2 ms·
About 3% of 60 to 64 year olds had $1M saved. Taking 4% out per year is $40k... that's not a great income. And the demographic changes mean that future results
by robocat 3y ago
About 3% of 60 to 64 year olds had $1M saved. Taking 4% out per year is $40k... that's not a great income.
And the demographic changes mean that future results will differ from past results.
As a middle-aged New Zealander I worry about:
(1) overinvestment in the US stock market especially as withdrawals hit in synchonicity,
(2) why bother saving? All indications here in New Zealand is that the combination of wealth taxes, capital gains taxes and means testing will take most of one's savings over time.
We can't fight demographics.
Great article on long term investing: "Most investments are actually bad" https://www.lynalden.com/most-investments-are-bad/ https://www.lynalden.com/most-investments-are-bad/
- toomuchtodo 3y agoIt all feels like a bit of a scam, a Rube Goldberg fantasy where everyone was told “this is how you retire,” and yet the data shows that it’s only going to work for a low single digit percentage of system participants. The outcome worsens over time as demographics compress. The purpose of the system in this case is to exist (skimming fees for everyone doing the capital market industry performance art), and to provide a false assurance that broad population cohorts have a chance at a favorable outcome (current retirement population).