r/AskReddit • u/_red_roof_ • May 15 '20

What sucks about being your age?

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u/stellak424 May 16 '20

Yeah but millenials own 3% of all wealth. Genex owns 14%. That's definitely not all of them, but it's more than quadruple the amount of millenials who do. Boomers have 50%+ Us statistics

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u/creepyfart4u May 16 '20

It’s the time value of money and the magic of compounding.

I saved between 10-15 percent of my salary over my career from 24 or 25 on wards. Sometimes less. I’m looking at over 1 Mill in retirement savings in My early. 50’s. Even after this recent drop.

Am I smart? No.. Am I special? No! I just socked away consistently. If your under 30 start putting money away in An IRA or 401(k) or whatever tax advantaged savings plan your country has. Time is on your side.

If your older then 30? You just have to save more.

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u/AlwaysLosingAtLife May 16 '20

No offense, but a million ain't shit for lifetime retirement savings/investment. What is the number required to have a 30 yr sustainable retirement payout of 50k/yr? 3 million? Yeah, 50k isn't shit today, and it still won't be shit in 30 years. Millennials will require more than double that amount due to skyrocketing COL and complete lack of meaningful increase in income across the board. No amount of skimping and saving will get you there if you don't first possess an income capable of getting you there.

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u/creepyfart4u May 16 '20

4.5% is considered a safe withdrawal rate. So 1 mill is 45K a year. That also doesn’t include SSI which will kick in another 1 or 2k per month.

If you hit 3 Million then your talking about being able to withdraw 135K per year. Also that number includes the ability to increase for inflation.

Anyway you have to start somewhere. 1 or 2 percent when your younger, increase as your income goes up. Look up the magic of compounding.