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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 tha
by 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 agoIt 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.