Reply to Money...and time question!!

Forum Index » Money and Finances

Reply to "Money...and time question!!"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]I have a question about the "time difference of money" - I don't know what to call it.

For example let's say that I have a co-worker that is 11 years younger than me, she is 29 and I am 40.  She tells me that she is making $75K.  I am thinking to myself that is very good because when I was her age I only made $50K and I am only now, at 40, making $75K.  So we are making the same salary. [u]Who is better off or is it basically the same[/u]?  Since she is 11 years younger is her salary worth more in the sense that it has a longer time to compound (we are both putting retirement savings of 10% of salary aside).  Or is it "even" because of inflation i.e. I will be retiring 11 years before her so my retirement savings will not need to be as high as hers will. This means that my 55 year old co-worker who has the same job as me should also be earning around $75K if we are on par?  This is hypothetical, nothing to do with all the variables that determine salaries!

Another example would be the thread about the retirement article (that was posted today I think), where a poster said that her in-laws retired with $500K and it was a sad situation.  However wouldn't them retiring on $500K probably 10 years ago be just as "wealthy" as those of us retiring with say $2.5M in 20 years?  $2.5M being quite a lofty goal for most of us.

[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics