3 ms·
Even a poverty level wage (for family of 4) is $25k/year. So $500k over a 20 year retirement sounds like a lot, but it’s not.
by madengr 8y ago
Even a poverty level wage (for family of 4) is $25k/year. So $500k over a 20 year retirement sounds like a lot, but it’s not.
- minikites 8y agoYou're leaving out the compound interest that could be earned through stocks/bonds.
- madengr 8y agoYes, but even bonds don't keep up with inflation, and you need enough principle to ride out the dips. The "safe" return is considered to be 4%, which is $20k on $500k, so you'd be dipping into the principle even on that poverty scale. It just take a lot more to retire than the average person realizes, and not eat Alpo.
- cat199 8y agonot saying it's easy, and no, doesn't sound like a lot. but it's possible, is my point - the difference on whether it is possible or not possible is the lifestyle one chooses to lead with it.