Re:We need to rethink employee compensation
by aetherson on Wednesday June 24, 2015 @05:45PM
(#9774706)
Let's say that you get paid $100k for 5 years, then $150k for 5 years, and then $200k for 5 years. Nominal. So you take home $80k, $120k, $150k.
You invest half of your take-home salary, so $40k, $60k, $75k.
You invest everything at 4% real return.
That about $1 million after those fifteen years.
It's....... pretty rich, sure. It's also a LOT of savings. I'd say it's possible to get rich on salary if your salary gets high early and fast, or by the time you retire, maybe less so in fifteen years.
Re:We need to rethink employee compensation
by zrail on Wednesday June 24, 2015 @08:35PM
(#9775329)
But, if you're able to stick to the plan you outlined you're probably living on $40k the entire time, which means you can live the rest of your life on that $1 million, due to the assumed 4% real return and 4% withdraw.
You invest half of your take-home salary, so $40k, $60k, $75k.
You invest everything at 4% real return.
That about $1 million after those fifteen years.
It's....... pretty rich, sure. It's also a LOT of savings. I'd say it's possible to get rich on salary if your salary gets high early and fast, or by the time you retire, maybe less so in fifteen years.