Quote:
Originally Posted by lazypucker
How can anyone guarantee a steady, uninterrupted income with raises throughout one's working career spanning 40 years?
|
You can't. I'm just a guy on a message board who did a quick spreadsheet. I could have put random life ups and downs into it (layoffs, whatever) but I didn't. Everyone's circumstances are completely different. I'm not a financial advisor, and I'm not judging anyone who has saved less through various circumstances.
Quote:
Originally Posted by CliffFletcher
I don't think people miss the power of compound interests. But most people in their 20s and early 30s are focused on:
- Paying off student debt
- Saving for a downpayment on a house
If you're making enough money to do both those things, while paying your own rent and living expenses, and still save thousands a year for retirement, good on you. You probably have a very well-paying job. Personally, I didn't crack $30 K a year until I was into my 30s. |
Maybe people don't miss it, or maybe the people you talk to are smarter than my social circle. I'm relatively young, and many of my coworkers/friends make good incomes and save nothing for retirement. If I mention compound interest, I often get an eye glaze.
I agree that other priorities matter too, and you could build a similar table showing results required for someone who spends their first X amount of savings on student loans/downpayment.
As for cracking $30k per year until being in your 30s, again, not designed to be a 1 size fits all spreadsheet. Not everyone's situation can be perfectly described in 90 seconds of excel. I would comment that if you're older, inflation has a big effect here, so saving 10% would end up with less, but since you'd be retiring sooner, the purchasing power of that money would likely be similar to the $1MM in a couple of decades.