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Old 04-03-2014, 05:36 PM
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Originally Posted by Unregistered View Post
I have shared my savings in this thread previously but was mocked by some that I was dreaming. In our mid 50s, our combined savings of $3.5m (not including our primary home - now valued at $1.7m) should be attainable by most working professional couples who have worked continuously since graduation at 25. That is a good 30yrs of working, saving and investing.

There were 3 groups of responses generally. The first group is those who were incredulous that ordinary salaried workers can accrue this kind of wealth. They can't imagine in their lifetime earning this much not to mention saving this amount.

The 2nd group is those who have reached or are on track to reach around this amount of savings. Some may have reached this even before their 50s while others are there now and they are in their 60s.

The 3rd group is those that find this amount chicken feed and laughable. I mean what is $3.5m or (even $5.2m total) when their annual salaries are between $500k to $1m? These people probably consider anyone with less than $10m investable net worth as poor.
may i know how much of your $5.2m wealth is from investment returns? i read somewhere that an investment return of 10-11% per year (on average in the long run) is already considered very good.

using excel, i calculated that you would need to save $46k a year consistently and consistently achieve 11% per year in order to accumulate $5.2m after 25 years.

if a more modest return of 4% is assumed, you would need to save $125k a year.
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