this post was submitted on 21 Nov 2023
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Tough life (lemmy.ml)
submitted 10 months ago by Kotsi3P0@lemmy.ml to c/memes@lemmy.ml
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[–] Gingerlegs@lemmy.world 6 points 10 months ago (2 children)

We don’t get to retire

[–] foggy@lemmy.world 9 points 10 months ago (1 children)

Compounding interest is a hell of a drug.

Saving anything is infinitely better than saving nothing.

Retiring is possible for anyone with an education, but it is a sacrifice, and a gamble on not dying

[–] bobs_monkey@lemm.ee 1 points 10 months ago (2 children)

Anyone can save for retirement, even without a formal education. It just time and diligence to save, and then some reading to learn how to invest.

[–] los_chill@programming.dev 8 points 10 months ago

All of that requires a livable wage first. How many times do people have to prove that no amount of "dilligence" will allow people to live, let alone save on minimum wage in most places?

[–] grue@lemmy.world -2 points 10 months ago

It just time and diligence to save

It's just having the self-control to live below your means.

[–] gibmiser@lemmy.world 5 points 10 months ago (2 children)

Try playing with this. Set the interest rate to 7%. Assume you will live to 75 (average us life expectancy) and retire at 65.

Now change the monthly contribution amount to the most you can comfortably contribute right now if you opened an IRA IRA.

This is your low estimate of your retirement savings. As you get older hopefully you earn more and can contribute more.

[–] nutcase2690@lemmy.dbzer0.com 1 points 10 months ago (2 children)

Just curious how you came up with 7%? I was always taught to expect the yearly return to be 4%

[–] gibmiser@lemmy.world 2 points 10 months ago

My number I picked after reading about historical averages.

https://awealthofcommonsense.com/2021/05/200-years-of-asset-class-returns/

[–] EmpathicVagrant@lemmy.world 1 points 10 months ago

4% stays ahead of normal inflation, 7% matches greedflation.

[–] grue@lemmy.world 1 points 10 months ago

I found this even more helpful.