Check this out! Gen Y's retirement: $2 million
So, apparently according to this article, Generation Y-ers need around $2M in Retirement! Seem impossible? It shouldn't, most of Generation Y (mostly those born in the 80's) are fully capable of saving at least $2M in retirement.
Perhaps my experience is limited, but almost everyone I know has financed a car, at one time or another. If you can finance a car, you can save $2M by the time you are 65; plain and simple.
Check out the math:
Lets say the average car payment in America is $350/month, although I have read that it is higher then that!
And you invest that $350 a month in an IRA or 401k making at least 10% annual return a year (reasonable estimate), in 40 or 35 years from age 25-65 or 30-65, respectively. On your 65th year you should have $2,213,427.85 or $1,328,823.32.
The idea is to save enough, so when you are in retirement you can pull out the growth (interest) on an annual basis and live off of that. For example, if you have $2M in the bank, and you earn 10% a year (on average) you can pull $200k a year out for living expenses.
Mind you these numbers are simple in that they don't include an employer match or inflation. My point is that it doesn't take much to re-set the trajectory of your financial plan.
Just something to think about...if you can afford a Tahoe or Camry payment you can afford retirement.
MsMoneyGuru
Friday, March 9, 2012
Wednesday, March 7, 2012
My Financial Journey...
Back in 2010, my husband and I started on our journey to Financial Freedom...
We had done all that we were suppose to do...gone to school, secured professional jobs, but we had barely any savings and was barely living paycheck to paycheck. It was one of those moments when we looked at our situation and realized "something had to change". We were sick of it! So we started on our journey inspired by Dave Ramsey's Total Money Makeover. Now, I have shared in the past our journey through real estate hardships. But I never gave you exact figures...well, here is the closest to details you can get.
When we started our journey, my husband and I owed a total of $430,379 in debt!
Here was the breakdown:
See, prior to our revelation we never really considered auto loans, student loans, and rental property to be "bad debt", but after realizing how much per month it was costing us, we decided to conquer our mountain.
As of today, our journey continues, but we have made significant strides in the last 18 months.
Check it out!
The journey continues...
MsMoneyGuru
We had done all that we were suppose to do...gone to school, secured professional jobs, but we had barely any savings and was barely living paycheck to paycheck. It was one of those moments when we looked at our situation and realized "something had to change". We were sick of it! So we started on our journey inspired by Dave Ramsey's Total Money Makeover. Now, I have shared in the past our journey through real estate hardships. But I never gave you exact figures...well, here is the closest to details you can get.
When we started our journey, my husband and I owed a total of $430,379 in debt!
Here was the breakdown:
See, prior to our revelation we never really considered auto loans, student loans, and rental property to be "bad debt", but after realizing how much per month it was costing us, we decided to conquer our mountain.
As of today, our journey continues, but we have made significant strides in the last 18 months.
Check it out!
The journey continues...
MsMoneyGuru
The real cost of living: $150 000 a year...Really?
I thought you would be interested in this: http://money.msn.com/family-money/article.aspx?post=c20e622f-9f80-4b2d-90fd-164ead94b9b1#scptid
According to this article, in a survey, people who claimed to make $150k a year are among those of us who where quoted in "saying they could buy what they need, afford some extras, and still be able to save a bit". I live in Southern California (higher cost of living) and tend to agree with that (believe me, I've worked the numbers). However, since the article claims to be an average or a national representation...I wonder what people these days define as "what they need vs. what they want"?
$150k a year use to be considered upper middle class, have we re-defined "needs vs, wants" or is has the American Dream really grown out of our reach?
Something to think about...
MsMoneyGuru
According to this article, in a survey, people who claimed to make $150k a year are among those of us who where quoted in "saying they could buy what they need, afford some extras, and still be able to save a bit". I live in Southern California (higher cost of living) and tend to agree with that (believe me, I've worked the numbers). However, since the article claims to be an average or a national representation...I wonder what people these days define as "what they need vs. what they want"?
$150k a year use to be considered upper middle class, have we re-defined "needs vs, wants" or is has the American Dream really grown out of our reach?
Something to think about...
MsMoneyGuru
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