Quote:
Originally Posted by Phaneuf3
Well according to ING Direct's savings calculator, if you start with $0 and put away $400 a month for 40 years, you'll have just a little over a million (1,056,xxx.xx) if you got a 7% interest rate.
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But where can you get a 7% rate these days without a lot of risk? When banks are collecting 1/2 that amount in mortgage interest, you will have to take on risks that could result in a net loss over time.
The key is to start early indeed. I recall at age 15 after learning about compound interest in school- walking into a bank to setup a retirement plan. I was making $75 per week back then; and had I invested from 15 to 20 years of age I would likely have been set. My original money would have had 50 years to collect interest.
However like so many of my peers spending habits got in the way of saving over the years- so there is something to the original comments of this thread.