Comments on: How Much Can You Save in a Lifetime? http://allfinancialmatters.com/2006/05/30/how-much-can-you-save-in-a-lifetime/ A personal finance blog dedicated to discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance. Sat, 11 Feb 2012 20:32:19 +0000 hourly 1 http://wordpress.org/?v= By: Learn Stock http://allfinancialmatters.com/2006/05/30/how-much-can-you-save-in-a-lifetime/comment-page-1/#comment-404298 Learn Stock Tue, 24 Feb 2009 02:35:44 +0000 http://allthingsfinancialblog.com/?p=781#comment-404298 Yes saving can help build million of dollars when you reach the age of 65, but during that time we may also need to take out our savings for urgent need or solving financial problems. Yes saving can help build million of dollars when you reach the age of 65, but during that time we may also need to take out our savings for urgent need or solving financial problems.

]]> By: Bob Jordan http://allfinancialmatters.com/2006/05/30/how-much-can-you-save-in-a-lifetime/comment-page-1/#comment-12087 Bob Jordan Sat, 08 Jul 2006 20:02:09 +0000 http://allthingsfinancialblog.com/?p=781#comment-12087 401(k) prospective at my current age 66, "brass tacks $ $ $" I retired at age 46(1986) and prices for: Milk $1.05 gal. now $3.25 gal, Gasoline $.85 gal. now $2.85 gal., and a real estate tax bill $934 now $3800. The point... 3 times the price at least on virtually everything. THUS THE NEED IS....3X in retirement so far 1 year after age 65 to live daily. I have yet to meet or hear of one millionaire who ever had a 401(k)... think about this. IRA's etc. started in the 1970's ,,, a poor investment then as now. Why... fees and income taxes on the take out in retirement kills the 'future value' (Think 1 out of every 3 dollars recieved to fees and income taxes.) Now add inflation... put in a $1 in 1986, it needs to be at least $3 in 2006 plus another $1.33 for fees and taxes on this money recieved, thus $4.33 total. I have yet to meet any retiree who can come close to a 4.33 to 1 gain...none! 401(k) prospective at my current age 66, “brass tacks $ $ $”

I retired at age 46(1986) and prices for: Milk $1.05 gal. now $3.25 gal, Gasoline $.85 gal. now $2.85 gal., and a real estate tax bill $934 now $3800. The point… 3 times the price at least on virtually everything. THUS THE NEED IS….3X in retirement so far 1 year after age 65 to live daily.

I have yet to meet or hear of one millionaire who ever had a 401(k)… think about this. IRA’s etc. started in the 1970′s
,,, a poor investment then as now. Why… fees and income taxes on the take out in retirement kills the ‘future value’ (Think 1 out of every 3 dollars recieved to fees and income taxes.) Now add inflation… put in a $1 in 1986, it needs to be at least $3 in 2006 plus another $1.33 for fees and taxes on this money recieved, thus $4.33 total.

I have yet to meet any retiree who can come close to a 4.33 to 1 gain…none!

]]> By: Anonymous http://allfinancialmatters.com/2006/05/30/how-much-can-you-save-in-a-lifetime/comment-page-1/#comment-6131 Anonymous Wed, 31 May 2006 18:17:49 +0000 http://allthingsfinancialblog.com/?p=781#comment-6131 It can be fun to watch for certain milestones. For example, when do your savings start growing faster than your contributions to it? At what point do your savings start growing by more than your income each year? Or the one I want to see is when my savings are growing more each year than the sum of my income and the amount I saved that year. The final one will be when my savings are growing at more than double my income each year. At that point, I will be able to withdraw an amount equal to my income without spending my principle. It can be fun to watch for certain milestones. For example, when do your savings start growing faster than your contributions to it? At what point do your savings start growing by more than your income each year? Or the one I want to see is when my savings are growing more each year than the sum of my income and the amount I saved that year. The final one will be when my savings are growing at more than double my income each year. At that point, I will be able to withdraw an amount equal to my income without spending my principle.

]]> By: Anonymous http://allfinancialmatters.com/2006/05/30/how-much-can-you-save-in-a-lifetime/comment-page-1/#comment-6130 Anonymous Wed, 31 May 2006 18:13:30 +0000 http://allthingsfinancialblog.com/?p=781#comment-6130 I prefer to think in terms of net worth. I've taken some actions this year that were neutral regarding my net worth at the time, but actually depleted my savings, paying off several debts. In the long run, those actions are going to help me. I prefer to think in terms of net worth. I’ve taken some actions this year that were neutral regarding my net worth at the time, but actually depleted my savings, paying off several debts. In the long run, those actions are going to help me.

]]> By: Dus10 http://allfinancialmatters.com/2006/05/30/how-much-can-you-save-in-a-lifetime/comment-page-1/#comment-6114 Dus10 Wed, 31 May 2006 12:17:13 +0000 http://allthingsfinancialblog.com/?p=781#comment-6114 That is a wonderful calculator... it sure beats creating a new one in Excel every time I get an itch. I am in a unique situation, in that my employer match is huge. They match my first 3% dollar-for-dollar, my next 2% 50-cents-per-dollar, contribute an 8% lump sum annually, and an optional 2% lump sum annually (that board has always approved)... for a total of 19% of my salary. Further, I am 25, just like your example... but since I started working in my career at 18, I have a nice headstart on the salary mark... if I did this for 40 years, I would almost have $6.4M!!! That is a wonderful calculator… it sure beats creating a new one in Excel every time I get an itch. I am in a unique situation, in that my employer match is huge. They match my first 3% dollar-for-dollar, my next 2% 50-cents-per-dollar, contribute an 8% lump sum annually, and an optional 2% lump sum annually (that board has always approved)… for a total of 19% of my salary. Further, I am 25, just like your example… but since I started working in my career at 18, I have a nice headstart on the salary mark… if I did this for 40 years, I would almost have $6.4M!!!

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