Quote:
Originally Posted by FlyingScot
True, but not really. If you have $100K or so in the stock market via your 401K, you might pick up $7-8K/year on average. That's nice, but hardly earth-shaking....
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If you have $100K in a tax deferred account at age 35, at 7--8% it should double every 10 years, that's $800K at age 65. If you also continued to add to that 401k, you'd likely have $1MM. At the same 7-8% that throws off $75K a year. That's pretty good in my book, probably earth shattering for some.
The difficulty, of course, is getting to that first $100K. Lots of temptations, new cars instead of used, bigger fancier house, resort hotels instead of campgrounds. And, student debt, as discussed earlier. These days, the trades make more fiscal sense than they did years ago when our schools pushed four year colleges. My independent plumber charges $125 for a quick house call. That's $250K a year if he has 40 billable hours a week. How often do you read this forum or FB and people are in need of a plumber, electrician, etc.? Heritage Home Services isn't advertising on TV for customers. They're advertising because they need tradespeople! But we still rank our high schools based on how many graduates go on to a 4 year college.