Savings %

[slow99]

Fuck, my $0 a year isn't going to get me where I want to be.

Sweet, it served its purpose.

[mustang_marc]

Amount saved is a decent yardstick but you should go beyond that and ask yourself how much your net worth increases every month. Net worth being the value of everything you own minus what you owe in debt.

This is a very good indicator. I'm not a DFWM solid barger but I've hit 2 very important (to me) milestones in the last 3-4 months. Hopefully I'll be able to grow these 2 amounts much more quickly now that I've achieved them. It'd help if I were more wise about investing.

[jakesford]

It's a model - a way to think about these things since most people don't have a clue how to begin to think about these things. You know that as n gets larger it approaches the perpetuity model. In fact, by my quick math, if all variables remained constant and you you assumed you lived 25 years after 60 instead of a perpetuity the figure comes to $4.2 million instead of the $4.8 million.




So leave your kids zero. Ceteris paribus it comes to a $17k annual contribution to get you to the goal.

My point is that most people don't have a clue how to think about these issues and attack the problem. If I said assume you live to be 85, people would say they are going to live to be 100. Jesus, I should have put in the 150% annual return requirement assumption to accommodate the average DFWM investor, lmao.

I am simply trying to put numbers in perspective. If one person went through that exercise and said, "Fuck, my $1000 a year isn't going to get me to where I want to be," then this example served its purpose.



Precisely, thank you.

I'm completely on the same page with you, just wanted it to be clear what the calculation you were showing meant. Personally I'm counting on my big fat social security checks!

[slow99]

I'm completely on the same page with you, just wanted it to be clear what the calculation you were showing meant. Personally I'm counting on my big fat social security checks!

I get it, I know you and quikag know what you're talking about. Just wanted to clarify.