Comments on: Book Review: The Automatic Millionaire http://thefinancebuff.com/2006/10/book-review-automatic-millionaire.html like a friend telling you about money ... Fri, 19 Mar 2010 08:02:47 -0500 http://wordpress.org/?v=2.8 hourly 1 By: TFB http://thefinancebuff.com/2006/10/book-review-automatic-millionaire.html/comment-page-1#comment-1717 TFB Thu, 12 Mar 2009 21:45:17 +0000 http://blog.thefinancebuff.com/?p=23#comment-1717 sewall - When I said "investing at 5% after inflation" I meant (a) your yearly contributions go up with inflation every year; and (b) your savings earn 5% on top of inflation. In other words, everything is done in today's dollars. I first calculated the future value of the savings. Then I applied the 4% safe withdrawal rate for retirement income. In Microsoft Excel: $10/day for 40 years: FV(5%, 40, -3650, 0, 1) * 4% = 18,519 $7,500/year for 30 years: FV(5%, 30, -7500, 0, 1) * 4% = 20,928 sewall – When I said “investing at 5% after inflation” I meant (a) your yearly contributions go up with inflation every year; and (b) your savings earn 5% on top of inflation. In other words, everything is done in today’s dollars. I first calculated the future value of the savings. Then I applied the 4% safe withdrawal rate for retirement income. In Microsoft Excel:

$10/day for 40 years:
FV(5%, 40, -3650, 0, 1) * 4% = 18,519

$7,500/year for 30 years:
FV(5%, 30, -7500, 0, 1) * 4% = 20,928

]]> By: sewall http://thefinancebuff.com/2006/10/book-review-automatic-millionaire.html/comment-page-1#comment-1709 sewall Thu, 12 Mar 2009 15:24:35 +0000 http://blog.thefinancebuff.com/?p=23#comment-1709 The overall message of the post is clear, so this is a fine point: In the examples in the post you used the words "5% inflation" but this wasn't clear. Did you mean 5% compound growth? Where you assuming the contributions ($10/day or whatever) grew with inflation? It just wasn't totally clear. The overall message of the post is clear, so this is a fine point:

In the examples in the post you used the words “5% inflation” but this wasn’t clear. Did you mean 5% compound growth? Where you assuming the contributions ($10/day or whatever) grew with inflation? It just wasn’t totally clear.

]]> By: TFB http://thefinancebuff.com/2006/10/book-review-automatic-millionaire.html/comment-page-1#comment-73 TFB Mon, 19 Feb 2007 21:07:00 +0000 http://blog.thefinancebuff.com/?p=23#comment-73 Thank you for the comments. I didn't say it's a total waste. I just thought it's a lot of hype for an idea that's not original. If the hype made the click and pushed you into saving for retirement, that's great. Whatever works is great. <br/><br/>I think other books on my <a HREF="http://thefinancebuff.com/2006/10/recommended-reading-list.html" REL="nofollow">Recommended Reading List</a> do a much better job. Thank you for the comments. I didn’t say it’s a total waste. I just thought it’s a lot of hype for an idea that’s not original. If the hype made the click and pushed you into saving for retirement, that’s great. Whatever works is great.

I think other books on my Recommended Reading List do a much better job.

]]> By: Anonymous http://thefinancebuff.com/2006/10/book-review-automatic-millionaire.html/comment-page-1#comment-72 Anonymous Mon, 19 Feb 2007 20:40:00 +0000 http://blog.thefinancebuff.com/?p=23#comment-72 I agree it is not a total waste. When i picked this book I knew nothing about savings, finance, retirement accounts, etc. It was simple and easy for someone like me to understand. Now that I know a few things, I can look back and say that its is truely a beginners book, I mean for people that absolutely know nothing whatsoever about finances and what to start.<br/><br/>but like everything else you dont read a book by one person and believe completely everything he/she says. Do your homework and read until you get a wide range of opinions. I agree it is not a total waste. When i picked this book I knew nothing about savings, finance, retirement accounts, etc. It was simple and easy for someone like me to understand. Now that I know a few things, I can look back and say that its is truely a beginners book, I mean for people that absolutely know nothing whatsoever about finances and what to start.

but like everything else you dont read a book by one person and believe completely everything he/she says. Do your homework and read until you get a wide range of opinions.

]]> By: Anonymous http://thefinancebuff.com/2006/10/book-review-automatic-millionaire.html/comment-page-1#comment-12 Anonymous Thu, 02 Nov 2006 20:14:00 +0000 http://blog.thefinancebuff.com/?p=23#comment-12 I agree with you. I think this book is for people that do not have a savings acct at all. It's not necessary for the average person that is on top on his finances. It gives readers ways to save instead of wasting money on little things. But, the word Millionaire should be taken off the title.<br/><br/>Automatic Saver is more like it.<br/><br/>Overall its not a total waste of money to purchase the book. Its helpful in some ways. I agree with you. I think this book is for people that do not have a savings acct at all. It’s not necessary for the average person that is on top on his finances. It gives readers ways to save instead of wasting money on little things. But, the word Millionaire should be taken off the title.

Automatic Saver is more like it.

Overall its not a total waste of money to purchase the book. Its helpful in some ways.

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