Comments on: How To Save $1 Million Dollars In 20 Years http://www.iplanretirement.com/retirementblog/how-to-save-1-million-dollars/ Learn How To Retire Early Mon, 30 Jan 2012 04:44:05 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: admin http://www.iplanretirement.com/retirementblog/how-to-save-1-million-dollars/#comment-4130 admin Sat, 07 May 2011 15:25:47 +0000 http://www.iplanretirement.com/retirementblog/how-to-save-1-million-dollars/#comment-4130 Funk: Thank you for your comment. I visited your website and I congratulate you for thinking about retirement so early in your career. In regards to the criticism of the How to Save $1 Million strategies: The average annual savings return is based on historical data going back 100 years, and covers booms, recessions, and depressions. On your website you make an assumption, based on nothing, that you need $1 Million or more to retire. Fortunately, your assumption is incorrect, you do not need $1 Million to retire. You can retire on much less than a million. Visit our website, try our <a href="http://www.iplanretirement.com" rel="nofollow">free early retirement calculator</a>, and also read our <a href="http://www.iplanretirement.com/howtoretireearly.html" rel="nofollow">How to Retire Early Guide</a> to learn more. Funk:
Thank you for your comment. I visited your website and I congratulate you for thinking about retirement so early in your career. In regards to the criticism of the How to Save $1 Million strategies: The average annual savings return is based on historical data going back 100 years, and covers booms, recessions, and depressions.

On your website you make an assumption, based on nothing, that you need $1 Million or more to retire. Fortunately, your assumption is incorrect, you do not need $1 Million to retire. You can retire on much less than a million. Visit our website, try our free early retirement calculator, and also read our How to Retire Early Guide to learn more.

]]> By: Funk Doctor X http://www.iplanretirement.com/retirementblog/how-to-save-1-million-dollars/#comment-4055 Funk Doctor X Mon, 02 May 2011 17:48:05 +0000 http://www.iplanretirement.com/retirementblog/how-to-save-1-million-dollars/#comment-4055 I have to say I disagree with your plans. You say the historical average on the returns with your asset allocation is 9%?! 9%?! You really think it's reasonable to assume a 9% annual gain over the next 20yrs? I don't know that this is reasonable assumption. Past performance does not guarantee future performance. And who gets a 5% raise every year? Over the past 10 years the inflation adjusted wage people earn as actually decreased. Sorry, overall this just seems a little pie in the sky, but the general idea seems a reasonable strategy. I have to say I disagree with your plans. You say the historical average on the returns with your asset allocation is 9%?! 9%?! You really think it’s reasonable to assume a 9% annual gain over the next 20yrs? I don’t know that this is reasonable assumption. Past performance does not guarantee future performance.

And who gets a 5% raise every year? Over the past 10 years the inflation adjusted wage people earn as actually decreased.

Sorry, overall this just seems a little pie in the sky, but the general idea seems a reasonable strategy.

]]> By: rob http://www.iplanretirement.com/retirementblog/how-to-save-1-million-dollars/#comment-1841 rob Mon, 06 Dec 2010 16:11:39 +0000 http://www.iplanretirement.com/retirementblog/how-to-save-1-million-dollars/#comment-1841 This is going to sound obvious but you have to cut expenses and save, save , save. I live in Mexico now and see how other people live with much less and it seems ridiculous that my friends in US need things such as new cars, electronics, etc.. You can make 200k per yr and still not have enough unless you cut expenses. If you can, live in a less expensive part of US or world for that matter and pay close attention to taxes. This is going to sound obvious but you have to cut expenses and save, save , save. I live in Mexico now and see how other people live with much less and it seems ridiculous that my friends in US need things such as new cars, electronics, etc.. You can make 200k per yr and still not have enough unless you cut expenses. If you can, live in a less expensive part of US or world for that matter and pay close attention to taxes.

]]> By: Mike Greenwood http://www.iplanretirement.com/retirementblog/how-to-save-1-million-dollars/#comment-1706 Mike Greenwood Fri, 26 Nov 2010 16:16:22 +0000 http://www.iplanretirement.com/retirementblog/how-to-save-1-million-dollars/#comment-1706 So, have you found a safe investment program offering a guaranteed 10% interest APR and you plan to work for 48 years under your model? Or at least you plan not to remove money for 48 years regardless of when you really retire. Interesting. A better model would be to assume a lower interest rate based upon a study of various mutual funds to find an average, say 6%, invest in about four funds to diversify your risk, and continue to put in some increasing amount over each year to adjust for inflation, say start at $175 per month and adjust upwards annually by the percent increase, and don't stop after eight years of contributions but keep it going until you retire. You have a much better chance of hitting the $1,ooo,ooo mark than your eight year contribution period and an almost impossible 10% APR. If you know of something safe that yields 10% or better consistently, I have not found it. My model should work better for you. So, have you found a safe investment program offering a guaranteed 10% interest APR and you plan to work for 48 years under your model? Or at least you plan not to remove money for 48 years regardless of when you really retire. Interesting. A better model would be to assume a lower interest rate based upon a study of various mutual funds to find an average, say 6%, invest in about four funds to diversify your risk, and continue to put in some increasing amount over each year to adjust for inflation, say start at $175 per month and adjust upwards annually by the percent increase, and don’t stop after eight years of contributions but keep it going until you retire. You have a much better chance of hitting the $1,ooo,ooo mark than your eight year contribution period and an almost impossible 10% APR. If you know of something safe that yields 10% or better consistently, I have not found it. My model should work better for you.

]]> By: shanton http://www.iplanretirement.com/retirementblog/how-to-save-1-million-dollars/#comment-1535 shanton Sun, 07 Nov 2010 00:34:49 +0000 http://www.iplanretirement.com/retirementblog/how-to-save-1-million-dollars/#comment-1535 A simple way to retire with a million is this: You first must plan on it early in life. Like in your early 20s, maybe. Find yourself a good job after you are done with high school and once you are pulling in a good, steady income, start an IRA account and put at least $200 away every month in it. $200 is not a lot of money these days. But if you find it to be a strain, put in less, like $175 a month. Let's round the amount of money you will be depositing into your IRA out to $2000 a year. Keep putting this much into your IRA for eight years. By the end of the eighth year, you should have over $16,000 in your IRA account. Now, stop putting any more money away in the account if you want to, and let this $16,000 compound over the next 40 some years, say at around 10% interest, and you will have at least a million dollars in your IRA. A simple way to retire with a million is this:
You first must plan on it early in life. Like in your early 20s, maybe. Find yourself a good job after you are done with high school and once you are pulling in a good, steady income, start an IRA account and put at least $200 away every month in it. $200 is not a lot of money these days. But if you find it to be a strain, put in less, like $175 a month. Let’s round the amount of money you will be depositing into your IRA out to $2000 a year. Keep putting this much into your IRA for eight years. By the end of the eighth year, you should have over $16,000 in your IRA account. Now, stop putting any more money away in the account if you want to, and let this $16,000 compound over the next 40 some years, say at around 10% interest, and you will have at least a million dollars in your IRA.

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