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Gen Z wants to retire early. They're off to a good start

businessinsider.com

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Re: Gen Z wants to retire early. They're off to a good start

#51

Post by [deleted] »

deaddodo wrote: post #6
jihadjihad wrote: post #2

> 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…

I was literally going to point this out but missed it in the article. All of my "Gen Z" family and colleagues invest, certainly, but many "invest" in the same way a millennial invests when they visit Las Vegas.

[deleted]

Re: Gen Z wants to retire early. They're off to a good start

#52

Post by coldtea »

randomdata wrote: post #47
coldtea wrote: post #39

Earlier quoted context omitted.

So, like, not so many people, and even less going forward? https://fortune.com/recommends/banking/57-percent-of-america...

I am not sure what emergency savings has to do with retirement savings. Retirement savings are often not very liquid, so they wouldn't be available to use in an emergency, typically. And certainly some people never did manage to save $600,000 over the past 40 years, but it remains that the bar does not seem that high. Even the lowest bar will not be met by some people, but that doesn't mean the bar is high.

You think those without $1000 emergency savings have retirement savings, but they just aren't liquid enough?

In any case, if you want the categories separated, here you are:

In 2019, about half of American households had no savings in retirement accounts, according to the Survey of Consumer Finances (SCF). These accounts include individual retirement accounts; Keogh accounts; certain employer-sponsored accounts, such as 401(k), 403(b), thrift savings accounts; and pensions.

https://usafacts.org/data-projects/retirement-savings

Re: Gen Z wants to retire early. They're off to a good start

#53

Post by sonicanatidae »

jihadjihad wrote: post #2

> 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…

Their increased appetite for risk has to do with the world they were handed. Homes are unaffordable, payroll has not kept up with inflation, politics seems hell bent on ending any and all aid programs, to provide funding for tax cuts to people that pay less than I do in taxes already, while making many, many more 0s.

Re: Gen Z wants to retire early. They're off to a good start

#54

Post by jzb »

Gen Xer here. I also want to retire early, but... not off to a good... middle? That's in large part my own fault - it wasn't even a consideration or on my radar for a very long time.

I came from a blue collar background, hand-to-mouth background. We were, as John Scalzi would say, "broke" but not quite "poor." My parents didn't retire so much as age out of the workforce and scrape by.

Hope Gen Z'ers do better than I have...

Re: Gen Z wants to retire early. They're off to a good start

#55

Post by goo »

AmVess wrote: post #36
randomdata wrote: post #5

> 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?

People shouldn't pay any attention to these articles. I retired early years ago. It isn't the annual budget that one has to plan for, but the unforeseen expenses. I took care of my mom and dad for a while. He had top notch medical insurance, but no one covers mental health problems. The total for 4 years of that was just into 7 figures. Also how about that medical insurance for yourself and your family? Unless people…

$40k for dentures? She got fleeced.

$3M for retirement right now is plenty, but you have to live like an actually middle class person.

Re: Gen Z wants to retire early. They're off to a good start

#56

Post by spacemadness »

Mistletoe wrote: post #14

I 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-ch…

I couldn’t stand being around anything FIRE related mid way into The Fed’s free for all near 0% interest rate decade. The influencers were the ones making money by spreading lies and shame and everyone else seemed to be scrambling to be another influencer. A lot of those influencers came from money and had inheritance already, and/or had very high paying tech jobs, but hid that well to give hope to their readers.

Re: Gen Z wants to retire early. They're off to a good start

#58

Post by randomdata »

coldtea wrote: post #52
randomdata wrote: post #47

Earlier quoted context omitted.

I am not sure what emergency savings has to do with retirement savings. Retirement savings are often not very liquid, so they wouldn't be available to use in an emergency, typically. And certainly some people never did manage to save $600,000 over the past 40 years, but it remains that the bar does not seem that high. Even the lowest bar will not be met by some people, but that doesn't mean the bar is high.

You think those without $1000 emergency savings have retirement savings, but they just aren't liquid enough? In any case, if you want the categories separated, here you are: In 2019, about half of American households had no savings in retirement accounts, according to the Survey of Consumer Finances (SCF). These accounts include individual retirement accounts; Keogh accounts; certain employer-sponsored accounts, such…

> about half of American households had no savings in retirement accounts

We're looking at those who have 20 years left, not those who could have 60 years left. Naturally one could avoid saving anything for 39 years and then plop down a $600,000 lump sum in the final second and you would be in the exact same place as someone who slowly amassed $600,000 over the span of 40 years, so half of the population having nothing saved doesn't tell us anything.

Bringing us back to the actual topic: Of those who have 20 years left, how much do they have saved?

Re: Gen Z wants to retire early. They're off to a good start

#59

Post by dirtyhippiefree »

woodruffw wrote: post #21
anovikov wrote: post #15

Earlier quoted context omitted.

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.

Other than 2008, you mean?

Started in 2007, but that’s a quibble…
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