I currently have $22,000 in a 401k I contribute $3,000 per year + a gain of $100 per year in addition. I am agresively invested, Historically I gained roughly 7.5% over the last couple years. What is a realistic % gain in the market? What should I have as a goal as for as how much should I plan to have at retirement in 30 years from now? Is there any way to plan on the value of my retirement? What will one million dollars buy 30 years from now?
2007-12-10 16:27:09 · 5 answers · asked by Chris 2 in Business & Finance ➔ Investing
Yea, what Hines Ward said, plus I'll just add that historically the stock market has returned around 10% per year, including dividends being reinvested.
I'm in roughly the same boat as you, and I imagine I'll probably need more than a million to retire, not including any pension I may get.
2007-12-10 16:47:10 · answer #1 · answered by qu1ck80 5 · 0⤊ 0⤋
A million dollars won't buy much as it does now, just like it doesn't buy as much now as it did 30 years ago. Then if you had a million, you were rich. Now you're still a "middle class" guy to the super wealthy. But also, open up a Roth IRA through a good mutual fund company, such as T. Rowe Price and Fidelity. That's another retirement account working for you. You have to consider how long you will need that retirement, and with a Roth IRA, there is no RMD (Required Minimum Distribution.) And it continues to grow tax-free. You will pay current income tax on contributions, but withdrawals after 59.5, holding for at least 5 taxable years, will be tax-free.
2007-12-10 16:42:29 · answer #2 · answered by Anonymous · 1⤊ 0⤋
Hi Chris. You are asking a lot of great questions. If you go to the USAToday.com website and click on the "money" page, you will find a link near the bottom of the page (under the "site index" and the sub-category of "favorites") a link to "calculators".
Click on the link to find a whole series of calculators (answers to questions based on the numbers you use) for estimating retirement needs, returns on investments, etc.).
Best wishes and good luck.
2007-12-10 16:41:52 · answer #3 · answered by Doctor J 7 · 1⤊ 0⤋
At a young age and disciplined contributions into the account, yes that is possible. 10% is just a tad aggressive for both stocks and funds, since 9% is the historical average for stocks....but stranger things have happened. 7% is more probable, but 10% is definitely not impossible.
2016-05-22 23:40:42 · answer #4 · answered by ? 3 · 0⤊ 0⤋
It depends where you buy it but always get a loan in case you die insurance will pay for it. Leave your money to your loved ones.
2007-12-10 16:35:36 · answer #5 · answered by Juan G 2 · 0⤊ 3⤋