| Every kid has dreams of what they wanted to | | | | compete with Danny (just so you know, the S+P |
| be when growing up. My first dream was to be a | | | | 500 index got the exact same average return |
| fireman. I think it's very heroic to save other | | | | from 1980 to 2005 according to investment guru |
| people. By as I grew, my feelings changed from | | | | John Bogle). Using our savings calculator, it would |
| fireman to financier. And I always thought if you | | | | take Joe 36 years and 8 months to achieve $1.8 |
| followed money, you will find it. But as an | | | | million. Let's see the breakdown if both Danny and |
| entrepreneur, it doesn't work that way. It's hard | | | | Joe die at age 76. |
| to hold onto what you have. So it got me to | | | | Tale of the Tape: Danny Joe |
| thinking about what if I had become a fireman, | | | | Age started working 21 21 |
| would my life be financially better? Surprisingly, | | | | Age retired 46 (25 yrs) 57 (36 yrs of investing) |
| yes.... | | | | Age at time of death 76 76 |
| Notwithstanding the physical stress a fireman's | | | | Retirement years left 30 years 19 years |
| body experiences, the dangers of the job or the | | | | It's obvious that Danny's efforts pay off |
| emotional roller coaster from seeing difficult | | | | handsomely and in a shorter period of time. While |
| situations, firemen (as well as other government | | | | I am not advocating quitting your job to work for |
| workers) can actually do a lot better than we | | | | the government (like they need more people like |
| would think. Take for instance Danny, a friend | | | | you), assuring a successful retirement is not |
| who became a South Florida fireman 15 years | | | | always based on how high of a salary you can |
| ago. According to his pension, Danny is eligible to | | | | get. There are plenty of options to get to |
| receive 100% of his salary after completing 25 | | | | retirement without thinking you need to make |
| years of service. | | | | enough to garner $2 million in savings. If you don't |
| Apples to Apples Comparison | | | | happen to be in a position of working for the |
| Danny said that he expects to retire at age 46 | | | | government, funding your retirement by |
| and will receive (as per his pension) $60,000 | | | | contributing $200 a month and investing right can |
| every year for the rest of his life. That means if | | | | also provide your road to wealth. |
| he lives until he is 76 and never works again, | | | | The point of this story is to not get disappointed |
| Danny will receive this amount for the next 30 | | | | from what you can't earn, but to think creatively |
| years, which will total $1.8 million. | | | | on how you can make it happen. Remember, you |
| Let's compare what the average Joe would have | | | | are not saving $1 million to have $1 million. You |
| to do to save $1.8 million. To accomplish this, Joe | | | | are saving $1 million to have income for the rest |
| (the average one, not the real one) will have to | | | | of your life, no matter if it comes from a |
| put away $200 every month and must get a | | | | government pension or your personal portfolio. |
| challenging 12.5% return on average annually to | | | | |