I think the OP should be allowed a certain amount of literary license in making the point that in general the majority of the population of the US does a crappy job of saving and planning for the futureI don't.I think the OP has no idea how much money most people make or how difficult it can be to get ahead.I had no idea Americans were so poor. 49.8% of all households have a net worth under $100,000. That is very tiny money: a couple T-bill ladders and hardly adequate reserves in case of a genuine, financial hardshipWhen one considers that the average salary is south of $50k, how long should it take to generate a net worth of $100k? Let's assume that the individual saves 10% of their gross income and puts it into T-bills. My math says that it takes 15 years.So, remembering that $50k is an average, this means that half of the wage earners in this country will not have that $100K savings even after 15 years of diligent effort. How long does it take if you make only $40k? 18 years.And of course, this doesn't take inflation into account.Tiny money? Twenty years of scratching and saving?Why do I hear the ending soliloquy of the Ghost of Christmas Present ringing in my ears (the insect on the leaf mocking his brothers in the dust)?What about the $500k, which is merely the size of robustly-constructed, properly-diversified portfolio? That takes about 40 years, roughly the length of a career.Literary license? No, I think the OP needs to learn a little bit about demographics and the real value of a dollar.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra