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Old 07-13-2013, 09:52 AM
 
Location: East Coast of the United States
15,664 posts, read 18,206,684 times
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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.
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Old 07-13-2013, 11:30 AM
bUU
 
Location: Georgia
11,699 posts, read 8,159,083 times
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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.

Of course, your scenario fails on several other counts, as well. I haven't had an employer match for over 15 years. 42% of employers offer no employer match for their employees.

Also: Expecting an 8% return over 40 years, while a pretty reliable expectation in the past, may or may not be such over the next 40 years.

Your scenario also precludes anyone from getting married and having children that they stay home and care for, since that'll be one less breadwinner saving $100 a month. Wait: I forgot: Mothers spending the first few years with their newborn babies is only for very wealthy people.

I put away an order of magnitude more than that per month, but for my sister putting $100 a month away is absolutely out of the question, and your feigned-outraged, condescension toward, and callous disregard for, her situation is offensive and utterly without merit.
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Old 07-13-2013, 04:25 PM
 
8,711 posts, read 8,906,804 times
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My fears exactly. $1mil won't be much when I'm ready to retire.

I "woke up" at an early age and started dumping cash into my 401k and IRA and still fear that 3-4million by retirement might not be enough.
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Old 07-13-2013, 04:39 PM
 
2,350 posts, read 4,258,628 times
Reputation: 2946
Quote:
Originally Posted by BigCityDreamer View Post

Please don't tell me you cannot put away $100 a month - or $23 a week - towards retirement.
I can't afford $23 a month, and here's why:
Daily $4 starbucks (even though coffee is free at work)
Latest iPhone (even though all I do is make phone calls and view facebook)
5 gig data plan (even though I only use 800M a month)
New rims for my car
Air conditioning on when it is 75F outside
300 cable channels
Restaurant meals four times a week
$80 monthly yard mowing service (so I can free up some time to walk on a treadmill at my $50/month gym)
Automatic sprinklers watering my lawn - while it is raining outside.
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Old 07-13-2013, 04:54 PM
 
24,511 posts, read 34,115,918 times
Reputation: 12779
Quote:
Originally Posted by plmokn View Post
I can't afford $23 a month, and here's why:
Daily $4 starbucks (even though coffee is free at work)
Latest iPhone (even though all I do is make phone calls and view facebook)
5 gig data plan (even though I only use 800M a month)
New rims for my car
Air conditioning on when it is 75F outside
300 cable channels
Restaurant meals four times a week
$80 monthly yard mowing service (so I can free up some time to walk on a treadmill at my $50/month gym)
Automatic sprinklers watering my lawn - while it is raining outside.
Let's put the real reason up.

"I choose to make a low income"
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Old 07-14-2013, 08:47 AM
 
1,924 posts, read 1,913,732 times
Reputation: 1196
Quote:
Originally Posted by plmokn View Post
I can't afford $23 a month, and here's why:
There aren't any actual people who fit your description. These are phony caricatures manufactured for distribution to the easily fooled and misled. You should have seen it all coming, but apparently didn't.
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Old 07-14-2013, 10:06 AM
 
1,260 posts, read 2,149,565 times
Reputation: 373
Quote:
Originally Posted by BigCityDreamer View Post
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.
Yes, its possible. But ideally someone would have to start saving in their 20s.

Also, I hope noone just not only add $100 in their 401k per month
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Old 07-14-2013, 11:02 AM
 
1,679 posts, read 2,485,718 times
Reputation: 1284
Quote:
Originally Posted by BigCityDreamer View Post
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.
Inflation at 2% or 3% reduces the 1 million to

at 2% - 450K
at 3% - 300K
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Old 07-14-2013, 11:14 AM
 
24,696 posts, read 26,777,106 times
Reputation: 22704
Quote:
Originally Posted by BigCityDreamer View Post
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.
Ehh.., your math is off. With a 3% match ($103 per month), over 40 years at 8%, I came up with $361K.

FinAid | Calculators | Savings Growth Projector

This also assumes no breaks in employment, which is not realistic.

But I do agree with the general thinking. $360K is not a lot but it's still more than most people retire with. Combined with Social Security, it would provide an adequate retirement, assuming your house is paid off by then.
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Old 07-14-2013, 01:38 PM
 
375 posts, read 578,548 times
Reputation: 359
Quote:
Originally Posted by mysticaltyger View Post
Ehh.., your math is off. With a 3% match ($103 per month)
huh?

If an employer matches 3%, that is 3% of your monthly income.

For instance, my company matches dollar for dollar the first 6%. If I make $10k per month (hypothetically), put $600 into my 401k, my employer will put another $600 on top. Free money.
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