If you invest $200 a month from ages 25 to 67 at 10% per year, you will end up with $1,550,794 at retirement age. $633,409 when adjusted for inflation.
10% growth yearly for 40 years seems like a massive assumption that you're passing off as simple and easy.
correct.
My assumptions were conservative in that I assumed that this person was never earning a raise, was never earning a match from their employer, and was never doing anything on the side to increase their earning potential.
The historical average inflation-adjusted return for the S&P 500 is 7%. (Close to 10% before adjusting for inflation). VTSAX 5-year return is 12.81% and anyone who is putting money into the market should spend time balancing their portfolio and moving investments around as needed to keep the performance going.
You can find index funds with much higher returns than that.
It doesn't take a lot of money each month to get you a comfortable retirement.
your assumption also conveniently ignores the possibility of a financial tragedy like a layoff or a serious medical problem.
this mentality of "its trivially simple for everyone to save $X/month" is just rooted in ignorance and privilege.
No, it's not rooted in ignorance or privilege at all. It's rooted in basic math and access to freely available data on the average household income. And I already specified that we're talking about able-bodied people. Obviously someone who can't work anymore is an exception to that.
But note how you have to be dishonest and always zero in on the edge cases that you think prove your point, rather than make any concessions whatsoever about what the average person can accomplish and does accomplish.
People routinely spend much more than $100 a month on coffee, cable, exorbitant car payments for more car than they need, and just general waste.
some people do. some people don't and are still poor. not recognizing that is intellectually dishonest. ---
Playing: Yakuza Kiwami; Vermintide 2; Dead Cells (~);} - I suppose it will all make sense when we grow up - {;(~)