My goal for my 401k is to have $100k by 28, $500k by 38, $1M by 43, $3M by 54, and $5M by 59. I also have a modest pension that, if I continued to work at the same company for my whole career, would be worth about $42k/year at age 60.
That will allow me to live more than comfortably, any more than that and I probably wouldn't even be able spend it all. With 401k withdrawals, my pension, and social security, that comes to something like $275k/year, which is about $115k/year in today's dollars.
Beyond that I'd rather just save and invest in personal accounts so that I can enjoy my money before I'm all wrinkly.
It's based on some pretty conservative assumptions, something like 4% average yearly income increase and 6% average market return.wow, high targets there. more power to you.
This course should be taught in every school in the country. Mandatory.
Jesus, thats ridiculous and pathetic. I always wonder how many people my age have zero savings or retirement plans.
It's based on some pretty conservative assumptions, something like 4% average yearly income increase and 6% average market return.
22 and $12k. It's early, obviously.so how old are you now and how much is in your 401k?
It really is shameful how few people think about their future (there was a woman at my wife's work that during a group meeting with a financial planner asked "When should I start saving for retirement?" She was in her mid to late 40's).
And the saddest part is, you can be incredibly wealthy if you just plan a little bit. Just putting away $100 a month into long term mutual funds (9% is the number I used) for 40 years will get you about a half million dollars. While I personally would want a good deal more than 500k for retirement, that is certainly much better than what many people have (and certainly better than that $29k)
Moral of the story, start planning for your future NOW. If you don't have a plan to become a millionaire, now's a great time to make one, it really is within reach for just about everyone if you are willing to sacrifice a little, and make some plans.
How is that not the case?He believed that people think that because their home is paid off, their car is paid off, etc, they'll need less money. Obviously not the case.
I don't spend $10/day on food. Over in the dave ramsey circle the number thrown around is $100/month.
My goal for my 401k is to have $100k by 28, $500k by 38, $1M by 43, $3M by 54, and $5M by 59. I also have a modest pension that, if I continued to work at the same company for my whole career, would be worth about $42k/year at age 60.
That will allow me to live more than comfortably, any more than that and I probably wouldn't even be able spend it all. With 401k withdrawals, my pension, and social security, that comes to something like $275k/year, which is about $115k/year in today's dollars.
Beyond that I'd rather just save and invest in personal accounts so that I can enjoy my money before I'm all wrinkly.
22 and $12k. It's early, obviously.
1 of my sister is a nurse that make some what decent money, and she live from pay check to pay check. No way in hell she could control her self to put a way $50 a month (she relies solely on her nursing retirement plan).Yeah I think you'll have a lot of trouble convincing a lot of people living on a tight budget to save $100 a month. I don't know any of my friends that couldn't set aside $100 a month, and yet they don't.
No. I've managed to save $1000-$1200 per month outside of that. My personal savings is at about the same spot as my 401k. The joys of being single with a good job and no debt...dude that's solid. Do you put all your savings into the 401k? Just curious because I've been working for 3 years and that's about what my 401k is at. That being said, I have $30k in savings outside the 401k.
I never understand this. Does she have no desire to someday have the money for a house downpayment or a car or something?1 of my sister is a nurse that make some what decent money, and she live from pay check to pay check. No way in hell she could control her self to put a way $50 a month (she relies solely on her nursing retirement plan).
I'm on the other hand try to save $1000 a month, and some month I can't come up with the 1K goal but there are months that I was able to put away 2~2.5K
She have both, but with major help from my mom. My mom have bailed her out many times, and I'm assuming that my mom will bail her out again if needed be.No. I've managed to save $1000-$1200 per month outside of that. My personal savings is at about the same spot as my 401k. The joys of being single with a good job and no debt...
I never understand this. Does she have no desire to someday have the money for a house downpayment or a car or something?
How is that not the case?
The problem is, people over-estimate how much less they'll need. i.e. once your house is paid for, you no longer need the amount of your mortgage payment. You do, however, need to pay the property taxes & insurance on the house. Repairs - nothing's different - you were paying repairs before you retired; you'll continue to pay for repairs after you retire. (Personally, by the time I'm 55, I'll probably just put a 50 year roof on the house; that's the biggest possible repair.)
I know a number of retirees who purchased RVs, or purchased/built a new dream home, traveled extensively, etc. Suddenly, you're no longer working and have a significant chunk of your day freed up. Do you want to spend it at home, in the same house you've lived in for 30 years all day, every day? With that, how many people actually live in the same house for the duration of their mortgage?
But still, 190 won't cover at thing. The Govt is going to tax half of it, at least, property taxes, income taxes, etc. Whatever's left, you'll be spending on Salvation Army blankets and Food Bank canned rejects.