Quote:
Originally Posted by peter12
I think a 5% return is more the norm. That said, yes, it is not impossible to save large amounts of money on any salary. Right now, I am the sole earner while my wife goes to law school. It has been that way for the last 2 years. During that time, I was making a decent wage, and dropped down this past year due to the recession. We still save upwards of 20% of our income, and still have money for going out, clothes, and small holidays. It is about prioritizing certain things at certain points in your life.
Many people have said things like "well, I like to take trips, and don't save as much as I should." Well no kidding. A single trip abroad could cost up to 10% of you annual earnings.
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I won't make your eyes bleed with another table, but if you assume a 5% return, this fictional "below AB median wages family" would need to save 12.5% of their income every year to end up with a $1MM nest egg at age 66.