Quote:
Originally Posted by FlyingScot
You've sort of lost the general point which is that very few people have significant wealth in the stock market. First, on the specifics--do you know many 30 somethings with $100K in the market? But more broadly--the top 1% own more than have of the equity value in the US, the bottom 50% own less than 1%. So when we prop up the stock market, virtually all the benefit goes to those already wealthy. As I would imagine you know from your accounting practice, the large majority of boomers do not have enough to retire over the next few years.
Here's more on the market distribution, and an explanation of how wealthy people are able to increase their wealth dramatically with no hard work or brains necessary after their initial windfall:
https://www.cnbc.com/2020/08/27/weal...ouseholds.html |
Starting at nothing, zero, nada, a monthly investment of $300 per month for 40 years yields a million+ dollar portfolio with an average 8% return year over year. Obviously the more you have the more return there is on a set percentage. That's the whole point of investing, reap the benefits of compounding returns. You don't need a "windfall" to get started and get there
you just need discipline. That's it, it ain't rocket science and it ain't luck. With a bar set that low there is no reason why anyone today isn't retiring with that or even half that.
The reason why so many are unprepared for retirement is very easily explained, just look in the mirror.