> Run some basic compound interest calculations if you don't agree.
Make sure to include basic compound inflation because the figures given here seem to be hyperbolic.
Make sure to include basic compound inflation because the figures given here seem to be hyperbolic.
100k principal, add 1k every month for 30 years. Compound at 7% --> 2M
50k principal, add 1k every month for 30 years. Compound at 7% --> 1.6M
Withdrawing 50k today costs you 400k in retirement
400k = 20% of 2M = 8 years of your 40 year career
50k today is worth more than 50k in the future.
(Consistent compounding at 7% is extremely optimistic, even before considering inflation at 3%+).