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submitted 1 year ago by Kotsi3P0@lemmy.ml to c/memes@lemmy.ml

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[-] gibmiser@lemmy.world 5 points 1 year ago

Try playing with this. Set the interest rate to 7%. Assume you will live to 75 (average us life expectancy) and retire at 65.

Now change the monthly contribution amount to the most you can comfortably contribute right now if you opened an IRA IRA.

This is your low estimate of your retirement savings. As you get older hopefully you earn more and can contribute more.

[-] nutcase2690@lemmy.dbzer0.com 1 points 1 year ago

Just curious how you came up with 7%? I was always taught to expect the yearly return to be 4%

[-] gibmiser@lemmy.world 2 points 1 year ago

My number I picked after reading about historical averages.

[-] EmpathicVagrant@lemmy.world 1 points 1 year ago

4% stays ahead of normal inflation, 7% matches greedflation.

[-] grue@lemmy.world 1 points 1 year ago

I found this even more helpful.

this post was submitted on 21 Nov 2023

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