Phase One: My Downside
If I cannot reach an average higher than the S&P over that period after five years of trading, I will focus on passive investments like ETFs. If I see that the returns have not progressed upwards over three months, I would hold cash and wait until my returns have gone back to their normal levels or beat a strong resistance line. This should significantly improve my returns. If I were then to place the money in high return ETF's, I should average 40 percent per year by investing in midcap elf's, which increase in value faster than the S&P 500 during uptrends. Let's assume I were only to let the portfolio dropped 10 percent and then retraced before reinvesting; I could average 25% per year, assuming two good years and one bad year, so let's assume we can only get 16 percent average after inflation. I could invest $20,000 per year for ten years until my parents can finally retire and then only add $10,000 to make up for the lost money my parents would get from social security compared to their job. Then I assume that I work until I am 50, then I would have $5,200,000. I would likely stay with my parents until they pass away at around 85, so I would place my spending at $50,000 per year for five years, resulting in a portfolio worth $7,300,000, assuming an 8 percent return after 50. I would then be able to spend $500,000 for the remaining 30 years, which would afford me the life I would like. And if I am not able to outperform the S&P500 over the first four years, I should still have about $85,000 to put towards starting a business that can help fund the portfolio.