Comment by neogodless
4 days ago
If you contribute $1k per month for 10 years earning 6% you would have $162k.
5% of that would be $8100.
Is $48k / year a typical income?
4 days ago
If you contribute $1k per month for 10 years earning 6% you would have $162k.
5% of that would be $8100.
Is $48k / year a typical income?
where are you getting $1k/month? GP said "invest" $100 per month given a $48,000 income and rent of ~$36k/yr.
Yeah obviously if i can sock away $12,000 a year for 10 years i'll have money. Just be aware that i was in a bunch of funds from 2010-2020 and were it not for what happened at the end of that decade i wouldn't have made any additional money at all. In fact, i would have lost a decent chunk of money - not just in fees, but inflation.
Also, where are you guaranteed 6% for a decade? t-bills or something?
Who in this economy has $1K left over at the end of the month to spend / risk freely?
You'd be surprised.
The pauper who invests peanuts and receives peanuts isn't the problem. The professional who invests modest sums and boosts their retirement isn't the problem.
The centabillionaire who invests their fortune and receives $50M a day from the market and cares about nothing more than keeping the gravy train going is the problem. They head to Washington and splash their free money hose around in exchange for political support to keep that hose pumping at all costs. That's why politicians were so lock-step about how it was super important for the US to sell our industry to China and drop capital gains tax below income tax and open the Double Irish Sandwich and now they're getting rid of social programs and instituting 50 year mortgages and so on.
The fact that the guy with the firehose can pump the firehose by stepping on the guy investing $1k month is the core of the problem. Until you are at escape velocity -- your net worth is enough to cover your lifestyle from investment returns alone -- you lose by default.