This is for all the guys saying they don't make enough to ever retire and also the guys yelling that their generation is screwed. 


"On the surface, the idea that you can achieve a $1 million retirement when you’re pulling in a minimum-wage paycheck seems impossible, but it can be done. "It is only impossible because everyone tells you that it isn’t possible."

http://www.investopedia.com/articles/retirement/083016/how-plan-1-million-retirement-minimumwage-salary.asp

A million dollars isn't that much anymore.

It's exceedingly difficult. Most people aren't willing to make the sacrifices required. Get a few years older and its pretty much impossible on minimum wage.

Frankly, if you make minimum wage you are better off working on new skills and better employment. Anyone not making median wages should probably focus on increasing their take home.

LOL ok

I the grand scheme of things it isn't, but if you are all paid up and retire with $1m in the bank, you will enjoy your years just fine.

The sad fact is most refuse to do either, make the sacrifices to save it nor take the effort to increase their pay. But they got that big screen right . 

1/4 of your pay to retirement, not unreasonable.

Living on minimum wage, 1/4 of your pay to retirement, lol.  

Assuming that you are on the up on your investments at retirement 48 years later, lol

It's a common sense article that every young kid should follow though.  A mere $5000 graduation gift in to the account, plus $200 a month is small beans to get to $1,000,000 at retirement.  That's almost ten times the cash accrual.

If you make minimum wage it is an impressive sum to save AND would provide a income stream, for life, between 2 and 4 times what you already make.

An extra 30-50 thousand a year would be significant for most people.  Only making 30-50 thousand a year in retirement, + social security, would be more than most people will make.


It is not as much as it once was, no doubt about that. However, for most people, it is more than they will ever have.

People focus too much on the money and not enough on the time. You don't have to save much if you give it 50 years to compound (first job at 15, retire at 65).

Without looking it up I would bet that it's a single digit percentage that retire in the US with at least a million in funds and or assets.  

If you could afford to retire on that I'd be retired.

It's bullshit pure and simple.       Concentrate on making six figures or concentrate on working the Wellfare system and collecting Cash on the side.

Or- get latched on hard to a fat Government Titty.  


Three options, chose one, but don't be retarded and think you'll get anywhere working for poverty wages.

Most people spend more than 200 a month on fast food.  

That all depends on your lifestyle and what you consider "much".

fast food is some of the cheapest food that you can buy.  Starve for 50 years, or eat fast food.

Tough call.

(far from a min. wage worker here, but that's a reality check for you).

Someone that has never made more than minimum wage their entire life could retire on that.

Maybe this is one of those times when you should either look it up or refrain from commenting

This.  Investment companies have scared people into believing they need multi millions of dollars to retire but it's not the case.  Most won't even bring home multi millions their entire working lives, let alone bank that much.

I agree that most aren't putting nearly enough back. They also aren't starting early enough.

Personally I waited to long before hitting the retirement accounts hard. I was almost 30 when I started ramping contributions up.

If you pick a good husband/wife and combine incomes it can also make retirement investing easier. Personally, my wife doesn't work, if she did we might be able to retire 10+ years earlier. When the kids are all in school I have a feeling we will want to upgrade land and her income will go almost completely to that.

Right now I could easily generate $60K to $75K annually on a million.

.


I don't know what you are going for here, but it's definitely a single digit percent.  Look it up.

It's even more possible once you realize that only the dumbest of the dumb or mentally handicapped would stay at minimum wage their entire life. Even burger flippers get small raises and promotions.

are they assuming that you arent spending ANY other money at all?

free food

free water

free housing

etc?

It's more now than it will be in the future.

they won't have to worry about retirement. They'll be dead from heart disease or the beetus.

I'm risk averse, I want to enjoy retirement, I expect a decent amount of inflation and I want to leave some to my kids when I die. I see 4-5 mil as a great goal for most millenials at retirement.

At 60 or so I could do it easy as my monthly household expenses are around 3k a month and I can make them less. I'm retiring in my 40's though. I think the article could be very helpful to the young guys especially. If they start saving young then it will be much easier and more beneficial than trying to play catch up later in life. 

that.

Yet people have done it.

Depends on what age they want to retire I guess. I think that's a lofty goal for most but if you can do it then more power to you for sure.

As a baby boomer part of our problem is prior generations got company pensions assuming they had a decent job. My parents did. We were not fast enough to get on board with investing for retirement. I put most of my money into being debt free and not enough into retirement when I was young.

I spend every penny I make on scratch offs.

Don't forget beanie babies.

Low initial investment, high possible returns.  I like it!

... actually, it can be done

Not everyone is going to make six figures. Many of the paths to six figures involve leaving family and moving to high cost areas. Other paths often times include debt and years of schooling. IIRC median household income in the US was about $56.5k. If you are already making over that and live in a low cost area, it may not be worth the effort and risk to push for the six figure line as a magical solution. Just keep in mind failure rates and lost wages as you make those decisions. 

Personally, I don't make six figures yet. I do see my current career path taking me there, but it will be several years. I could move and make six figures now but most of it would get eaten by increased expenses. I would also be farther away from family.

Instead, I put 30% of my pre tax income towards retirement. (25% + 5% employer match)

The internet and automatic investment of pre-tax dollars into mutual funds, company match 401k's, IRA's, etc has changed everything as far as the small guy making bank for retirement. It wasn't that long ago that none of those tools existed.

$1M will yield less than $15-30,000/yr without touching the principle in today's interest rate environment.
Plus it's taxable income for federal and most state taxes.

Working minimum wage your entire life will also effect your social security wages and benefits.

Who pays 7% I'll take that in a heart beat. Ive got one acct with 100k in it that I'm looking to do something with. Because it's just sitting there getting nothing in interest at todays rates. That article is hype because no one is paying 7% I know of. If someone is please lmk.

I'm not rich but I just retired and draw 40k a year in funds. But here's how I survive on that.

Before I retired at 55 I paid of my home which is worth 400k right now which is on the water in Tampa bay. When I built it myself with a boat dock and lift it cost me 110k a piece of vacant land right across the street from me just sold for 300k a home which is an exact copy of mine 3 doors down from me. Because I built it also. My brother in laws. He passed away last Christmas and my wife inherited it. We are listing it for 375k to 425k

But home is paid for.
All vehicles are paid for and they are fairly new and in great shape mine has 50k miles on it. Hers has 40k on it.
Boat and new RV paid for.

In essence before I retired I paid everything off. The 40k a year is my income not counting hers. My monthly out go in bills is around 1000.00 so I save about 500 to 1000 amonth into my savings and still have money left over to do what I want. If I need more one month I have. But I alwayys keep a balance of.......lets just say alot. I can pay cash for what I want.

But interest rates right now suck. I'd be ecstatic to get 7% they were talking about in that article. I did buy a house and turned it for a cool 120k profit in 6 months last year.  Plus I dabble in real estate. Doing a closing next week with a 12k commission. One or two a year I'm happy with and don't have to work hard.

My wife has her brokers license.  But I spend most of my time doing what I want. I'm not rich by any mean but I live comfortable and want for nothing.

I have to say though. I never had any kids. That has a lotttt to do with it. If I had kids I would not have been able to do what I did. From what I've seen with my friend who are in debt up to their butt. Kids are are very expensive and will keep you in debt. Alot of times even after they are grown they still cost them money.

Thank god I never had any. Not saying sometimes I wish I had one. But when I start feeling that way. I visit my friend and listen to them complain and that fixes me.

Besides I have nieces and nephews. I keep them and play with them. When I'm tired of them I send them home.

Living cheep, good investing, possible but not probable

Definitely won't be worth much when it comes time to retire. 

S&P average is well over 7%.

Yes, its a little volatile. Barring major war, people and/or machines will still be producing.

You should probably kill you financial advisor if he can only muster a 1.5% return.

I believe it was Dave a Ramsey who pointed out that one hundred bucks a month from age 25 to 65 is a million bucks at 12%. And even if you use a more conservative 9% number (which over 40 years is really conservative) is half a million bucks. So do $200 a month at 9% to just barely miss a million bucks.

Yes. You may not be able to retire on a million. But that, plus some social sercurity, and hopefully a paid off house. Yeah that's totally doable

People drop $100-$200 a month on booze, or expensive restaurant, or cable, or lattes, or the salon, or cigs, or half a car payment.
Just CUT ONE and become a millionaire when you are old.

You aren't paying very much federal tax on 30k a year, in fact you probably would pay nothing. And if taxes are an issue... MUNI bonds are tax exempt.

The key is you just have to beat inflation. My retirement planning needs 7% growth and 3% or less inflation.  If I hit close to market averages I'll either retire earlier or much more well off. If we experience major inflation, I just need to on average beat inflation by 4%. I expect most companies will inflate at similar rates to the true inflation we experience,  so I think I will do alright.

If I don't make 4% over inflation it will be tighter but I will probably do ok because of the percentage I invest.

If we experience hyper inflation I hold a small amount of bitcoin as a hedge.

A Home is an Asset.    A military or government pension counts as a multimillion dollar asset.  

What age are we talking about?      Pick one.  60?    Use Facts, not useless opinions

9% really conservative with that little of an investment?  LOFL

Try more like 5% being realistic.

More proof of how dumb Dave Ramsey is.

Am I the only one that isn't looking forward to retirement?  

I always read these threads and everyone wants to be retired in their 40s.

I would be bored as hell.  I love my job and  rarely take vacations.  I hate traveling and any hobby I've ever taken up, I get tired of quickly. Everything I love doing, I get paid to do, lol.

My wife and I have a better than average retirement account balances and will be able to retire no problem when our house is paid off, but I just have no desire to.

You called him out. Let's see that the average retirement savings in the millions aren't in the 1 % of the population. I'll wait for your facts... (I do have them, but this is more fun because of how wrong you are).

No, "they" haven't.   What's the point of this glittering lie?     Fool the ignorant poor with ridiculous Rags to Riches tales?  

Fine.  Good show.    But don't try to bullshit the people who know better.

Oh forgot..I was thinking of selling my home for 400k and moving to the panhandle in Florida. I love it up there. I can get 10 acres on the river up there for 50k and I can build my own home for around 125k and pay cash to do it and pocket the balance. 225k is a nice chuck of change.

Plus I'll get a new house and still be on the water plus taxes are lower up there. So is the cost of living compared to Tampa Bay area. It is absolutely beautiful up there to.

But 5 acres of property and I can put me a gun range in because it's out in the country on the water with access to the gulf of Mexico . They do have bears though

Eventually that area will boom property will double or triple. I can spit the property in half and sell it and recap the cost of my building my home. I will still have 5 acres and a gun range. I have suppressors so it won't bother to many people