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No, this is not a gimmick and there is no catch. $100 every month with employer match with an 8% annual return over 40 years comes out greater than $1 million.
Please don't tell me you cannot put away $100 a month - or $23 a week - towards retirement.
It depends on when you start. Here is a graphic that helps explain.
If you start today, 40 years from now you'll have $1 million, and if the next 40 years are anything like the last 40 years, that $1 million will afford you $190,602.93 of buying power. (In other words, it'll be like retiring today having less than $200k saved up, to last through a typical 35 year retirement.) That's enough money to live on for about 13 years, at or below poverty level, so you better hope you die very early, because you'll need three times that much to have a chance of your savings making it through your retirement - at poverty level.
Even so, it's still better than having NOTHING wouldn't you say? Your statistics go to prove only one thing. Instead of $100, people should be saving $200 or $300 per month instead of spending it on cable television, smartphones, useless vacations and overpriced cars.
Even so, it's still better than having NOTHING wouldn't you say? Your statistics go to prove only one thing. Instead of $100, people should be saving $200 or $300 per month instead of spending it on cable television, smartphones, useless vacations and overpriced cars.
20yrsinBranson
The first I agree with.
I'm not a believer of extreme frugality.
Smartphones can do wonderful things when completely utilized.
Not sure what you mean by useless vacations. A vacation is about experiences. They're usually worth the money, or why go.
Overpriced cars, that definition varies as to what overpriced is.
Can which should be possibly is the key word. I agree tho you have to be in the game as wealth now days doesn't just come from employer provided compensation ;you need to invest in this world economy. Its not just fro retirement either.
Well, I have not investigated the claims, however, Mr. Ramsey says that he has personally experienced a fairly consistent annual return of 12% with a few exceptions (when the economy severely tanked - I believe that 2008 was one of those years). If I were looking to make long-term investments in mutual funds I would certainly follow his advice to the letter. He really has no reason to lie, and the track record of the mutual funds that he endorses will prove him out. You do have to be willing to stay in for the "long haul" and invest consistently over a period of ten years or more without touching the money.
And yeah, I love the guy too. Let's face it, even if you HATE Dave, you are better off following his advice than trying to reinvent the wheel when it comes to financial advice.
And yeah, I love the guy too. Let's face it, even if you HATE Dave, you are better off following his advice than trying to reinvent the wheel when it comes to financial advice.
20yrsiNBranson
I totally agree. It is important to be conservative when running models for people, imo...under promise and over deliver? Maybe. Get people pointed in the right direction? Definitely.
Dave is good in capturing the attention of the "borrower is slave to the lender". I agree with most of what he says. I have different opinions on a couple things, but the Kool Aid only gives ME a buzz.
Save more, spend less. Live beneath your means. Save for tomorrow. All good things that baby boomers did not do. Which I believe that the Generation X and Y will be doing things a little different from their folks.
Save more, spend less. Live beneath your means. Save for tomorrow. All good things that baby boomers did not do. Which I believe that the Generation X and Y will be doing things a little different from their folks.
.... because we have no choice....
seriously, my 59.5 year old mother (who hasn't been employed since ABBA split up and relies solely on her crazy ex-husband) was crying on the phone 6 weeks ago about not knowing what she's going to do.... "only has enough money for a couple years"... "just doesn't want to think about it"...
What did she call to tell me last week????
She and her BFF just bought plane tickets for a two week vacation in Italy this fall.
Even so, it's still better than having NOTHING wouldn't you say?
That's not the point. The point is that trying to use the argument BCD tried to use was deceptive (possible self-deceptive). For many people, it matters whether a suggested solution actually solves the problem rather than just mitigates a fractional percentage. BCD's OP attempts to project the message that the resolution to the problem is far smaller than it really is - that the remedy can perhaps even be self-accomplished - thereby giving a rationalization for callous disregard for how our society treats others rather than motivating an honorable search for a true solution.
Quote:
Originally Posted by 20yrsinBranson
Your statistics go to prove only one thing. Instead of $100, people should be saving $200 or $300 per month instead of spending it on cable television, smartphones, useless vacations and overpriced cars.
My sister has none of those things. What is your next suggestion for her? What do you suggest she do, coming up on 50 years old, to secure her retirement, without compromising honorable values that you yourself wouldn't compromise, without sacrificing basic dignity, and without relying on hopes and luck?
an interesting view from dr wade pfau. dr pfau is one of the most influential researchers in the financial world today and sets the course for financial planners through out the industry with his research. personally i am not smart enough to really comment as to whether his calculations would be correct but judging from all the facts and figures he has brought to the financial world i do not feel i am qualified to second guess him.
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