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Want To Retire With $1 Million? Here's How Much You Need To Be Saving Right Now (Based on your age)
Business Insider ^ | 03/24/2014 | ANDY KIERSZ

Posted on 03/24/2014 6:37:38 PM PDT by SeekAndFind

We recently pointed out that starting to save early for retirement is extremely helpful, and also a useful chart showing how much you should have saved at different stages of your career to ensure a comfortable retirement.

To show how these ideas work, we figured out how much money you would have to set aside monthly, starting at different ages, and under different rates of return, to end up with $1,000,000 in savings when you are ready to retire at 65.

Here is how much you would need to save each month at a 6% annual rate of return, starting at different ages.

So if you're 20, and you want to retire a millionaire, you should be socking away $361 per month. If you're starting at 25, that jumps to $499. You can see how as you get older, you need to be saving much, much more:

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Society
KEYWORDS: retirement; savings
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To: KC Burke
Your buy and hold strategy is very sound. The only thing I would consider is some diversification.

Absolutely!

The primary reason we've gotten involved in Bogleheads in the past few years is that they seem to have a reasonable approach to diversification. Over the next few years my husband and I will be moving to mostly index funds. I stopped working in '99 and I'm trying to get my husband to retire (he will be 60 this summer). All the more reason to be diversified!

41 posted on 03/24/2014 10:29:41 PM PDT by ConstantSkeptic (Be careful about preconceptions)
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To: SeekAndFind

It is very difficult to save $1,000,000.

OTOH it is not difficult to save 15%, invest the money and end up with well over that number.


42 posted on 03/25/2014 12:27:09 AM PDT by CurlyDave
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To: beef

I highly recommend Dave Ramsey’s approach. He recommends four good performing growth stock mutual funds invested in for the long term (and real estate purchased with cash only). Let the professional mutual fund managers watch the markets all day. That way, the only way you get hurt riding the roller coaster of the market is if you jump off....

I got to listening to him as the market turned down in late 2008 and 2009. While I was never “over my head” with debt, I had made the mistake of believing there was such a thing as “good debt” used to buy assets. But when those assets stopped producing as much income, it got uncomfortable... and my wife and I made some changes. We are now pretty much debt-free except for the house and can easily get by on my military retirement. — anything we earn is extra....And we are doing decently with our investments

Anyway, it works for us. V/R Bill


43 posted on 03/25/2014 3:25:37 AM PDT by Bill Russell
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To: SeekAndFind

These theories never bother to tell people that by the time they retire a gallon of milk or gasoline might cost a million dollars.

That’s nice, you’re a millionaire. Did you forget about inflation?


44 posted on 03/25/2014 5:22:42 AM PDT by Mount Athos (A Giant luxury mega-mansion for Gore, a Government Green EcoShack made of poo for you)
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To: SeekAndFind

Retire with $1 million - so the nursing home can eventually get it...


45 posted on 03/25/2014 6:56:55 AM PDT by gdani
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To: KC Burke
Actually, they are doing a better job of saving than the old man did. I think some of the IRA programs available now actually encourage better planning.

Back when my son was in college his bank (I think it was BofA) had a debit card feature where every purchase made was rounded up to the next dollar and the change balance was auto deposited into a savings account. By using that card for everything he did in college and the first two years at work afterward graduation he had enough for a down payment on his first house.

46 posted on 03/25/2014 7:58:21 AM PDT by Baynative (Got bulbs? Check my profile page.)
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To: SeekAndFind

Does it account for the 3.8% ACA TAX on “unearned” income over $200k?

Pieces of $hit in Washington DC need to be tarred and feathered and then get to test their swimming abilities with a concrete block tied around their legs...


47 posted on 03/25/2014 8:01:17 AM PDT by SZonian (Throwing our allegiances to political parties in the long run gave away our liberty.)
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To: WeatherGuy

Inherit $2,000,000 and blow half of it on hookers and liquor.

<><><><>

LOL.

How do you make a million dollars playing bluegrass music?

Start with 2 million.

What did the bluegrass musician say he would do with his million dollar lottery win?

Keep playing til the money runs out.


48 posted on 03/25/2014 8:40:56 AM PDT by dmz
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To: DManA

“In 1776 the rich sacrifice EVERYTHING they had for the betterment of everyone. It just blows my mind. Never happened before, never happened again. “

Thankful it happened once, but BEYOND thankful Jesus sacrificed Himself “once for all”. He did tell believers not to worry about food and clothing, since God knows we need them. Of COURSE this doesn’t set aside work and prudent saving (see Proverbs), but God cares for birds. How “much more” will He care for us (who will not have a million banked)!


49 posted on 03/25/2014 9:11:17 AM PDT by avenir (I'm pessimistic about man, but I'm optimistic about GOD!)
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To: SeekAndFind

“How to Become a (Public Pension) Millionaire”

Data from the Bureau of Labor Statistics’ Occupational Employment Statistics survey show that the average retired state-government employee has an income higher than 72% of full-time workers in his state. Generous public pensions ignore political bounds.

http://online.wsj.com/news/articles/SB10001424052702304360704579415173512940990


50 posted on 03/25/2014 11:09:01 AM PDT by Rusty0604
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To: KC Burke
I've been very lucky in that my wife and I are in lock step agreement on all things financial. That sure helped fund our future and retirement.

Not sure if you know, but once you've passed your 50th birthday, you can sock away up to $22,500 a year PRE-TAX towards your retirement. The money simply has to go into a retirement account (401k, Roth IRA for example.)

The benefit is that if you can sock away $22,500/yearly it greatly reduces your tax burden. Next year my wife turns 50, so in addition to the $22,500 I can sock away for me, I can do the same for her.

Since our home is paid off and we literally pay $0 in interest on anything, that tax deduction has come in very handy.

51 posted on 03/25/2014 11:44:40 AM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: CurlyDave
It is very difficult to save $1,000,000.

Not if you start young and understand how compound interest grows your money.

Smart investments in financially solid companies that pay dividends which are then used to fuel your retirement fund's growth also helps.

The trick is START YOUNG.

Both my teenage son's have put everything they've made into their own 401k's since each was 12 years old. They had to save up the first $1500 to open the account, mom and dad made up the difference ($1,000) so they could open up a starter 401k of $2,500.

Oldest son's 401k went from $2,500 at opening account balance to just over $6500 as of his last balance. That's more than doubling in 5 short years. Proves the sooner you start, the faster your money starts doubling.

52 posted on 03/25/2014 11:50:34 AM PDT by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: Bill Russell
Thanks for the advice. I have been a landlord. That is not my idea of retirement. Also, if you just started investing in 2009, well then whatever you did you could probably recommend. It has been a good few years, and I have enough now if I lock it into a safe investment and get 6%, I can kick back and retire. I think Ramsey's advice on shedding high interest rate debt is good; eat beans and pay it off as fast as you can. I would even support eating beans and hoarding all the cash you can. But eating beans to pay off a 3.5% 30 year fixed mortgage? I think that is not all that smart. It is only good advice for the people who think in black and white and whom I believe are his core fans. To be frank, I do not trust anyone who would tell you to build up your emergency fund and then star in a paid ad telling you how to spend it. My $0.02.
53 posted on 03/25/2014 6:02:31 PM PDT by beef (Who Killed Kennewick Man?)
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To: SeekAndFind

There is nothing magic about $1m.

There is a 4% rule of thumb so $1M only gives you $40,000 a year to live on.


54 posted on 03/25/2014 7:20:00 PM PDT by djwright (Inpeach Teleprompter)
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To: djwright

RE: There is a 4% rule of thumb so $1M only gives you $40,000 a year to live on.

That plus social security and downsizing to a smaller house, might help a long way for a reasonably comfortable retirement.


55 posted on 03/25/2014 7:21:40 PM PDT by SeekAndFind (question is this)
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To: usconservative

I think we’ll be retiring next year. We sold stock several years ago, and I am very thankful we saved that money.

My husband was diagnosed with cancer 2 years ago, then he was laid off. He’s got some new serious medical problems now.

After my girls graduate from high school, we’ll be moving out of California and hopefully to Texas.

We’ll buy a modest house there. My husband will probably do contract computer work as best he can. The only thing I worry about is the cost of medical care. I think it is around $40k a year for insurance and deductibles. I think if I canfind any job with benefits, that would help a lot!


56 posted on 03/26/2014 8:33:35 AM PDT by luckystarmom
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To: SeekAndFind

I wonder how this will change after obama’s market interferene is halted.


57 posted on 03/26/2014 8:40:32 AM PDT by RandallFlagg ("I said I never had much use for one. Never said I didn't know how to use it." --Quigley)
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To: beef

Hi Beef, Glad things are going well. The one thing I can say for the guy after listening for 4+ years is that he is extremely consistent. But just to clarify, Ramsey doesn’t advocate paying off your house until you have a fully funded emergency fund and are investing for college and retirement....While he has no problem with paying off the house early, he understands the need to build more liquid /investing wealth that is not tied up in the house. Also, while he likes real estate, he is also the first to tell folks not to do it if they don’t want the hassles of being a land lord... Not sure what you are talking about with the commercial on spending the emergency fund, though. It doesn’t sound at all like the kind of thing he would do......are you sure he wasn’t advertising something an item on which to spend disposable cash after getting debt free and building some wealth?


58 posted on 03/28/2014 7:52:44 PM PDT by Bill Russell
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To: Bill Russell

It was some foundation repair company. He words were “This is what you spend your emergency fund on.” Foundation issues are serious, but not all are emergencies.


59 posted on 03/29/2014 6:22:02 AM PDT by beef (Who Killed Kennewick Man?)
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To: SeekAndFind

That is other other side of the wealth equation that does not get discussed enough. There are lot of things you can do to live comfortably on less money. Happiness is not measured by the square foot.


60 posted on 03/29/2014 6:27:17 AM PDT by beef (Who Killed Kennewick Man?)
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