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Starting at age 18, investing these amounts will build one's nest egg accordingly:
$2000 @ 10% = $2200 by age 19
$2200 @ 10% = $4840 by age 20
$2400 @ 10% = $7964 by age 21
$2600 @ 10% = $11620 by age 22
$2800 @ 10% = $15862 by age 23
$3000 @ 10% = $20748 by age 24
$3300 @ 10% = $26453 by age 25
$3600 @ 10% = $30053 by age 26
$3900 @ 10% = $37348 by age 27
$4200 @ 10% = $45703 by age 28
$4500 @ 10% = $55224 by age 29
$4900 @ 10% = $66136 by age 30
$5300 @ 10% = $78580 by age 31
$5700 @ 10% = $92798 by age 32
$6100 @ 10% = $108689 by age 33
$6500 @ 10% = $126798 by age 34
$7000 @ 10% = $147078 by age 35
$7500 @ 10% = $170036 by age 36
$8000 @ 10% = $195840 by age 37
$8500 @ 10% = $224774 by age 38
$9000 @ 10% = $257151 by age 39
$9600 @ 10% = $293,427 by age 40
$10200 @ 10% = $333989 by age 41
$10800 @ 10% = $379268 by age 42
$11400 @ 10% = $429735 by age 43
$12000 @ 10% = $485909 by age 44
$12700 @ 10% = $548469 by age 45
$13400 @ 10% = $618056 by age 46
$14100 @ 10% = $695372 by age 47
$14800 @ 10% = $781189 by age 48
$15600 @ 10% = $876468 by age 49
$16500 @ 10% = $982265 by age 50
$17400 @ 10% = $1,099,632 by age 51
$18300 @ 10% = $1229725 by age 52
$19200 @ 10% = $1373818 by age 53
$20100 @ 10% = $1533310 by age 54
$21100 @ 10% = $1709851 by age 55
$22100 @ 10% = $1905146 by age 56
$23100 @ 10% = $2121070 by age 57
$24100 @ 10% = $2359687 by age 58
$25100 @ 10% = $2623266 by age 59
$20000 @ 10% = $2907593 by age 60
$20000 @ 10% = $3220352 by age 61
$10000 @ 10% = $3553387 by age 62
$10000 @ 10% = $3919726 by age 63
$5000 @ 10% = $4317199 by age 64
$5000 @ 10% = $4754419 by age 65
$0 @ 10% = $5229861 by age 66
$0 @ 10% = $5752847 by age 67
$0 @ 10% = $6328132 by age 68
$0 @ 10% = $6960945 by age 69
$0 @ 10% = $7657039 by age 70
$0 @ 10% = $8422742 by age 71
$0 @ 10% = $9265017 by age 72
$0 @ 10% = $10,191,518 by age 73
This is all pre-tax of course and requires saving a little more each year until age 60.
I post this as a response to all of the "if you invest $2k per year for so many years..." articles I see. As if in the year 2060 any moderately successful investor would still be stuck at $2000/year. People will have ups and downs of course but one would hope that they'd be able to put in a little more each year. By age 60 perhaps start decreasing their hours worked and funds contributed.
Two problems is the accelerated amount would be a challange he for most people and your return might be overly optimistic. Ah I will change that the 10% is pie in the sky for the average person with the average investors returns being less than 3% a year over the last 20 years or so
What are you living on from 65-73? Just social security? Why do you want 10 million dollars at 73? And 10% is a little aggressive, I usually use 7% for my calculations and if I want to account for inflation 4.5-5% when running my calculations.
I want to meet a 19 year old who is capable of saving $2K per year. I was a broke college kid with a part time job just trying to pay down tuition so I didn't have huge loans after school. Then after school at 22 years old I sure as heck didn't have an extra $2,600 to throw into savings.
What are you living on from 65-73? Just social security? Why do you want 10 million dollars at 73? And 10% is a little aggressive, I usually use 7% for my calculations and if I want to account for inflation 4.5-5% when running my calculations.
From 65-73 you'd still be working, be semi or fully retired, but no longer contributing to your portfolio. The retirement age as for Social Security benefits will be well above 67 in 50 years.
There's a Dave Ramsey article going around now that uses 12% per year which I found to be aggressive so I dialed it down to 10%. He shows that by investing $2000 for just the first eight years out of high school, you'll amass $2,288,996 by age 65. That's with no other contributions from age 27-65, which is a rather foolish idea to suggest.
I want to meet a 19 year old who is capable of saving $2K per year. I was a broke college kid with a part time job just trying to pay down tuition so I didn't have huge loans after school. Then after school at 22 years old I sure as heck didn't have an extra $2,600 to throw into savings.
Again, this was an answer to Ramsey's article which showed how much one could make by investing $2000 per year for for just the first eight years out of high school. I don't know how old you are but investing $40-50 per week these days should not be that hard of a challenge. If your first job out of college doesn't allow for that, then perhaps you chose the wrong major.
From 65-73 you'd still be working, be semi or fully retired, but no longer contributing to your portfolio. The retirement age as for Social Security benefits will be well above 67 in 50 years.
There's a Dave Ramsey article going around now that uses 12% per year which I found to be aggressive so I dialed it down to 10%. He shows that by investing $2000 for just the first eight years out of high school, you'll amass $2,288,996 by age 65. That's with no other contributions from age 27-65, which is a rather foolish idea to suggest.
Again, this was an answer to Ramsey's article which showed how much one could make by investing $2000 per year for for just the first eight years out of high school. I don't know how old you are but investing $40-50 per week these days should not be that hard of a challenge. If your first job out of college doesn't allow for that, then perhaps you chose the wrong major.
If my plan includes me working until 73 it's a pretty poor plan
From 65-73 you'd still be working, be semi or fully retired, but no longer contributing to your portfolio. The retirement age as for Social Security benefits will be well above 67 in 50 years.
There's a Dave Ramsey article going around now that uses 12% per year which I found to be aggressive so I dialed it down to 10%. He shows that by investing $2000 for just the first eight years out of high school, you'll amass $2,288,996 by age 65. That's with no other contributions from age 27-65, which is a rather foolish idea to suggest.
Again, this was an answer to Ramsey's article which showed how much one could make by investing $2000 per year for for just the first eight years out of high school. I don't know how old you are but investing $40-50 per week these days should not be that hard of a challenge. If your first job out of college doesn't allow for that, then perhaps you chose the wrong major.
Going from a "historically never happened" rate to a "historically not likely happen again" rate doesn't make it better. 10% isn't realistic to assume for an average over a lifetime.
As for "not being that hard," a minimum wage worker will only be taking home about $200/week. Putting 1/4 of that towards saving leaves almost nothing else to go on.
Even among his supporters, most readily acknowledge that while he can help people start to get out of debt, his plans for actually making money are all really unrealistic.
for the near term we are looking at about 6% average market returns just based on the fact dividends account for 1/3 of the markets returns over the long haul and they are in the 2% range.
dividends abnd bond rates are linked so with rates this low counting on anything more for a while may be wishful thinking.
we have not considered sequence risk , taxes or the fact folks don't 100% equities right through the whole time.
Then you better get in your time machine and start investing at age 18
No need I am well ahead of schedule
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