What percentage of your income should be sent directly to savings/retirement accounts?
I have read 10% at the least. I have read 20% at the least.
And I have seen charts like this.
What would /biz/ say is the accurate percentage to put back?
>If I save 50% of income, I can "retire" at 43, sustaining my frugal meagre existence.
>ASSUMING the stock market doesn't fart big time somewhere inbetween the current moment in time and the time I die.
Life is hard.
May as well be wage slave and #yolo out.
Poor, inactive people with no future are old and frail. Life doesn't stop because your knees are a bit sore or hands hurt from decades of labor.
You have 2 choices:
a) Spend it up in your youth. Piss it away on "living life to the fullest". Aka get shitfaced in hostels, buy crap you don't need, collect a lifetime of debt and form short-term bonds with people who couldn't care less if you lived or died. Proceed to die in a pool of your own piss while your cat eats your face with all those "fun time" memories corroded behind the pain and suffering bought on by decades of poor medical care and neglect. If you're lucky. More likely dementia will rob you of your past much like you robbed yourself of your future.
b) Exploit the vigor of youth. Work hard, save and invest harder. Exploit the virtue of compounding interest and build a solid retirement fund that will sustain you comfortably from your 50s onwards. Enjoy the fruits of your labor for decades with the sound body and mind that quality health care and solid financial security afford. Leave this mortal coil with enough left over to pass down to your progeny so they too can build their base wealth. With the leg-up you afforded them they can continue a legacy that will result in a lineage of old money and opportunity not available to most.
>work hard and save all your money.
>get cancer, have 1 year to live
>live more in 1 year than you did all your life because you have the funds to
>die a slow, miserable, empty death. Regret and faded memories of better times your only company.
>Work hard and save all your money
>Don't get cancer
>live more in later life
>die a slow, miserable death
Outcomes are the same regardless of fate. Worry about what you can control.
You work until your brain and body don't function well enough to do your job anymore. The retirement money is so you can pay your bills while waiting for death without being a burden on others.
Thier is no " right" number, becuse it's so dependant on future variables and personal stuff. All that being said. The total needs be at least 12 or 14 percent total ( including an employer match) to maintain current lifestyle in retirement. Could be a little less if you invest really well, could be more if inflation projections are wrong or if you don't have good spending habbits.
The earlier you start, the more forgiving the math.
I am a boring retirement investment faggot sitting at my office hating life
Year over year for the big indices since their inception is ~7%
You should do the math a bit conservative, but you can save less and retire early if you stay frugal and make decent money.
Personally I have no problem working, but having enough money to fall back on it shit goes sideways is nice.
if it's impossible for you to retire, then don't save for retirement, but for emergencies. Saving will still be helpful and your circumstances may change for the better in the future.
the charts indicate that he could retire after one year, so he's not saving 19k each year, just the first, then living off returns of his investments.
he neglected to calculate the theoretical 4% return, but since you'd still withdrawing more than accumulates, his point still stands.
it will run out pretty quick.