Who knew it was so simple!

[AKN]

Saw this in line at the bank the other morning. Good luck to all those who heed this advice.

 

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[GaryFromDurham]

It's funny ....but depressing at the same time!!

 

[Talisman]

Wow, where can I get a 10% guaranteed return for 40 years? As soon as I make my first 10 mil, that's where I'll be depositing it!

 

[BeachBoy]

lol @ 10% Return every year.

 

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[garyfritz]

No kidding lol@10%! If I'd been getting 10% for the last 20 years, I wouldn't be working for a living. I'd be living very comfortably on my investments and working on my fastlane in my copious free time. While I wasn't hanging out on some beach, that is.

 

[domular]

I suggest that you ask for the guy that made that poster. Meet with him and tell him you'd like to deposit all of your money into his guaranteed 10% return fund. When he tells you they don't have one then ask him where that fund is because the chart says there is one.

What's sad is people will just look at this chart and not even question the numbers.

 

[Graves]

I'm not even sure if $1,000,000 will be enough to retire 40 years from now.
Even today , "retiring a millionaire" is just an okay retirement.

Wow, where can I get a 10% guaranteed return for 40 years? As soon as I make my first 10 mil, that's where I'll be depositing it!

Rickson's fund ?

 

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[MJ DeMarco]

You guys rock! Glad you guys see the light!

I suggest that you ask for the guy that made that poster. Meet with him and tell him you'd like to deposit all of your money into his guaranteed 10% return fund. When he tells you they don't have one then ask him where that fund is because the chart says there is one.

Speaking of 10%, the market is in a full-on crash today. If your 10% was coming from the stock market, you'd be down 10% in one day. Better change that poster to 20%.

 

[ClintonSkakun]

Can't wait to turn 65 so I can party it up....oh shit...wait..

 

[GlassCannon]

Hah! You should have gone up to the teller and asked for the 10% return plan.

 

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[8020blogger]

That sent a cold sweat running over me, who could possibly like that as an idea? The reality is that we are conditioned from a really early age to think this is cool stuff, all through school, and as soon as you get into the workplace.

I'm stuffed anyway. At 43 yo the fastlane is the only option for me!!!

 

[garyfritz]

For grins I ran the numbers. Starting at zero at age 25, contribute $200 per month at 10% growth and sure enough at age 65 you have $1.12M.

Of course you have to think about inflation. If inflation does in the next 40 years what it's done in the last 40 years, that $1.12M will be worth about $201k in today's dollars. $200k is not going to fund a luxurious retirement unless you die by age 67.

So let's say you grow your contribution at roughly the rate of inflation. If you start out with $200/mo, you should end up at about $1115/mo at age 65. If you grow that linearly, then your pot grows to a whopping $2.34M -- which is worth $419k in today's dollars.

They say to be conservative you should only withdraw about 4% of your retirement fund per year, if you want to be sure you don't outlive your money. That says if you're 25, and you save $200 per month and increase your contribution at the rate of inflation, and if you miraculously manage to get 10%/yr growth for 40 years -- then in your golden years you will get to live on the current equivalent of $1396.67 per month.

Don't spend it all in one place.

 

[Jeremy]

Here's what I would ask the bank:

"If you know of an investment with a guaranteed 10% rate of return over 40 years, why in the world are you loaning money on 30 year mortgages at 5%?"

Anyone who thinks about these things for 3 seconds or longer knows it's complete horsesheeet designed to make sure the middle class shovels as much money at Wall Street as possible for Wall Street to skim fees and commissions.

 

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[MJ DeMarco]

Bump for shits-n-giggles. Another 520 point drop in the market today.

 

[Kak]

So... Fastlaners make money in on crappy days too.

 

[Rickson9]

I'm not even sure if $1,000,000 will be enough to retire 40 years from now.
Even today , "retiring a millionaire" is just an okay retirement.

Rickson's fund ?

For better or worse I only manage my own money now, but thanks for the plug!

 

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[Rickson9]

Bump for shits-n-giggles. Another 520 point drop in the market today.

Some strong US companies run by ultra high net worth individuals are getting cheap! GES anybody?

 

[MJ DeMarco]

I just wrote an article that is premised on this above graphic!

4 High-Risk, Crap-Shoot Financial Gambles That Most People Blindly Accept

 

[snowbank]

For better or worse I only manage my own money now, but thanks for the plug!

how come?

 

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[CVentures1B12]

I just wrote an article that is premised on this above graphic!

4 High-Risk, Crap-Shoot Financial Gambles That Most People Blindly Accept

Just read your blog post, MJ. Awesome write up and thanks to AKN for the original post.

While I was reading your article, MJ, I tried to guess the 4 "crap shoot gambles" before I read the articles. Of course, I got them all right! My my, how I've learned. I can remember like it was only yesterday how I believed this and my goal was to "be a successful financial services professional with a steady job, work for 60 years and retire wealthy".....

 

[Rickson9]

how come?

Ontario Securities Commission changed the rules. I didn't want to change so I returned the investor money.

 

[millionairesol]

Let's say inflation is held constant, and age 65 is guaranteed for everyone. Thirdly, let's also agree that everyone will have $200 every month to set aside until 40 years. Let's just believe that they are sure and really know what they are promising, don't you guys think the road will be very much crowded?
At the end of the day what should we expect?-go slow or no movement at all and of course when the bridge gets weaker and weaker-it crashes and ...count me out please!

 

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