{"id":1100,"date":"2018-12-05T11:11:24","date_gmt":"2018-12-05T11:11:24","guid":{"rendered":"https:\/\/zestinlife.com\/?p=1100"},"modified":"2025-04-05T11:48:57","modified_gmt":"2025-04-05T03:48:57","slug":"if-i-am-65-will-i-live-well","status":"publish","type":"post","link":"https:\/\/www.reubenointernet.com\/index.php\/2018\/12\/05\/if-i-am-65-will-i-live-well\/","title":{"rendered":"If I Am 65, Will I Live Well?"},"content":{"rendered":"
\"On
On A Sea Cruise<\/figcaption><\/figure>\n

How much do you need to retire comfortably and live well?<\/h3>\n

 <\/p>\n

Know This First<\/u><\/strong>\u00a0<\/strong><\/p>\n

You need to have passive incomes from your investments during your retirement years.<\/h3>\n

\u201cRich Man, Poor Man\u201d by Richard Russell<\/strong><\/p>\n

Russell, who penned the Dow Theory Letters <\/em>for nearly six decades, was one of the most respected financial writers in history, and \u201cRich Man, Poor Man\u201d is his most influential piece.<\/p>\n

The following is the extract of its Dow Theory Letter \u201cRich Man, Poor Man\u201d.<\/p>\n

Russell used the example of two young men. One started contributing $2,000 per year to his IRA at the age of 19 and stopped<\/u> investing new money at age 25. He never invested another penny after turning 26. The second young man started contributing $2,000 per year at age 26 and continued to do so for the following four decades. Both enjoyed 10% annual returns. At the age of 65, guess which one had more money?<\/p>\n

Almost incredibly, the first young man \u2013 who started at 19 and stopped at 25 \u2013 amassed a larger fortune than the second young man once you subtracted the initial investment\u2026 despite the fact that the second young man invested nearly six times as much money over a much<\/em> longer period of time.<\/p>\n

The following is the table used in Richard Russell\u2019s timeless piece \u201cRich Man, Poor Man.<\/a>\u201d<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\u00a0<\/strong><\/td>\nInvestor A<\/strong><\/td>\n\u00a0<\/strong><\/td>\nInvestor B<\/strong><\/td>\n\u00a0<\/strong><\/td>\n<\/tr>\n<\/thead>\n
Age<\/td>\nContribution<\/td>\nYear End Value<\/td>\nContribution<\/td>\nYear End Value<\/td>\n<\/tr>\n
19<\/td>\n<\/td>\n<\/td>\n2,000<\/td>\n2,200<\/td>\n<\/tr>\n
20<\/td>\n<\/td>\n<\/td>\n2,000<\/td>\n4,620<\/td>\n<\/tr>\n
21<\/td>\n<\/td>\n<\/td>\n2,000<\/td>\n7,282<\/td>\n<\/tr>\n
22<\/td>\n<\/td>\n<\/td>\n2,000<\/td>\n10,210<\/td>\n<\/tr>\n
23<\/td>\n<\/td>\n<\/td>\n2,000<\/td>\n13,431<\/td>\n<\/tr>\n
24<\/td>\n<\/td>\n<\/td>\n2,000<\/td>\n16,974<\/td>\n<\/tr>\n
25<\/td>\n<\/td>\n<\/td>\n2,000<\/td>\n20,872<\/td>\n<\/tr>\n
26<\/td>\n2,000<\/td>\n2,200<\/td>\n–<\/td>\n22,959<\/td>\n<\/tr>\n
27<\/td>\n2,000<\/td>\n4,620<\/td>\n–<\/td>\n25,255<\/td>\n<\/tr>\n
28<\/td>\n2,000<\/td>\n7,282<\/td>\n–<\/td>\n27,780<\/td>\n<\/tr>\n
29<\/td>\n2,000<\/td>\n10,210<\/td>\n–<\/td>\n30,558<\/td>\n<\/tr>\n
30<\/td>\n2,000<\/td>\n13,431<\/td>\n–<\/td>\n33,614<\/td>\n<\/tr>\n
31<\/td>\n2,000<\/td>\n16,974<\/td>\n–<\/td>\n36,976<\/td>\n<\/tr>\n
32<\/td>\n2,000<\/td>\n20,872<\/td>\n–<\/td>\n40,673<\/td>\n<\/tr>\n
33<\/td>\n2,000<\/td>\n25,159<\/td>\n–<\/td>\n44,741<\/td>\n<\/tr>\n
34<\/td>\n2,000<\/td>\n29,875<\/td>\n–<\/td>\n49,215<\/td>\n<\/tr>\n
35<\/td>\n2,000<\/td>\n35,062<\/td>\n–<\/td>\n54,136<\/td>\n<\/tr>\n
36<\/td>\n2,000<\/td>\n40,769<\/td>\n–<\/td>\n59,550<\/td>\n<\/tr>\n
37<\/td>\n2,000<\/td>\n47,045<\/td>\n–<\/td>\n65,505<\/td>\n<\/tr>\n
38<\/td>\n2,000<\/td>\n53,950<\/td>\n–<\/td>\n72,055<\/td>\n<\/tr>\n
39<\/td>\n2,000<\/td>\n61,545<\/td>\n–<\/td>\n79,261<\/td>\n<\/tr>\n
40<\/td>\n2,000<\/td>\n69,899<\/td>\n–<\/td>\n87,187<\/td>\n<\/tr>\n
41<\/td>\n2,000<\/td>\n79,089<\/td>\n–<\/td>\n95,905<\/td>\n<\/tr>\n
42<\/td>\n2,000<\/td>\n89,198<\/td>\n–<\/td>\n105,496<\/td>\n<\/tr>\n
43<\/td>\n2,000<\/td>\n100,318<\/td>\n–<\/td>\n116,045<\/td>\n<\/tr>\n
44<\/td>\n2,000<\/td>\n112,550<\/td>\n–<\/td>\n127,650<\/td>\n<\/tr>\n
45<\/td>\n2,000<\/td>\n126,005<\/td>\n–<\/td>\n140,415<\/td>\n<\/tr>\n
46<\/td>\n2,000<\/td>\n140,805<\/td>\n–<\/td>\n154,456<\/td>\n<\/tr>\n
47<\/td>\n2,000<\/td>\n157,086<\/td>\n–<\/td>\n169,902<\/td>\n<\/tr>\n
48<\/td>\n2,000<\/td>\n174,995<\/td>\n–<\/td>\n186,892<\/td>\n<\/tr>\n
49<\/td>\n2,000<\/td>\n194,694<\/td>\n–<\/td>\n205,581<\/td>\n<\/tr>\n
50<\/td>\n2,000<\/td>\n216,364<\/td>\n–<\/td>\n226,140<\/td>\n<\/tr>\n
51<\/td>\n2,000<\/td>\n240,200<\/td>\n–<\/td>\n248,754<\/td>\n<\/tr>\n
52<\/td>\n2,000<\/td>\n266,420<\/td>\n–<\/td>\n273,629<\/td>\n<\/tr>\n
53<\/td>\n2,000<\/td>\n295,262<\/td>\n–<\/td>\n300,992<\/td>\n<\/tr>\n
54<\/td>\n2,000<\/td>\n326,988<\/td>\n–<\/td>\n331,091<\/td>\n<\/tr>\n
55<\/td>\n2,000<\/td>\n361,887<\/td>\n–<\/td>\n364,200<\/td>\n<\/tr>\n
56<\/td>\n2,000<\/td>\n400,276<\/td>\n–<\/td>\n400,620<\/td>\n<\/tr>\n
57<\/td>\n2,000<\/td>\n442,503<\/td>\n–<\/td>\n440,682<\/td>\n<\/tr>\n
58<\/td>\n2,000<\/td>\n488,953<\/td>\n–<\/td>\n484,750<\/td>\n<\/tr>\n
59<\/td>\n2,000<\/td>\n540,049<\/td>\n–<\/td>\n533,225<\/td>\n<\/tr>\n
60<\/td>\n2,000<\/td>\n596,254<\/td>\n–<\/td>\n586,548<\/td>\n<\/tr>\n
61<\/td>\n2,000<\/td>\n658,079<\/td>\n–<\/td>\n645,203<\/td>\n<\/tr>\n
62<\/td>\n2,000<\/td>\n726,087<\/td>\n–<\/td>\n709,723<\/td>\n<\/tr>\n
63<\/td>\n2,000<\/td>\n800,896<\/td>\n–<\/td>\n780,695<\/td>\n<\/tr>\n
64<\/td>\n2,000<\/td>\n883,185<\/td>\n–<\/td>\n858,765<\/td>\n<\/tr>\n
65<\/td>\n2,000<\/td>\n973,704<\/td>\n–<\/td>\n944,641<\/td>\n<\/tr>\n
 <\/p>\n

Less Total<\/p>\n

Invested:<\/td>\n

<\/td>\n(80,000)<\/td>\n<\/td>\n(14,000)<\/td>\n<\/tr>\n
 <\/p>\n

Net Earnings:<\/td>\n

<\/td>\n <\/p>\n

893,704<\/td>\n

<\/td>\n <\/p>\n

930,641<\/td>\n<\/tr>\n

 <\/p>\n

Money Grew:<\/td>\n

<\/td>\n <\/p>\n

11-fold<\/td>\n

<\/td>\n <\/p>\n

66-fold<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n