Core Insights - Google stock (now Alphabet) has seen significant growth from around $37 per share in late 2015 to approximately $251 per share today, representing a growth factor of roughly 6.7 times over the decade [1][3] Investment Returns - A $10,000 investment in Google stock in late 2015 would be worth about $67,000 today, illustrating a solid return but potentially insufficient for retirement funding [1][3] - Different initial investment amounts and their corresponding values today are as follows: - $1,000 would be worth $6,700 - $5,000 would be worth $33,500 - $10,000 would be worth $67,000 - $25,000 would be worth $167,500 - $50,000 would be worth $335,000 - $100,000 would be worth $670,000 [3] Retirement Considerations - Financial advisors suggest needing 25 times annual expenses to retire safely using the 4% withdrawal rule [4] - For an annual retirement need of $40,000, approximately $1,000,000 would be required, necessitating an investment of about $150,000 in Google stock in 2015 [5] - For an annual retirement need of $60,000, around $1,500,000 would be needed, requiring an investment of about $225,000 in Google stock in 2015 [5] Investor Realities - Many individuals do not have $100,000 or more available to invest in a single stock, making it challenging to accumulate significant retirement savings solely through Google stock [6] - An investor who allocated $2,000 to Google stock in 2015 would have approximately $13,400 today, which, while a gain, is not substantial enough to be life-changing [7] Dividend Policy - Google/Alphabet does not pay dividends, opting to reinvest profits into growth, meaning investors cannot rely on dividend income for living expenses [8]
Could You Retire Today If You Had Bought Google Stock 10 Years Ago?