"There's a sucker born every minute" - P.T. Barnum
Gen Z wants to retire early. They're off to a good start
11–20 of 94 posts
Re: Gen Z wants to retire early. They're off to a good start
#12> Given that financial advisors say that Gen Z will need roughly $3 million for a 20-year retirement — a high bar even for smart money managers If we assume a 2% inflation rate going forward, that's only ~$600,000 in today's dollars. Seems like a relatively low bar, no?
I think that is 3 million now, not 3 million by the end of the retirement period.
If we assume they have three million now, in 40 years when they have 20 years of retirement left, assuming it sees a 5% annual rate of return, they will have $21 million.
Are you suggesting that they actually need ~$21 million for a 20 year retirement?
Re: Gen Z wants to retire early. They're off to a good start
#13Gen Z's are working now? Makes me feel so old.
Re: Gen Z wants to retire early. They're off to a good start
#14I read FIRE subreddits a lot and see a little too much optimism and unreasonable expectations. They are ready to retire with just another decade of incredible stock market returns. It’s rarely that easy. All signs point to another lost decade coming, like after 1968 and 2000, that is going to break a lot of hearts I’m afraid. Unless they plan for it appropriately and have reasonable expectations.
https://financial-charts.effingapp.com/
https://www.currentmarketvaluation.com/models/buffett-indica...
https://www.currentmarketvaluation.com/models/price-earnings...
https://www.currentmarketvaluation.com/models/s&p500-mean-re...
Re: Gen Z wants to retire early. They're off to a good start
#15> For Gen Zs, there seems to be a correlation between gambling and investing—particularly, high-risk investing. In the United States, 61% of surveyed Gen Z investors said they gamble online or in person, compared with 29% of non-investors surveyed. Their propensity for gambling is also associated with riskier investments; 70% of US Gen Z investors who gamble frequently invest in crypto, and 38% invest in non-fungible…
Translated: They did not experience a stock-market crash yet and the societal memory of risky behaviour resulting in a stock market crash fades.
Well, there haven't been real big, bad crashes in the living memory. And anyway, this isn't what investors are worried about - they are worried about protracted bear markets.
Re: Gen Z wants to retire early. They're off to a good start
#16> Given that financial advisors say that Gen Z will need roughly $3 million for a 20-year retirement — a high bar even for smart money managers If we assume a 2% inflation rate going forward, that's only ~$600,000 in today's dollars. Seems like a relatively low bar, no?
2% inflation rate is super optimistic. You have seen the levels of sovereign debts?
Could be, but a higher rate of inflation will make attaining $3 million even easier. If inflation is 5%, they will only need ~$400,000 in today's dollars.
Re: Gen Z wants to retire early. They're off to a good start
#17> Gen Z started saving for retirement at the median age of 19, earlier than any other generation ? Median? These numbers seem unrealistic for anyone I know who went to college, and those who didn't are in low pay jobs with no retirement plan
Also median of 19. Meaning quite good bit would have started saving before age of 18 right? That sounds off... Considering what type of jobs they would have had.
Re: Gen Z wants to retire early. They're off to a good start
#18> Gen Z started saving for retirement at the median age of 19, earlier than any other generation ? Median? These numbers seem unrealistic for anyone I know who went to college, and those who didn't are in low pay jobs with no retirement plan
The study said four in five gen z investors . I wonder how many of those gen z investors maybe bought a little crypto along the way when it was a fad.
Or got Robin Hood account and deposited minimum amount of money to speculate on whatever...
Re: Gen Z wants to retire early. They're off to a good start
#19Earlier quoted context omitted.
I think that is 3 million now, not 3 million by the end of the retirement period.
If we assume they have three million now, in 40 years when they have 20 years of retirement left, assuming it sees a 5% annual rate of return, they will have $21 million. Are you suggesting that they actually need ~$21 million for a 20 year retirement?
I'm saying the article is saying they need 3 million before entering retirement.
Re: Gen Z wants to retire early. They're off to a good start
#20Earlier quoted context omitted.
If we assume they have three million now, in 40 years when they have 20 years of retirement left, assuming it sees a 5% annual rate of return, they will have $21 million. Are you suggesting that they actually need ~$21 million for a 20 year retirement?
I'm saying the article is saying they need 3 million before entering retirement.
Yes, that's right. Assuming a typical lifespan, they will have 20 years left in ~40 years. Assuming a 2% inflation rate, $3 million in 40 years is equivalent to ~$600,000 today. A 60 year old holding $600,000 today does not seem like that high of a bar.