Guess you brother does not put a value on peace of mind, or consider risk.
Speaking of retirement, I found this spreadsheet to be excellent. Once you hit 100%, you're ready to retire. If you want to plug in your own numbers, you'll need to make a copy since the person who created this has it in view only mode. Remove the dash in front of https
-https://docs.google.com/spreadsheets/d/18enyW-HloGFmLvH1pcVpEJDIQ0MKXJug5BYt456k7Y8/edit?usp=sharing
OK, I was just messing with that sheet. It is a good start but it needs refinement. It ONLY works if you are in your twenties as it is hard coded to 40 years of employment from the current input point. I am in my 50's and don't plan on working another 40 years. I do like a few of the features they put in and will incorporate those into my spreadsheets.
Speaking of retirement, I found this spreadsheet to be excellent. Once you hit 100%, you're ready to retire. If you want to plug in your own numbers, you'll need to make a copy since the person who created this has it in view only mode. Remove the dash in front of https
-https://docs.google.com/spreadsheets/d/18enyW-HloGFmLvH1pcVpEJDIQ0MKXJug5BYt456k7Y8/edit?usp=sharing
Interesting. Would you still need to adjust for inflation somehow or is it in there? If you're 25, with approximately 2% inflation, the $ number you'd need at retirement would be double from what it is now.
It really shows how much just a 1% higher rate of return makes per year.
I reach 100% at the following ages:
4%=69 years old
5%=67
6%=63
10%=58
Speaking of retirement, I found this spreadsheet to be excellent. Once you hit 100%, you're ready to retire. If you want to plug in your own numbers, you'll need to make a copy since the person who created this has it in view only mode. Remove the dash in front of https
-https://docs.google.com/spreadsheets/d/18enyW-HloGFmLvH1pcVpEJDIQ0MKXJug5BYt456k7Y8/edit?usp=sharing
It's even more crucial to maximize your time when you plug in a more conservative 5.5% rate of return.I'll echo what others are saying, put as much as you can into retirement and make minimum payments on your mortgage. It just makes sense mathematically.
Fun tool to play around with is this retirement calculator. I plug in 7% rate return when I do my figures. I figure I'll get around a 10% return, and then deduct 3% to account for inflation.
https://www.daveramsey.com/smartvestor/investment-calculator
Right now I contribute 15% to my roth 401k, and my employer contributes 6% pretax. Every 6 months I up my % by 1 so its easy to adjust to. Asking these questions means you're probably already doing a good job, so kudos to you.
I'll echo what others are saying, put as much as you can into retirement and make minimum payments on your mortgage. It just makes sense mathematically.
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I find it interesting that people are comfortable enough in our political climate as well as record gov’t deficits to simply rely on “mathematics” to make such a decision. I would suggest you need to look at this much deeper. This isn’t your father’s world (as the old saying goes).
Heck…you could be right and all will go as it has in the past and you’ll be fine. What give you confidence that this will be the case though?
If it doesn’t, not having that large outlay of cash every month will be a big benefit. It seems to me that erring on the side of caution with this decision makes a ton of sense….even if it didn’t for past generations.
A risk - reward scenario.
Let me get out my calculator to run the numbers....