Objective:

Develop an
understanding of
the different ways I
can Invest

Estimated Median Salary Based on

Degree
Computer Engineering
Median Starting Salary: 70,300
2030 Salary Based on 10 year Employment
Median: ( Not Priced for Inflation:Priced for
Inflation) 103k: 85k
2040 Salary Based on 20 year Employment
Median: (Not Priced for Inflation: Priced for
Inflation): 153k:104k
2050 Salary Based on 30 year Employment
Median (Not Priced for Inflation: Priced for
Inflation): 227k: 126k

2020

2030

2040

2050

Where to
Invest?

So for the sake of the

presentation Im not going to
account for the presence of
unknown variables such as, will
I have children, will my wife
divorce and take the dogs, is
there a second income?
This is just me discovering and
going through different
avenues to figure out where
and how I should invest my
money and the potential
reward vs risk

Expenses
Im going to set a flat rate so it can be evaluated without a changing rate so that its
easier to determine the profitability of each plan and so that it can calculated with
relative ease. (I actually changed the initial first constant from 2% to 4% because it made
the whole thing really boring just because, the change in salary times the target change
inflation left the variable constant.)
Total Cost of Living: 45k
Remainder from Initial Salary: 25k
First Constant: Change in Salary 4% Increase Per Year; This is defined by the function (1.04^Y)(Salary)
Second Constant: Price of Inflation Target Federal Reserve 2% Per year; This is defined by the function
(1.04^Year's)(Salary)

Function of wealth over time without

investment
So I wanted to do this both priced for inflation and not priced for inflation, just kinda fun!
The function priced for inflation f(x) = (((.98 ^ Years) (1.04 ^ Years)) ( 25 Thousand)) (Years)
Total Wealth in 2050: 1.3 Million Dollars

0.98^x1.04^x25000^x
Whereas the rate of change is given by the function:
(10x50^2x26^ x49^x)/25x

Ownership: Real Estate

Average Return:
12.9% Over a 30
Year Period
Risk: Low
Return Investment
Allocated with Initial
Income: 1.469
Million
Involvement:

Real Estate: Renting

Paying just enough to take a down payment on a house and then
renting out the property for the mortgage for net-zero sum of profit.
Risk: High
Involvement: Very High
Return: 11 Million

Stocks: S&P 500 National Average

Risk: Low
Involvement: Low
Return Rate over 30 years: 14.69%
Return Investment 1.9 Million

Allocating Money off Interest Rates

Risk: Extremely Low
Involvement: None
Return Rate over 30 Years: .3%- 1.5%
Return Investment: 1.3035 Million - 1.3195 Million

Bonds
Risk: Low
Involvement: Low
Return Rate: 2.69%
Return Investment: 1.33497 Million

Conclusion
Diversifying a portfolio allows for a fairly low risk and moderate
reward margin. So while purchasing property, stocks and bonds leads
to a successful portfolio that limits the chance for the down spiral of
any one subset group to fail.

The
technology:
GPS + RFID