Current Events > Analysts are saying you literally need 1.5-2 million in savings to retire

(+) Yeah! (+)

This is at age 65

How the fuck do people do it
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By not being a NEET
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real talk though, by being born rich.
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This has to be for the coasts
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1: Employer matched 401k
2: stick $ in it
3: don't pay attention to it
4: pray the stock market doesn't tank
5: if you have a half decent job, or even a shitty one, you can easily retire a millionaire

Also it depends entirely on your planned standard of living, or more importantly how much/little you intend to spend from month to month.

If you can get your monthly expenses down to just car/food/utilities (assuming one owns a house) you can retire comfortably with less, or use that $ to go do more cool shit.

Hopefully your house is paid off or almost paid off by the time you retire.

Once you retire you shouldn't be living in an area you can't afford to live in.
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REMercsChamp posted...

This is at age 65

How the fuck do people do it

Putting a portion of their income aside all their lives into a retirement plan, all while letting compound interest do its magic.
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Have lots of children, hope that at least one of them will love you enough to not leave you in a retirement home. Its more of a safe-bet than the stock market.
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Bitcoin
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I get depressed when I think of this.

I mean I've been maxing out my 401k since I was 24, I'm mid 30s now and it's only around 60k. I can't see it growing to a million.
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spanky1 posted...

I get depressed when I think of this.

I mean I've been maxing out my 401k since I was 24, I'm mid 30s now and it's only around 60k. I can't see it growing to a million.

Compound interest will work its magic over time.
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I'm fucked

I has to take everything out to pay medical bills. Now I'm 29 on disability ugh
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voldothegr8 posted...

spanky1 posted...

I get depressed when I think of this.

I mean I've been maxing out my 401k since I was 24, I'm mid 30s now and it's only around 60k. I can't see it growing to a million.

Compound interest will work its magic over time.

They try to say you get 7% a year, it starts adding up onces it's in the 100s
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Getting a job is a good first step
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You'll be to old to have fun with that money, just spend it while you're young
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Personal savings are retirement are two things that our generation will be lucky to have. What your statement said is that retirement is now only for the rich.
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Assuming this refers to how much money you would need sitting in a bank account with absolutely none invested and never making another dollar at the age of 65, that sounds about right. Of course, nobody does that.
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They key is to save as much as possible as early as possible. Even a conservative RoR of 5% means if you can put in $500 monthly in your twenties you're extremely likely to hit a million.

At the very least, contribute to get the entirety of your employer's match, if they have one. You'll be better off than >70% of people.

up
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why that much? a ROI of 5% is pretty conservative, so even "just" $1M would give you $50k/year, which seems like more than enough.
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Giant_Aspirin posted...

why that much? a ROI of 5% is pretty conservative, so even "just" $1M would give you $50k/year, which seems like more than enough.

5% roi from what exactly
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JustMyOpinion posted...

spanky1 posted...

I get depressed when I think of this.

I mean I've been maxing out my 401k since I was 24, I'm mid 30s now and it's only around 60k. I can't see it growing to a million.

The max is like 18k a year, you've been doing it for ~10 years and only have 60k? What the heck did you invest in?

My bad, I havent been doing max. I've been doing up to full company matching, not max.

Giant_Aspirin posted...

why that much? a ROI of 5% is pretty conservative, so even "just" $1M would give you $50k/year, which seems like more than enough.

Inflation though. When you're old enough to retire, 50 grand a year won't cut it.
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JustMyOpinion posted...

spanky1 posted...

I get depressed when I think of this.

I mean I've been maxing out my 401k since I was 24, I'm mid 30s now and it's only around 60k. I can't see it growing to a million.

The max is like 18k a year, you've been doing it for ~10 years and only have 60k? What the heck did you invest in?

Probably couldnt put the max. Not a lot of people can put 18k away and some employers dont match
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Just work til you're 75. Who cares?
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REMercsChamp posted...

Giant_Aspirin posted...

why that much? a ROI of 5% is pretty conservative, so even "just" $1M would give you $50k/year, which seems like more than enough.

5% roi from what exactly

having the $1M invested.

spanky1 posted...

Inflation though. When you're old enough to retire, 50 grand a year won't cut it.

well a 5% estimate is very conservative. i've read it's safe to assume you can withdraw 5%/year while still accounting for inflation/etc. i forget the term im looking for here
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Giant_Aspirin posted...

having the $1M invested.

in what
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It's not unreasonable if you're the average person. Throw in chronic illness or something though and it can be hard

It's very, very important that you start ASAP as compound interest is a long term game
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YonicBoom posted...

4: pray the stock market doesn't tank
5: if you have a half decent job, or even a shitty one, you can easily retire a millionaire

So something that the rich control but your average person doesn't have any control over

And having a job that pays a ton in a society that's demonstrated that anyone who isn't a white hetero male is going to have a nominally harder time actually rising within any line of work

Hmm, sounds about right
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REMercsChamp posted...

Giant_Aspirin posted...

having the $1M invested.

in what

Hello?
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$6,000 invested each year from 25 to 65 at 10% average turns into 3.2 million.

CornBarn posted...

$6,000 invested each year from 25 to 65 at 10% average turns into 3.2 million.

So

1. Where are you getting these 10% yearly returns from
2. A lot of people don't have $6000 a year to invest
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1.5-2 sounds low honestly
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start a youtube gaming channel, you'll make millions in no time.
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REMercsChamp posted...

This is at age 65

How the fuck do people do it

Save $200 a month until retirement age?

Honestly it's really fucking simple.
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REMercsChamp posted...

CornBarn posted...

$6,000 invested each year from 25 to 65 at 10% average turns into 3.2 million.

So

1. Where are you getting these 10% yearly returns from
2. A lot of people don't have $6000 a year to invest

There are plenty of funds that returned 10% or more on average over the last 5-10 years. And over 40 years it'd be possible to get that performance.

Even if you put in less money at a lower interest rate you'd still end up with your target number. Most people earning the median income can invest into retirement if they are disciplined. People spend more than their budgeted retirement savings on more car than they need these days.

LyraTheUnicorn posted...

REMercsChamp posted...

This is at age 65

How the fuck do people do it

Save $200 a month until retirement age?

Honestly it's really fucking simple.

So

200/month * 12 months/yr * 40 working years = $96,000
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Nah the socialist takeover will be complete by the time we retire and everything will be free.
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Lol what a waste. If you die at 64, you'd have wasted most of your money for no return.

Just do what I do and spend every penny. At least then you know you lived, rather than waiting for when there's not much left in life

TomNook20 posted...

Nah the socialist takeover will be complete by the time we retire and everything will be free.

Good

I've had enough of this capitalist bullshit
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Darklit_Minuet posted...

Lol what a waste. If you die at 64, you'd have wasted most of your money for no return.

Just do what I do and spend every penny. At least then you know you lived, rather than waiting for when there's not much left in life

Yeah true. There's a lot of guys on this forum living in squalor like peasants so they can be the richest guy with dementia in the old folks home when they're 90
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REMercsChamp posted...

LyraTheUnicorn posted...

REMercsChamp posted...

This is at age 65

How the fuck do people do it

Save $200 a month until retirement age?

Honestly it's really fucking simple.

So

200/month * 12 months/yr * 40 working years = $96,000

You save that money into interest-bearing accounts that turn into considerably more than $96,000.

Are you trolling or really just this ignorant of how life works?

I'm just going to sell drugs when I'm old
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CornBarn posted...

REMercsChamp posted...

LyraTheUnicorn posted...

REMercsChamp posted...

This is at age 65

How the fuck do people do it

Save $200 a month until retirement age?

Honestly it's really fucking simple.

So

200/month * 12 months/yr * 40 working years = $96,000

You save that money into interest-bearing accounts that turn into considerably more than $96,000.

Are you trolling or really just this ignorant of how life works?

"Interest bearing accounts" where I live are 1% for the premium ones.

You need to take risk to see the kinds of interest or gains you're talking about. Considerable risk. So there's no guarantee you'll actually get that 10% yearly return and may end up losing considerable amounts of money.
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Trigg3rH4ppy posted...

I'm just going to sell drugs when I'm old

Yeah fuck, looks like this is what the world is coming to.

That cyberpunk 2079 game is basically a crystal ball looking into the future
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