Ken Briggs
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thread 1/4
Here is another path that might be more realistic. Let’s say you’re 25, making 40k/year. Money is tight. You went to community college, so no debt. You sock away $1000/month, and do this every month for 10 years as your income grows.
Ken Briggs @KenWBriggs3
See folks talking about not being able to retire and I have a formula for you:
1. Keep your living costs as low as possible
2. Figure out how to sock away 2000 per month by the time you’re 25
3. Do that for five years, invest it in an index fund, and you can retire at 65 easy.
11:56 AM - Apr 03, 2024
07:31 PM - Apr 07, 2024
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Ken Briggs
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thread 2/4
You use an app to put it in dividend stocks that average 6% per year and reinvest. In 10 years you have $160,000. Then, keep that money there. In 30 years at the same rate you will have around $920k even if you don’t save another dime.
07:33 PM - Apr 07, 2024
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Ken Briggs
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thread 3/4
Say you save a little more and hit one million at 65. At 6%, that pays out $60k that you can spend every year forever without running out of money. Add in social security, and you have retired very comfortably.
07:36 PM - Apr 07, 2024 (Edited)
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Ken Briggs
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thread 4/4
If you are disciplined with money when you’re young and avoid debt like the plague, retirement will (hopefully) not be something to worry about.
07:38 PM - Apr 07, 2024
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Ken Briggs
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That was sarcasm, the "lived experience" thing is turtles all the way down. This was a hypothetical to demonstrate the power of compounding, not find a solution for every last personal situation, which is impossible.
In response to Myra Faye Turner.
03:50 PM - Apr 11, 2024 (Edited)
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