i only have thirty more years until i'm supposed to retire

[markgm]

If you're not making enough to save anything then maybe you're making too little that social security will be enough to live on.

 

[coldmeat]

30 years isn't a long time to save for retirement? I'm 20 and a student, so I obviously don't know much about retirement, but I thought 30 years was a long time.

 

[DisgruntledVirus]

Originally posted by: coldmeat
30 years isn't a long time to save for retirement? I'm 20 and a student, so I obviously don't know much about retirement, but I thought 30 years was a long time.

It's amazing what compounding growth does for money.

I am 22, started saving at 20. I am "planned" to retire in 2052 (checked today), which means over 40 years for me left.

Here's a simple example (obviously there are many factors involved, this just illustrates the compound growth aspect):

$10,000 invested for 40 years, with no additional funds invested at a 5% interest rate gives you have $73,584.17

$10,000 invested for 35 years, with no additional funds invested at a 5% interest rate gives you have $57,337.18

$10,000 invested for 30 years, with no additional funds invested at a 5% interest rate gives you have $44,677.44

So in the course of 10 years you almost double your money.

 

[tailes151]

It won't be as little as you think. Start investing in stocks, bonds, and money markets now. The close you get to retirement the more you want to move out of stocks and into bonds and money markets.

Let's say you can put away 10,000/year. If you can earn an average interest rate of around say 9% (which given the time you have left seems very attainable,) and we assume an average inflation rate of 4% then the real rate you'll earn (on average) is approximately 4.8076% ( -- [(1.09/1.04)-1] -- )

Given these conditions you'll have $642,850 of pure purchasing power in 30 years time, meaning you'll have the same value as 642,850 today. In nominal terms, you'd have. $1,363,075.

If, when you do retire, you continue to earn approximately the same interest rates as we assume above, you can expect to have $30,905 (real terms) to spend every year off of the interest alone.

 

[Noirish]

Originally posted by: DisgruntledVirus

Originally posted by: coldmeat
30 years isn't a long time to save for retirement? I'm 20 and a student, so I obviously don't know much about retirement, but I thought 30 years was a long time.

It's amazing what compounding growth does for money.

I am 22, started saving at 20. I am "planned" to retire in 2052 (checked today), which means over 40 years for me left.

Here's a simple example (obviously there are many factors involved, this just illustrates the compound growth aspect):

$10,000 invested for 40 years, with no additional funds invested at a 5% interest rate gives you have $73,584.17

$10,000 invested for 35 years, with no additional funds invested at a 5% interest rate gives you have $57,337.18

$10,000 invested for 30 years, with no additional funds invested at a 5% interest rate gives you have $44,677.44

So in the course of 10 years you almost double your money.

right, then you hit whatever-f'ing-bubble at that time, and it set you back more than you started.

 

[Special K]

Originally posted by: DisgruntledVirus

Originally posted by: coldmeat
30 years isn't a long time to save for retirement? I'm 20 and a student, so I obviously don't know much about retirement, but I thought 30 years was a long time.

It's amazing what compounding growth does for money.

I am 22, started saving at 20. I am "planned" to retire in 2052 (checked today), which means over 40 years for me left.

Here's a simple example (obviously there are many factors involved, this just illustrates the compound growth aspect):

$10,000 invested for 40 years, with no additional funds invested at a 5% interest rate gives you have $73,584.17

$10,000 invested for 35 years, with no additional funds invested at a 5% interest rate gives you have $57,337.18

$10,000 invested for 30 years, with no additional funds invested at a 5% interest rate gives you have $44,677.44

So in the course of 10 years you almost double your money.

With inflation running at 3+%, the buying power of your money will be less. Hopefully we can count on 8-10%+ nominal returns on stocks from here on out, but a lot of people seem to think that even 8% is optimistic. We had a huge bull market from 1982-2000, and some think it's doubtful that will ever occur again.

 

[Penth]

Originally posted by: Special K

Originally posted by: DisgruntledVirus

Originally posted by: coldmeat
30 years isn't a long time to save for retirement? I'm 20 and a student, so I obviously don't know much about retirement, but I thought 30 years was a long time.

It's amazing what compounding growth does for money.

I am 22, started saving at 20. I am "planned" to retire in 2052 (checked today), which means over 40 years for me left.

Here's a simple example (obviously there are many factors involved, this just illustrates the compound growth aspect):

$10,000 invested for 40 years, with no additional funds invested at a 5% interest rate gives you have $73,584.17

$10,000 invested for 35 years, with no additional funds invested at a 5% interest rate gives you have $57,337.18

$10,000 invested for 30 years, with no additional funds invested at a 5% interest rate gives you have $44,677.44

So in the course of 10 years you almost double your money.

With inflation running at 3+%, the buying power of your money will be less. Hopefully we can count on 8-10%+ nominal returns on stocks from here on out, but a lot of people seem to think that even 8% is optimistic. We had a huge bull market from 1982-2000, and some think it's doubtful that will ever occur again.

I funded my Roth IRA for the first time last year. $4500 is now worth $2200. Last year was bad for retirement savings. Luckily my investing account is up 30% so far this year.

 

[preslove]

So... we're all glad bush didn't privatize social security, right?

 

[rasczak]

Originally posted by: krylon

Originally posted by: Newbian

Originally posted by: Rumpltzer

Originally posted by: AdamK47
How old are you now?

Also, please let us know your gender and location.

And the time you sleep.

And how big your penis is

34/M/CA.
11pm
3 inches on a good day?

was that the right format?

 

[BigJelly]

Originally posted by: preslove
So... we're all glad bush didn't privatize social security, right?

she's 30 years from retirement and since SS will have to cut payments in 20 years, admitted by the biggest SS cheerleaders, she should be angry SS is not priviatized.

She could have been putting 6.2% away without SS taxes (or 12.5% if she was/is self employed) and it would be HER money in HER name; instead of being spent by politicans with their pet projects leaving her an IOU come retirement time.

2008 should have been a shinning example of why we need to privatize SS. Because as bad as 50 billion dollars was, it doesn't hold a candle to the ponzi sceme that SS is.

BigJelly is just a rightwinger, don't listen to him, blah, blah, blah. But I am maxing out my Roth IRA and contributing 21.6% (with company match) of my paycheck to my 401k (I will check my finances to see if I can contribute more), solely because I BELIEVE that I wont see a penny from SS when I retire in 40 years.

Putting your faith in government is the quickest way to absolute failure.

 

[Special K]

Originally posted by: BigJelly

Originally posted by: preslove
So... we're all glad bush didn't privatize social security, right?

she's 30 years from retirement and since SS will have to cut payments in 20 years, admitted by the biggest SS cheerleaders, she should be angry SS is not priviatized.

She could have been putting 6.2% away without SS taxes (or 12.5% if she was/is self employed) and it would be HER money in HER name; instead of being spent by politicans with their pet projects leaving her an IOU come retirement time.

2008 should have been a shinning example of why we need to privatize SS. Because as bad as 50 billion dollars was, it doesn't hold a candle to the ponzi sceme that SS is.

BigJelly is just a rightwinger, don't listen to him, blah, blah, blah. But I am maxing out my Roth IRA and contributing 21.6% (with company match) of my paycheck to my 401k (I will check my finances to see if I can contribute more), solely because I am BELIEVE that I wont see a penny from SS when I retire in 40 years.

Putting your faith in government is the quickest way to absolute failure.

I wish we could just opt out of SS. Anyone with a basic understanding of investing could beat the returns of SS over their lifetime. Of course, any Ponzi scheme relies on the money of new investors to pay off older investors, so opting out of SS will never be allowed because it would cause the whole system to break down.