re: Lets say you plan on retiring at age 60 and you are now 30....

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.

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So like I said....

That also doesn't include your paid for house, and any retirement accounts your spouse has.

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It also doesn't include the massive expense that is health insurance for a 50 year old individual/couple.

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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.

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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.

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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.

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This thread wasn't meant to be that complicated

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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.

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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.

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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.

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Amazing that the per capita in Louisiana is only 26k

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slackster

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Incomprehensible wall of text

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Amazing that the per capita in Louisiana is only 26k

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That's gotta be per month, right?

No wonder I see so many food stamp credit cards at Super One.

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Count Chocula

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Hey numb nuts, how many more days do I have if I never retire?

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That puts you in like the top 10% of US earners.

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Also, your wages increase by 3% annually and so to does inflation.

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A wage that puts you in the top 10% of earners in 2018 won’t be the same in 2048.

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So you bought a house at 20, paid off the mortgage in 15 years, and you'll remain in that house forever?

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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.