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(MSN)   Are you 40 years old? Want to be a millionaire by age 67? Here is how much you need to save to reach that goal   ( msn.com) divider line
    More: Interesting, Investment, CNBC Make, Russian-purchased Facebook advertising, personal finance site, various annual salaries, President Donald Trump, average annual investment, specific money goal  
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542 clicks; posted to Discussion » on 28 Sep 2017 at 9:50 AM (10 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



33 Comments     (+0 »)
 
View Voting Results: Smartest and Funniest
 
2017-09-28 08:14:31 AM  
Then, you spend one dollar and are a mere thousandaire.
 
2017-09-28 08:32:04 AM  
A millionaire? I have no interest. I do want the ability to take care of myself, have good health care and not be reduced to poverty due to the last of social safety nets that were put in place specifically for that purpose.
 
2017-09-28 08:39:30 AM  
Asking for a friend, what is the number if he is 70yo?
Does he really have an alternative to running for an office?
 
2017-09-28 08:44:33 AM  
If I don't save, I'll live to be 90, eating cat food and living in a shelter.  If I do save, I'll die at 55 (10 years) of lung cancer, like my dad, uncle, grandfather, great uncle, and cousin.

So I save, because I don't want to eat cat food for 20 years.
 
2017-09-28 09:35:53 AM  
I'm not optimistic that civilization will be here in 28 more years, let alone my retirement accounts.
 
2017-09-28 09:46:56 AM  
I use what I like the call "The Wallet System." Whenever I get my paycheck, I cash it, put the cash in my wallet and then use that cash to pay for things. When that cash is gone, I don't have any more money. It's foolproof.
 
2017-09-28 09:47:28 AM  
What if you are 110,010 years old like me?
 
2017-09-28 09:48:45 AM  

dittybopper: What if you are 110,010 years old like me?


You either have enough, or you don't. It's a binary problem.
 
2017-09-28 09:50:40 AM  
TL;DR: You have to save a million dollars to have a million dollars. Suck it "investahrs."
 
2017-09-28 10:02:54 AM  

dittybopper: What if you are 110,010 years old like me?


How are you 18 times older than the world?
 
2017-09-28 10:09:36 AM  
Ideally I'll be dead long before that.
 
2017-09-28 10:17:53 AM  
I'd rather be 40 than ~67.
 
2017-09-28 10:18:05 AM  
Was broke at 28 and a millionaire at 48.

My secret?

Didn't have kids.
 
2017-09-28 10:19:32 AM  
I'll pretty much have to save $999,997.30. But I didn't need a news article to tell me that, because I can figure out that with the $2.70 I have in the bank, I need a lot more.
 
2017-09-28 10:21:15 AM  

Saiga410: dittybopper: What if you are 110,010 years old like me?

How are you 18 times older than the world?


There are 10 kinds people in the world....
 
2017-09-28 10:48:59 AM  

maxx2112: Was broke at 28 and a millionaire at 48.

My secret?

Didn't have kids.


This is the best financial advice you'll ever receive. With everything else you're just gambling. This is a rock solid strategy.
 
2017-09-28 10:51:31 AM  
Even saving a little bit while your young can have huge benefits for your future.
 
2017-09-28 10:51:57 AM  
"If you start at age 22"

Fark you, article guy.  This is 'Murica.  I didn't even find gainful employment post-college until I was 30.

Still trying to catch up.
 
2017-09-28 11:16:01 AM  
That's not much money now and will be less when you hit that age. But it's easy to do if you make good money, that one little detail they always gloss over.
 
2017-09-28 11:47:35 AM  

SuperChuck: Saiga410: dittybopper: What if you are 110,010 years old like me?

How are you 18 times older than the world?

There are 10 kinds people in the world....


Heh.
 
2017-09-28 11:50:15 AM  

Saiga410: dittybopper: What if you are 110,010 years old like me?

How are you 18 times older than the world?


That zooming sound you heard was the joke doing a low-pass over your head.  But, because I'm a nice guy, I'll explain it to you.

That number is actually binary.

1     1     0     0     1     0
32  + 16 +  0  +  0  +  2  +  0 = 50 years old.
 
2017-09-28 11:51:22 AM  

PleaseHamletDon'tHurtEm: "If you start at age 22"

Fark you, article guy.  This is 'Murica.  I didn't even find gainful employment post-college until I was 30.

Still trying to catch up.


What is your degree in?
 
2017-09-28 12:15:07 PM  

dittybopper: PleaseHamletDon'tHurtEm: "If you start at age 22"

Fark you, article guy.  This is 'Murica.  I didn't even find gainful employment post-college until I was 30.

Still trying to catch up.

What is your degree in?


Court reporting.  I get this weird C
 
2017-09-28 12:15:24 PM  

PleaseHamletDon'tHurtEm: dittybopper: PleaseHamletDon'tHurtEm: "If you start at age 22"

Fark you, article guy.  This is 'Murica.  I didn't even find gainful employment post-college until I was 30.

Still trying to catch up.

What is your degree in?

Court reporting.  I get this weird C


Ugh.  Thanks fark.  Reply incoming.
 
2017-09-28 12:32:25 PM  
Anyway.  I have this deja vu feeling I've mentioned this to you before.  Maybe not.  Oh well!

Got a reporting job during the recession, right after six years of college, but they fired me for various political reasons.  Didn't help I wasn't really mentally prepared to deal with the job.  I worked on and off for four more years at piecemeal work until another firm took a chance and hired me.

Thing is, You can actually make a *lot* of money doing this.  The senior reporter in our firm can pull in probably three times what I do on a good month, easily.  She works all day, almost every day for it, though.  When I try that I quite literally end up having mental breakdowns...so it really, really limits career options and advancement.  The workload is manageable, but it doesn't pay well after taxes and years of debt from reporting school and mortgage payment and the car that was a huge mistake to buy oh god never listen to baby boomer parents again about financial advice.  XD

I just try to get my shiat done without complaining and not think too hard about being just financially screwed.  Not much more you can do, and nobody's going to help me but my own damn self.

/ramble
 
2017-09-28 01:00:17 PM  
No problem, I'll just ask for an 35% increase in pay.
 
2017-09-28 01:51:59 PM  

edmo: That's not much money now and will be less when you hit that age. But it's easy to do if you make good money, that one little detail they always gloss over.


Word.

Heck, I'm just one step away from being a millionaire now, I just need someone to give me the money.
 
2017-09-28 03:47:04 PM  

Tr0mBoNe: Then, you spend one dollar and are a mere thousandaire.


"If you've got a dollar and you spend 29 cents on a loaf of bread, you've got 71 cents left; But if you've got seventeen grand and you spend 29 cents on a loaf of bread, you've still got seventeen grand. There's a math lesson for you." 
― Steve Martin
 
2017-09-28 05:53:54 PM  
Lol, I ain't living that long.
Going by family history I'll be dead by 60.
 
2017-09-28 10:16:58 PM  
Not so worried.  By that time, a mil will only be like a year's average income.

/ picture children playing with blocks of money rather than building blocks or someone wallpapering with currency, as it's cheaper than wallpaper.
 
2017-09-28 11:29:19 PM  
*scans article*

Lotto it is then.
 
2017-09-29 01:37:35 AM  
If you haven't already saved a bunch and/or don't think you will save a bunch. Don't read this. It will only depress you.

A million dollars sounds like a lot of money, and in some ways, it is. But in other ways, it really isn't. Unfortunately, one of the ways it isn't a lot of money is as a goal for savings for retirement.

When the term millionaire was coined, a million dollars was worth a lot more than it is now. It would take more than 10 million dollars to have the same buying power as a million dollars when the term was coined (I read that some time ago, so it's probably even more now).

If your goal is to have a million dollars for retirement, you may be sad when you realize how much income that will generate. Many financial advisors suggest starting with a withdrawal rate of 3% per year and adjusting for inflation. Starting with a higher rate will almost certainly lead to depleting your retirement account before you die. So if you have a million dollars, that's going to give you an income of $30,000 per year. And that's in actual dollars, not today's dollars. If we assume a 2% inflation rate, somebody who is 40 today and saves a million dollars by the age of 65 and withdraws 3% in the first year of retirement will get about $8300 in today's dollars.

I'm pushing 60, and when I try to figure out what I'll need in retirement, I don't include Social Security. I also don't think I'll retire at 65. I don't think SS will be completely gone when I retire, but I think it will have changed by then. Since I don't know what it will be like, I just don't include it. If you're 40, counting on SS to give you any substantial income doesn't seem realistic to me, especially if you're not earning enough to save much already.

If you want to save enough to retire, the best thing is to start early. Save/invest as much as you can. My daughter is in college has a part time job, but it allowed even part timers to contribute to the 401k, so she did. Even though it's a pittance, since she's starting early, it will add up.

There are two ways to deal with this information.

The first, and possibly more likely, is to simply give up.

The second is to realize that doing anything, no matter how small, is better than doing nothing. I chose the latter, but not until I was in my thirties and not until I read "The Millionaire Next Door" and "The Millionaire Mind" and realized that I could do something.

When I first started putting money away, I started with my 401k. I kept increasing my contribution until I was at the max. Then I looked into a Roth IRA. I was dismayed, because the Vanguard minimum for a retirement account was $1000 (might be more now), which I didn't have. So I opened a new bank account and started putting money in that and pretended that it didn't exist. If things got tight before the next paycheck, beans and rice could stretch the food budget. When I had enough in that account to open the Vanguard retirement account and not have to pay a monthly fee on the bank account, I opened the Vanguard account.

Eventually, I was able to get to the point where I am maxing out both the Roth IRA and my 401k. I'm now old enough that I can also take advantage of the "catchup" to contribute even more. It helps that I'm also earning enough to contribute the max. If I were only earning $20k/year, I obviously couldn't contribute the max to either.

But my main point (sorry for rambling) is that if you're working, you should contribute what you can to retirement. If you've got matching at work, start with that. After that, things get more complicated (is Roth better than traditional, for example). But getting started is the first step.
 
2017-09-29 10:37:30 AM  

gietmay: If you haven't already saved a bunch and/or don't think you will save a bunch. Don't read this. It will only depress you.

A million dollars sounds like a lot of money, and in some ways, it is. But in other ways, it really isn't. Unfortunately, one of the ways it isn't a lot of money is as a goal for savings for retirement.

When the term millionaire was coined, a million dollars was worth a lot more than it is now. It would take more than 10 million dollars to have the same buying power as a million dollars when the term was coined (I read that some time ago, so it's probably even more now).

If your goal is to have a million dollars for retirement, you may be sad when you realize how much income that will generate. Many financial advisors suggest starting with a withdrawal rate of 3% per year and adjusting for inflation. Starting with a higher rate will almost certainly lead to depleting your retirement account before you die. So if you have a million dollars, that's going to give you an income of $30,000 per year. And that's in actual dollars, not today's dollars. If we assume a 2% inflation rate, somebody who is 40 today and saves a million dollars by the age of 65 and withdraws 3% in the first year of retirement will get about $8300 in today's dollars.

I'm pushing 60, and when I try to figure out what I'll need in retirement, I don't include Social Security. I also don't think I'll retire at 65. I don't think SS will be completely gone when I retire, but I think it will have changed by then. Since I don't know what it will be like, I just don't include it. If you're 40, counting on SS to give you any substantial income doesn't seem realistic to me, especially if you're not earning enough to save much already.

If you want to save enough to retire, the best thing is to start early. Save/invest as much as you can. My daughter is in college has a part time job, but it allowed even part timers to contribute to the 401k, so she did. Even though it's a pittance, sin ...


One syggestion:
Move to a blue state while you can, pick a good county that provides decent living conditions on county assistance.
 
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