Retire with a million dollers

[vmax1994]

So to answer the original question, if you want a million bucks in 65 years, the answer can be obtained by solving for P (principal):

1000000 = P* (1 + return rate)^65

e.g. assume a return rate of 7%, we have 1000000 = P * (1.07)^65, P = $12304.20.

Check out wolframalpha.com. Just plug in an equation and it will solve it for you.

Now if you want a million in today's dollars, then the following equation will work:

1000000 * (1 + inflation rate)^65 = P * (1 + return rate)^65

e.g. assume inflation rate is 3% and return rate is 7%, 1000000 * (1.03)^65 = P * (1.07)^65, P = $84037.70

If you can beat inflation by more than that, you will need less. Just plug your assumptions in and get your answer.

Now Indy (you are probably not reading anymore after all that math ), if you think you need to come from a rich family to have a million bucks, then you will never have a million bucks. Its a simple matter of making more than you spend, saving, and investing, and doing that for years and years. That's the old fashioned way anyways. Of course, many people make a lot of money doing one thing or another, but not necessarily because they came from a wealthy family. I am happy to say, it is all working out for me and I didn't come from a wealthy family...or do I work for a union.

 

[kb97z]

We better get a new government if any of us want any money or freedom in the future....live for today

 

[chords]

You would be surprised by just how many people are millionares and who they are among your neighbors. Because they dont live or dress the " rich " lifestyle and havnt their whole life.

And thats a part of why they are a millionare.

 

[polarisman_98]

Not to start a big debate but one of the construction locals around here workers get $10 an hour put into your pension on top of free health insurance and $75k a year on the check. That's about a million bucks right there in your pension. I hate to say it but you guys must come from a lot wealthier familys than me, million bucks in 45 years? No way I'll be lucky to have 200k.

Indy, you should really think about reading up or talking to someone regarding mutual funds and other investments. Most of us wish we could re-wind to your age. At your age if you could even find as little as $50/month (a couple pizzas and a case of beer) and invest in some mutual funds through a roth IRA (and leave it alone!) you would easily have several million by age 65, at the stock market average over the past 50yrs. Some people telling you to invest in real estate, yeah that's not really feasible at 20yrs old or whatever you are. But for crying out loud find $50 a month! I wish someone would have told me that when I was 20. The power of compounding. I started at 26 and I'll still be ok, but that extra 6 years at the front is HUGE $$$. Can't rely on any pension I don't care where you work, government or not. If your pension is still there when you retire, then that'll just be a bonus! (or every penny of it will go toward your healthcare)

 

[GTL]

Where the **** is my "LIKE" button??????????? Indy-----shuttup and listen to ALL the conversations. Just because you've been beat down to believe your doing the best you ever will, don't assume it has to be that way. Number one: you only get one shot at a first impression (i.e) spelling and grammar. 2: In the real world (union or not) if you sit on your ***, YOU WILL SIT ON YOUR ***. Union construction workers either work or sit, and find out real quick which it is. 3. Talk to a financial advisor of some sort, fast. Your young, single and energetic, if you invest just 10.00 bucks a week you will find it compounds rapidly. SORRY now off the podium.

 

[polarisrider1]

Trust me a million dollars is chump change today.

 

[blkhwkbob]

Trust me a million dollars is chump change today.

Well, if you got any spare change, throw it this way!

 

[chords]

Trust me a million dollars is chump change today.

I bet not one other person reading this would agree.

Most/All could live quite comfortably for many years if not wastefull or not value that amount of $$

 

[polarisrider1]

I bet not one other person reading this would agree.

Most/All could live quite comfortably for many years if not wastefull or not value that amount of $$

That would take me about 10-15 years. With inflation and taxes it goes fast. Depends a lot if that is a "clear" million. If not the Government wants half right out of the shoot. What do you do when you live to a hundred and the money runs out at 80? Guess you could reverse mortgage the homestead.

 

[meathead]

You would be surprised by just how many people are millionares and who they are among your neighbors. Because they dont live or dress the " rich " lifestyle and havnt their whole life.

And thats a part of why they are a millionare.

CHORDS, XXXXX2222, Set some money aside ,spend some to enjoy family memories as we get older .......MEATHEAD

 

[russholio]

I bet not one other person reading this would agree.

Most/All could live quite comfortably for many years if not wastefull or not value that amount of $$

I would somewhat agree.....while I wouldn't necessarily call it "chump change", it's not as much as it sounds like, depending on how many years it has to last you.

With inflation and taxes it goes fast. Depends a lot if that is a "clear" million. If not the Government wants half right out of the shoot. What do you do when you live to a hundred and the money runs out at 80? Guess you could reverse mortgage the homestead.

That's what I was thinking. It's 50k per year (net; less if gross) for 20 years. 50k per year certainly isn't poverty, but it's far from wealthy.

 

[m8man]

I find this is a very interesting thread. I do have a finance degree from Michigan Tech and have worked in the field for 15 yrs. I will say that the best scenario out there is to start young. Time is on your side. As maybe John mentioned earlier, the power of compounding rocks, the more time you have the more compounding can occur.

I do put a fair amount of money away for retirement, almost to the point of being short periodically for day to day stuff. you can go to many websites and check retirement calculators and do guestimates and so on. Basically the best advice is to save, sooner than later. And if you are later in life and haven't saved, start to. If you happen to be young, go without a couple of things for a couple of years and put some $$ away as much as you can and trust me it will help your mood in like 30 yrs.

I couldn't afford to save anything when I was first married, a house pmt, car pmt, insurances, utilities, etc with some low to moderate paying jobs. Now I have been putting a decent chunck away for 10 yrs for retirement. I feel good about the funds I put away, but I wont be able to touch them for a while. I am 40 and plan to work until I'm 60 unless the market is good

Although the darn propane cost might cramp the next couple of months.

m8man

 

[blkhwkbob]

Statistics show that young people are barely saving anything anymore. Once companies found out about the little scam called a "401K", out went pensions. Originally, most companies matched some of your contributions to a 401K, but as soon as any company flounders, it is the first thing they take away. At that point, you are just saving your own pre-tax money in a plan that is typically just a few different investment options. Heaven help you if the market crashes at some point and you haven't moved your money into more secure funds. To me, there are way too many people banking on their 401K. I feel fortunate to have a nice IRA (that was once a 401K), a real pension plan, a small amount from another pension plan, a Roth IRA, and hopefully Social Security, but I still worry a little. I know some of my friends and family have NONE of that other than Social Security. It's going to get scary!

 

[polarisrider1]

I bet not one other person reading this would agree.

Most/All could live quite comfortably for many years if not wastefull or not value that amount of $$

Most those who agree do not piss their time away in here like I do. Guess it depends on life style on how much you need.

 

[elf]

I can't add anything new to this except to emphasize the start early. I started at 25 when I took a job that had a 401k. I wish I'd started at 22 fresh out of college. That extra 3 years would make a difference. As M8MAN says, it can be painful to invest now when you think of the other things you could be spending it on. I look at the paycheck every two weeks and wish I had the extra money to spend on a sledding trip. But, this last yr it was fun looking at the 401k balances and seeing them shoot up.

 

[Hoosier]

I can't add anything new to this except to emphasize the start early. I started at 25 when I took a job that had a 401k. I wish I'd started at 22 fresh out of college. That extra 3 years would make a difference. As M8MAN says, it can be painful to invest now when you think of the other things you could be spending it on. I look at the paycheck every two weeks and wish I had the extra money to spend on a sledding trip. But, this last yr it was fun looking at the 401k balances and seeing them shoot up.

x2. No less than 10% of each check from your 1st to your last. At least that should be the goal (obviously there are exceptions to every rule).

I think if I was under 21 right now, I choose from one of the following: (1) find a degree that interests you and makes you employable, (2) start a business or gain a skill that can allow you to start a business, or (3) join a union. There are no guarantees in this life, but those seem to have the best outcomes.

 

[chunk06]

I started saving and investing in my mid 20's and wished i would have also started earlier as well. It's a good feeling when your friends are talking about living check to check, credit card debt, waiting to afford things and you have little to no worries even when you know they make more money. Best thing i did compared to some people i know is putting off buying more expensive vehicles. Car/truck payments and getting upside down on loans KILLS wealth and saving when starting out.

 

[anonomoose]

You have it all wrong. You have to double the amount everyday not count by 2's.

What he said was >>all you gotta due is take a penny and double it every day...<<

That's why it won't make a mill