I have seen people do both. Developing healthy financial habits is just as important as getting a better paying job. I am more impressed with people who are able to save on lower incomes than those who save on larger incomes.
Too Many Americans Will Never Be Able to Retire
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I have seen people do both. Developing healthy financial habits is just as important as getting a better paying job. I am more impressed with people who are able to save on lower incomes than those who save on larger incomes.
Rell Lauren
Banned
To follow up on my initial post, despite having a retirement portfolio in addition to a IRA and 401K, I see myself working into my 60s unless I have a genius idea or win the lottery. I don't know how realistic retirement is especially when I start having kids. I didn't open up my portfolio until this past July and I feel like I missed out on a ton of gains because I initially had it at balanced because I was emotionally attached to the five figures I committed. I grew a spine and flipped it to growth and have been rewarded thus far.
Nigerianwonder
Superstar
I never said a damn thing about 20k. I said anyone making over 30k (most people) will see atleast 1,000,000 over the course of a 30 year career. That was what I based my entire statement on.
You can easily save 100 a month on a 30k salary just not doing dumb shyt.
So your whole argument is based on a false premise.
Smart-dumb nikka fail.
Both if you failed at basic math. 30k per year does not net you 1 million on lifetime earnings over 30 years. And neither does the other scenario based off starting at 18. Not even close. And that's pretax. After tax lifetime earning on 30k will be 600k or less depending on the state you live in. That comes out to 20k per year after tax income. That is poverty. So even if you squeeze out a paltry $100 per month "savings" from that it's still meaningless overall cause you cant retire off a lifetime savings of 25k to 40k.
And corporate America has fools like you believing if you just emulate what wealthy folks do without wealthy folks money you can be wealthy one day yourself. It doesnt work like that.. which is why the article in the OP exist. The average life expectancy in the USA is around 77 and yall thinking you gonna retire and start enjoying life at 72? Lol. They need yall to believe in the pipe dream to keep the rich richer.
YaFingerDealMe
All Star
What’s a good index fund, we talking vanguard or you hip to something else?
BlackJesus
Spread science, save with coupons
Nigerian wonder. For the last time. Saving and investing is the beginning of everything. Without saving you are stuck at your level forever. You can borrow and go into debt to try to increase your income. Or you can save and invest in stocks and real estate. If you saved over 10 years at that same $1200. level, you'd have enough to put down on a house. A house is how you become middle class.
Second you dont understand compound interest.
Saving 1200 a year for 30 years is not just 36k, thanks to compound interest at an average 10% a year its $197, 392.
I hate that it has to be us who don't get this simple shyt. So many of us are stuck in this smart-dumb "here and now" mindset.
Its always about the future.
Nigerianwonder
Superstar
I understand compound interest. You just dont understand real life. Most people dont see 10% return for one. It's closer to 5 to 7% at best. And most people wont go through their entire life without having some type of financial set back that takes them back to square one. Job loss, children, medical expenses, car accident, dui etc. Earning 30k a year means you are check to check. Majority of Americans are check to check. That's what you dont get.
BlackJesus
Spread science, save with coupons
I know people living "check to check" making 30-40k but seem to do ok. They have a house, sometimes more than 1, put their kids through school and are on track to retire comfortably.
Its not what you make its how you manage your money. Saving matters. Period. End of discussion.
filial_piety
Banned
I'm straight
Government Pension
401k
Stocks, Bonds, ETFs
Plus when I retire I plan on selling my home ad moving to a warmer climate
And all this will happen when I'm in my 50s
Government Pension
401k
Stocks, Bonds, ETFs
Plus when I retire I plan on selling my home ad moving to a warmer climate
And all this will happen when I'm in my 50s
Nigerianwonder
Superstar
By definition if you are check to check then you are NOT ok and NOT able to save ANYTHING after expenses. You clearly don't know what check to check means. That also means you are at risk of losing everything if you have one minor setback. Thats not living.. that's just surviving and getting by.
And even under you ideal scenario. Struggling your whole life just so that you MAYBE able to "retire" amd take a year or 2 off work at 70 when you got one foot in the grave, health problems, etc. Ain't nothing to look forward to. And that's if you even live to 70. that's the real con they sell the sheep. Enjoy life while your young. It's not the peoples fault they are poor cause they didnt "save". It's by design cause income should be higher.
Most people dont see 10% is pure speculation on your part. It's a FACT the s&p 500 has returned 11.15% per year since 1976
Vanguard Mutual Fund Profile | Vanguard
We were using 10% just cause..
52 years of 100 per month is 1.7m at 10%..
Compound Interest Calculator | Investor.gov
Please shut the fukk up if you don't know what you're talking about.
Nigerianwonder
Superstar
"the typical 401(k) portfolio generates an average annual return of 5% to 8% based on market conditions."
Yahoo is now part of Verizon Media
This is the reality and for folks not in the 1% they will never see anything close to a million. Yall hate facts but I will post data below. Averages are skewed by high earners but the median tells the the true story as 50% are below that marker. Good luck on your retirement off these numbers.
Ages 20-29
Average 401(k) balance: $11,800. Median 401(k) balance: $4,300.
Ages 30-39
Average 401(k) balance: $42,400. Median 401(k) balance: $16,500.
Ages 40-49
Average 401(k) balance: $102,700. Median 401(k) balance: $36,000.
Ages 50-59
Average 401(k) balance: $174,100. Median 401(k) balance: $60,900.
Ages 60-69
Average 401(k) balance: $195,500. Median 401(k) balance: $62,000.
Source: The Average 401(k) Balance by Age - NerdWallet
The average includes bonds and all that other stupid shyt people in there 60s don't invest like us.. You are REALLY STUPID!
Check @BaldingSoHard or @ocmfII post in the 401k thread. They are killing it. I'm doing well but they are doing great.
Nigerianwonder
Superstar
Are they "killing it" on a 20k a year salary or do they actually make enough money to invest decent sums? Don't move the goal post now.
El_Mero_Mero
All Star
This was a good thread until about the last two to three pages of back and forth (viewing on my Android cell phone).
Quick question: If you become so unable to pay your medical bills in your old age, doesn't the government take care of that for you? Obviously, we can't predict what the future will be like as far as health insurance, but if we use now as an example, isn't it usually the very poor and the very rich that do well when it comes to health-related costs, while the middle class struggles?
I'm in New York and it seems like most people here are at least taken care of when a big medical issue arises (even if they can't afford it).
Quick question: If you become so unable to pay your medical bills in your old age, doesn't the government take care of that for you? Obviously, we can't predict what the future will be like as far as health insurance, but if we use now as an example, isn't it usually the very poor and the very rich that do well when it comes to health-related costs, while the middle class struggles?
I'm in New York and it seems like most people here are at least taken care of when a big medical issue arises (even if they can't afford it).