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Originally Posted by Exhibitman
Your buck a day with another buck a day compounded over 30 years at 3.15% (the average Treasury interest over the last 30 years) is the princely sum of $18,575.51. It is a drop in the bucket.
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I am not saying that if you save a single dollar a day your retirement is secure. It is an example. Obviously.
Quote:
Originally Posted by Exhibitman
In the United States, assisted living costs an average of $4,300 per month, according to the 2020 Genworth Financial Cost of Care Survey. For the mathematically challenged, that is $51,600 a year. Your dollar a day nest egg vanishes in four months. You either have to sock away far more money, work much longer, or you have to chase a higher ROI. That means equities, and they've crapped out multiple times since I started working.
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I have no equities because I got clobbered the last time they crapped out. So instead, I cobbled together a down payment of about $40,000 and bought a rental house in 2005, then did it again (with $50,000) in 2017. They cash flow about $950 each now. So, that's $22,800 per year. Early social security ($1500/month) is $18,000 per year. So, if I can make $1,000 a month, which I do, that comes out to about $52,000 annually. That's passive income ($40k) and leisure, hobby income ($12k.)
Quote:
Originally Posted by Exhibitman
Here's a suggestion: before making blithe pronouncements about it merely being a process of wanting it more, try actually pricing out what you are likely to need in terms of goods and services, then back into the actual savings numbers. The result will shock you.
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I am not being condescending, I am trying to be encouraging. I was at rock bottom at the age of 36 and retired by 61. Right now, my net worth (savings) grows by abut $2500 each month because I am very frugal. So I'm well aware of the potential very high costs that could come about in the later years of life. Retirement doesn't mean you start drawing down savings and assets - you want to try to always grow them.
But if you prefer to not have your negative outlook on life challenged, that's your decision.