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enigma1944
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Investment return  Reply with quote  

I am 40 years old and just retired from The US Army. I will receive a $ 2300 monthly pension and 100% medical care for the rest of my life. I am just curious about finding out how much I would have to have to receive this from private investments. Thanks
Post Sat Sep 03, 2016 1:29 pm
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oldguy
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quote:
how much I would have to have to receive this from private investments.


A $500,000 fixed life annuity would pay about $2300/m.

The max SS check for 2016 is $2639/m (for normal age, it's about $3600/m if you wait for age 70).

Or - if you are a good investor, you could place a $50,000 lump sum into an SP500 Index Fund at your age 40, and grow it to $1,150,000 by age 70. (You could/should do this now.)
Post Sat Sep 03, 2016 3:33 pm
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enigma1944
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Thanks for your answer

I* don't have $ 50000 to do this

What about a commitment of $ 1500 a month type investment
Post Sat Sep 03, 2016 9:14 pm
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oldguy
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quote:
What about a commitment of $ 1500 a month type investment


That would be almost $4,000,000 in 30 yrs, if you use an 11%/yr index fund.
BTW, $1500/m is the current 401k max investment, that is what many civilian workers try to do. I max'd my 401k from the time that they were invented (1982) until I retired. The power of compound interest can b e amazing.
Post Sat Sep 03, 2016 11:38 pm
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enigma1944
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OK Thank you for all the info
Post Sun Sep 04, 2016 1:05 am
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