Rantings and tirades of a frustrated economist.
Even $500k seems low.25 years of retirement, portfolio growth rate of 5%, you're talking $35,476 a year to deposit (and that's if you're don't care about leaving anything for your kids). Add a bit for social security, and we're talking what, $48k a year in income? Doable if you want to spend your retirement years watching Game of Thrones reruns, I guess.Really, I can't imagine going into retirement w/ under $1m in investments. If I'm not there, I'll just keep working. Some of the healthiest 80-somethings I know are the ones who keep agency in life anyway, versus reducing themselves to loafing around the house all day.Moderately speaking, I think a 25 year old should start saving $6300 a year towards retirement if they want to reach $1,000,000 by 70 in current year dollars (that assumes portfolio growth outpaces inflation by around 5%, which could be a stretch). Like you said before, go ahead and take social security, too; you'd have responsibly saved and invested it had you been allowed to keep it, so not your fault that politicians treat SS as an unappropriated grab bag of funds. Come away with your $8k a month and be comfortable.
Well, let's do some math. Conventional wisdom says you need a million in assets to retire. Let's say that sixty million Americans accomplish this. That's sixty trillion dollars, or ALL OF THE MONEY THAT CURRENTLY EXISTS.So, the answer to your question is - well, let's print more money. That should end well.
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