If You Invested $584K in Disney 10 Years Ago, You Could Retire Today

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Disney’s stock has had periods of rapid growth over the past 10 years. While the stock is currently down from its all-time high, it’s still up significantly from 2014. So how much would you need to have invested in Disney 10 years ago to be able to retire on that money?
Also, discover how much your current Disney shares are projected to be worth in 5 years.
How Much Do I Need To Save To Retire?
You can use a variety of methods to estimate the amount of money you’ll need in retirement. Since everyone may have different needs and expenses in retirement, no single method will fit every situation.
Some financial experts recommend a simple rule: If you want to retire at age 67, you should have at least 10 times your annual salary in savings. This means that if you currently make $100,000 a year, you would want to have at least $1 million in savings by age 67.
What Does the 10x Rule Look Like for the Average American?
If we use the 10x rule, we can calculate how much the average American may need to save to retire at 67 years old. All we need to do is take the median U.S. salary and multiply it by 10.
According to data from the U.S. Census Bureau, the median American made $75,149 in 2022. If we take this number and adjust for inflation, we get a 2024 median salary of $82,948. This means that the average American should aim to have at least $829,480 saved by retirement age.Â
Of course, this is a general guideline that should be used only to get a ballpark estimate. Before making any financial decisions, make sure to speak to a financial advisor who can walk you through the details of your financial situation. Assets and expenses, such as mortgages, loans and insurance policies, may have a significant effect on how much you will need to save. A good financial advisor can put together a savings plan that’s tailor-made for you based on your income, expenses and risk tolerance.
Disney’s Stock Growth Since 2014
As of March 15, 2024, the current price of Disney’s stock is $111.95. This is up 41.98% from 10 years ago when the stock was trading at $78.85 per share.
So how much Disney stock would you have needed to buy 10 years ago to be able to retire today? We can take our previous estimate for the amount of retirement savings the average American should have at 67 and compare that with Disney’s growth in the past 10 years:
$78.85 / $111.95 * $829,480 = $584,229.55
If you invested $584,230 in Disney stock in 2014 and you were 67 or above today, you would have enough to retire.
When Was Disney’s Peak Value?
The peak of Disney’s stock value was on March 8, 2021, when the stock closed at an all-time high of $201.91.Â
Twenty years ago, On March 15, 2004, Disney’s stock closed at a price of $24.61. This means that if you had invested in Disney 20 years ago and timed your sale during the stock’s peak in 2021, you could have made almost 10 times your money.Â
If you had bought $101,102 of Disney stock in March 2004 and sold it in March 2021, you would now have $829,480 — enough for the median American’s retirement needs.
How Much Has Disney Grown Since Its IPO?
Disney’s initial public offering (IPO) was almost 70 years ago, in November 1957. At the time, the stock was valued at $13.88. Since then, the stock has split seven times. If you had bought one share of Disney during its IPO, you would have 384 shares today. This means that $1,000 invested in Disney stock during its IPO would be worth more than $3 million today, without counting the income from dividends.Â
It can be tempting to try to find the next investment that will grow exponentially. Unfortunately, while some companies can have incredible growth, trying to find them can be risky. While some stocks can significantly outpace the market, index funds that track the whole market or certain sectors can be safer and more effective for investors. Disney’s stock and the S&P 500 have had almost the same rate of return over the past 20 years, and there are many other companies out there that have not kept pace with the market. Investors who place all of their money in just one or two stocks expose themselves to significant risks.
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