At 64? Over $1 mil and a paid off house. To hit $1 mil, you have to save something like $7,000 a year for 35 years. That's 15% of $50,000. Who can't do that?

My entire point of going with a 15 year life insurance plan, is that 15 years is PLENTY long for anyone in a professional type of job, small business owner, etc. to get their financial life in order.

I despise these 30 year plans: life insurance, mortgages, etc. There's way too many people that take a mortgage into "retirement" and never actually pay their house off. They take out HELOC and refinances to pay for a bunch of crap they don't need and can't afford.

If it takes you longer than 15 years, you aren't working hard enough and saving enough money to prepare yourself properly. Or you are like most Americans and living out of their means, running lives with a lot of risk, and in all kinds of completely unnecessary debt.

If you want to have a bigger house that takes forever to pay off, requires you longer to retire, longer to save money, and longer to take care of your family than that is fine. But my point is, 15 years is plenty long to do all of those things with proper planning.

This post was edited on 10/3/17 at 4:40 pm

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Posted by GenesChin

The Promise Land

Member since Feb 2012

37706 posts

Posted on 10/3/17 at 6:31 pm to baldona

quote:
baldona

Damn we are doing this song and dance again?

quote:
At 64? Over $1 mil and a paid off house.

The correct answer is it varies based on retirement goals, expected lifespan and acceptable level of risk in investing.

I need more than $1mil in the bank if I plan on keeping my lake house. Property taxes don't pay themselves

quote:
To hit $1 mil, you have to save something like $7,000 a year for 35 years.

Except that you aren't accounting for inflation / $1mil today isn't = $1mil in 35 years. Even At federal reserve historically low target inflation rates 2% that $1mil = $~2mil at that rate

If you were able to get market historical return rates (7.5%) you would need roughly $12,000 per year to hit ~$2,000,000

quote:
I despise these 30 year plans: life insurance, mortgages, etc.

Because you "suck" at saving / finance and don't recognize advantages of being g leveraged at low interest rates

quote:
They take out HELOC and refinances to pay for a bunch of crap they don't need and can't afford.

Not a 30 year mortgage's fault that people have spending problems

quote:
If it takes you longer than 15 years, you aren't working hard enough and saving enough money to prepare yourself properly.

This is financially inefficient if you believe your investment rate of return is greater than mortgage interest rate.

There also is liquidity risk and asset diversification problems with having a large chunk of your net worth tied up in one property