Oops, I meant $4k pa.
I stand by my assertion on mutual fund returns - inflation over that period probably whacks that 13.91% down to about 7% real. Plug $20,000 into
this calculator for an idea of the impact of inflation from 1982-present.
See this link for evidence of 7% real as the average for the market, then ask if you think the
average mutual fund can outperform the market average by more than the amount of its fees and costs, and the potential impact of taxation (I suspect there is none for retirement savings, so a moot point).
http://biz.yahoo.com/funds/cs2.html
Plus, you know me (bleeding heart) - I get uncomfortable at the idea of suffering from people who (through bad judgement or luck) end up incapable of providing for themselves.