On 7/27/2020 you posted on Instagram, “The bigger percent you can crank that “investing” portion to, the faster you will build wealth. If you can invest a huge 55% of your income, it will take only about 12 years for you to never work again.”
Someone commented asking, “How much income are you referring to when you say 55%?” Someone else responded, “Income doesn’t matter. If you only spend 45% of what you make and invest the other 55%, in 12 years your investments will make enough money to earn you the same amount of the 45% you spend each year.”
My question for you is: 55% of net or gross pay?
Can you do an example breakdown of someone earning $40,000 - $50,000 in the 22% tax bracket contributing to a Roth IRA, SIMPLE IRA, HSA, etc. and explain how it grows over time and what would happen when that person stopped contributing and started taking from the investments to continue spending the 45% that they were before?