No. of Recommendations: 2
However, It is a LOT easier to save a small five ten thousand a year when you make several hundred thousand

Yes, but to someone who makes a couple hundred thousand a year, a mere million isn't going to hack it for their retirement. That's only $40,000/yr income, less than 10 or 15% of what they have been making! Poverty level for them - or worse.

They need to be saving 25 times their lifestyle consumption - or on the order of 7.5 million perhaps (25 x $300,000) to be able to withdraw 4% and get $300,000/yr to live on. And of course, Uncle Sam will get about 33% of that.

So if you make $50,000/yr, you need roughtly 25 times that to have the same lifestyle (and probably could get by easily on 40K/yr since you no longer have 8% FICA/FICA2 tax). That means you only have to save about a million. Not only that, if there is SS, you get to have it, and not pay much tax on it (now tax on half at your max incremental rate, or maybe 15 or 23%?).

That high income earner would pay SS tax at 39% on half of his.

It comes down to you have to save 25 times your expected consumption level - spend more - need to save more.

Yes, he might get to 'millionaire' status, but in his peer group, that provides for 'absolute poverty'. That 40K/yr for him would barely pay for the country club dues and lease on one SUV. For you, you would have all you need.

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