Drives: 2012 Z28 (I'm hoping)
Join Date: May 2007
Location: Coppell, TX
Posts: 129
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A little off topic...but anyways
Starting a savings plan early and sticking to it is the key...no matter how much you earn. I have two boys (18 and 15) and have taught them that. My sons work to earn money...not a lot...mowing yards and general summer stuff. I tell them if you put your money into a LT investment, I'll match it dollar for dollar. They both started at 14 and we have invested in a mutual fund that is not hyper aggressive. We set a target of saving $4,000 a year...they put up two and I put up two and plan on funding the account for four years and stopping there. They are on their own at 18. Assuming a average stock market return of 11% until they are 60 do you know what their investment of $16K grows to?
14 4000 1.11 4,440.00
15 4000 1.11 9,368.40
16 4000 1.11 14,838.92
17 4000 1.11 20,911.21
18 1.11 23,211.44
19 1.11 25,764.70
20 1.11 28,598.81
21 1.11 31,744.68
22 1.11 35,236.60
23 1.11 39,112.62
24 1.11 43,415.01
25 1.11 48,190.66
26 1.11 53,491.64
27 1.11 59,375.72
28 1.11 65,907.04
29 1.11 73,156.82
30 1.11 81,204.07
31 1.11 90,136.52
32 1.11 100,051.53
33 1.11 111,057.20
34 1.11 123,273.50
35 1.11 136,833.58
36 1.11 151,885.27
37 1.11 168,592.65
38 1.11 187,137.85
39 1.11 207,723.01
40 1.11 230,572.54
41 1.11 255,935.52
42 1.11 284,088.43
43 1.11 315,338.15
44 1.11 350,025.35
45 1.11 388,528.14
46 1.11 431,266.24
47 1.11 478,705.52
48 1.11 531,363.13
49 1.11 589,813.07
50 1.11 654,692.51
51 1.11 726,708.69
52 1.11 806,646.64
53 1.11 895,377.77
54 1.11 993,869.33
55 1.11 1,103,194.95
56 1.11 1,224,546.40
57 1.11 1,359,246.50
58 1.11 1,508,763.62
59 1.11 1,674,727.62
60 1.11 1,858,947.65
That's if they never saved another dime for the rest of their life!!!
Pay yourself first. Set up an automatic debit from your pay check each pay period, take 10% off the top and invest it. By setting it up as an auto payment the money is out of sight out of mind....you won't even miss it.
All that being said I am a cash buyer.
JWz28.
Last edited by JWz28; 07-05-2007 at 01:30 PM.
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