Retiring on $1 Million? Think Again
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  • wigwag

    Of course, if your same hypothetical couple was invested in an S&P index fund they could take out their four percent a year, still account for inflation and never run out of money. Going back as far as 1930 there are very few twenty year periods where the return on the S&P has not averaged out close to double digits. Measured over the last ten years the average return on the S&P has been 6 percent. Measured over the past five years the return has been 6.20 percent. Measured over the past twenty years the average return has been almost exactly 10 percent.

    Professor Mead gets the take home message all wrong; by all means the more you save the better but investing in bonds to secure a prosperous retirement isn’t conservative, it’s stupid.

  • Anthony

    Caveat: efficient market hypothesis and past performance is not indicative of future results.

  • rheddles

    My attitude may adjust, but I’m not so sure about my body.

  • bpuharic

    Conservatives have done everything they could to blow out the middle class, causing a 30 year wage stagnation, reduced bargaining power, enabling companies to destroy pensions, and having us pay the bills for everything from TBTF to the 401K scam masquerading as a retirement plan. Inequality is massive in this country and it’s going to be interesting to see if, and when, the middle class wakes up

    • Nick Bidler

      What else happened around 30 years ago? Women entering the workforce in large numbers. An increase in the number of workers means less reason to pay them more.

      If you want wages to go up, prevent people from being employed; if you want to prevent people from being employed, raise the minimum wage.

      • bpuharic

        Except women have, as you point out, been in the workforce for decades. Wages haven’t gone up, while income has tripled for the wealthiest 1%. That’s unhealthy for the country

  • lukelea

    An abundance of good part-time jobs is part of the answer. But then you knew I would say that. 🙂

  • Matt B

    I’ve never been convinced that retirement at 65 is a good thing. There’s nothing dignified about playing golf all day. But given these realities, why we allow public servants to retire at 50 with full salary, at taxpayer expense, is beyond me.

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