if i save 400 mth ...can we get rich?
i ve heard compounding interest works in time.....wife and i save ,,often. we r 28yrs old....i want to retire 50.. very rich!
Public Comments
- 400 a month? No Not enough my friend. In order to do what your talking about, you need to put about, 1,000,000 dollars into a CD. at the end of the year, that would earn you 3.25%, or 300,000$. You live off the million dollars, making yourself 300k, per year for free. But you need to get to the million first, and 400 bucks a month, isnt going to get you there any time soon. Best wishes amigo, hope this helped.
- Its not a easy time but you will need to invest if your want to be "rich" The western world has to fall a little more before turning around I retired at 51, not rich, but comfortable enough
- Dear friend there are no any defination to be rich , and thats have no limit to begin and to end to be rich .it is also rich who saves some part of money after all expenses. it is good if you are save 5% of your income . but always remember whichever you earn , if its you are earning with straight and with honesh path and then yur saving 400mth its to good according to me by earning money with true way , its gives way to earn more moey and happiness to you and then you will get happiness and then you are being best rich man
- Hey Rello, Don't be discouraged by these answers. While it may be true that it would be very difficult to retire wealthy by saving $400 per month for the next 22 years, that's still a great start. Compound interest is a magical thing, and something you'll find as you start saving is that, over time, you'll get better at managing money and investing and you will be able to save more. Start off by figuring out which investing strategy best suits your goals and risk tolerance. http://www.money-and-investing.com/Stock-Market-Investing-Strategy-c.html is a good place to start, you can review 8 of today's most popular investing strategies. I would also strongly suggest you invest your money in tax deferred accounts like a 401k, IRA or Roth IRA so that the government doesn't tax your capital gains or dividends. More on that at http://www.money-and-investing.com/Roth-IRA-Limits.html. Let's go with an example, Rello, so you can get an idea of where you might end up at age 50. In our example, let's assume you decide to become an Index Investor and you get the average S&P Return from 1975 to present of 10.75%. This return excludes dividends, so let's say you get another 1.25% return from dividend reinvestment. Your total annual return is 12%. You invest $400 per month and your company has a 401k matching program of $5,000 (meaning they will match your contributions dollar-for-dollar up to $5000). That means you contribute $400 X 12 months = $4,800 per year and your company matches $4,800 so your annual savings = $9,600. If you invest $9,600 annually at 12% return you will have: 5 Years = $60,987 10 Years = $168,468 15 Years = $357,885 20 Years =$691,703 Age 50 = $888,025 If you decide to work until 55 = $1,625,990 Not too shabby. Work hard to master an investing strategy, Rello, your returns will make a huge difference. For example, in this same scenario if you only earned a 9% average return you could wind up with $986,142 at retirement. If, on the other hand, you earned a 15% average return you could wind up with $2,722,260 at age 55. Best of Luck and keep us posted on your progress! Odd Lot http://www.Money-and-Investing.com
- "400 a month? No Not enough my friend. In order to do what your talking about, you need to put about, 1,000,000 dollars into a CD. at the end of the year, that would earn you 3.25%, or 300,000$. You live off the million dollars, making yourself 300k, per year for free. But you need to get to the million first, and 400 bucks a month, isnt going to get you there any time soon. Best wishes amigo, hope this helped." LOL you will probably not get rich in the long term. all of these people with those formulas are just BSing. $400 a month may be average or below average, and in the end you will be somewhere in that average-below average area for your age group. don't take comfort in the number being over a million dollars because it is misleading and their assumptions of long term market conditions is also misleading. Just look at all the other people, some save thousands a month, and you are playing catch up with them, and in the end you won't. too many people already have money and that money compounded is way more than you will ever make, but if you don't do it your standard of living will go down in the long run. just remember high risk=high gain, but do you have the guts?
- if you save 400 dollars a month for the remaining time of your age, since you want to retire at 50, that equals: 105,600. If you both save 400, multiply it by 2...its not rich, but is a good investment. Maybe you should look into stock. IF you find the right stock, you can have much more than 100 thousand.
- IF you can make 10% interest/return on that money...after 22 years you would have $ 377,006. Not RICH but doing good, right? How to you get 10% return all those years...you could try investing...( instead of " banking" ) There are some mutual funds that could make that 10% for you...or you could even make more if you get aggressive for the first few years... in the past five or six years some of these funds have averaged well into the 20% range...FEMKX, EUROX, FLATX, CGMFX...more stable would be things like FAIRX, FGBLX... A good place for an investment ( for the next two years..laws changing 2011 ) would be HTE or PWE..Canadian energy companies that pay well over 12% dividends... Open a trading account with E*trade, Scottrade, Chase.... and get your first few months into some shares...then add every month ( instead of putting it under the mattress) You will be delighted to learn that THEY pay you every month as you go along... put it all into more shares...in two years take the lump total and get into a good fund...keep adding...at least let's break that $ 400,000. mark !!
