Fidelity Article

[TexasRunner]

Ran across a Fidelity article that was pretty mustachian.

The lump sum was this:

Surprise! You can retire a millionaire

The average Joe or Jill might believe that millionaire status is only reserved for the upper echelon of society, but that isn't the case. With the right saving mindset, it is possible for you to become a millionaire by the time you retire.

You just need to follow certain precepts:
-Begin saving early.
-Leverage the power of compound interest.
-Live below your means.
-Delay gratification for a while.
-Invest in tax-advantaged savings programs.
-Keep fees and expenses as low as possible.
-Avoid the emotions of greed and fear.
-Stick with a long-term plan through tough times.

Embrace these vital principles over the course of your working years, and you may be surprised at how easy it is to reach 7 figures by retirement. Read on to find out how smarter-than-average Joes and Jills become millionaires.

https://www.fidelity.com/insights/retirement/8-tips-for-millionaire-retirement

Not bad!

[NoStacheOhio]

Shouldn't the headline be more like "If you're not a millionaire, you'll probably run out of money in retirement?"

[TexasRunner]

Plenty of people here retire on less than that...?

I may be missing your point. :)

[NoStacheOhio]

Plenty of people here retire on less than that...?

I may be missing your point. :)

Not the target audience ;-)

My mother was dating a guy for a while who had somewhere north of $1m in his 403b. She goes on and on about how much money that is. I keep saying "yeah, but he doesn't have any pensions, you do. It only works out to like $40k/year of income." She doesn't hear me.

[nereo]

Shouldn't the headline be more like "If you're not a millionaire, you'll probably run out of money in retirement?"

Not sure if I agree with that sentiment...
If you work until you are 65 and spend ~$40k/year than you could retire on ~$300,000 when you factor in SS.  That's a 'typical' retirement strategy, but certainly not one much advocated around here (for good reason).

EDA - nevermind, NSO -  saw your response.

[TexasRunner]

Not the target audience ;-)

My mother was dating a guy for a while who had somewhere north of $1m in his 403b. She goes on and on about how much money that is. I keep saying "yeah, but he doesn't have any pensions, you do. It only works out to like $40k/year of income." She doesn't hear me.

Gotcha.  :)

However point three was good on "live below your means".  I believe that its a first that I've seen that advocated anywhere...  Though Fidelity could make a lot more money (in an ethical way) if 60%+ of the population was investing instead of building debt.

[Jack]

People hear the word "millionaire" and think of gilded-age robber barons, but they neglect to account for the century of inflation. They need to realize that being a "millionaire" in 2016 is no more impressive than being (approximately) a "forty-five-thousandaire" in 1916, or conversely, that in 2016 robber-baron status now requires more like $22 million. (http://www.usinflationcalculator.com/)

[GuitarStv]

People hear the word "millionaire" and think of gilded-age robber barons, but they neglect to account for the century of inflation. They need to realize that being a "millionaire" in 2016 is no more impressive than being (approximately) a "forty-five-thousandaire" in 1916, or conversely, that in 2016 robber-baron status now requires more like $22 million. (http://www.usinflationcalculator.com/)

I'm certain that a frugal robber baron could make do with 20 million.

[marty998]

Shouldn't the headline be more like "If you're not a millionaire, you'll probably run out of money in retirement?"

Not sure if I agree with that sentiment...
If you work until you are 65 and spend ~$40k/year than you could retire on ~$300,000 when you factor in SS.  That's a 'typical' retirement strategy, but certainly not one much advocated around here (for good reason).

EDA - nevermind, NSO -  saw your response.

True dat.

Male life expectancy is 80? So if you work till 65 and spend $40k per year after that, on average you will die only having spend $600k, and the starting $1m earns returns as well so you'll still have way more than $400k left over.

[Bicycle_B]

I liked the suggestion to flex your bicep when faced with a tempting impulse purchase.

[Metric Mouse]

I liked the suggestion to flex your bicep when faced with a tempting impulse purchase.

Always good to work the frugality muscles a bit.