Author Topic: looking at the 'small' picture...  (Read 1997 times)

Ftao93

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looking at the 'small' picture...
« on: August 25, 2014, 03:08:39 PM »
So, since I'm very new to all this at the age of 38, I've made some screw ups, but I've got a 5 o'clock shadow that I'm grooming.

I'm putting 17% of my income into 401k, and 7% into a Roth IRA.  At 38, assuming I worked until 65 (let's hope not, but let's assume).   Even if I up my contributions a lot, I would end up with @ $1.2m in there.  I pull down @ 50k.

My wife works part time at Home Depot.  Makes about 10k right now.  After this year we're hoping she'll at least work full time, which would have her bringing in @ 20k.

if she puts 25% of her income in there, she could retire with $1.6m


This is nothing new to most of you, but some people need a matter of scale to make it real.

Never underestimate the power of small amounts and time!


matchewed

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Re: looking at the 'small' picture...
« Reply #1 on: August 25, 2014, 03:58:01 PM »
Sure small amounts and time will get you there. But we're all about the small time and large amounts. :) It gets you there quicker.

TomTX

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Ftao93

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Re: looking at the 'small' picture...
« Reply #3 on: August 26, 2014, 07:32:19 AM »
Sure small amounts and time will get you there. But we're all about the small time and large amounts. :) It gets you there quicker.

Oh indeed!

we're making things happen that will quickly increase these amounts.

1) Dialing back the spending.  A lot.  all summer I spent $$ on eating out and drinks like I was going to prison.  I love scootering as a hobby, so there's been a lot of purchases for that.  Thankfully most are long term like riding gear and tools.  We've reached critical mass with 'things' and the requisite 'stuff' to maintain the usefulness of 'things'.

2) Wife will finish school this year.  That opens her up for full time work.  She's  worked retail for the past 8 years so I'm not expecting 6 figures, just get to the 20-25k mark.

3) not using credit as a means of purchase.  DUH!  But the American way is to earn 20k and finance 50k worth of debt!  It was never that bad, but my wife had never used credit before.  Guess what?  She ran up over $1k in hot dogs/soda for a year of school.  "But I was making the minimum payments...."   Both people obviously need to be on the same page.   

Again, none of this is any kind of news to regular readers.  I just thought different wording might make it click for some people.