The debatable part is if they meant immediately retire. Which 5 figures will not let you do. But will it allow her to retire eventually comfortably?
10 year US bond is 4.2%
Let’s say she is 30.
Retirement age is 67. So 37 years until retirement.
6,000€ ×5 is ~$35,000
$35,000 at 4.2% interest for 37 years is $160,388.66 (This isn’t taking into consideration reinvesting the 4.2% interest after 10 years, but also ignoring things like taxes)
But getting $160k when you retire would allow a lot of people to retire comfortably.
5 figures is not “set for life” money like everyone seems to be suggesting
“Allow her to retire comfortably”
The debatable part is if they meant immediately retire. Which 5 figures will not let you do. But will it allow her to retire eventually comfortably?
10 year US bond is 4.2%
Let’s say she is 30.
Retirement age is 67. So 37 years until retirement.
6,000€ ×5 is ~$35,000
$35,000 at 4.2% interest for 37 years is $160,388.66 (This isn’t taking into consideration reinvesting the 4.2% interest after 10 years, but also ignoring things like taxes)
But getting $160k when you retire would allow a lot of people to retire comfortably.
you expect to live 20 more years on $160K?
160k extra. You have what you’re going to normally retire with plus this 160k.
mmm catfood
Inflation will eat a good chunk of that