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> Run some basic compound interest calculations if you don't agree. Make sure to include basic compound inflation because the figures given here seem to be hyp
by ronaldx 13y ago
> Run some basic compound interest calculations if you don't agree.
Make sure to include basic compound inflation because the figures given here seem to be hyperbolic.
- kirpekar 13y agoOK 100k principal, add 1k every month for 30 years. Compound at 7% --> 2M 50k principal, add 1k every month for 30 years. Compound at 7% --> 1.6M Withdrawing 50k today costs you 400k in retirement 400k = 20% of 2M = 8 years of your 40 year career
- ronaldx 13y agoYes, you've failed to consider the time value of money. https://en.wikipedia.org/wiki/Time_value_of_money https://en.wikipedia.org/wiki/Time_value_of_money 50k today is worth more than 50k in the future. (Consistent compounding at 7% is extremely optimistic, even before considering inflation at 3%+).