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Three percent is consistently great raises?
Your first attempt had the utterly ridiculous 5% raise per year from age 21 on.
Eight to ten percent is a reasonable long term investment return
From graduating college to our measure of someone in their 20s isn't long term
A 4% employer match is typical, not great.
No, it isn't. The most common is 3%, and many companies do less, and many companies don't even offer 401ks or matches.
OK, yes student loan debt is a reality for many people
But not reality when you're trying to make a formula work for an "average" accumulator of wealth
Not 30%, 15% of income plus $5000 for a Roth.
Where does the 5k come from? Oh yeah, income. You wrote:
40000 salary
7600 401k
5000 Roth
Three percent is consistently great raises?
Your first attempt had the utterly ridiculous 5% raise per year from age 21 on.
Eight to ten percent is a reasonable long term investment return
From graduating college to our measure of someone in their 20s isn't long term
A 4% employer match is typical, not great.
No, it isn't. The most common is 3%, and many companies do less, and many companies don't even offer 401ks or matches.
OK, yes student loan debt is a reality for many people
But not reality when you're trying to make a formula work for an "average" accumulator of wealth
Not 30%, 15% of income plus $5000 for a Roth.
Where does the 5k come from? Oh yeah, income. You wrote:
40000 salary
7600 401k
5000 Roth
I am 37, I want to quit my Job and cash out my 401k and start a business.. I only have about 22000 in it... I know the businees and i dont like my job.. I think I could make the money back, in about a year i would be taking out of my 401K..
If all you have is 22k at 37 and your going to roll the dice with it thats something i would never do.
As it is thats not much dough at almost 40 . The business grave yard is filled with great hopes and ideas but were under capitalized.
I am 37, I want to quit my Job and cash out my 401k and start a business.. I only have about 22000 in it... I know the businees and i dont like my job.. I think I could make the money back, in about a year i would be taking out of my 401K..
No, I wouldn't recommend this.
If I had a dollar for every article I've read where they profile some financial train wreck person that cashed out their retirement accounts to open a business that failed I'd be retired right now. There are usually either suffering financial hardship or calculating that they'll have to work until age 118 to rebuild their nest egg.
Remember two things about opening a business:
1. Most fail
2. People who start them believe they'll succeed
If you want to start a business good luck I wish you success, but you need to raise startup capital the proper way and tapping your personal retirement money isn't it.
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