord and chatting with everybody and you know teaching the people about stock market investing i love what i do so nowadays i don’t even care about going full-time it doesn’t matter how much money i had just because the simple fact that

I love what i do so much it you know i lived life on my own terms i record this video when i want to record this video no one’s telling me what to do i do stuff when i want to do it and that’s a beautiful way to live and i love what i do so it’s it’s a total different experience when i thought old man i can make it as on 200k you know it was so unrealistic and

The real reason the real reason when you dig down deep is really just because i wanted to do our own boss and do my own things and i didn’t want to listen to anybody anymore so in my opinion you might think you want to go full times the stock market investor but a lot of times guys it’s just because you don’t like your job or you don’t like what you’re doing on

The daily basis and so you just imagine this lifestyle of looking in front of a computer all day and watching the stock prices go up and down and in reading 10k zin listen conference calls and things like that which is cool and i love doing it but it’s not something i would mostly suggest for going full-time even if you’re super passionate like i was about stock

Market investing just because i think you’re gonna be a lot more tempted to trade if you’ve got nothing else going on in your life as far as like hobbies or like other things going on you know i think you’re just gonna be you know very tempted to trade more often which is if you’re a long-term value investor trading more often you’re generally gonna lose more money

Okay that’s just the way things work out trading in out of positions and whatnot generally it’s a value investor you just want to buy and hold for several years out three five seven ten years out and do it that way okay so that’s my opinion on this guy’s let me know what your thoughts are on this do you have plans to go full-time as an investor nothing wrong with

It i would love to hear from you guys down there in that comment section as always thank you for watching and have a great day

Transcribed from video
How Much Money You Really Need To Go Full Time Stock Market Investor By Financial Education

Scroll to top