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5-10% with 5% returns and with a 401k that matches....that won't be too bad of a retirements if your saving for 40 stinking years.
Not all of us need 7 mil to retire.
Say $5K/Year with 5% returns for 30 years (40 is a tad high IMHO)
That's $370,413.66
If you had a pension or Social insecurity, you could take out $15,000/year to supplement your income (Assuming no gains or losses) for just over 24 years.
Not ideal, but it can make all the difference.
If you get matching... it's $208/Month. ($416 total)
I know people with cable bills that are nearly $200/Month! (Who have money problems!)
I knew you'd say this when I threw in Bill Gates.
Which is why I threw in a couple other examples! (And who said making it big... the guy who knows CADD isn't making it big. But he's got job security, bennifits, and more than he needs to be able to live decently and save.)
Then we come to YOU.... I assume you have a degree, since you look down at those who don't... And yet your 'plan' is to fail, and be (in your words) a "drain on society".
I guess that helps to show that it's not this piece of paper that I don't even bother to hang on the wall... but the PERSON!
I know a guy with a Masters degree who is working for $12/Hour. I HIRED HIM at $10 (in no way relating to his masters degree in music)
(Read the Millionaire next door.. there should be enough examples there of 'uneducated success' to knock you off your high horse!)
And yes, ANYONE DOES have the capability to choose to enjoy a few fewer luxuries, and instead save a little more. Doesn't mean they will though!
LOL, a few examples to the contrary do not disprove the general rule. I never said it was absolute. However, most people make more money if they have a degree than if they don't. In fact, about 1 million more in their lifetime comparing someone with a masters to someone with a high school diploma.
Yes, there are some who don't need an education but that doesn't change that an education does change outcomes for most. It is stupid to argue that one should choose to not educate their children because some people manage without an education. Odds have it the educated will do better than the uneducated and whether you use your degree or not, you count among the educated. An education is about more than just training for a job.
Say $5K/Year with 5% returns for 30 years (40 is a tad high IMHO)
That's $370,413.66
If you had a pension or Social insecurity, you could take out $15,000/year to supplement your income (Assuming no gains or losses) for just over 24 years.
Not ideal, but it can make all the difference.
If you get matching... it's $208/Month. ($416 total)
I know people with cable bills that are nearly $200/Month! (Who have money problems!)
Exactly. I hate Dave Ramsey, but this investment calculator on his site will show very clearly just how much even the smallest amounts can compound over time. I'll state this again: there is absolutely no excuse why 90+% of even low income earners should not be socking away at least 5% pretax in an IRA.
Thanks for proving my assumption. You have something against the uneducated. I guess I'm just inferior to you.
Ill go nowhere because I'm not making 80k a year...that's right. I can't live a life and be happy and make 30k or 40k a year. Gotcha.
Look at statistics. In general, the uneducated earn less and are more likely to require help. I don't want that for my kids. I owe them better than that.
You are free to live your life as you will. I owe it to my children to give them better odds.
Try saving it for 40 years. Most won't be able to. There are too many times in life when you just don't have it and if you're getting 5% ROI, I'd like to know where you have your money. I'm thankful I'm getting 3%.
No, most CHOOSE not to. Big difference. As far as >3% ROI, it's a little thing called the S&P 500. It has returned well over 5% in the past 40 years.
Exactly. I hate Dave Ramsey, but this investment calculator on his site will show very clearly just how much even the smallest amounts can compound over time. I'll state this again: there is absolutely no excuse why 90+% of even low income earners should not be socking away at least 5% pretax in an IRA.
When you can't buy groceries, you're not thinking about saving for retirement. Many people barely make enough to eek out an existence.
No, most CHOOSE not to. Big difference. As far as >3% ROI, it's a little thing called the S&P 500. It has returned well over 5% in the past 40 years.
It is not YOUR place to tell me what I can and cannot do. You are not living my life and you don't know my finances. And, past performance is no guarantee of future performance.
I expect to spend $100K on children's educations in the next 6 years and that's if I can get off cheap so, no I won't be contributing to a 401K for a while. When you're a parent, you do what you gotta do. I owe my kids that much.
When you can't buy groceries, you're not thinking about saving for retirement.
That is simply not the case for the majority of people, who make low salaries, but are not below the poverty line. Most choose to spend their money on immediate gratification. The tax benefits alone from a trad IRA will offset any perceived loss of income for low-income earners.
It is not YOUR place to tell me what I can and cannot do. You are not living my life and you don't know my finances. And, past performance is no guarantee of future performance.
I expect to spend $100K on children's educations in the next 6 years and that's if I can get off cheap so, no I won't be contributing to a 401K for a while. When you're a parent, you do what you gotta do. I owe my kids that much.
No one is telling you what to do. What I AM telling you is that if you are placing your children's education above your own future financial security, you are likely making a huge mistake, for you, and for them.
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Odds have it the educated will do better than the uneducated and whether you use your degree or not, you count among the educated. An education is about more than just training for a job.
