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math is easy, thinking is hard - Blather, Rinse, Repeat
March 1st, 2005
07:15 pm

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math is easy, thinking is hard
My local NPR station had a program this morning about retirement, and particularly the privatization of Social Security and whatnot. And that got me thinking about how much I'm saving.

I've got an IRA at my credit union, well, sort of. I've rolled over the dribs and drabs of 401k contributions I've made over the past 10 years or so into that, and it's something. I had more, but I used a goodly amount towards a down payment on my house.

Anyway, I know that I haven't been putting a lot away recently, and I know that I haven't been seeing a lot of growth in my investments. Still, I cranked up Excel and entered in some guesses at how my contributions and returns might look for the future, and using $1,000,000 as a benchmark of when to retire.

I could certainly live comfortably with less than that in the bank. The question of what retirement would actually look like for me ought to be answered, as I'm unlikely to stop writing computer games.

Still.

I was looking at 5% growth rates on my investments and 10% growth rates, and hey, I might be able to retire at this age or that age, and gee, I'm not doing so badly, hey, putting a little away each month, and compound interest, good stuff.


And then I realized that I was looking at a 10% growth figure MONTHLY. Yeah, one can retire very young if you double your money in less than a year.

I put more realistic numbers into the spreadsheet and it looks like I'll have to keep working for a while. Or find additional savings vehicles.

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