Caller: I’m 58 and have nothing in retirement.

Dave proceeds to tell this person: “let’s put $2000/month away for ten years, that’s $240,000 plus growth, now you’ve got half a million.”

I know he likes to use big numbers to get people’s attention, but I punched this into a compounding interest calculator, and in order for this to work, the caller would need a 15% rate of return for ten straight years. Dave then told him that $500k will yield him $50,000/year for life, touting that 10% draw down rate he loves to reference.

I get the point he’s trying to make, but a lot of these callers are financially illiterate and he’s giving them false hope with these type of projections because they’re not fully grasping the hyperbole.

EDIT: the caller said he earned $75k a year, so $2000/month would be ~33% of his annual income.

Also: wow this got a lot of interaction. Hello all!