Is this right?
Comments
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See if you can figure out how poor people pay for tax cuts firstcreepycoug said:
Then we'll just have to sit here and watch you guys fuck it up.RaceBannon said:
I may start one on the cool boardcreepycoug said:
That's almost its own thread.RaceBannon said:Medicare sucks
Meanwhile, back in the Club, we be like:
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We're working on it. Hold our beers.RaceBannon said:
See if you can figure out how poor people pay for tax cuts firstcreepycoug said:
Then we'll just have to sit here and watch you guys fuck it up.RaceBannon said:
I may start one on the cool boardcreepycoug said:
That's almost its own thread.RaceBannon said:Medicare sucks
Meanwhile, back in the Club, we be like: -
Two most important words we should be teaching our kids in school when it comes to finance is compound interest. Earlier it starts better it does for you.
I was born/raised/still live in Lewis County, but for some very fortunate reason loved finances and the stock market so started investing in my early 20's.
Both wife and I have contributed to our 401k's last 25 years and today, what we put in along with the match is minute compared to what the market does for our total. Even if it only goes up 5% in a year, that's double what we will contribute and make during that same time frame.
Congrats Creepy your 5-6 million portfolio puts you in the top 1/2 of 1% of household wealth in America (680,000 out of 116,000,000)
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Well, I'm not there yet. But unless something goes wrong, I should be at or close to 6. I have always assumed the rule of 20 before calling it a day ... of course as my base salary has increased, that target has moved further out. And despite the shit talk, I should inherit some money from the old man. Not quite sure how that's going to work out ... taking a trip at the end of the month to help him with his private equity "liquidity event". It should come up organically at that time. Otherwise I'll present him with a nice bill for services rendered.godawgst said:Two most important words we should be teaching our kids in school when it comes to finance is compound interest. Earlier it starts better it does for you.
I was born/raised/still live in Lewis County, but for some very fortunate reason loved finances and the stock market so started investing in my early 20's.
Both wife and I have contributed to our 401k's last 25 years and today, what we put in along with the match is minute compared to what the market does for our total. Even if it only goes up 5% in a year, that's double what we will contribute and make during that same time frame.
Congrats Creepy your 5-6 million portfolio puts you in the top 1/2 of 1% of household wealth in America (680,000 out of 116,000,000)
Joking. Not joking.
Part of what I've been driving towards is to leave the kids something. A fully funded undergraduate education (check), some money for a house down payment (1 out of 3, check), a wedding (1 out of 3, check, and it was a really nice one), and we (hopefully) live off of the earnings from the assets. I didn't have a Seattle tech. liquidity event. In the tortoise and hare story, I've been the slow guy, which is fine, except when you live in Seattle, a lot of hares actually win the race a lot earlier. -
Re compounded returns ... we were just discussing that in Casa de Creep the other day. It is criminal how few Americans understand what is truly basic arithmetic.godawgst said:Two most important words we should be teaching our kids in school when it comes to finance is compound interest. Earlier it starts better it does for you.
I was born/raised/still live in Lewis County, but for some very fortunate reason loved finances and the stock market so started investing in my early 20's.
Both wife and I have contributed to our 401k's last 25 years and today, what we put in along with the match is minute compared to what the market does for our total. Even if it only goes up 5% in a year, that's double what we will contribute and make during that same time frame.
Congrats Creepy your 5-6 million portfolio puts you in the top 1/2 of 1% of household wealth in America (680,000 out of 116,000,000)
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This X100. My junior year of high school my American History teacher spent a week on personal finance and the benefit of investing early to take advantage of compound interest. It was one of the more valuable lessons I learned from a teacher. It should be required curriculum in all schools. I really don’t understand why it’s not. Schools teach kids about everything else, but such an important topic is given no structured education unless a teacher takes it upon himself to provide it. It would be so helpful for so many kids who don’t get those lessons at home.creepycoug said:
Re compounded returns ... we were just discussing that in Casa de Creep the other day. It is criminal how few Americans understand what is truly basic arithmetic.godawgst said:Two most important words we should be teaching our kids in school when it comes to finance is compound interest. Earlier it starts better it does for you.
I was born/raised/still live in Lewis County, but for some very fortunate reason loved finances and the stock market so started investing in my early 20's.
Both wife and I have contributed to our 401k's last 25 years and today, what we put in along with the match is minute compared to what the market does for our total. Even if it only goes up 5% in a year, that's double what we will contribute and make during that same time frame.
Congrats Creepy your 5-6 million portfolio puts you in the top 1/2 of 1% of household wealth in America (680,000 out of 116,000,000) -
You're set.creepycoug said:
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. -
Re: middle class
The middle class is very much a 20th Century phenomenon, long in decline. Probably wouldn’t have happened at all without massive disruptions, e.g., two world wars. If you want a middle class you actually have to enact policies to support it. It doesn’t just spring organically from capitalism. -
I guess it's how you define middle class. Thought of as a broad intellectual concept, I'd argue it's still there, but we're at a time when we're pushing a lot of people who might have been thought of as middle class down into the lower class. My in-laws are a good example of that. He was a union carpenter and foreman on big projects, and she was an admin. at Rayonier. Both had pensions, etc. Bought a house and retired owning it, raised their daughters, moved to a place on the Sound, and lived a good life. Those same two people would struggle today with those jobs and that level of education.HHusky said:Re: middle class
The middle class is very much a 20th Century phenomenon, long in decline. Probably wouldn’t have happened at all without massive disruptions, e.g., two world wars. If you want a middle class you actually have to enact policies to support it. It doesn’t just spring organically from capitalism.
But for every one of them, there is a kid learning to code, or working in mid-tier finance, or mid-tier law, or a 1,000 other professional or semi-professional jobs, who will make a good living but are not going to be super wealthy by any stretch. Those people will live economically maybe just slightly better than my in-laws, and most of the "better" part will be because a lot of things are relatively cheaper and more accessible than they were during their heyday. Vacations, for example. When I was a kid in the 70s and 80s, only very well-to-do people jumped on a plane to take a vacation with any regularity. It wasn't an every year thing. It is now because it's fucking cheap relative to income.
I think in a lot of ways there is still a middle class. The way the two classes live is different, but I feel like there is a decent chunk of people in the middle. My old neighborhood in Bothell was full of them. The Boeing engineer ... has a nice 3,300 or so sq. foot house in a nicer Lozier neighborhood built around 2000. I remember one summer they had to choose between having the house painted or getting a $4,000 surgery for their dog. I was fortunate in that I could have said, "why not bofe?"
My in-laws would have faced the same dilemma, except my FIL would never have hired someone to paint his house ... he did it.
I know there are people and communities left behind. But I also think in real-life there are a shit-ton of people in the middle. Their lives just look different than the old middle class. In some ways better; in some ways worse.
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Our paths and goals couldn't be more aligned. I should be anywhere from 5.8 to 6.8 including the equity in my home by 56. The rudimentary plan is to have 2-3mm in conservative investments, hopefully generate about 100k annually and also pull 100k annually from the univested 3-4mm and by the time I'm dead leave 1mm to each of 3 children. I actually have competing advisors work out that plan. Maybe it turns out that I can't spend $200k a year in rerirement which won't crush me. Neither my wife or I inherited anything so I feel a great need to do that for my children. My dad was a fortune 500 executive who wasn't in the market and didn't have any life insurance. He spent his rerirement on my sister's dream which failed. I'm proud that I built and accomplished most everything on my own and my children were lucky to have a stay at home mom their entire upbringing.creepycoug said:
Well, I'm not there yet. But unless something goes wrong, I should be at or close to 6. I have always assumed the rule of 20 before calling it a day ... of course as my base salary has increased, that target has moved further out. And despite the shit talk, I should inherit some money from the old man. Not quite sure how that's going to work out ... taking a trip at the end of the month to help him with his private equity "liquidity event". It should come up organically at that time. Otherwise I'll present him with a nice bill for services rendered.godawgst said:Two most important words we should be teaching our kids in school when it comes to finance is compound interest. Earlier it starts better it does for you.
I was born/raised/still live in Lewis County, but for some very fortunate reason loved finances and the stock market so started investing in my early 20's.
Both wife and I have contributed to our 401k's last 25 years and today, what we put in along with the match is minute compared to what the market does for our total. Even if it only goes up 5% in a year, that's double what we will contribute and make during that same time frame.
Congrats Creepy your 5-6 million portfolio puts you in the top 1/2 of 1% of household wealth in America (680,000 out of 116,000,000) Joking. Not joking.
Part of what I've been driving towards is to leave the kids something. A fully funded undergraduate education (check), some money for a house down payment (1 out of 3, check), a wedding (1 out of 3, check, and it was a really nice one), and we (hopefully) live off of the earnings from the assets. I didn't have a Seattle tech. liquidity event. In the tortoise and hare story, I've been the slow guy, which is fine, except when you live in Seattle, a lot of hares actually win the race a lot earlier.
