Quote:
Originally posted by RedShoe
If you aren't a dumbass, right. But the average investor isn't as smart as you. The average investor can't get 9% over 40 years. Which is what I figure you'd need to have just barely 40 mil.
And I don't know why 4 mil wouldn't be enough... but it just wouldn't. I'm not smart enough to give an indepth answer as to why it's not enough... it's just not. They say that 1/3 of your life is spent in retirement. I don't know if it's possible to live on 4 mil for 25+ years. Especially when al them medical bills for all my colostomy bags come-a-rollin in. I remember sitting down with a financial advisor when we were just married. I remember him telling we'd need X amount when we retire. And it was more than 4 mil. Inflation... cost of living... medical expenses... It's just not enough. Plus, I don't want to wait till I retire to enjoy it.
Our financial education begins today. THen I'll be able to answer this more indepth.
|
ok, so you make 100k a year your whole life. Then when you retire, you make 200k a year by simply putting your 4 million in a CD with 5% interest. But making 100k MORE a year then you did before you retired, its not enough. Many people retire on less than 1 million and it lasts them their lifetime.
---------------------------
The average investor doesnt have to be smart to get 9% return. The average mutual fund over the last 20 years has averaged better than 12% annual return. Put 100k a year in a mutual fund. Simple. (Those figures are according to Dave Ramsey, a radio financial advisor guy, who is a millionaire)