Quote:
Originally Posted by Rainger99
I asked AI to use the average income (about $66,000) and to invest it for 43 years (age 22 to 65) at various rates of return.
According to AI, investing 15% of the average income annually at a 7% return for 43 years could grow to approximately $2.81 million.
A more conservative return (e.g., 6%) would yield around $2.2 million, while a higher return (e.g., 10%) could push it toward $4.5 million.
If the worker made $33,000 a year, a 7% return for 43 years could grow to approximately $1.39 million.
A more conservative return (e.g., 6%) would yield around $1.09 million, while a higher return (e.g., 10%) could reach about $2.23 million.
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Shouldn’t you use the average income from 43 years ago?
If this is a going forward analysis you must consider that things double every 10 years or so. One million 43 years from now is worth about $60K is today’s dollars.
edit: I take that back.....with our lower inflation of late we are doubling every 20 years rather than 10, so a million 43 years from now is more like $250K today.