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My answer is "No." Like some others posted above, $3,000,000 in today's dollars could be reasonable to retire on. I think by the time I retire I will make it to $3,000,000 but not in today's dollars.
IMO, $2 million is no big deal either.
Unfortunately for savers trying to get to $3 million, you have to be prepared for both inflation and a stock market crash at the same time. You have to be primarily invested in stock mutual funds, preferably low expense index funds, and dollar cost average into them. And do not make sudden emotional moves based on alarmist articles saying a huge crash is going to happen this year or the opposite. If you move slowly and have an asset allocation plan, you don't worry too much. I was fully into stocks in the 2000 crash. 80% into stocks in the 2008 crash. But kept dollar cost averaging.
In my case I won't be eligible for Medicaid for another 11 years and my company pays for my health insurance in the meantime. So I have to really be on top of my health. It gets tougher every year. Even a nutritional deficiency like I just realize is what I am having, can be very costly in copaid doctor visits, tests, and so on.
I surpassed the one million mark a few years ago and before I hit age 50. It's grown since then. At the time, I considered it quite an accomplishment, and I still do. Certainly it gives me peace of mind, and the assurance that I can financially handle any emergency or unexpected expense. Regardless, I live as if I don't have this money as my retirement fund continues to grow.
I surpassed the one million mark a few years ago and before I hit age 50. It's grown since then. At the time, I considered it quite an accomplishment, and I still do. Certainly it gives me peace of mind, and the assurance that I can financially handle any emergency or unexpected expense. Regardless, I live as if I don't have this money as my retirement fund continues to grow.
Me too but being taxed to death made it harder to get there and that was even when being debt free. I went to several CPA's but no help. There is a peace of mind when reaching the $1 million mark but I know it won't be enough to "pay my way" for the rest of my life.
I surpassed the one million mark a few years ago and before I hit age 50. It's grown since then. At the time, I considered it quite an accomplishment, and I still do. Certainly it gives me peace of mind, and the assurance that I can financially handle any emergency or unexpected expense. Regardless, I live as if I don't have this money as my retirement fund continues to grow.
No one is saying its not quite the accomplishment.
Just that "a million doesn't buy what it used to"
As someone said, due to inflation the "old millionaire" is now more like 5.
I did too at 50. And it's higher now. My goal at 40 was to get a $1 million by 50 and that was a fine feeling of accomplishment. But still it's not enough to retire on. I'm only in my mid 50s and still like working. Always thought retirement is for people at least 65 years old.
Quote:
Originally Posted by Iggier
I surpassed the one million mark a few years ago and before I hit age 50. It's grown since then. At the time, I considered it quite an accomplishment, and I still do. Certainly it gives me peace of mind, and the assurance that I can financially handle any emergency or unexpected expense. Regardless, I live as if I don't have this money as my retirement fund continues to grow.
Yep and if you are trying to build your wealth it is now much harder due to higher taxes on income. Tax the rich, and they end up raising taxes on people who earn income who are not rich.
Truly rich people do not work for wages as politicians want people to believe. Why do they want people to think that? So they can get the financially uneducated worked up to support raising taxes therefor funneling more money to government and make people think they are sticking it to the rich.
Please explain to me how burdensome taxes are on the rich. Specifically federal income tax if you don't mind and please tie in a historical perspective
Progressive taxes, the more you make the more they take
That's how it should be
Quote:
Originally Posted by petch751
It's no damn wonder people find it hard to save. You think.. if I get that raise, life will be good but that never turns out to be true. Government takes more with progressive taxes and phasing out deductions, you also think you make more so you spend more... not smart. A simplified example:
You make $12.00 / hour. You are in the 15% tax bracket your $12.00 hourly rate is reduced to $10.80 and don't forget they still need to deduct state and local taxes further reducing your take home pay. That $12.00 becomes less and less per hour.
If you make 12 per hour on 40 hour weeks a single filer had an income tax liability of 1765 or so max on an income of 24950 or 7%
Quote:
Originally Posted by petch751
You get a raise and that puts your income above $36,900.00 in the 25% tax bracket. Your hourly rate above income above $36,900.00 is now $9.00/hr and that's before they take state and local taxes. And people wonder why they struggle.
As I said this is an extremely simplified example, my point being that people people should be demanding less taxes but politicians won't tell you that.
How in the hell are people supposed to build wealth when government is robbing them before they even get the money they worked to earn.
Well you certainly have demonstrated you don't understand how the marginal system works. No one making 40k is paying anywhere near 25% federal income tax
exactly why location is going to be the big factor.
heck , if we didn't want to be a part of our kids and grand kids daily lives we could live like kings down south. but these are things we can't put a price on.
There is no doubt location will make a huge difference. When I retire I want peace and quiet. I don't mind living here but I would want to move somewhere more secluded. I mean I have 20 some mire years to g before my retirement. But im bustin it to try and set myself to semi retire by 55. Or at least get in a more managerial position rather than strictly a field position
My family is spread out all over the place. And you're right you cant put a price on family life.
born and raised in nyc . so i thought we would like peace and quiet and bought a 2nd home in the pocono's. five years later we sold it and realized that quiet rural life wasn't for us.
so retiring in july after 40 years in the electrical industry as a motor control specialist , and 30 years as an investor and finally calling it quits.
If you make 12 per hour on 40 hour weeks a single filer had an income tax liability of 1765 or so max on an income of 24950 or 7%
Well you certainly have demonstrated you don't understand how the marginal system works. No one making 40k is paying anywhere near 25% federal income tax
Obviously you don't read that I was using very rough numbers but go ahead, keep supporting high taxes and wonder why the middle class can't get ahead. I'll laugh as you cry the blues, you did it to yourself and some people are so illiterate they can't see past the rhetoric.
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as my retirement fund continues to grow.
