Easy Money

I just saw this article on Yahoo's homepage about how to have $1 million dollars at retirement based on one year of savings. Guess how much you have to save in that one year? Just the measly sum of $20, 500! Oh, and you have to be 26 years old. Woops! The author shows how you can achieve the million-dollar mark at later ages, by saving that amount for 2 or more years. Simple, yes? Not so much. Here's my letter to the author of this piece.

Dear Mr. Saletta,
I've just read your article and I'm disappointed that you seem to be out of touch with the financial reality of so many Americans today. You rightly recognize that it is unrealistic to expect a 26-year-old to save $20,500 in a year, however, you forget that for many (if not most) families in this country, this is also an unreachable goal. In my specific circumstance, my husband has a PhD and I have a Master's degree but because I am staying home with our two children right now (rather than work just to pay for daycare) we are struggling simply to survive on one income. The only money that's going into our IRAs this year is the unexpected tax rebate check; there's no additional money in our budget for any savings, much less $20K of savings. I understand that your article is meant to attract attention and offer a unique look at the power of compounding, but to me, it was disrespectful to the many working people who could never afford to do this.
Sincerely,
Heidi Long


Yes, I am a righteous beyotch. But, c'mon, do you have $20K to sock away this year?


Edited to add: After I sent this rant to Mr. Saletta, he wrote back a very sincere message saying that he's in the same financial crunch that we are and that his article was actually the product of his second job. Ouch. Now I feel like just a regular old beyotch.