Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Looking for a great personal finance plan that will make me wealthy in 30 years
Old 04-07-2008, 01:48 PM   #1
Confused about dryer sheets
 
Join Date: Apr 2008
Posts: 5
Looking for a great personal finance plan that will make me wealthy in 30 years

I just started investing a few months ago and have been able to max out my 2007 Roth IRA, put 10% of my net income in mutual funds, and put 6% in my 401k since my company will match 50% up to 6% I put in. I'm saving up some money to invest in Real Estate down the road as well. My goal is to be worth $10 million by the time I'm 60. Do you think my current plan will allow this? Any advice about a great personal finance plan is much appreciated. Thank you.
__________________

__________________
RLCMA is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 04-07-2008, 01:53 PM   #2
Recycles dryer sheets
 
Join Date: Mar 2005
Posts: 329
The question dear sir is does your plan allow it? Do the math and let us know. Check your assumptions

-h
__________________

__________________
Hope springs eternal in the human breast:Man never is, but always to be blest.
The soul, uneasy and confined from home,Rests and expatiates in a life to come.
lswswein is offline   Reply With Quote
Old 04-07-2008, 02:03 PM   #3
Full time employment: Posting here.
 
Join Date: Sep 2007
Posts: 514
Sounds like you're off to a great start, but your post is missing way too much information to be able to make an informed guess about your likelihood of success.

How are we supposed to know if you'll have $10 million by age 60 if we don't know how old you are now? The answer to your question is obviously going to be different depending on whether you're currently 35 or 25.

You're contributing 10% to mutual funds and 6% to a 401(k), but 10% and 6% of what? What's your current income? The answer to your question is obviously going to be different depending on whether you earn minimum wage, or make 6 figures.
__________________
kombat is offline   Reply With Quote
Old 04-07-2008, 02:07 PM   #4
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 488
Quote:
Originally Posted by RLCMA View Post
I just started investing a few months ago and have been able to max out my 2007 Roth IRA, put 10% of my net income in mutual funds, and put 6% in my 401k since my company will match 50% up to 6% I put in. I'm saving up some money to invest in Real Estate down the road as well. My goal is to be worth $10 million by the time I'm 60. Do you think my current plan will allow this? Any advice about a great personal finance plan is much appreciated. Thank you.
What's your net worth now and how many years do you have left to invest?
__________________
Razor is offline   Reply With Quote
Old 04-07-2008, 02:32 PM   #5
Confused about dryer sheets
 
Join Date: Apr 2008
Posts: 5
Well I'm 29 years old now. I currently invest about $4,320/year in mutual funds, max out my IRA every year, and put $3,600/year in my 401k. Once my salary continues going up I'll be able to do more but I'm still a young professional so I don't make 6 figures yet.
__________________
RLCMA is offline   Reply With Quote
Old 04-07-2008, 03:18 PM   #6
Thinks s/he gets paid by the post
SecondCor521's Avatar
 
Join Date: Jun 2006
Location: Boise
Posts: 2,405
As others said, do the math. Learn Excel. Learn basic personal finance equations. Then you will know.

But just eyeballing your numbers, no, you won't be worth $10M at 60 going the rate you're going. Unless you assume a very (potentially ridiculously) high rate of increase in your salary and correspondingly large increase in your savings amounts.

2Cor521
__________________
"At times the world can seem an unfriendly and sinister place, but believe us when we say there is much more good in it than bad. All you have to do is look hard enough, and what might seem to be a series of unfortunate events, may in fact be the first steps of a journey." Violet Baudelaire.
SecondCor521 is offline   Reply With Quote
Old 04-07-2008, 03:31 PM   #7
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 488
Quote:
Originally Posted by RLCMA View Post
Well I'm 29 years old now. I currently invest about $4,320/year in mutual funds, max out my IRA every year, and put $3,600/year in my 401k. Once my salary continues going up I'll be able to do more but I'm still a young professional so I don't make 6 figures yet.
I don't think 10 million is doable unless you hit the lottery.
__________________
Razor is offline   Reply With Quote
Old 04-07-2008, 04:46 PM   #8
Confused about dryer sheets
 
Join Date: Apr 2008
Posts: 5
How about 1 million?
__________________
RLCMA is offline   Reply With Quote
Old 04-07-2008, 04:46 PM   #9
Full time employment: Posting here.
GoodSense's Avatar
 
Join Date: Jul 2007
Posts: 678
Maybe you could try some of the retirement and investment calculators at Bankrate.

Calculators for mortgages, savings, small business, credit cards and auto loans by Bankrate

Fidelity ("my plan") and money.com also have calculators. You have to set your own assumptions on risk/return to get a good picture.
__________________
GoodSense is offline   Reply With Quote
Old 04-07-2008, 04:47 PM   #10
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 488
Quote:
Originally Posted by RLCMA View Post
How about 1 million?
You should have no problem hitting that goal.
__________________
Razor is offline   Reply With Quote
Old 04-07-2008, 04:54 PM   #11
Thinks s/he gets paid by the post
Milton's Avatar
 
Join Date: Apr 2007
Posts: 2,079
Quote:
Originally Posted by RLCMA View Post
I just started investing a few months ago and have been able to max out my 2007 Roth IRA, put 10% of my net income in mutual funds, and put 6% in my 401k since my company will match 50% up to 6% I put in. I'm saving up some money to invest in Real Estate down the road as well. My goal is to be worth $10 million by the time I'm 60. Do you think my current plan will allow this? Any advice about a great personal finance plan is much appreciated. Thank you.
This post is rather bizarre, and - as others have pointed out - lacks many necessary details.

Two questions for RLCMA:

(1) Where did the $10 million amount come from? :confused:

(2) Is the $10 million supposed to be in 2008 dollars, or 2031 dollars?
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
Milton is offline   Reply With Quote
Old 04-07-2008, 05:02 PM   #12
Confused about dryer sheets
 
Join Date: Apr 2008
Posts: 5
Oh I don't know. I was just wondering if 10 million is doable in 30 years or not. Maybe I'll have to wait until I'm 70 or 80. With people living longer maybe I'll be in good enough shape at 70 or 80 to enjoy my money. I don't see how my post is bizarre.
__________________
RLCMA is offline   Reply With Quote
Old 04-07-2008, 05:09 PM   #13
gone traveling
 
Join Date: May 2006
Posts: 1,036
Buy a $500,000 condo in San Francisco. At historical annual compounded appreciation rate you will have a paid off condo worth $11,446,148 minus realtors fees etc. you should net $10,000,000.
__________________
honobob is offline   Reply With Quote
Old 04-07-2008, 05:15 PM   #14
Thinks s/he gets paid by the post
Milton's Avatar
 
Join Date: Apr 2007
Posts: 2,079
Quote:
Originally Posted by RLCMA View Post
I don't see how my post is bizarre.
Well, I'm not interested in an argument, but I'll try to explain:

(1) you said that you save X% of your income, but didn't provide that income;

(2) you wanted to know whether you would have a certain amount by age 60, but didn't provide your current age;

(3) you didn't indicate your net worth (i.e., how close or far you currently are from $10 million);

(4) you said that you invest in mutual funds, but provided no details of the type of funds or their current fees;

(5) you picked a retirement amount ("$10 million") out of the air; and

(6) you don't know whether your target figure is inflation-adjusted or not.

Saving money is better than not saving money, and it sounds like you are off to a reasonable start. Fine-tuning your investments will take time, but you have quite a few years to work on it. Good luck!
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
Milton is offline   Reply With Quote
Old 04-07-2008, 05:17 PM   #15
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 488
Quote:
Originally Posted by honobob View Post
Buy a $500,000 condo in San Francisco. At historical annual compounded appreciation rate you will have a paid off condo worth $11,446,148 minus realtors fees etc. you should net $10,000,000.
Where does the $500,000 come from?
Of course an earthquake could change things considerably.
__________________
Razor is offline   Reply With Quote
Old 04-07-2008, 05:21 PM   #16
Thinks s/he gets paid by the post
Milton's Avatar
 
Join Date: Apr 2007
Posts: 2,079
Quote:
Originally Posted by Razor View Post
Where does the $500,000 come from?
Oh, California mortgages don't require any down payments. Real estate speculation investing is all free money, don't you know!
__________________
"To know what you prefer, instead of humbly saying Amen to what the world tells you you ought to prefer, is to have kept your soul alive". Robert Louis Stevenson, An Inland Voyage (1878)
Milton is offline   Reply With Quote
Old 04-07-2008, 05:25 PM   #17
gone traveling
 
Join Date: May 2006
Posts: 1,036
Quote:
Originally Posted by Razor View Post
Where does the $500,000 come from?
Of course an earthquake could change things considerably.
You said you wanted $10,000,000 in 30 years. A $500,000 condo would get you closest to that figure although difficult but doable. It would be easier to find a $600,000 one bedroom condo but you'd probably have to put more down, etc. but then you'd be shooting at $13,735,378 in 30 years. Your choice. That's why they have earthquake insurance.
__________________
honobob is offline   Reply With Quote
Old 04-07-2008, 05:26 PM   #18
gone traveling
 
Join Date: May 2006
Posts: 1,036
Quote:
Originally Posted by Milton View Post
Oh, California mortgages don't require any down payments. Real estate speculation investing is all free money, don't you know!
Nothing wrong with a no money down mortgage. I'll take all you can supply!
__________________
honobob is offline   Reply With Quote
Old 04-07-2008, 05:47 PM   #19
Recycles dryer sheets
 
Join Date: Sep 2007
Posts: 488
Quote:
Originally Posted by honobob View Post
You said you wanted $10,000,000 in 30 years. A $500,000 condo would get you closest to that figure although difficult but doable. It would be easier to find a $600,000 one bedroom condo but you'd probably have to put more down, etc. but then you'd be shooting at $13,735,378 in 30 years. Your choice. That's why they have earthquake insurance.
How do you know a $500k condo will be worth 10 million in 30 years? Real estate values are dropping, if you didn't know.
__________________
Razor is offline   Reply With Quote
Old 04-07-2008, 08:30 PM   #20
Recycles dryer sheets
 
Join Date: Jan 2006
Posts: 189
Might be worth subscribing to Financial Engines for a quarter (3 months):
https://www.financialengines.com/FeContent?act=welcome

You plug in your current savings and investments, how much you will contribute, and your goals. It tells you your "forecast" of meeting your goals, taking into consideration many possible future economic scenarios, and gives you specific financial advice on how to get there. It also computes everything in today's dollars for you. It is a very thorough Monte Carlo type analysis. I paid for a quarter when I was first starting to invest, and still use it now and then for free through Vanguard (min $100k balance). I recommend it.
__________________

__________________
Dude is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Personal Finance Success--Psychology RetireeRobert FIRE and Money 0 10-25-2007 12:28 PM
mint.com: new online personal finance site free4now FIRE and Money 2 09-18-2007 07:47 PM
Personal Finance Training? Sam Other topics 4 08-10-2007 03:23 PM
What would you teach in Intro to Personal Finance? Peaceful_Warrior Other topics 18 04-24-2007 12:11 PM
Carnival of Personal Finance JLP FIRE and Money 12 07-13-2005 08:03 PM

 

 
All times are GMT -6. The time now is 04:37 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.