Welcome to the Hardcore Husky Forums. Folks who are well-known in Cyberland and not that dumb.
Is this right?
creepycoug
Member Posts: 24,340
Less than 340,000? That doesn't seem like a lot. Then again, I have no sense of the real wealth distribution in the U.S.
Comments
-
there is huge wealth gap, between financial literate people poor unfortunately. figure seems right imo.
-
No, it’s not right.
The chart you included is slightly misleading, as it only captures accounts managed by Fidelity. It doesn’t capture 401k, IRA and other defined contribution (e.g. 403b) accounts managed by Vanguard, Schwab, TD Ameritrade, the Thrift Savings Plan, etc. -
Back of the envelope maff:
The max contribution annually to an IRA is 6K (7K after you're 50). Contributing a full 6K, with 10% return takes around 30 years to hit a million. At 15% return it is still ~23 years.
Doing that for a 401K using 19K as the assumed contribution takes 16 years at 15% return and 20 at 10% return. Sure you can go higher than the 19K, with employer match (Love my 6.5% extra there) but it obviously takes a long time to hit 1m with optimistic assumptions on the contributions during the early years.
I'm also curious if these are numbers for a single account or across multiple accounts. IRAs having so many are surprising given the lower contribution allowances, but perhaps with 401K rollovers to IRAs boost those numbers. -
I feel like the middle class is vanishing. I have no numbers to back it up but just what I sense around me.
-
Welcome to 2001DerekJohnson said:I feel like the middle class is vanishing. I have no numbers to back it up but just what I sense around me.
-
You’re right; it’s not. The Yahoo version of the article was a little misleading. The WAPO version made it more clear it was limited to Fidelity plans.spuden said:No, it’s not right.
The chart you included is slightly misleading, as it only captures accounts managed by Fidelity. It doesn’t capture 401k, IRA and other defined contribution (e.g. 403b) accounts managed by Vanguard, Schwab, TD Ameritrade, the Thrift Savings Plan, etc.
So I assume VG has at least Fidelity-like numbers and then there are smaller players.
Even extrapolating from the Fidelity numbers using rough guesstimates, seems there aren’t a lot of Americans with 7 digits in their 401k. -
One of my buddies runs the annual American finance report for one of the big 4. He always sends me a free copy where you can segregate by age/education/savings type etc etc. it’s very depressing to look at (especially for the older gen x types).creepycoug said:
You’re right; it’s not. The Yahoo version of the article was a little misleading. The WAPO version made it more clear it was limited to Fidelity plans.spuden said:No, it’s not right.
The chart you included is slightly misleading, as it only captures accounts managed by Fidelity. It doesn’t capture 401k, IRA and other defined contribution (e.g. 403b) accounts managed by Vanguard, Schwab, TD Ameritrade, the Thrift Savings Plan, etc.
So I assume VG has at least Fidelity-like numbers and then there are smaller players.
Even extrapolating from the Fidelity numbers using rough guesstimates, seems there aren’t a lot of Americans with 7 digits in their 401k.
Millennials are actually doing a pretty good job stowing away cash (probably from habits learned while living at home with their parents 2008-2011ish). Gen x though...woof. Hard to envision how many of them will ever be able to retire -
In your estimation, what should a Gen X-er about 8 years from retirement have in retirement investments? Is it fair to include the lump sum value of a pension benefit?ntxduck said:
One of my buddies runs the annual American finance report for one of the big 4. He always sends me a free copy where you can segregate by age/education/savings type etc etc. it’s very depressing to look at (especially for the older gen x types).creepycoug said:
You’re right; it’s not. The Yahoo version of the article was a little misleading. The WAPO version made it more clear it was limited to Fidelity plans.spuden said:No, it’s not right.
The chart you included is slightly misleading, as it only captures accounts managed by Fidelity. It doesn’t capture 401k, IRA and other defined contribution (e.g. 403b) accounts managed by Vanguard, Schwab, TD Ameritrade, the Thrift Savings Plan, etc.
So I assume VG has at least Fidelity-like numbers and then there are smaller players.
Even extrapolating from the Fidelity numbers using rough guesstimates, seems there aren’t a lot of Americans with 7 digits in their 401k.
Millennials are actually doing a pretty good job stowing away cash (probably from habits learned while living at home with their parents 2008-2011ish). Gen x though...woof. Hard to envision how many of them will ever be able to retire -
Yes—id include that for sure. Everyone’s situation is unique, so I don’t want to name a number (and to be honest I don’t know enough about it for your age group, I’ve only really given it thought for my own age range which is completely different, since I don’t think we will have SS to dependably rely on) but I would assume you’re in good shape, esp in comparison to your peers.creepycoug said:
In your estimation, what should a Gen X-er about 8 years from retirement have in retirement investments? Is it fair to include the lump sum value of a pension benefit?ntxduck said:
One of my buddies runs the annual American finance report for one of the big 4. He always sends me a free copy where you can segregate by age/education/savings type etc etc. it’s very depressing to look at (especially for the older gen x types).creepycoug said:
You’re right; it’s not. The Yahoo version of the article was a little misleading. The WAPO version made it more clear it was limited to Fidelity plans.spuden said:No, it’s not right.
The chart you included is slightly misleading, as it only captures accounts managed by Fidelity. It doesn’t capture 401k, IRA and other defined contribution (e.g. 403b) accounts managed by Vanguard, Schwab, TD Ameritrade, the Thrift Savings Plan, etc.
So I assume VG has at least Fidelity-like numbers and then there are smaller players.
Even extrapolating from the Fidelity numbers using rough guesstimates, seems there aren’t a lot of Americans with 7 digits in their 401k.
Millennials are actually doing a pretty good job stowing away cash (probably from habits learned while living at home with their parents 2008-2011ish). Gen x though...woof. Hard to envision how many of them will ever be able to retire
When I say woof about gen x, I’m talking how 35% of 50 year olds have <50k in total assets etc.
When I see that, I think a retirement crisis is on the horizon that will require govt intervention. Or we will just become Italy and everyone’s grandparents will live with them Charlie and the chocolate factory style starting in 20 years
-
I struggle with the number. I am aiming at $5 to $6M in investments. House is paid; will finance construction of the lake place in the next year or so. Stand to inherit some money/property. Kids college is done and they have no debt. Two more weddings and I’m free.ntxduck said:
Yes—id include that for sure. Everyone’s situation is unique, so I don’t want to name a number (and to be honest I don’t know enough about it for your age group, I’ve only really given it thought for my own age range which is completely different, since I don’t think we will have SS to dependably rely on) but I would assume you’re in good shape, esp in comparison to your peers.creepycoug said:
In your estimation, what should a Gen X-er about 8 years from retirement have in retirement investments? Is it fair to include the lump sum value of a pension benefit?ntxduck said:
One of my buddies runs the annual American finance report for one of the big 4. He always sends me a free copy where you can segregate by age/education/savings type etc etc. it’s very depressing to look at (especially for the older gen x types).creepycoug said:
You’re right; it’s not. The Yahoo version of the article was a little misleading. The WAPO version made it more clear it was limited to Fidelity plans.spuden said:No, it’s not right.
The chart you included is slightly misleading, as it only captures accounts managed by Fidelity. It doesn’t capture 401k, IRA and other defined contribution (e.g. 403b) accounts managed by Vanguard, Schwab, TD Ameritrade, the Thrift Savings Plan, etc.
So I assume VG has at least Fidelity-like numbers and then there are smaller players.
Even extrapolating from the Fidelity numbers using rough guesstimates, seems there aren’t a lot of Americans with 7 digits in their 401k.
Millennials are actually doing a pretty good job stowing away cash (probably from habits learned while living at home with their parents 2008-2011ish). Gen x though...woof. Hard to envision how many of them will ever be able to retire
When I say woof about gen x, I’m talking how 35% of 50 year olds have
Goal is to live off investment returns and leave the corpus to my kids. Will likely rent the Seattle place out when I pull up stakes. Want to keep my foothold in Seattle because I’m convinced long-term it’s gong to be a hard place to move back to if you left the market.
