The debatable part is if they meant immediately retire. Which 5 figures will not let you do. But will it allow her to retire eventually comfortably?
10 year US bond is 4.2%
Let’s say she is 30.
Retirement age is 67. So 37 years until retirement.
6,000€ ×5 is ~$35,000
$35,000 at 4.2% interest for 37 years is $160,388.66 (This isn’t taking into consideration reinvesting the 4.2% interest after 10 years, but also ignoring things like taxes)
But getting $160k when you retire would allow a lot of people to retire comfortably.
“Allow her to retire comfortably” is what was stated above.
The debatable part is if they meant immediately retire. If she saves it for retirement then it is “retirement money”
But will it allow her to retire eventually comfortably?
10 year US bond is 4.2%
Let’s say she is 30.
Retirement age is 67. So 37 years until retirement.
6,000€ ×5 is ~$35,000
$35,000 at 4.2% interest for 37 years is $160,388.66 (This isn’t taking into consideration reinvesting the 4.2% interest after 10 years, but also ignoring things like taxes)
But getting $160k when you retire would allow a lot of people to retire comfortably.
5 figures is not “set for life” money like everyone seems to be suggesting
“Allow her to retire comfortably”
The debatable part is if they meant immediately retire. Which 5 figures will not let you do. But will it allow her to retire eventually comfortably?
10 year US bond is 4.2%
Let’s say she is 30.
Retirement age is 67. So 37 years until retirement.
6,000€ ×5 is ~$35,000
$35,000 at 4.2% interest for 37 years is $160,388.66 (This isn’t taking into consideration reinvesting the 4.2% interest after 10 years, but also ignoring things like taxes)
But getting $160k when you retire would allow a lot of people to retire comfortably.
mmm catfood
Inflation will eat a good chunk of that
you expect to live 20 more years on $160K?
160k extra. You have what you’re going to normally retire with plus this 160k.
@wavebeam Are people actually suggesting that?
Is that retirement money? Because that’s what was stated above.
“Allow her to retire comfortably” is what was stated above.
The debatable part is if they meant immediately retire. If she saves it for retirement then it is “retirement money”
But will it allow her to retire eventually comfortably?
10 year US bond is 4.2%
Let’s say she is 30.
Retirement age is 67. So 37 years until retirement.
6,000€ ×5 is ~$35,000
$35,000 at 4.2% interest for 37 years is $160,388.66 (This isn’t taking into consideration reinvesting the 4.2% interest after 10 years, but also ignoring things like taxes)
But getting $160k when you retire would allow a lot of people to retire comfortably.
That’s like 4 years of income at a poverty level…
Having 160k + Regular retirement > Regular retirement
lol this happened in america, assuming they’ve got retirement lined up at all is a bit of a stretch
Yeah so not retirement money lol