EASY way to retire a millionaire

[GasX]

Here's a simple recipe to become a millionaire:

Work four summers, starting at age 16

Save the income in a Roth IRA account

Invest it in a simple, low-cost equity portfolio

Simmer slowly for 47 years

Serve ungarnished (and untaxed) at age 67

entire article

 

[LordJezo]

"Invest it in a simple, low-cost equity portfolio"

?

"Save the income in a Roth IRA account"

With what company?

 

[GasX]

Originally posted by: LordJezo
"Invest it in a simple, low-cost equity portfolio"

?

"Save the income in a Roth IRA account"

With what company?

Try buying all VFNIX at Schwab. Feel free to substitute in another brokerage or stock fund.

 

[MacBaine]

I guess people don't need to pay for college in his country.

 

[Mermaidman]

youth is on your side

Not for some of us . . .

 

[DaVortex]

from the article And $1,114,423 by the time you are 67 by the time you are at that age you will probably have alzheimers so their is no need for $1million

 

[Aharami]

hmm interesting!! im 22. gotta start investing soon

 

[GasX]

Originally posted by: DaVortex
from the article And $1,114,423 by the time you are 67 by the time you are at that age you will probably have alzheimers so their is no need for $1million

You think a broke alzheimer's patient is well taken care of?

 

[FeathersMcGraw]

Of course, with rising medical costs and longer life expectancies, $1M at retirement likely won't be enough. But it's not bad for doing all your investing before age 21, not that that's a savings strategy I'd suggest to anyone.

 

[MacBaine]

What if I go active army for 4 years, and put 1 years worth of pay into an investment portfolio? $30-40k by my 24th birthday.

 

[Chadder007]

Originally posted by: DaVortex
from the article And $1,114,423 by the time you are 67 by the time you are at that age you will probably have alzheimers so their is no need for $1million

That plus, 1 million will be like 100,000 is today. D@#$ inflation.

 

[StageLeft]

Originally posted by: MacBaine
I guess people don't need to pay for college in his country.

Most people blow their summer money from age 16 on crap anyway.

Retiring a millionaire is easy and as long as one starts early enough it doesn't take much. I didn't start until I was 21 or so, but I plan on having at least a million by retirement. With inflation it won't be much, so I need to have even more 10% of pay check from early 20's into retirement = retire well. Too many people wait until they're 40 or older and then they realize they're fvcked themselves.

That plus, 1 million will be like 100,000 is today. D@#$ inflation.

It'll be worth a lot more than that

 

[Leejai]

let's say your 20 now....$1Million in 47 years will probably be enough to buy a cheap Honda Civic.

 

[FeathersMcGraw]

Originally posted by: Mwilding
Try buying all VFNIX at Schwab.

If you're going to buy and hold until retirement, why buy from Schwab when you can just go directly to Vanguard?

 

[LordJezo]

Originally posted by: Mwilding

Originally posted by: LordJezo
"Invest it in a simple, low-cost equity portfolio"

?

"Save the income in a Roth IRA account"

With what company?

Try buying all VFNIX at Schwab. Feel free to substitute in another brokerage or stock fund.

Even that one is down over the past 5 years..

 

[GasX]

Originally posted by: MacBaine
What if I go active army for 4 years, and put 1 years worth of pay into an investment portfolio? $30-40k by my 24th birthday.

here's the easy math for you:

Rule of 72: divide 72 by the rate of return you expect. The answer is your doubling time.

Use 10.3% and your doubling time is 7 years.

24: $35,000
31: $70,000
38: $140,000
45: $280,000
52: $560,000
59: $1,120,000
66: $2,240,000

 

[StageLeft]

Originally posted by: Leejai
let's say your 20 now....$1Million in 47 years will probably be enough to buy a cheap Honda Civic.

This arguement is used frequently to undermine the wisdom in investing. It will buy more than a Honda civic, and it will buy a lot more than nothing, which is what you'll have if you never save for retirement

Ever wonder why seniors get all these discounts? It's because they're poor. They're poor because they were too stupid to invest in the future when they were making money. It's seriously sad that some people retire with next to nothing in savings and their quality of living nosedives as they use social security as the brunt of their income.

 

[GasX]

Originally posted by: LordJezo

Originally posted by: Mwilding

Originally posted by: LordJezo
"Invest it in a simple, low-cost equity portfolio"

?

"Save the income in a Roth IRA account"

With what company?

Try buying all VFNIX at Schwab. Feel free to substitute in another brokerage or stock fund.

Even that one is down over the past 5 years..

and if you havee been buying i during that time, you are in good shpae for when it starts to appreciate again.

The market goes up and down. If you have a long investment horizon, it doesn't matter.

 

[RaynorWolfcastle]

Except that being a millionaire in 50 years will be totally useless. If we use historical figures for example, $1000 "1950 dollars" is worth ~$143 "Y2K dollars". Assuming that the inflation rate is comparable over the next 50 years, your $1M in 2050 will be worth ~$143K of today's money.

I'm surprised MSN posted an article like this without mentioning inflation at all.

 

[StageLeft]

Originally posted by: Mwilding

Originally posted by: MacBaine
What if I go active army for 4 years, and put 1 years worth of pay into an investment portfolio? $30-40k by my 24th birthday.

here's the easy math for you:

Rule of 72: divide 72 by the rate of return you expect. The answer is your doubling time.

Use 10.3% and your doubling time is 7 years.

24: $35,000
31: $70,000
38: $140,000
45: $280,000
52: $560,000
59: $1,120,000
66: $2,240,000

What is inflation historically at? 3% or so? Then we can have a doubling every decade. It will still be worth $500k in today's money.

 

[StageLeft]

Originally posted by: RaynorWolfcastle
Except that being a millionaire in 50 years will be totally useless. If we use historical figures for example, $1000 "1950 dollars" is worth ~$143 "Y2K dollars". Assuming that the inflation rate is comparable over the next 50 years, your $1M in 2050 will be worth ~$143K of today's money.

I'm surprised MSN posted an article like this without mentioning inflation at all.

$8k turned into 143k doesn't sound too bad to me

 

[GasX]

Originally posted by: RaynorWolfcastle
Except that being a millionaire in 50 years will be totally useless. If we use historical figures for example, $1000 "1950 dollars" is worth ~$143 "Y2K dollars". Assuming that the inflation rate is comparable over the next 50 years, your $1M in 2050 will be worth ~$143K of today's money.

I'm surprised MSN posted an article like this without mentioning inflation at all.

The whole point of the article was that saving early is important! It's not some sort of do this and you are all set kind of thing. jeez...
Who would honestly think that a smart retirement strategy would be to put $8000 in a Roth IRA before you turn 20 and then sit back an wait for easy street? Yet that $8k is going to hel you out immensely when you do retire, when you factor in the rest of your lifetime of savings - assuming you are not one of the glib dumbasses who think they don't need to save...

 

[RaynorWolfcastle]

Originally posted by: Skoorb

Originally posted by: RaynorWolfcastle
Except that being a millionaire in 50 years will be totally useless. If we use historical figures for example, $1000 "1950 dollars" is worth ~$143 "Y2K dollars". Assuming that the inflation rate is comparable over the next 50 years, your $1M in 2050 will be worth ~$143K of today's money.

I'm surprised MSN posted an article like this without mentioning inflation at all.

$8k turned into 143k doesn't sound too bad to me

I'm not saying $143K is bad, I'm just saying that the article is implying that you'll be relatively rich in your 60's if you invest your money at 20 when clearly you won't be.

 

[imported_yovonbishop]

well at least you'll know that you have some $$ tucked away for a rainy day!~

it's always better to have some money in the bank than none at all, I just turned 17 and I don't have any in the bank. I am getting a job this summer but it's not going in the bank, it has to pay for college stuff this fall/etc.

 

[LordJezo]

How much does one need to start investing in those fund companies directly?

Do they have monthly/quaterly fees and special IRA handling fees like many of the online traders?