When I started this blog, I wrote about my goal of reaching Financial Independence by 2040. Let’ 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 somewhere between 6 % to 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 $2,000 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 recalculate with a more accurate amount.

Excited? Well, I am!

First is without DRIP:

After 23 years:


  • New Principal                                                $226,682.89
  • Total Return                                                             181.09%
  • Avg Annual Return                                                     7.87%


  • New Annual Dividend Income                         $9107.32
  • Dividend Paid out through 23 years            $97,788.60
  • Yield on Cost                                                               11.24%

Okay! Interesting. Well, the annual dividend is $9,107. It’s certainly something, and it would make life easier in 2040 (when I’m 47 years). Since an average salary in Norway is around $60,000, 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                                                 $472,486.63
  • Total return                                                                482.32%
  • Avg Annual Return                                                      21.01%


  • New Annual Dividend Income                        $18,899.47
  • Dividend Paid out through 23 years            $156,584.65
  • Yield on Cost                                                                 23.33%

Impressive, almost 30% of the average salary without doing anything. Cool, but NOT cool enough. I can’t quit my 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 annual savings. Once I get a proper job, I will probably be saving around 30% to 40 % of that income and putting about 20% to 30 % in the stock market. Let’s take a look at the new situation if I invest $10,000 each year:


  • New Principal                                                 $110,8830.83
  • Total Return                                                                318.43%
  • Avg Annual Return                                                      13.84%


  • New Annual Dividend Income                        $44,353.23
  • Dividend Paid out through 23 years            $337,532.33
  • 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 is even better news, I am most likely going to save more than $10,000 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.

    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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