Mainecat Posted February 27, 2023 Share Posted February 27, 2023 Imagine a million bucks saved and it leads to 30k a year in 25 years. What’s 30K going to be worth in 25 years? https://www.cnbc.com/2023/02/14/how-much-savings-you-need-for-30000-a-year-in-interest-at-retirement.html Quote Link to comment Share on other sites More sharing options...
Snake Posted February 27, 2023 Share Posted February 27, 2023 The average rate of return for a 401k from 2010 to 2016 was 14%. From 1926 to 2017, government bonds returned 5.5% compounded annually, according to historical data from Ibbotson Associates. Large stocks returned 10.2% compounded annually during that same time, while small stocks returned 12.1%. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted February 27, 2023 Platinum Contributing Member Share Posted February 27, 2023 (edited) Why would one not being taking anything out of principle? Some retirement experts claim to draw 4% of savings. If you have a million saved that's $40K of which $30K comes from capital gains. Principle decreasing slightly by year a $1 million starting point would last a long, long time. Edited February 27, 2023 by Highmark Quote Link to comment Share on other sites More sharing options...
Mainecat Posted February 27, 2023 Author Share Posted February 27, 2023 1 hour ago, Snake said: The average rate of return for a 401k from 2010 to 2016 was 14%. From 1926 to 2017, government bonds returned 5.5% compounded annually, according to historical data from Ibbotson Associates. Large stocks returned 10.2% compounded annually during that same time, while small stocks returned 12.1%. Pre tax dude. Quote Link to comment Share on other sites More sharing options...
Snake Posted February 27, 2023 Share Posted February 27, 2023 2 minutes ago, Mainecat said: Pre tax dude. SS is one of the worst plans for a retirement. For anyone who has even a modicum of a clue, SS is play money..... 2 Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member steve from amherst Posted February 27, 2023 Platinum Contributing Member Share Posted February 27, 2023 1 hour ago, Mainecat said: Imagine a million bucks saved and it leads to 30k a year in 25 years. What’s 30K going to be worth in 25 years? https://www.cnbc.com/2023/02/14/how-much-savings-you-need-for-30000-a-year-in-interest-at-retirement.html Is there a reason why the chart starts at age 40? Why not start it at age 18 or younger, same as when SS starts taking it. The real reason is the person making it had the numbers they wanted and worked backwards to get there. Quote Link to comment Share on other sites More sharing options...
Mainecat Posted February 27, 2023 Author Share Posted February 27, 2023 11 minutes ago, steve from amherst said: Is there a reason why the chart starts at age 40? Why not start it at age 18 or younger, same as when SS starts taking it. The real reason is the person making it had the numbers they wanted and worked backwards to get there. After paying off all the student loans. Quote Link to comment Share on other sites More sharing options...
Mainecat Posted February 27, 2023 Author Share Posted February 27, 2023 22 minutes ago, Snake said: SS is one of the worst plans for a retirement. For anyone who has even a modicum of a clue, SS is play money..... We agree. It’s a supplement Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted February 27, 2023 Platinum Contributing Member Share Posted February 27, 2023 Maybe....just maybe we wouldn't need to keep throwing money at it if our govt stopped creating inflation but oh no moar money fixes everything! Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted February 27, 2023 Platinum Contributing Member Share Posted February 27, 2023 (edited) 2 minutes ago, Mainecat said: After paying off all the student loans. If it takes you 15-18 years to pay off student loans you borrowed too much for the income you were expecting. How about pounding out those loans and living a slightly less extravagant lifestyle until you do. Another not my problem. Edited February 27, 2023 by Highmark Quote Link to comment Share on other sites More sharing options...
Snake Posted February 27, 2023 Share Posted February 27, 2023 2 minutes ago, Mainecat said: After paying off all the student loans. Stupid. Pay yourself first. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member steve from amherst Posted February 27, 2023 Platinum Contributing Member Share Posted February 27, 2023 1 hour ago, Mainecat said: After paying off all the student loans. But even when paying student loans they would be paying SS. Quote Link to comment Share on other sites More sharing options...
snoughnut Posted February 27, 2023 Share Posted February 27, 2023 3 hours ago, Snake said: SS is one of the worst plans for a retirement. For anyone who has even a modicum of a clue, SS is play money..... Very true, although I've read recently around 25% of Americans have nothing saved for retirement. Those people must be on the Ramen Noodle Retirement Plan. Quote Link to comment Share on other sites More sharing options...
Mainecat Posted February 27, 2023 Author Share Posted February 27, 2023 2 hours ago, steve from amherst said: But even when paying student loans they would be paying SS. Not their 401K Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member steve from amherst Posted February 27, 2023 Platinum Contributing Member Share Posted February 27, 2023 43 minutes ago, Mainecat said: Not their 401K Maybe , maybe not. If their employer matched 3 % or so they would be idiots not to. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member steve from amherst Posted February 27, 2023 Platinum Contributing Member Share Posted February 27, 2023 1 hour ago, snoughnut said: Very true, although I've read recently around 25% of Americans have nothing saved for retirement. Those people must be on the Ramen Noodle Retirement Plan. UNFORTUNATLY IT IS A PONZI SCEME THAT AT THIS POINT HAS TO BE KEPT UP. Quote Link to comment Share on other sites More sharing options...
Angry ginger Posted February 27, 2023 Share Posted February 27, 2023 6 hours ago, Highmark said: Why would one not being taking anything out of principle? Some retirement experts claim to draw 4% of savings. If you have a million saved that's $40K of which $30K comes from capital gains. Principle decreasing slightly by year a $1 million starting point would last a long, long time. who the fucks going to retire off 40k a year. fuck working your whole life to be in poverty at retirement, people need to take personal responsibility not rely on SS as their retirement plan Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member steve from amherst Posted February 27, 2023 Platinum Contributing Member Share Posted February 27, 2023 1 minute ago, Angry ginger said: who the fucks going to retire off 40k a year. fuck working your whole life to be in poverty at retirement, people need to take personal responsibility not rely on SS as their retirement plan But many will not. They will piss away every penny they make and then some. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted February 27, 2023 Platinum Contributing Member Share Posted February 27, 2023 1 hour ago, Angry ginger said: who the fucks going to retire off 40k a year. fuck working your whole life to be in poverty at retirement, people need to take personal responsibility not rely on SS as their retirement plan 40K on top of SS isn't that terrible if you have little to no debt. Can't expect going into retirement with large monthly payments on a home or vehicles. Quote Link to comment Share on other sites More sharing options...
SkisNH Posted February 28, 2023 Share Posted February 28, 2023 9 hours ago, Mainecat said: Pre tax dude. What's the tax Rate of capital gains?....what's the tax rate for someone making 30k a year? Quote Link to comment Share on other sites More sharing options...
SkisNH Posted February 28, 2023 Share Posted February 28, 2023 Hint...it's less than the capital gains rate. Quote Link to comment Share on other sites More sharing options...
Mainecat Posted February 28, 2023 Author Share Posted February 28, 2023 6 minutes ago, SkisNH said: Hint...it's less than the capital gains rate. You don’t pay CG on 401K withdrawals. Quote Link to comment Share on other sites More sharing options...
SkisNH Posted February 28, 2023 Share Posted February 28, 2023 3 minutes ago, Mainecat said: You don’t pay CG on 401K withdrawals. No you pay ordinary income on the gains...which as I stated is less than the capital gains rate for your gay example @ 30k per year. Quote Link to comment Share on other sites More sharing options...
SkisNH Posted February 28, 2023 Share Posted February 28, 2023 If you're making 30k @ retirement age....I doubt you have a 401k. Quote Link to comment Share on other sites More sharing options...
Ez ryder Posted February 28, 2023 Share Posted February 28, 2023 11 hours ago, Mainecat said: Imagine a million bucks saved and it leads to 30k a year in 25 years. What’s 30K going to be worth in 25 years? https://www.cnbc.com/2023/02/14/how-much-savings-you-need-for-30000-a-year-in-interest-at-retirement.html It's in the lock box lmfao Quote Link to comment Share on other sites More sharing options...
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