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Subject:  Re: Am I on track? Date:  1/4/2008  12:52 PM
Author:  4inthefamily Number:  4543 of 5246

How do you compare with the formula given above ?

I know this has been discussed a hundred times before on various boards, but I had to bring it up again. That formula is too simplistic to mean much. For one, such as myself and the OP, who is 32 years old - I would consider it quite prodigious to even have 3.2 times our household income - certainly above average. On the other hand, I hope and pray that by the time I am 60, I have significantly more than 6 times my salary. Otherwise, retirement might look quite bleak.

The authors of the book tried to fit a linear graph to what is an exponential function. It works okay for the middle numbers, but does a terrible job on the ends - those at the beginning of their careers and those at the end. According to the formula, my little sister, who graduated from college last April should have (2.4 * $56,000) since she is 24 and has an annual salary of $56,000. Kind of silly when you think of it that way.

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