Larger employer have a dizzying variety of plan types, including those
providing matching contributions in company stock (very bad policy as it
increases the employee's risk of losing both a good chunk of his pension and
his matching contributions if the employer fails).

This may be true with some companies but many more honest companies offer
matching funds.
S/V Express 30 "Ringmaster"
"Trains are a winter sport"

And what's $340K going to be worth in today's dollars 40 years from now?


It's my understanding that if a 22 year old puts $2400 annually in an IRA for
20 years and stops he will have a million at 62.
S/V Express 30 "Ringmaster"
"Trains are a winter sport"

And what's $340K going to be worth in today's dollars 40 years from now?


Good question, but the only answer I can think of that covers all cases
is "more than nothing"

SAIL LOCO wrote:
It's my understanding that if a 22 year old puts $2400 annually in an IRA for
20 years and stops he will have a million at 62.

Assuming a constant 9.45% annual interest rate, yes.... $1,001,701.95 to
be exact!

But we need to consider inflation, which is what I think Jon G. was
getting at. It's unlikely that anybody is going to earn a consistent
9.5% *over* inflation for 40 years straight... I think a realistic
long-term average is closer to 7% over inflation, which yields
$512,662.97 in today's dollars. That's a heck of a lot better than
nothing, and better than the $96,000.00 this 62YO would have if he
buried it all in mason jars in the back yard.

Sorry to inject a note of fiscal reality... I can't help what they call
"doing the math."

Freshly Printed Bank Notes-
Doug King

Yes... I was assuming that he contributed for 20 years, not until 62. Of
course,
according to Dave, it'll only be worth about $30 by then.

--
"j" ganz @@
www.sailnow.com

"DSK" wrote in message
.. .
And what's $340K going to be worth in today's dollars 40 years from
now?


Good question, but the only answer I can think of that covers all cases is
"more than nothing"

SAIL LOCO wrote:
It's my understanding that if a 22 year old puts $2400 annually in an IRA
for
20 years and stops he will have a million at 62.

Assuming a constant 9.45% annual interest rate, yes.... $1,001,701.95 to
be exact!

But we need to consider inflation, which is what I think Jon G. was
getting at. It's unlikely that anybody is going to earn a consistent 9.5%
*over* inflation for 40 years straight... I think a realistic long-term
average is closer to 7% over inflation, which yields $512,662.97 in
today's dollars. That's a heck of a lot better than nothing, and better
than the $96,000.00 this 62YO would have if he buried it all in mason jars
in the back yard.

Sorry to inject a note of fiscal reality... I can't help what they call
"doing the math."

Freshly Printed Bank Notes-
Doug King