A 24-Year-Old Asks, ‘Am I Missing Something?’ They Calculated That $100K By 30 Could Turn Into $1M By 65 Without Adding A Penny
- Finance
ThePostMaster- 0
- 8 minutes read
A 24-year-old recently did some retirement math that made them stop and ask a simple question: “Am I missing something?”
After a year at their first job making $26.50 an hour, the poster said on Reddit that they managed to pay off all their debt, stay living at home, and build roughly $37,000 across retirement accounts. When they ran long-term projections, the numbers surprised them.
Using a 7% return adjusted for inflation, they calculated that hitting $100,000 by age 30 could grow into $1 million by age 65 without adding “a single penny.” Even better, they figured it would only take about $10,000 a year for five years to reach that $100,000 mark.
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“It is simple, but it isn’t easy,” the most upvoted response summed up the mood of the thread. “If it were easy everybody would be doing it.”
Many commenters agreed the math itself checks out. Starting early gives compounding decades to work. “Time is the most helpful thing when planning for retirement,” one person said. Another was even more straightforward: “You’re not missing anything; it really is that easy when you have time on your side.”
But the replies quickly moved past spreadsheets and into real life.
Several people pointed out that the poster’s situation is unusually favorable. Living at home, earning above-average pay for their age, having no debt, and avoiding major emergencies makes aggressive saving feel almost effortless. “The ease of saving comes from the security and privilege OP is already enjoying,” one commenter said.
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A major theme was that $1 million may not mean what it sounds like decades from now.
Using common retirement rules of thumb, many noted that $1 million supports about $40,000 a year in withdrawals. As one person put it, “A million only yields an annual income of 40k.” Another questioned what $40,000 would buy in 40 years.
Inflation came up again and again. Several commenters argued that by the time today’s 24-year-old reaches retirement age, they may need $3 million, $5 million or more to maintain a comfortable lifestyle.
Then there is life itself.
People shared stories of layoffs, illness, caregiving and emergencies that wiped out savings or forced them to pause contributions for years. “I started saving for retirement from 0 at 24,” one commenter said. “Then I started saving for retirement from 0 at 30. Thank you terminal illness and family caregiving.”
