Quote:
Originally Posted by Mean Mr. Mustard
What the heck are you planning on doing when you are retired that it will cost you 120,000 per year? You are saying that you will need to save over three million dollars, for the average family in Calgary, that would involve saving all of their money for the next 35 years.... before taxes. Such a ridiculous number to use.
Also, how boring would life be having retired at 30 years of age?
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Don't discount the magic of compound interest as well though.
If you manage to get $1 Million in investments, and assume even a 5% return/year, that is an extra $50K you are tossing back into your investments on top of whatever you throw in from your salary/income (and if the return is coming in the form of dividends for instance, you are paying significantly less tax on it too!).
I've heard the saying that the first million is by far the hardest, and I understand that now that I am trying to save up to that number. 5% on $50K isn't much. 5% on $100K... better. 5% on $500K and now you are starting to get a 2nd (3rd if you have a working spouse) income.... and it all keeps adding up for you
