Comments on: How To Become A Millionaire By 65 http://www.myretirementblog.com/how-to-become-a-millionaire-by-65.html Retire happy, healthy and wise. Thu, 28 Aug 2008 00:22:45 +0000 http://wordpress.org/?v=2.6.1 By: Mark http://www.myretirementblog.com/how-to-become-a-millionaire-by-65.html#comment-64787 Mark Sun, 18 May 2008 15:41:03 +0000 http://www.myretirementblog.com/how-to-become-a-millionaire-by-65.html#comment-64787 I think both of you have great points and are doing very well. Alot of people are age dont think of Saving for Retirement. I was 18 when I first started I still lived at home and put 15% in my 401k. I made the mistake and cashed out 2 years later when I left my job. So I started a new 401k when I was 23 Saved for 3 years at 8 to 10% and cashed out again when I left. Im now 29 years old I currently put 11% with a 4% match into my 401k. I could have had 30 to 40 thousand in a Ira if I would have been smart enough to roll it over into a IRA. Any how Im Making 50,000.00 per year W/ Overtime. My plan is to retire rich. So my advice is to keep up the great work. Keep that going and if you leave your current employer roll it over. I think both of you have great points and are doing very well. Alot of people are age dont think of Saving for Retirement. I was 18 when I first started I still lived at home and put 15% in my 401k. I made the mistake and cashed out 2 years later when I left my job. So I started a new 401k when I was 23 Saved for 3 years at 8 to 10% and cashed out again when I left. Im now 29 years old I currently put 11% with a 4% match into my 401k. I could have had 30 to 40 thousand in a Ira if I would have been smart enough to roll it over into a IRA. Any how Im Making 50,000.00 per year W/ Overtime. My plan is to retire rich. So my advice is to keep up the great work. Keep that going and if you leave your current employer roll it over.

]]> By: retirehappy http://www.myretirementblog.com/how-to-become-a-millionaire-by-65.html#comment-60581 retirehappy Thu, 24 Jan 2008 15:47:47 +0000 http://www.myretirementblog.com/how-to-become-a-millionaire-by-65.html#comment-60581 Lily, you're right, that is nominal and sometimes people just need something to spur them to action you know? For those of us who are more responsible, we obviously would like to know $1M in PP but the general public would be scared of the "real" larger numbers. $934 is scarier than $286! (incidentally I'm 27, so we're all in the same ballpark!) Lily, you’re right, that is nominal and sometimes people just need something to spur them to action you know? For those of us who are more responsible, we obviously would like to know $1M in PP but the general public would be scared of the “real” larger numbers. $934 is scarier than $286!

(incidentally I’m 27, so we’re all in the same ballpark!)

]]> By: Lily http://www.myretirementblog.com/how-to-become-a-millionaire-by-65.html#comment-60495 Lily Wed, 23 Jan 2008 04:28:51 +0000 http://www.myretirementblog.com/how-to-become-a-millionaire-by-65.html#comment-60495 I'm 23. :) With any luck, your income will keep pace with inflation and it will be easier to save the inflation-adjusted amounts. I’m 23. :) With any luck, your income will keep pace with inflation and it will be easier to save the inflation-adjusted amounts.

]]> By: TheWalrus http://www.myretirementblog.com/how-to-become-a-millionaire-by-65.html#comment-60488 TheWalrus Wed, 23 Jan 2008 01:47:33 +0000 http://www.myretirementblog.com/how-to-become-a-millionaire-by-65.html#comment-60488 Excellent post Lily! I'm 24 and I'm not aiming for a million dollars at age 65. I want to live comfortably! I'll need about 5 million with inflation factoring in. Excellent post Lily! I’m 24 and I’m not aiming for a million dollars at age 65. I want to live comfortably! I’ll need about 5 million with inflation factoring in.

]]> By: Lily http://www.myretirementblog.com/how-to-become-a-millionaire-by-65.html#comment-60478 Lily Tue, 22 Jan 2008 23:43:54 +0000 http://www.myretirementblog.com/how-to-become-a-millionaire-by-65.html#comment-60478 I kind of scoffed at this article when I read it. (It had nice glossy pictures of people at various stages in life.) Reason: the numbers given will get you to $1 million in <i>nominal</i> dollars when you're 65. To get to the equivalent of $1 million in today's purchasing powers, your savings plan will need to be slightly different. <strong>You're 25 Now</strong> Save <strong>$934</strong> a month and you’ll be a millionaire by 65. <strong>You’re 35 Now</strong> Save <strong>$1,629</strong> a month, or <strong>$1,262</strong> if you already have $50k banked. <strong>You’re 45 Now</strong> If you’re starting some scratch, you need to put away <strong>$3,066</strong> a month. If you started with $50k then it’s only <strong>$2,648</strong> a month. Happen to have $100k lying around? Then you only need <strong>$2,230</strong> a month to reach a million. <strong>You’re 55 Now</strong> Ten years until your 65, so you’ll need to save <strong>$7,346</strong> per month to reach a million. If you have $100k saved away, you’re down to <strong>$6,133</strong> a month. Gotten up to $200k? Good job, that’ll be <strong>$4,919</strong> a month. If your goal is to have $1 million in purchasing power at 65, then just following Kiplinger's advice won't get you there. I'd ask for my money back; buy a spreadsheet program, teach yourself some time-value-of-money math, and you'd be better off than following Kiplinger. (I actually love Kiplinger for the most part, but I hate it when magazines give advice on getting to $1 million by age 65, since that won't be enough for most people to retire comfortably due to inflation.) I kind of scoffed at this article when I read it. (It had nice glossy pictures of people at various stages in life.) Reason: the numbers given will get you to $1 million in nominal dollars when you’re 65.

To get to the equivalent of $1 million in today’s purchasing powers, your savings plan will need to be slightly different.

You’re 25 Now

Save $934 a month and you’ll be a millionaire by 65.

You’re 35 Now
Save $1,629 a month, or $1,262 if you already have $50k banked.

You’re 45 Now
If you’re starting some scratch, you need to put away $3,066 a month. If you started with $50k then it’s only $2,648 a month. Happen to have $100k lying around? Then you only need $2,230 a month to reach a million.

You’re 55 Now
Ten years until your 65, so you’ll need to save $7,346 per month to reach a million. If you have $100k saved away, you’re down to $6,133 a month. Gotten up to $200k? Good job, that’ll be $4,919 a month.

If your goal is to have $1 million in purchasing power at 65, then just following Kiplinger’s advice won’t get you there. I’d ask for my money back; buy a spreadsheet program, teach yourself some time-value-of-money math, and you’d be better off than following Kiplinger.

(I actually love Kiplinger for the most part, but I hate it when magazines give advice on getting to $1 million by age 65, since that won’t be enough for most people to retire comfortably due to inflation.)

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