When I started this blog, I wrote about my goal of Financial Independence by 2040, http://www.stockles.com/about/. Let´s take a look. Will I make it? If we say that my principal (portfolio) is around $35000  at the moment, and that my age is around 24, how will things look in 2040?

Some factors:

  • It´s normal to consider an annual average growth at somewhere between 6 – 10 % in the stock market. I will be using 6 % in this calculation.
  • I´m going to use a yield at 4 %
  • I´m going to be pessimistic and say that I only add 2000$ each year, annually
  • The investment horizon is 23 years, 2040 – 2017 = 23
  • I´m going to show you one without reinvestment (DRIP = NO), and one with (DRIP = YES), and one with a bit more annual addition.
  • I´m neglecting inflation and wealth tax this time since the big variable is future salary. When that variable is set in stone, I´ll calcuate again with a much more accurate amount

Excited? Well, I am!

First is without DRIP:

After 23 years:


  • New Principal                                                $226682.89
  • Total Return                                                   181, 09 %
  • Avg Annual Return                                     7, 87 %


  • New annual Dividend Income                  $9107. 32
  • Dividend Paid out through 23 years   $97788.60
  • Yield on Cost                                                   11,24 %

Okey! Interesting. Well, annual dividend is $9107. It´s certently something, and it would make life easier at 2040 (when I´m 47 years). Since an average salary in Norway is around $60000, this annual dividend makes up about 1/5 of my income (I´m expecting to earn a lot more (!) than “average salary”, but that´s another story)

Second is with DRIP

After 23 years


  • New principal                                                  $472486.63
  • Total return                                                      482, 32 %
  • Avg Annual Return                                       21,01 %


  • New Annual Dividend Income               $18899. 47
  • Dividend Paid out through 23 years   $156584. 65
  • Yield on Cost                                                    23.33 %

Impressive, almost 30 % of average salary without doing anything. Cool, but nooot cool enough. I can´t quit a job and only live by the dividend income. So, what has to change? The way I see it, the easiest thing to change is my monthly or annually savings. Once I get a proper job, I will probably be saving around 30 – 40 % of that income, and putting about 20 – 30 % in the stock market. Let´s take a look at the new situation if I invest $10000 each year:


  • New principal                                              $1108830. 83
  • Total Return                                                 318, 43 %
  • Avg Annual Return                                  13,84 %


  • New Annual Dividend Income              $44353.23
  • Dividend Paid out through 23 years $337532.33
  • Yield on Cost                                                   16, 74 %

That´s enough to live a sweet life. Especially if I don´t live in Norway where a beer costs $10. Hurray! And there are even better news, I am most likely going to save more than $10000 each year, which will make this annual dividend even higher, and the waiting time will be reduced even further.

See you,




Anonymous · March 20, 2017 at 8:15 am

What about inflation ?

    Stockles · March 20, 2017 at 9:20 am

    True. For simplicity I neglected inflation this time. When I get a set salary and start working I´ll make a model that take this factor into account.

ambertree · March 20, 2017 at 11:38 am

All the best with your FIRE plans! In the about, i really love that you want to live while saving. Same here…!

Good that you start soon, the compounding will help you more.

    Stockles · March 20, 2017 at 11:41 am

    Thanks for the comment Ambertree. Looking forward to seeing both of us reach FIRE.

    Living while I save is a must. I see far to money FIRE investors that fail on this subject. Even though our strategy is 10 – 40 years a head, it´s important to remember that nothing in certain. Just got to filter out the things that doesn´t create any happiness or has a longterm positive effect.

    If interested in the subject, you should read this book:

    btw, I love reading your blog 😉

Anonymous · March 20, 2017 at 11:01 pm

I live in the US. Is the comma in your numbers meant to be a decimal point, or an actual comma? Not trying to be funny, but just trying to line up currencies. Either way, it is impressive and inspiring.

    Stockles · March 21, 2017 at 1:10 pm

    Someone was right! I should have used decimal point and not comma. Thanks!

Dividend Daze · April 7, 2017 at 2:01 pm

Love the post. I made a similar spreadsheet a while back that calculates this similar to how you have it laid out. Obviously, it’s difficult to track exactly due to inflation and market volatility among other factors. But it is important to see how much you need to save and invest in order to hit your goals and successfully live off of it in the future. Thanks for sharing.
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    Stockles · April 7, 2017 at 2:09 pm

    Hi Dividend Daze,

    It´s very inspering just to get an idea of what the future brings if one contiues to save and reinvest in our strategy. Using spreadsheets like this is just so hopefull. As you say, inflation is something to be considered for sure, also wealth tax. Thanks for commenting =)

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