an investment, that annually earns you 12% of the initial money,

>>2740943
god tier obv

>>2740943
Under 3 is weak, 3-4 is avg, 5-6 is good, 6+ is god tier and requires hard work or knowledge to maintain.

>>2740943
I would do her.

>>2740943
ARK.

>>2741100
He meant real money, not monopoly money

>>2741005
Note that OP just wants 12% of the initial money, not 12% interest p.a.

>>2740943
S&P 500 annual average is around 10%.
You can achieve your goal of 12% of the initial capital with compounding and waiting for the first 2 years.

Regular S&P 500 compounded:
Year 0 capital: 1.00
Year 1 capital: 1.10
Year 2 capital: 1.21
Year 3 capital: 1.33
Year 4 capital: 1.46
Year 5 capital: 1.61
Year 6 capital: 1.77
Year 7 capital: 1.95
Year 8 capital: 2.14
Year 9 capital: 2.36
....

You can take out 12% of the INITIAL CAPITAL (1.0) after the 2nd year.

Year 0 capital: 1.00
Year 1 capital: 1.10
Year 2 capital: 1.21
Take out 12% of original capital. Remaining: 1.21
Year 3 capital: 1.21
Take out 12% of original capital. Remaining: 1.21
Year 4 capital: 1.21
Take out 12% of original capital. Remaining: 1.21
Year 5 capital: 1.21
Take out 12% of original capital. Remaining: 1.21
Year 6 capital: 1.21
Take out 12% of original capital. Remaining: 1.22
Year 7 capital: 1.22
Take out 12% of original capital. Remaining: 1.22
Year 8 capital: 1.22
Take out 12% of original capital. Remaining: 1.22
Year 9 capital: 1.22
Take out 12% of original capital. Remaining: 1.22

Messed up. You have to wait 3 years until it's compounded enough to take out 12% of the initial capital.

Year 0 capital: 1.00
Year 1 capital: 1.10
Year 2 capital: 1.21
Year 3 capital: 1.33
Take out 12% of original capital. Remaining: 1.21
Year 4 capital: 1.33
Take out 12% of original capital. Remaining: 1.21
Year 5 capital: 1.33
Take out 12% of original capital. Remaining: 1.21
Year 6 capital: 1.33
Take out 12% of original capital. Remaining: 1.21
Year 7 capital: 1.34
Take out 12% of original capital. Remaining: 1.22
Year 8 capital: 1.34
Take out 12% of original capital. Remaining: 1.22
Year 9 capital: 1.34
Take out 12% of original capital. Remaining: 1.22
Year 10 capital: 1.34
Take out 12% of original capital. Remaining: 1.22

This works with any interest rate if you ignore inflation (as you did in the OP). You just have to let it compound long enough. With 7% interest, you can withdraw 12% of the initial capital after 9 years.

7% compounded:

Year 0 capital: 1.0
Year 1 capital: 1.07
Year 2 capital: 1.14
Year 3 capital: 1.23
Year 4 capital: 1.31
Year 5 capital: 1.40
Year 6 capital: 1.50
Year 7 capital: 1.61
Year 8 capital: 1.72
Year 9 capital: 1.84
Take out 12% of original capital. Remaining: 1.72
Year 10 capital: 1.84
Take out 12% of original capital. Remaining: 1.72
Year 11 capital: 1.84
Take out 12% of original capital. Remaining: 1.72
Year 12 capital: 1.84
Take out 12% of original capital. Remaining: 1.72
Year 13 capital: 1.84
Take out 12% of original capital. Remaining: 1.72
Year 14 capital: 1.84
Take out 12% of original capital. Remaining: 1.72
Year 15 capital: 1.84
Take out 12% of original capital. Remaining: 1.72
Year 16 capital: 1.84
Take out 12% of original capital. Remaining: 1.72
Year 17 capital: 1.84
Take out 12% of original capital. Remaining: 1.72
Year 18 capital: 1.84
Take out 12% of original capital. Remaining: 1.72
Year 19 capital: 1.84
Take out 12% of original capital. Remaining: 1.72
Year 20 capital: 1.84
Take out 12% of original capital. Remaining: 1.72

In short, you can withdraw 12% annually as soon as:
(capital - 0.12) * gain > capital

>>2741215
Do you know if there's a specific name for this sort of calculation? It's essentially perpetuity, right?

>>2741244
Not sure if it has a name but you can just calculate compound interest for every year and apply that criterion >>2741215

You can include inflation by subtracting it from the annual interest, so say S&P 500 yields 10%, and inflation is 3% = 7%.

So if you put your money in S&P 500 now, you get a perpetual income equal to 12% of your initial capital adjusted by inflation, starting after 9 years.

Roughly, on average