Bryan Luhning
Active Member
- Jan 8, 2021
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Could you give your lessons to Congress, especially the last paragraph. Another useful tool in retirement is a ROTH IRA it grows tax free on money that has already been taxed. So until the repeal it the money can be withdrawn tax free after you reach 59.5. A standard 401K does have a gotcha when you reach 70.5 you must take a minimum distribution which is based on a formula according to the value at the start of the year.One cannot be a millionaire making a slave wage like $20 an hour. Not possible.
Sure they can. In fact, you can end up a millionaire making half that.
Lets say you don't go to college, and you get married, and start working at Walmart at age 20.
So lets do the math.
$10 an hour, is of course $400 a week. Let's say you put just 10% into stock mutual fund that gets about a 10% rate of return. I personally invest in 3 mutual funds that do 12%, 13% and 15% respectively. So 10% return on investment isn't difficult.
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If you work consistently at Walmart for just $10/hour, from age 20 to 67, at age 67, you would retire with $2 Million dollars.
Of course this graph showing how much money you would have at retirement is completely inaccurate for two specific reasons.
Reason 1: Walmart has a 401K stock matching program, which matches dollar for dollar, the first 6% if your investment.
That means if you invested 10%, you would end up putting in not $40 a week, but rather $64 a week, or $256 a month.
You would end up not with $2 Million, but more like $3.3 Million.
Reason 2: Walmart specifically has a Walmart Employee stock purchase program, where you can buy Walmart stock at a very low price.
So when you add that benefit into the already massive $3 Million plus from your 401K... yes you can very easily end up a millionaire working for low wages.
Again... it's all in spending less money, than you make. It's that simple.