Comments on: The optimism of the young … http://7million7years.com/2008/05/12/the-optimism-of-the-young/ How to make 7 million in 7 years ... Thu, 24 May 2012 01:26:57 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: AJC http://7million7years.com/2008/05/12/the-optimism-of-the-young/comment-page-1/#comment-994 AJC Mon, 12 May 2008 22:18:05 +0000 http://7million7years.wordpress.com/?p=140#comment-994 @ Andrew - I hope that everybody sees your comment because it is such an important point ... the targets that people are aiming at are TOO LOW when inflation is (as it MUST be) taken into account. Well said! BTW: I haven't looked at all of Ryan's posts, but the ones that I did read seemed to reinforce the "start young" message that I like to see ... perhaps after reading this he'll add some "aim high" messages as well :) @ Andrew – I hope that everybody sees your comment because it is such an important point … the targets that people are aiming at are TOO LOW when inflation is (as it MUST be) taken into account. Well said!

BTW: I haven’t looked at all of Ryan’s posts, but the ones that I did read seemed to reinforce the “start young” message that I like to see … perhaps after reading this he’ll add some “aim high” messages as well :)

]]> By: Andrew http://7million7years.com/2008/05/12/the-optimism-of-the-young/comment-page-1/#comment-993 Andrew Mon, 12 May 2008 21:17:10 +0000 http://7million7years.wordpress.com/?p=140#comment-993 Ryan's posts provide some good advice for young investors like myself (age 20) but I think to a certain extent they may be a tad misleading. $3,159,929 in 40 years equals only $968,698 dollars in todays terms assuming a 3% rate of inflation. So while 3.1 million seems like a large number you will still be living off less in retirement (in real terms) than you were making when you were 25. (5% of 968,698 = $48,434 vs. 50,000 at 25) I don't know about anyone else but that is certainly not the type of retirement I am planning for. When looked at in real terms it hammers home the point that savings alone won't make you wealthy. Ryan’s posts provide some good advice for young investors like myself (age 20) but I think to a certain extent they may be a tad misleading.

$3,159,929 in 40 years equals only $968,698 dollars in todays terms assuming a 3% rate of inflation.

So while 3.1 million seems like a large number you will still be living off less in retirement (in real terms) than you were making when you were 25. (5% of 968,698 = $48,434 vs. 50,000 at 25)

I don’t know about anyone else but that is certainly not the type of retirement I am planning for.

When looked at in real terms it hammers home the point that savings alone won’t make you wealthy.

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