Anybody Buying Yet? Where’s the Bottom?

[Nick87]

I had good advice from parents about saving at a young age but didn’t take it unfortunately.

Wasted my 20’s not saving while raising a young family. Spent 8 years helping a guy build a company, didn’t contribute to any retirement the whole time. I had minimum rollover 401k from prior jobs. Finally realized about 2.5 years ago I was wasting time and left that job/company.

Now I’m sitting at 39 years old with only $50K retirement specific saving for both my wife and I. Playing catch up from wasted time unfortunately.

I saved quite a bit but that was as far as it got. I tooker a bigger beating on inflation on a savings account from 2020 to current from inflation than i think I could have ever taken investing it. Lesson learned.

 

[Nick87]

This thread shows how important Social Security is to our society.

There is and always will be a percentage of people who reach old age and do not have anything to show for their lifetime of labor.

Maybe, but more importantly how much we are in need of people to learn the importance of saving/investing. Imo.

 

[homers]

Social Security, as a retirement account, is a horrible rate of return. If one could opt out and be forced to contribute the equal amount as well as the company contribution to SS into an individual retirement account invest in the S&P, one would retire with a massive amount compared to SS. And your heirs would inherit the left over. That assumes one works at a reasonable salary for about 40-45 years. ~12.4% of annual earnings, average annual return of the S&P x 40-45 years. Of course,SS isn’t just for retirement and it was never meant to be the sole source of income during retirement.

 

[brymoore]

How Warren runs Berkshire Hathaway and his advice for his estate after his death are different. The estate has been instructed to invest 90% S&P 500 index and 10% short term government bonds for his wife. No cash mentioned.

 

[Rainer]

Buffett's estate is going into a charitable trust that will be run by his kids after he dies

 

[Big Sky Guy]

I tooker a bigger beating on inflation on a savings account from 2020 to current from inflation than i think I could have ever taken investing it. Lesson learned.

Hindsight is 20/20. Had things turned out differently and we entered a recession or depression and inflation wasn't what it was you would have felt differently.

I still think it will all come crashing down someday, but no one can build retirement accounts with that mentality and sitting on the sidelines.

Social Security, as a retirement account, is a horrible rate of return. If one could opt out and be forced to contribute the equal amount as well as the company contribution to SS into an individual retirement account invest in the S&P, one would retire with a massive amount compared to SS. And your heirs would inherit the left over. That assumes one works at a reasonable salary for about 40-45 years. ~12.4% of annual earnings, average annual return of the S&P x 40-45 years. Of course,SS isn’t just for retirement and it was never meant to be the sole source of income during retirement.

I've never understood why the SS funds aren’t just invested in the S&P, similar to a target date retirement account or something.

Also if someone would just do a few insider trades with the SS account they would become a national hero and real-life Robinhood overnight. It’s nearly universally accepted they are all doing it for personal gain, why can they not do it for the betterment of their constituents?

 

[Big Sky Guy]

I promise all of you that you were far more responsible about building a retirement than most. The median retiree is retiring with $410,000 saved. Do the math. It is pretty clear that person isn't retired at all. Maybe 100% stocks on a hope and a prayer (and a lot of ramen noodles) is the median person's retirement strategy.

My mom retired on significantly less than that, with a mortgage, before the max age for SS. Not luxurious by any means and works a couple half days a week as a cashier but overall she is doing ok.

Definitely would not advise that, but also probably closer to what is common and how important SS is for the elderly, even if I and we fundamentally disagree on its existence and management.

 

[Nick87]

My mom retired on significantly less than that, with a mortgage, before the max age for SS. Not luxurious by any means and works a couple half days a week as a cashier but overall she is doing ok.

My MIL lives on $1500 a month from ss. She has no car and owns nothing. Don't ask me how because I don't ask either. In a very expensive state to boot.

 

[Nick87]

Hindsight is 20/20. Had things turned out differently and we entered a recession or depression and inflation wasn't what it was you would have felt differently.

True but we didn't and I don't.