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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

#81

Post by randomdata »

goo wrote: post #55
AmVess wrote: post #36

Earlier quoted context omitted.

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.

If you are living like the middle class (i.e. income comes both from capital ownership and labour) then you can't possibly be retired. Retirees are those who have transitioned into the upper class (i.e. income comes from capital ownership alone).

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

#82

Post by hotpotamus »

I_Am_Nous wrote: post #80
hotpotamus wrote: post #77

Earlier quoted context omitted.

Well, there's a few things there I'm not really interested in touching, but perhaps if a society is interested in perpetuating itself, it should try and make people happy to live in it and reproduce?

>perhaps if a society is interested in perpetuating itself, it should try and make people happy to live in it and reproduce? I agree with you. Currently at odds with the goal of having a society of happy people is the society-wide tendency to attempt to extract value from others. This can make for a lot of very unhappy people who have no resources to reproduce. Regardless, society is made up of people, and people com…

> My main point is that if a FIRE couple ends up raising a family but don't have to work for a living, the kids may be missing out on a fundamental aspect of society in their day to day lives.

Again, if you replace FIRE with wealth, I don't see much of a difference. Perhaps you have bought into some wealthy ubermensch-like mythos of the rich as the "job creators", but I assure you that they're capable of as much laziness as anyone else. Much more in fact since they don't actually need to work.

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

#83

Post by jjav »

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?

> Other than 2008, you mean?

To state the obvious, 2008 was 15 years ago. So someone who was a senior in high school at 18 in 2008, is over 30 today.

So it is true that there's a generation that includes everyone in their 20s and those in their early 30s that have never experienced a significant market crash.

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

#84

Post by ch4s3 »

Izkata wrote: post #72
ch4s3 wrote: post #40

Earlier quoted context omitted.

How did you miss it? I graduated in 2009 and it was the only thing people were really talking about after the 08 election wrapped up. It took a lot of people I knew over a year to find work.

Graduated in 2010, decided to take the summer off before looking for work. I don't recall anyone talking about it.

May I ask where you went or what you majored in?

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

#85

Post by charlie0 »

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…

That's why medical tourism exists.

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

#86

Post by jjav »

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?

That 3M would be in today's dollars already, so need to adjust up for future (predicted) inflation.

Note the catch "for a 20-year retirement". So if you think you might live to be 85, you get to retire at 65.

If you want to retire early, you need more decades of runway thus a lot more cash saved.

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

#87

Post by jjav »

jejeyyy77 wrote: post #78
goo wrote: post #55

Earlier quoted context omitted.

$40k for dentures? She got fleeced. $3M for retirement right now is plenty, but you have to live like an actually middle class person.

Assuming you have a paid off house and car, what else are people bleeding money on?

Medical expenses like OP said. If you retire at over 65 then possibly Medicare/etc can cover some of this.

But if you're wanting to retire early, it's a huge gamble on medical expenses in the US.

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

#88

Post by jjav »

randomdata wrote: post #16
ekianjo wrote: post #10

Earlier quoted context omitted.

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.

> Could be, but a higher rate of inflation will make attaining $3 million even easier.

A higher inflation rate also raises the goalpost money you need since life will be more expensive than predicted.

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

#89

Post by Izkata »

ch4s3 wrote: post #84
Izkata wrote: post #72

Earlier quoted context omitted.

Graduated in 2010, decided to take the summer off before looking for work. I don't recall anyone talking about it.

May I ask where you went or what you majored in?

BS in CS in Chicago, but from the suburbs and went back there and didn't work during summer/winter breaks.

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

#90

Post by ch4s3 »

Izkata wrote: post #89
ch4s3 wrote: post #84

Earlier quoted context omitted.

May I ask where you went or what you majored in?

BS in CS in Chicago, but from the suburbs and went back there and didn't work during summer/winter breaks.

I think the CS degree maintained a lot of value in those years and probably kept you away from general Econ talk.
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