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August 16, 2005


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When I worked for a CPA firm in Northeast Mississippi in the late 1970s, an otherwise racist (at least by 2005 standards) co-worker told me a
similar story. Apparently, Booker T. Washington or one of the faculty at Tuskegee told black families in the early 20th century to save back a nickel out of each week's paycheck. Those that did apparently had less pain during the Great Depression than many of their white counterparts.

if you saved all the change at 20% you would have over 125,000

if you saved all the change at 20% you would have over 125,000 at 40% 250,000

If you know a place with a risk-adjusted 20% return, please do tell! Even sustaining 10% in an aggressive stock/bond retirement portfolio over the next 40 years is ... optomistic. My retirement plans are based on an 8% return over the life of the account. When you adjust that for inflation, you're talking about a 5% real return.

While "a dollar a day" is a good way to illustrate the power of compounding interest to newbies, you're better putting as much money away today as you can. If you're banking on the stock market continuing the pace of the last twenty years or the magical compounding fairy to make your retirement comfortable, you're asking to be gravely disappointed.

I'd love to know where you can earn 10%. Even 8%. My local banks/credit unions pay 4.50% for a 5 year CD.

If you saved $30 a month in the stock market, it would cost you $12 just to buy stock.

It sounds like one of those insurance guys selling annuties to me.

Here's a simple way of illustrating the wealth potential for saving just $1 a day:

Every $1 a day you save can be $100,000 when you retire.

Explanation/Details: Investing just $365 annually, first day of the year, in a Roth IRA assuming 8% rate of return... in 40 years it's just over $100,000. Your actual contributions total just $14,600.

Add some simple math and $10 a day starting at age 25 makes for a $1,000,000+ balance at age 65.

I got this figure using the simplest Roth IRA calculator I could find on the web.

I dont have that time to wait i need to know the fastest and simpliest way to turn 1dollar into a million dollars in a year. thank you

Ok, I'm definitely LOST now.


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