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How are everyone's investments doing? The DOW isn't that too from its pandemic peak.
Also, as I'm typing this out, this whole investment things strikes me as completely absurd. The avg retirement savings for someone in their thirties is around is $30,000-ish. Even if someone received some crazy 10% return on their investments, they'd only get 3K in return. That'll really help pay for retirement.
If your post isn’t a joke… google “compound interest” and then mess around with this thing
@Nosferatu Thanks for posting this. This is a handy tool. However, it still doesn't make me feel like retirement will be an enjoyable thing for most people relying on their 401K.
I recently changed jobs so things might be rosier than this picture, but let's stick with an example from my last job, which I was in for 5 years.
Over those 5 years, I put in an average 400 a month and my 401K's avg return was 5.2%. Assuming this rate of return over a 32 year period and assuming I increase my contribution to coincide with inflation over the next 32 years (even though inflation was often higher than my usual 2% raise), I'll have 600K or the equivalent of 226K in today's dollars. And, with a 3.3% draw down each year that means I'll be able to pull out nearly 1,650 per month in future dollars, which are equal to $621 per month in today's dollars.
And, while this picture might be a bit drab as it doesn't include career changes that might come with more money, but it also doesn't account for for the fees the 401K service provider charge me, the potential of having to borrow against the 401K for a home, medical, or general hardship, or being between jobs and not being able to put money into the 401K.
I don't see how investing is going to work for the average person.