CAR, I admit I can’t tell the future, so I don’t know how the market will do over the next 15 years. I only have data from the past to give me an estimate of what kind of return I might be able to expect in the future. You’re right that if the next 15 years is like what we experience in the last 10 years or 60s-80s, then the 8% return would be too optimistic. However, if the market perform how it did between 80s-00s or 40s-60s, then 8% wouldn’t be optimistic enough. That’s the the problem with using historical average to estimate what you can get in the next 15 years. If anything, to me, one really need to start saving as early as possible, because you don’t know what kind of return you can expect. So, if you start at 25 and the next 15s, the market is crappy, then you’ll still only be 40. You have the luxury to wait another 15 years. However, if you start at 40, you won’t have that luxury.
Yes, for an RN to make $75k, s/he would need to work 3 days. If they plan opposite shifts as you say, then they won’t need childcare. If you have one spouse making more than $75k, then the RN spouse have the luxury to only work on the weekend and still get you close to $150k.
With regards to saving $4k/month. I don’t think that’s optimistic at all. As I said in prior post, we’re making less than $150k and we’re saving on average of $4k/month. We’re not even close to our parents in term of frugality. We go on vacations, we buy luxury cars, we eat out at fancy restaurants, etc. It’s all about setting goals and making saving for retirement as a priority.
