Realistically, everyone should have at least $1M or equivalent in pensions or annuities when they retire at 65. Otherwise they run the risk of running out of money by age 85 or so. I really, really doubt more than a few people will manage to accumulate that much.
I agree, but do note that $1M translates into a $40k draw-down. Add that to whatever you expect to get from other sources (like SS) and ask yourself how comfortable you'll be living on that much - or really, work to make sure you'll be happy living on that much.
I'm too young to care...
Though probably not too young to later regret that you don't care if you aren't saving.
Question - retirement savings is generally thought to be 'you put your money in safe stocks and wait 40 years', and the money you accumulate should be enough to let you live happily ever after. This seems like a bit of a joke to me - since I've been old enough to remotely care about stocks its just one market crash after another, and constant uncertainty. Is that REALLY where you want your retirement savings to be?? Everyone always used to say that the stock market always goes up over time but I'm pretty sure that is no longer the case.
It actually is. I think a lot of people are irrationally scared due to the 2008 crash, but my portfolio has a 5% gain over the last five years, and that's despite having a bad investment strategy (see below) and of course includes the 2008 crash.
You asked about "put your money in safe stocks and wait 40 years". That's what I meant by the "bad investment strategy" I had up until recently. The reality is that the individual investor really doesn't have a chance of beating the market. The best you can do to save for retirement is share in the gains of the market
. What that means is investing in a small array of index funds - typically one for domestic equities; one for bonds or bond funds and other less risky ventures; and one to provide exposure to the gains of the international marketplace. Generally, for someone your age, 80% in equities and 20% in bonds is right, and that breakdown will slide down to maybe 40%/60% when you're well into retirement. By investing in broad-based index funds, you're joining in on sharing in the gains of the market, which have been quite reliable even despite 2008.
OP, please post the link to the topic on the BMW forum. I'm curious as well.
Are you sure? Gosh I have never seen a bigger set of rude children replying to a thread on a discussion forum. I'll send you a PM, since most forums prohibit posting links to other forums.