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Right, and you'd have to save over three thousand dollars, every single month, for forty years, to reach that goal.
by tjogin 16y ago
Right, and you'd have to save over three thousand dollars, every single month, for forty years, to reach that goal.
- thomaspaine 16y agoThis math is grossly oversimplified...you're assuming zero interest. I'm on a train and can't do the math right now, but compounding interest + other variables like employer 401k contributions, tax shelters, etc make a huge difference when doing this calculation.
- heresy 16y agoInterest rates won't hover near 0% forever. Getting returns of 2% a year, drops that down to $1300/month. Still steep for most people, but much more achievable, and 2% return is pretty conservative. Of course you would not save for your retirement using a savings account.