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Most people who have significant savings in the stock market don't have the lifespan to ride out a 25 year recovery cycle. And those young enough to have the ti
by abraxas 7mo ago
Most people who have significant savings in the stock market don't have the lifespan to ride out a 25 year recovery cycle. And those young enough to have the time usually don't have much in savings yet.
- bigstrat2003 7mo agoI guess it depends what you call "significant". I am 40 and have over 200k in my 401k, which I think is significant. And I could most likely expect to live 25 more years. If there's a crash tomorrow, my money wouldn't grow the way I am hoping it will over that time, but I should come out ok considering that I will be getting discount stocks while the market recovers.
- bxparks 7mo agoIt is significant if you remain healthy and employed with income. But it is basically nothing if you get laid off at age 56, and you can't find another job due to age discrimination, your COBRA runs out after 18 months, but you are not 65 years old yet for Medicare . Obamacare may be completely neutered by then, so private health insurance may cost $30k/year for a 57 year-old. You still have a mortgage, you can't afford health insurance, so you take a risk and decide to skip it, because you are healthy. Then you get pancreatic cancer, and without health insurance, your chemotherapy completely depletes your 401k in one year. Then you die of cancer at age 59, because you cannot pay for the treatments anymore.
- tossandthrow 7mo agoWhich is likely what happens. It would not really be a great depression of there was not mass layoffs and immense job insecurity.
- twisterius 7mo ago[dead]
- p1esk 7mo agoIn this scenario I would take that 200k (or whatever there would be), and move to some low COL country.
- komali2 7mo ago> move to some low COL country. So you are now alone in a foreign country, no family nearby, trying to adapt to a new lifestyle at nearly 60 lol.
- deleted 7mo ago[deleted]
- Terr_ 7mo agoDoesn't that imply magical foreknowledge about exactly how lengthy the bad-period will be?
- deleted 7mo ago[deleted]
- tossandthrow 7mo agoAh yes, a great migration! Going to ~America~ a low COL area!
- hdgvhicv 7mo agoYou’re assuming that the US dollar retains a decent value and that foreign countries will put up with you for your wealth.
- _heimdall 7mo agoIf you're only expecting to live to 65, you would be trying to time your 401k into a roughly 5 year window (assuming you wait until 59 1/2 to begin withdrawl).
- edmundsauto 7mo agoYou are probably in the top 25%, depending on where in your 40s you are. Median is about 162k for Americans in their 40s.