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re: Lets say you plan on retiring at age 60 and you are now 30....
Posted on 7/10/18 at 12:38 pm to dragginass
Posted on 7/10/18 at 12:38 pm to dragginass
If you make 40k and get a 3% raise for 29 years straight that close to 6 figures
Posted on 7/10/18 at 12:41 pm to yellowfin
If it takes you 29 years to work your way to six figures you have made choices in the name of passion/convenience to forego opportunity.
Posted on 7/10/18 at 12:42 pm to yellowfin
I would hate to be just making close to 6 figures after 29 years of 3% raises.
Posted on 7/10/18 at 12:45 pm to dragginass
quote:
So like I said....
That also doesn't include your paid for house, and any retirement accounts your spouse has.
It also doesn't include the massive expense that is health insurance for a 50 year old individual/couple.
quote:
Lets also be real about the $40k salary you used. That's shite money for an older person. Sure that's fine for someone just starting off, but if we are being reasonable then we should all plan on advancing our careers and skills to a point where we are far removed from entry level pay.
A) I used inflation.
B) Saving 25% of your pretax earnings is all that really matters. That's a very healthy number. However, let's say you're only saving 15% (10% + match), but your income grows at 5% vs your spending growing at 3%. You'd run out of money around age 67 if you retired at 50.
Posted on 7/10/18 at 12:47 pm to slackster
quote:
I just ran some basic numbers for a single earner - assume $40k gross salary at 20 (which is far higher than median but whatever). Living in Louisiana. Saving 20% pre-tax with 5% match. Assuming $140/mth for all insurance, including life, you're looking at a take home of ~$2k. Let's say you spend all of that, either savings and spending down the road or on a monthly basis. Also, your wages increase by 3% annually and so to does inflation. Using a reasonable net rate of return of 6-6.5%, you'd be a millionaire in your 401k by 49. If you retired at 50, shifted your portfolio to reflect your withdrawal needs and now netted 5-5.5%, you'd likely run out of money by 73. If you retired at 55, you'd have a shot to make it to ~88ish. Long story short, it's definitely not "easy" to do, even for a single responsible person, by 50 or 55 without SS.
This thread wasn't meant to be that complicated
Posted on 7/10/18 at 12:48 pm to LanierSpots
quote:
Sounds like you need to save more
Probably
Posted on 7/10/18 at 12:49 pm to dragginass
quote:
If it takes you 29 years to work your way to six figures you have made choices in the name of passion/convenience to forego opportunity.
You're a fricking idiot. That puts you in like the top 10% of US earners.
This statement is the one that tells me you know absolutely nothing about finance or wage growth.
Posted on 7/10/18 at 12:50 pm to slackster
Health insurance is an issue but you're assuming someone would have the same expenses in retirement.
If you've planned appropriately and paid off your 15 year mortgage then at minimum you've entered retirement mortgage free. If you've been smart enough, early enough, then your mortgage is paid for in your early 40's and you have years of freed up cash for additional savings.
If you've planned appropriately and paid off your 15 year mortgage then at minimum you've entered retirement mortgage free. If you've been smart enough, early enough, then your mortgage is paid for in your early 40's and you have years of freed up cash for additional savings.
This post was edited on 7/10/18 at 12:51 pm
Posted on 7/10/18 at 12:50 pm to dragginass
quote:
If it takes you 29 years to work your way to six figures you have made choices in the name of passion/convenience to forego opportunity.
Amazing that the per capita in Louisiana is only 26k
Posted on 7/10/18 at 12:50 pm to slackster
quote:
slackster
quote:
Incomprehensible wall of text
Posted on 7/10/18 at 12:51 pm to Tester1216
quote:So what are these "nicer things" you speak of?
BellaTigre18
Posted on 7/10/18 at 12:52 pm to yellowfin
quote:That's gotta be per month, right?
Amazing that the per capita in Louisiana is only 26k
No wonder I see so many food stamp credit cards at Super One.
Posted on 7/10/18 at 12:53 pm to dragginass
quote:
If you've planned appropriately and paid off your 15 year mortgage then at minimum you've entered retirement mortgage free. If you've been smart enough, early enough, then your mortgage is paid for in your early 40's and you have years of freed up cash for additional savings.
So you bought a house at 20, paid off the mortgage in 15 years, and you'll remain in that house forever?
Posted on 7/10/18 at 12:54 pm to Count Chocula
quote:
Count Chocula
Hey numb nuts, how many more days do I have if I never retire?
Posted on 7/10/18 at 12:56 pm to LCA131
quote:Your life expectancy is about 80. So I'll give you a week or two.
Hey numb nuts, how many more days do I have if I never retire?
Posted on 7/10/18 at 1:00 pm to Mingo Was His NameO
quote:
That puts you in like the top 10% of US earners.
quote:
Also, your wages increase by 3% annually and so to does inflation.
A wage that puts you in the top 10% of earners in 2018 won’t be the same in 2048.
Posted on 7/10/18 at 1:02 pm to TH03
quote:
A wage that puts you in the top 10% of earners in 2018 won’t be the same in 2048
Inflation doesn't rise at a rate of 3%, but that's really not that important. Either way, 100k in 30 years is still going to be a really good salary.
Posted on 7/10/18 at 1:02 pm to slackster
quote:
So you bought a house at 20, paid off the mortgage in 15 years, and you'll remain in that house forever?
Umm no. I said entire retirement mortgage free at minimum. You could buy a house at 20, pay off at 35 and buy another and still be done at 50.
Posted on 7/10/18 at 1:02 pm to Mingo Was His NameO
quote:
Either way, 100k in 30 years is still going to be a really good salary.
You're kidding, right?
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