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Following our path to Financial Independence and then Retiring Early!

Friday, October 18, 2019

A dollar a day guide to retirement

I was walking the dog the other day listening to pod casts and letting my mind wonder.

Do you remember those old infomercials that you could fund a kid in some other country for just $1 a day and it will fix their entire life.  That is for a good cause, but if I invested in myself for a $1 a day.

If you invest $1 a day for 67 years with an annual 8% return you end up $955,209k. So over the course of your pre-retirement life you invested ~$24,455 and it magically becomes $955k before taxes. Damn.  I know their is leap years.



Lets say to retire you need one million dollars how much do you need to invest each day to reach it. If you invest 2 dollars a day you will have a million at 59 and $3 puts your at 54. Obviously you can't start saving for yourself at birth, but it does show you a little bit goes along way no matter when you start.




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