Retirement savings ....Yikes !

[murphy1244]

Someone making 10.00 bucks a hour may not afford a 3% draw.

 

[dave1949]

Someone making 10.00 bucks a hour may not afford a 3% draw.

Maybe not, it would be $12 week @ 40 hours. If they put their probable Earned Income Tax Credit into an IRA every year, that would help.

 

[cdaigle430]

I think you are all missing the most important thing for retirement and thats to be as healthy and fit as you can be. Dont matter how much you have saved up-if you dont have some sort of full coverage insurance planned then most of your money will go to hospitals anyway.

 

[MossRoad]

I calculated it out to be about 132K after 30 years. This obviously will vary as I used the stock market return for the last 10 years, 7.2%. This would give you about $100 per week, assuming a 4% burn rate. It would help, but you still might be eating alpo.

I plugged $10.00 per hour @ 40 hours per week with 10% savings in 401K starting at age 18 working until 67 with an average rate of return at 8% with employer matching 100% up to 3% of salary and got $1,427,963.00 after 49 years. And that's assuming NO raises.

I then changed it to only a 3% savings in 401K and that still comes out to $663,665.00 after 49 years.

$663,665.00 at 5% interest will still give you over 30K per year without taking any of the principle.

 

[MossRoad]

I calculated it out to be about 132K after 30 years. This obviously will vary as I used the stock market return for the last 10 years, 7.2%. This would give you about $100 per week, assuming a 4% burn rate. It would help, but you still might be eating alpo.

I plugged $10.00 per hour @ 40 hours per week with 10% savings in 401K starting at age 18 working until 67 with an average rate of return at 8% with employer matching 100% up to 3% of salary and got $1,427,963.00 after 49 years. And that's assuming NO raises.

I then changed it to only a 3% savings in 401K and that still comes out to $663,665.00 after 49 years.

$663,665.00 at 5% interest will still give you over 30K per year without taking any of the principle.

 

[brin]

$663,665.00 at 5% interest will still give you over 30K per year without taking any of the principle.

Earth to Moss.... Where are you going to get a SAFE 5% return....pray tell :confused3:

 

[MossRoad]

Someone making 10.00 bucks a hour may not afford a 3% draw.

And therein lies the problem.... you need to pay yourself before you pay anyone else. We can today and always have for the past 26 years been able to pay our bills on two people making minimum wage. Anything over and above that we consider gravy. Private schools, big vacations and new cars are not in that plan unless we have gravy. Only warm home, good food and clean, durable clothes are considered neccesities. Too many folks get caught up in keeping up with the Joneses.

 

[jerrybob]

Earth to Moss.... Where are you going to get a SAFE 5% return....pray tell :confused3:

If CD rates ever get back near 5%......I am locking mine in for 20 years!!:thumbsup:

 

[JDgreen227]

Guys, back about 1982 my 457 plan (stable value account) was paying 13.5% interest and I was only able to set aside $50 a month for that account....currently is paying something like 4%. I am SO MAD at myself I didn't invest more money back in '82.

 

[brin]

If CD rates ever get back near 5%......I am locking mine in for 20 years!!:thumbsup:

We can always hope....:thumbsup::laughing: