The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: First-time homebuyer and IRA Date:  7/29/2005  1:56 AM
Author:  blm Number:  80150 of 132473

Take 13.5% yearly of, let's say, $70K and invest it in stocks for 35 years. Should suffice.

By my calculations that comes to around $2 million, assuming a 9% investment return. That may sound like a lot, but consider what 35 years of inflation will do, and that by 2040 you may have another 50 or 60 years to live on that $2 million, and it suddenly doesn't sound like very much.

While it's obviously all up to you, I would (and have) get out a spreadsheet and run a bunch of scenarios, including things like a flat stock market (so instead of $2 million, you end up with only $330,750 after 35 years).

Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us