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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: payitoff on April 09, 2014, 10:29:53 AM

Title: $500,000 goal
Post by: payitoff on April 09, 2014, 10:29:53 AM
just learning the basics yet:

considering the growth and other factors, how long till i reach to $500k if i only max out my 401k. IRA and ROTH IRA? so that's about $28,500/year savings $5500 of it will be after tax?
can i still get dividend checks through IRA and 401K or is this held until retirement age or does this need to be rolled over to a Roth first?
Title: Re: $500,000 goal
Post by: matchewed on April 09, 2014, 10:42:41 AM
Networthify. (http://networthify.com/calculator/earlyretirement?income=50000&initialBalance=0&expenses=20000&annualPct=5&withdrawalRate=4) It's basic but it gives you a general idea.

Earnings within an IRA, 401k, or even a Roth IRA are subject to income tax and penalty tax. It is probably not a good idea to try to get dividend checks and just let them reinvest.
Title: Re: $500,000 goal
Post by: payitoff on April 09, 2014, 11:24:03 AM
Networthify. (http://networthify.com/calculator/earlyretirement?income=50000&initialBalance=0&expenses=20000&annualPct=5&withdrawalRate=4) It's basic but it gives you a general idea.

Earnings within an IRA, 401k, or even a Roth IRA are subject to income tax and penalty tax. It is probably not a good idea to try to get dividend checks and just let them reinvest.

i tried that but it doesn's give me options to tweak it, found this calculator just now, looks like it answered my question. thank you internet!

http://www.dinkytown.net/java/InvestmentVariables.html

Title: Re: $500,000 goal
Post by: matchewed on April 09, 2014, 11:28:25 AM
Networthify. (http://networthify.com/calculator/earlyretirement?income=50000&initialBalance=0&expenses=20000&annualPct=5&withdrawalRate=4) It's basic but it gives you a general idea.

Earnings within an IRA, 401k, or even a Roth IRA are subject to income tax and penalty tax. It is probably not a good idea to try to get dividend checks and just let them reinvest.

i tried that but it doesn's give me options to tweak it, found this calculator just now, looks like it answered my question. thank you internet!

http://www.dinkytown.net/java/InvestmentVariables.html

What exactly did you need to tweak? I just used it and it told me starting from scratch it would take somewhere between 12-13 years.
Title: Re: $500,000 goal
Post by: payitoff on April 09, 2014, 11:34:04 AM
the expenses part, i just needed to know how long will it take me to save 500k with compounded interest if i have continuously saved that much per month,
i wasnt looking to find out how long will it take me to sustain my monthly expense :)   
Title: Re: $500,000 goal
Post by: matchewed on April 09, 2014, 12:43:39 PM
You couldn't tweak expenses in networthify? Odd.

Or is it that you think expenses matter in this calculation? Because they don't. If I use 100k income (http://networthify.com/calculator/earlyretirement?income=100000&initialBalance=0&expenses=71500&annualPct=5&withdrawalRate=4) with $28.5 savings annually it will take 12-13 years to save $500k. If I use 50k income (http://networthify.com/calculator/earlyretirement?income=50000&initialBalance=0&expenses=21500&annualPct=5&withdrawalRate=4) with 28.5k savings annually it will take 12-13 years.