Reply to Top 1% of Retirees Have 16.7M

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[quote=Anonymous][quote=Anonymous]120k salary is 90th percentile. Makes sense they end up with a 90th percentile retirement as someone making 120k and maxing retirement and owning their own house with no mortgage should have about 2M in assets by late 60s.

A lot of inflation. You're thinking in 1990s numbers when it's 2024.

[/quote]

120k is only the 70th percentile for household income. The average household has more than 1 person working. Also people can’t spend most of the home value associated with their house unless they sell it and live in a tent. 2M is not a lot of money anymore especial when 500k-1M is tied up in your home. Here’s a real world example. My grandparents Net worth would be about 1.6M under this methodology and 675k of this is from social security pension, with another 500k from their paid off house. But they only have 400k of assets excluding house and pensions. One of them got a cancer recently and they will be on the hook for the remaining 20% of medical bills not covered by Medicare. If the first line treatment therapy does not work, the only option left are some very expensive gene therapies that cost 400-500k. They will be on the hook for the 80-100k not covered by Medicare. The first line therapy for this cancer has a “cure” rate around 50%.  So the total cost of treating this cancer will easily reach 100k+ if they are unlucky and need gene therapy treatment. A single medical incident can easily wipe out 25%+ of their existing liquid assets. They are not that old and it is very likely that one of them will live another 15+ years. [/quote]

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