wow, I was looking through here because I was curious about the thread title, and people are saying you can't retire with $750,000 saved up
how in the world do you even save that much up anyway? that is a crazy amount of money to me! I'd feel like rihanna!
As Einstein said:
Compound interest is the 8th wonder of the world. He who understands it, earns it; he who doesn't, pays it.
At 8% growth, starting with $0.00 saved, you can save $750,000.00 in 30 years by saving $2.88 per hour worked (assuming a 40 hour week).
Since you said you are 30: If you save $435.94 per month from age 30 to age 65 at 8% CGR, you will have $1,000,000 at age 65.
If you use excel,
=fv(rate,numberofperiods,$perperiod,startingamount)
will tell you the future value of a series of equal payments with a given interest/growth rate.
That is why in the other thread I suggested you analyse your spending in detail (make a log of everything you buy) and to force the savings FIRST before other spending.
I plugged in 8% above because the SP 500 has averaged a return over the last 35 years of 9.423 % (with dividends reinvested, as would be if you were doing this in a ROTH).
Using 9.423 % instead of 8%:
At 9.423% growth, starting with $0.00 saved, you can save $750,000.00 in 30 years by saving $2.14 per hour worked (assuming a 40 hour week).
Since you said you are 30: If you save $305.38 per month from age 30 to age 65 at 9.423% CGR, you will have $1,000,000 at age 65.
Even better, if you do $1000 per month from age 30 to age 60 at 9.423% you will have $2,000,303.64 at age 60.