[Moneyguy1]

turbo:

They would have to start young, max out to the legal limit, have a bit of luck, not wind up using part of it along the way for tuition or other emergencies. If an individual wanted $50k per year for 30 years (the end of which the balance would be zero) at modest 5%, they would need $789k in the bank. The worst part is none of this takes inflation into consideration. At present yields on long term securities, one has to reduce the effective yield over time. Using the "rule of 72" (72/inflation rate) shows that at a 4% average inflation rate it would only take 18 years for the prices to double. So in 36 years of savings, costs would quadruple ar put another way, that goal of $50k in purchasing power would now be equivalent to about $12,500 in actual purchasing power. A 3% inflation rate takes 24 years which would be kinder to the long term saver.

Many people I have counseled are people who have refinanced their primary residence at least once for varying reasons, putting themselves further back on the curve. Of these, there are quite a few who have no idea how they are going to retire, but conclude that they will anyway. As for unnecessary "toys", the most difficult concept to get across is the difference between "need" and "want". It is not unusual to see people in their 30s externally living at the same style as their parents who have 25+ years on them in terms of paying things down. THis desire for a better lifestyle results in more debt load and less money for investing and saving.

Edited..I made a math error on savings.