If you were to make 200k per year, could you store up 100k a year for retirement and live off of 100k per year? Is it doable?

Best Answer:

MathCrazy: it is doable EXCEPT for the fact that you wouldn't have 200K to spend you would end up having about a total of 140K or so because of taxes..

Other answer:

MathCrazy:
first of all if you make $200K a year unless you live extremely frugally there is no way you can save half of it
actually close to half of it will be paid out in taxes, and you need to have a place to live, food to eat, clothes to wear, et al, you might be able to save a portion of that half but no where near what you want
retiring and living on $100K a year will depend on how you live your life now–not a lot will change except that you won't go to work each day, not need as many changes of clothes etc
regerugged:
You are forgetting taxes. 200k means a 39% tax bracket. Add SS tax 6%, state wage tax 3%, local wage tax 1%, real estate taxes if you buy a house, maybe another 5%. Thus 54% of your wage goes to taxes, leaving you 92k to live on, so you would be doing good if you could save $40,000 a year.
Chuckles:
Yes you can. I save nearly half my pay. But really, because the money you save will grow and your retirement will be for s shorter time than your working years you can get by saving 1/3 for retirement provided you buy a home that will be paid for by the time you retire.
Donald B:
In the first place in places like California and New York you would be paying about 40 percent in taxes so you would only have take home pay of $120,000. Out of that you could save $20,000.
J E T H R O:
If ifs and buts were candy and nuts. We would all have a Merry Christmas
alan:
NO,NO,NO,NO YOU WILL NEED to save a million which you won,t the average income to live on is going to be a 35,000 a year,you have years retirement
Judy:
yes
shainock:
taxes make it highly unlikely
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