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All these replies with the typical 7% return for 20-30 years calculations are missing the point. I know what the arithmetic is. It is not common to be in a posi

by sidlls 5y ago

All these replies with the typical 7% return for 20-30 years calculations are missing the point. I know what the arithmetic is. It is not common to be in a position to do that, even in the software industry.

pcbro141 5y ago
Software Developer Median Salary (2020): $110,140 per year That sounds like a lot of software developers are in a position to put away $10k+/year to me. Source: BLS, https://www.bls.gov/ooh/computer-and-information-technology/software-developers.htm https://www.bls.gov/ooh/computer-and-information-technology/...
- sidlls 5y ago
  That doesn't account for the events of life, like illness, maintenance on vehicles and property, etc.
notyourwork 5y ago
If you start maxing out retirements in your first job and continue to do so throughout your career, raises will be raises and you'll continue to save. If you tap into your max savings per year in start of your career, you'll have trouble pairing that income back and putting it away for savings. Max out your retirement funds early and never look back.
- joquarky 5y ago
  That's all great until you have to use your retirement funds for medical emergencies.
  - notyourwork 5y ago
    Life can add obstacles, not sure that's basis to dismiss the point.
    - sidlls 5y ago
      The fact that over 80% of individuals don’t even have $1MM in assets certainly is a basis to dismiss the point. “It’s possible” is technically correct (no, that’s not the best kind of correct), but leaves out just a ton of context. “It’s possible” for a Boltzmann brain to form. Doesn’t mean it’s likely, common, or that people who don’t achieve it have somehow done something wrong.
      - notyourwork 5y ago
        How does the percentage of those with 1MM in assets relate to whether or not you should prioritize savings? Are you suggesting individuals should not be saving for retirement or long term financial well being? If so I'm not sure I have anything to offer to you.
- giantg2 5y ago
  Who has $19k plus another $6k to put away every year to max retire accounts?
  - notyourwork 5y ago
    I can only speak for myself. I do and I know lots of friends who do as well. I made 42k when I finished undergrad and have always maxed out my available tax beneficial savings (401k/403b/IRAs). Doing anything else would be negligent on my ability to prepare for my future where I would like to retire and not rely on social security, children or other programs.
    - giantg2 5y ago
      Where were you living and when was that? My starting salary about $15k higher than that, but I still couldn't max out. Rent, insurances, car payment (eventually), food, taxes, etc really eat a big chunk. I always tried to save a lot, but it was probably only $14k per year (IRA + 401k). I'd say I'm still only around that because I now have a family to support and medical bills.

by sidlls 5y ago

pcbro141 5y ago

Software Developer Median Salary (2020): $110,140 per year That sounds like a lot of software developers are in a position to put away $10k+/year to me. Source: BLS, https://www.bls.gov/ooh/computer-and-information-technology/software-developers.htm https://www.bls.gov/ooh/computer-and-information-technology/...

sidlls 5y ago
That doesn't account for the events of life, like illness, maintenance on vehicles and property, etc.

notyourwork 5y ago

If you start maxing out retirements in your first job and continue to do so throughout your career, raises will be raises and you'll continue to save. If you tap into your max savings per year in start of your career, you'll have trouble pairing that income back and putting it away for savings. Max out your retirement funds early and never look back.

joquarky 5y ago
That's all great until you have to use your retirement funds for medical emergencies.
- notyourwork 5y ago
  Life can add obstacles, not sure that's basis to dismiss the point.
  - sidlls 5y ago
    The fact that over 80% of individuals don’t even have $1MM in assets certainly is a basis to dismiss the point. “It’s possible” is technically correct (no, that’s not the best kind of correct), but leaves out just a ton of context. “It’s possible” for a Boltzmann brain to form. Doesn’t mean it’s likely, common, or that people who don’t achieve it have somehow done something wrong.
    - notyourwork 5y ago
      How does the percentage of those with 1MM in assets relate to whether or not you should prioritize savings? Are you suggesting individuals should not be saving for retirement or long term financial well being? If so I'm not sure I have anything to offer to you.
giantg2 5y ago
Who has $19k plus another $6k to put away every year to max retire accounts?
- notyourwork 5y ago
  I can only speak for myself. I do and I know lots of friends who do as well. I made 42k when I finished undergrad and have always maxed out my available tax beneficial savings (401k/403b/IRAs). Doing anything else would be negligent on my ability to prepare for my future where I would like to retire and not rely on social security, children or other programs.
  - giantg2 5y ago
    Where were you living and when was that? My starting salary about $15k higher than that, but I still couldn't max out. Rent, insurances, car payment (eventually), food, taxes, etc really eat a big chunk. I always tried to save a lot, but it was probably only $14k per year (IRA + 401k). I'd say I'm still only around that because I now have a family to support and medical bills.