Reply to Study shows that 350k/year is barely scrapping by as middle class

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Reply to "Study shows that 350k/year is barely scrapping by as middle class"

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[quote=Anonymous]yep, let's say it takes you to age 30 to get to $0 net worth (loans education etc) and then 35 to be both maxing out and getting a $20K bonus, and you work 30 years. At 3% real (lower than historical stock market return), you'll accumulate $2.7 million of retirement account. Let's say you buy and maintain a $1mm house at 40 and pay that off over 20 years; it makes a 0% real return.

Guess what? that'll put you in the top 5% of households by wealth in one of the wealthiest countries in the world. https://dqydj.com/retiree-net-worth-retiree-wealth-america/

the 95th percentile has $3.5 million at 65+

You can then move to a nice fully paid for place in a less expensive locale for like $400K, and then have a $3.3 million nut off which you take $130K of incom supplemented by your $40-$70K of social security income, maybe some pension. You won't be a burden to your children for long term care, maybe even pay for your grandchildren's private school/college, give a lot to charity, travel the world a bit, whatever.

The struggle to get there may be harder than Frank Flyover, who may have the same house and car, but the end result is likely to be significantly better. And the advantage over frank flyover and your offspring's advantage over his offspring's will compound over time.

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