The above is an advertisment. If it asks you to download software or create an account, please ignore it.
Site News -
6/4: Advertising Position/Commission Available |
5/10: Members: Log In to See Fewer Ads!
[General |
Members |
C900 |
9000 |
NG900 & OG93 |
93 |
95 |
NG95 |
99 |
Sonett |
Vintage Models |
Clubs |
Other Cars |
FAQs |
Gifts |
Member Photo Galleries |
Member Directory |
Classifieds |
Manuals |
*Buddy Registry |
*Mileage Registry |
Polls |
What's New |
Raffle |
Photo of the Month |
Sponsors]
I certaily hope I have made a critical matematical or formula error in my quick spreadsheet. But here are the assumptions, results, and comparisons.
New employee starts job at 22 with $35K annual pay and works for 45 years until age 67.
Employee's pay increases by an average of 4% per year. (this is probably too high)
Employee contributes 10% of their pay to a 401(k) and their employer provides a 6% match. (the 6% may be low)
Their self-managed 401(k) returns an average gain of 8% annually.
According to my calcualtions this hypothetical employee will retire from a job paying them ~$196,500 annually, with a 401(k) balance of ~$729,350.
The ration between pension savings and ending pay is ~3.71
The current recommendation is for this ratio to be between 10:1 and 20:1 for a worker to continue living their same life style after retirement.
I sure hope I am wrong, or retirement will only be a historical myth in the future.
->Posting last edited on Sun, 5 Jan 2014 08:39:43.
_______________________________________
Saabs owned:
2008 9-5 Aero Sedan, sold at 227K miles
2006 9-3SC 2.0T - Wife's daily driver
2000 Viggen Convertible - Sold May, 2022
1964 Quantum IV Formula Car - Retirement project
2000 9-5lpt Sedan, sold at 318K miles
Posts in this Thread:
- OT: Feasibility of 401(k) accounts as sole pension source, MI-Roger
, Sat, 4 Jan 2014 17:02:44 <-- Viewing This Message- Started Late.... Real Estate..., Mike Lynch
, Tue, 7 Jan 2014 10:56:41 - Found my error and ran other scenarios, MI-Roger , Sun, 5 Jan 2014 09:02:17
- Deja vu?, andym, Sun, 5 Jan 2014 06:33:13
- Re: OT: Dismal failure of 401(k) accounts as sole pension source, Tom G
, Sun, 5 Jan 2014 03:08:35 - Re: OT: Dismal failure of 401(k) accounts as sole pension source, eric, Sat, 4 Jan 2014 20:46:50
- Re: OT: Dismal failure of 401(k) accounts as sole pension source, Name Left Blank, Sat, 4 Jan 2014 17:28:37
Members do not see ads below this line. - Help Keep This Site Online - Signup
Post a Followup
No Site Registration is Required to Post - Site Membership is optional (Member Features List), but helps to keep the site online
for all Saabers. If the site helps you, please consider helping the site by becoming a member.
StateOfNine.com
 |
SaabClub.com
 |
Jak Stoll Performance
 |
M Car Covers
 |
Ad Available
 |
Random Saabnet.com Member Gallery Photos (Click Image)
This is a moderated bulletin board - Posting is a privilege, not a right.
Unsolicited commercial postings are not allowed (no spam). Please, no For Sale or Wanted postings, SERIOUSLY.
Classifieds are to be listed in The Saab Network Classifieds pages.
This is a problem solving forum for over 250,000 Saab owners, so expect to see
problems discussed here even though our cars are generally very reliable. This is not an anything goes
type of forum. Saabnet.com has been a moderated forum since 1988. For usage guidelines, see the
Saabnet.com Mission and Purpose Page. Please remember that you are
not anonymous. Site Contact | Site Donations | Other Sites by SP -
Poverty2Prosperity.org | Run Club Menlo Park | ScreenBot
Site Members do not see red text instructions, bottom of the page anchor ads, or box ads.
Click here to see all
the Site Membership Benefits!
Members do not see ads below this line. - Help Keep This Site Online - Signup
, Sun, 5 Jan 2014 09:45:57
, Sun, 5 Jan 2014 06:15:34