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Question: A lot of people love a cup of high-quality coffee (or tea) bought at their favorite coffee shop on a daily basis. Imagine that instead of buying that cup, you save the money and invest (on a monthly basis,
such as Acorns or Stash) into a 50/50 mix of low cost stock index fund and investment. grade. bonds. for an inflation adjusted after-fee return of 6% a year.. How much. would you accumulate by the time you retire? You will need to make the following assumptions::
1) Come up. with a reasonable price for a cup. of coffee. (or tea). If you don't buy coffee. every day, think of some other unnecessary daily or near-daily expense. In any case, you'll need that price.
2) Just add up the total monthly. cost you spend. on coffee (or something else) - this total monthly cost is your monthly investment (at 6% per year, but you can use 0.5% per month)
3) .Determine your retirement date (how many years/months away)....
How much would you accumulate by the time you retire?
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