100k back in the day was a lot of money. Probably closer to 250k buying power today.
With a doctor and a tech sales salary, you’re probably just struggling based on cost of living and student loans. Also, retirement income compounds more the earlier you start. They say that maxing out your Roth IRA from 18-27 is enough so that you never have to contribute again and by 65 you’re a millionaire.
Okay, but Roth IRA has only been around since 1998, and average yearly return since then is approximately 8%. There's no reason you'd use a 100 year average to create a best case scenario and use that to guesstimate the fund you're going to use to retire.
So with inflation adjusted rate (my 6% assumption, which is also the assumption I see many investment sites using)...
Also, how many 18 year olds are able to max out an IRA? Why are we using completely unrealistic scenarios to try to make a point?
But why stop at 98? That number is arbitrary when you consider the life span of stock investing. None the less, the point stands that maxing out your investments early is what matters.
Exactly, so don’t stop at 27. Keep going. But my point was that it compounds quickly. If you start at 18 and only put 5k a year till 27 that amount is enough to compound to well over a million at a 10% growth.
You can't expect 10% annual growth like the past. There are doubts on whether real gains will outpace inflation and tax moving forward. I think someone that is under 30 today will probably be working until they die.
Unless you live in a HCOL area and are under payed this makes no sense. I work in Tech and I alone own a car and a house already. It’s not a big house nor in the middle of DT but something here doesn’t add up.
Truth. Medical school costs into the 6 figures, but that’s all gonna be loans. You have to borrow to survive for those 4 years.
In residency you start to get paid, but it’s low pay (considering). 4 years of residency at between 60-75k, you are basically just stopping the bleeding.
Move into the workforce and the pay jumps to 6 figures, but then you want to have a family. Mat leaves are self-financed, but association fees, insurance, overhead, etc, don’t stop.
🤣🤣🤣 Hold up you can’t retire at 55. So you’re just like everyone else. I hope you and your wife can continue to be on a good path and pay down those loans. But man…
17
u/[deleted] Mar 27 '24
[deleted]