Echopapa said:Oh....I almost forgott...If you start at 21 years old...when you graduate college...then you only need to save $3737 a month. Which takes your take home pay way up to $2600.
Of course you have student loans and a job to find right out of college making 90K a year.....
But it still sounds very easy.
Plus 2600 is a lot to live on. Heck...you could even afford to buy a condo in a bad part of town with that.
Okay- I was hoping that this would all die down a bit, because it was not my intent to bring my finances into debate in this thread.
In fact, my post really didn't belong in the first place. But since this has failed to die off, let me clarify a few things.
First off, let me state that I think it's great that the pilots at CO are contributing to this guy. This is a perfect example of unity and brother(sister)hood if I have ever seen one, and exactly what one of the great benefits of the union is. I was a strong supporter of employee support programs, and contribute today at my employer like I have in the past.
That said, I stand firm in my belief that there are too many broke major airline pilots. I understand that it sucks to have your pay slashed and pensions cut. But geeze- I've never made six figures, and seem to be able to get by. Perhaps there are a few folks out there living beyond their means? But that's a topic for another thread.
As for my finances, it was never my intent to get into a pissing match over whose 401K (or weiner) is bigger.
My calculations are based on current balances, modest growth, employer contributions (which are actually larger than my own), salary increases at contractual rates, profit sharing outlooks (paid into 401K funds and based on 20 years of historical data), and a contribution of at least 6% of our income. At no point does our contribution reach the 30K/year limit (although it does come close as we near retirement) The only thing that I did make a mistake on was the age at which I plan to retire (65 instead of 60) if I want to walk away with just under the 7 million. Otherwise I leave with about 5 mil. All I can say is it pays to start early (in our cases 22 and 24). I'll willingly eat ramen now, to have the option of caviar later. That's one thing my parents taught me. I'll also add that we have been rather fortunate with our investements and seen roughly 30% growth the past 3 years on our accounts, which has certainly helped.
As for your little "savings calculator", rather than use something that figures out an end figure, why not use a 401K calulator and input known variables for your "witch hunt". You'll find that they tend to be a bit more accurate.
http://www.bloomberg.com/analysis/calculators/401k.html
Last edited: