4 ms·
$500 a month is $6000 a year. $6000 a year invested from 26 to 66 at 10% interest per year is $2,921,110.87. At 12% it's $5,154,854.34. Keep in mind this is ju
by gimmeDatCheddar 8y ago
$500 a month is $6000 a year. $6000 a year invested from 26 to 66 at 10% interest per year is $2,921,110.87. At 12% it's $5,154,854.34.
Keep in mind this is just from a single decision the average person is making.
- wombatpm 8y agoAnd isn't that 10% and 12 % growth assumption the reason all pensions are in trouble?
- phinnaeus 8y agoJust for clarification, where is 10% interest coming from? Mutual funds? 401k? Something else? Serious question, I am not financially knowledgeable but I know you'd never get 10% interest in a savings account (for example).
- gimmeDatCheddar 8y agoMutual funds / index funds / real estate
- amvalo 8y agoWTF kind of fairy land is this? 10% is already a dream, but at least it's a round number, unlike the 12% you just arbitrarily threw out there.
- ummonk 8y agoSo you're expecting people to make 10-12% in after-inflation returns?
- gimmeDatCheddar 8y agoMaking 7 to 10 percent after inflation is possible and it is sufficient to amass more than 1 million dollars by retirement just from changing this one habit. The point was that the average financed car is worth a massive amount in opportunity cost.
- CamTin 8y agoOk so you're assuming 40 years instead of 30. That's where the discrepancy is. Thank you for clarifying.
- gimmeDatCheddar 8y agoYep. You can also assume 45 years if someone starts working at 20 and retires at 65.
- dtech 8y agoNot many places offering 10% ROI to people who can invest $500 a month.
- gimmeDatCheddar 8y agoSo invest it as $6,000 per year. Doesn't have to be $500 per month.