Kotsi3P0@lemmy.ml to Memes@lemmy.ml · 1 year agoTough lifelemmy.mlimagemessage-square38fedilinkarrow-up1481arrow-down130
arrow-up1451arrow-down1imageTough lifelemmy.mlKotsi3P0@lemmy.ml to Memes@lemmy.ml · 1 year agomessage-square38fedilink
minus-squaregibmiser@lemmy.worldlinkfedilinkarrow-up5·1 year agoTry playing with this. Set the interest rate to 7%. Assume you will live to 75 (average us life expectancy) and retire at 65. Now change the monthly contribution amount to the most you can comfortably contribute right now if you opened an IRA IRA. This is your low estimate of your retirement savings. As you get older hopefully you earn more and can contribute more.
minus-squarenutcase2690@lemmy.dbzer0.comlinkfedilinkarrow-up1·1 year agoJust curious how you came up with 7%? I was always taught to expect the yearly return to be 4%
minus-squaregibmiser@lemmy.worldlinkfedilinkarrow-up2·1 year agoMy number I picked after reading about historical averages. https://awealthofcommonsense.com/2021/05/200-years-of-asset-class-returns/
minus-squareEmpathicVagrant@lemmy.worldlinkfedilinkarrow-up1·1 year ago4% stays ahead of normal inflation, 7% matches greedflation.
Try playing with this. Set the interest rate to 7%. Assume you will live to 75 (average us life expectancy) and retire at 65.
Now change the monthly contribution amount to the most you can comfortably contribute right now if you opened an IRA IRA.
This is your low estimate of your retirement savings. As you get older hopefully you earn more and can contribute more.
Just curious how you came up with 7%? I was always taught to expect the yearly return to be 4%
My number I picked after reading about historical averages.
https://awealthofcommonsense.com/2021/05/200-years-of-asset-class-returns/
4% stays ahead of normal inflation, 7% matches greedflation.
I found this even more helpful.