03-08-2014, 01:58 PM
(03-08-2014, 11:13 AM)cannew Wrote: At age 45 one should be able to add $10k to their portfolio annually. Assuming a modest growth on the portfolio of 5% and div growth of 5%, in 20 yrs the portfolio should be around $725k and generating $60k income.
Of course that's straight line calculations which is not realistic, but one should be able to do better than the 5%. If one is serious and at your prime earning age you should increase the contribution and then easily exceed the $1 Mil.
Remember it's the income generation you should concentrate on not the growth of the pile.
At the age of 45 I was in grad school investing in myself and borrowing 10,000 a year to make that investment. It was worth it, but today, in the aftermath of the Great Recession, there are many people who are barely hanging on. Also, many 45 year olds have kids entering college and aging parents to help. The 10k a year scenario is not feasible for many, I fear.