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A good size of the population should be able to get to $1m-$5m of net worth by retirement by being disciplined with a 0-based budget, avoiding debt (mortgage is

A good size of the population should be able to get to $1m-$5m of net worth by retirement by being disciplined with a 0-based budget, avoiding debt (mortgage is an exception) and steadily investing in your retirement. Keep it simple.

HarryHirsch 7y ago
Yet the median balance that fiftysomethings carry in their 401(k) is 60 kUSD: https://www.investopedia.com/articles/personal-finance/010616/whats-average-401k-balance-age.asp https://www.investopedia.com/articles/personal-finance/01061... That tells you that it isn't easy to save an adequate balance for retirement, despite what Suze Orman and all the other avocado toast shunners tell you.
- jmathai 7y ago
  I don’t think it is easy at all. At least in America, all the forces are working get you to spend all your current and future money. I wish we would talk more about how it’s possible than how hard it is.
- jandrewrogers 7y ago
  Net worth would be more instructive than 401(k) balance, particularly since many people do not have access to a 401(k) for much of their career. I know more than a few people with meager 401(k) but large taxable accounts, real estate, business, etc portfolios. It is a mistake to conflate retirement accounts with investments accessible in retirement. This is no different than the "Americans have no savings" trope, which conflates having savings accounts (which are an anachronism that many Americans have no use for) with having access to cash-like liquidity.
  - HarryHirsch 7y ago
    It doesn't look much rosier when you look at net worth: https://www.federalreserve.gov/publications/files/scf17.pdf https://www.federalreserve.gov/publications/files/scf17.pdf Median net worth in the 55-65 age bracket: 187 kUSD. Effectively, it's much less than that because the lion's share of these 187 kilodollars will be owner-occupied housing. Yes, you can sell up, but you'll always need a roof over your head. The political system will have to deal with the retirement shortfall in the next 10 to 20 years.
- jandrewrogers 7y ago
  The median US household has $1000/month left after all ordinary expenses. Investing even half of that is enough to fund a reasonable retirement.

HarryHirsch 7y ago

Yet the median balance that fiftysomethings carry in their 401(k) is 60 kUSD: https://www.investopedia.com/articles/personal-finance/010616/whats-average-401k-balance-age.asp https://www.investopedia.com/articles/personal-finance/01061... That tells you that it isn't easy to save an adequate balance for retirement, despite what Suze Orman and all the other avocado toast shunners tell you.

jmathai 7y ago
I don’t think it is easy at all. At least in America, all the forces are working get you to spend all your current and future money. I wish we would talk more about how it’s possible than how hard it is.
jandrewrogers 7y ago
Net worth would be more instructive than 401(k) balance, particularly since many people do not have access to a 401(k) for much of their career. I know more than a few people with meager 401(k) but large taxable accounts, real estate, business, etc portfolios. It is a mistake to conflate retirement accounts with investments accessible in retirement. This is no different than the "Americans have no savings" trope, which conflates having savings accounts (which are an anachronism that many Americans have no use for) with having access to cash-like liquidity.
- HarryHirsch 7y ago
  It doesn't look much rosier when you look at net worth: https://www.federalreserve.gov/publications/files/scf17.pdf https://www.federalreserve.gov/publications/files/scf17.pdf Median net worth in the 55-65 age bracket: 187 kUSD. Effectively, it's much less than that because the lion's share of these 187 kilodollars will be owner-occupied housing. Yes, you can sell up, but you'll always need a roof over your head. The political system will have to deal with the retirement shortfall in the next 10 to 20 years.
jandrewrogers 7y ago
The median US household has $1000/month left after all ordinary expenses. Investing even half of that is enough to fund a reasonable retirement.