Personal Investments • Re: Accruing Significant Wealth from Modest Beginnings?

Show us your calculation how someone could

A) Retire in 20 years
B) Significant asset in 30 years,
C) By saving 20% per year.

"There are plenty of people, and many on this board, that have significant assets after saving 20% for 30 years."

If this statement is true, it should not be hard for you to show us the numbers and actual calculation.

KlangFool

It is quite possible. If you invested $10,000 each year (10% of 100K or 20% of 50k) starting in 1993 in the SP500, today you would end up with $1,908,000. If invested in a tIRA, net would be $1M+ after taxes.

A) 10% of 100K, assuming 30% taxes, it means expense of 60K

B) 20% of 50K assuming 30% taxes, it means expense of 25K

C) For 60K of expense, 1.908m = 31.8X. Do you call this as significant?

D) For 25K of expense, 1.908m = 76.32X. This is significant.

E) Redo the number for 20 years, can the person retire in 20 years? You need to pass test (A) too.

KlangFool

You seem to be forgetting one of the largest sources of income most seniors will have when they retire, Social Security, it can't be ignored. Social security can take a retiree from 10X to 40X.

Statistics: Posted by KlangFool — Wed May 01, 2024 6:32 am