How Many Americans Actually Have $1 Million Or More
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- Опубліковано 26 сер 2024
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Not what I thought I was going to get from this video. Title kind of click baited me.
How? Literally I told you thr answer. If that’s click bait man, I need to do a better job of click baiting then
I felt the same way. I have more than a million bucks but not in my retirement accounts. It’s a small distinction but details matter.
Nope
Agree
There is $1 million in total. There is $1 million invested which is very different. And there is $1 million in retirement funds which is also very different. Learn from me a divorced guy who left with only retirement funds and didn't even get to take all of that. I damaged my quality of life by having practically 100% of my wealth invested. There are many pitfalls as not getting to enjoy the proceeds of your labors because it is too much in savings, another is becoming a target. Another is it is hard to touch that money regardless of why, IRAs/401k(s) are not liquid. Both my boss and I are stuck waiting on conversion day when we stop being contributors and start to withdraw and enjoy our savings. If we tried it today, we would be slammed with tax losses.
I have friends and relatives with business wealth or real estate and they have much more access to their wealth. They can move money we cant. They commonly loan themselves money for whatever reason, the loan keeps the taxes away, we cant.
@@johnscott2746 agreed. I have under $300K in my Roth but $3M in my brokerage accounts. So, I'm not in the top 3%
The thing to me is, if you invest and have other income outside of dividends then you will be able to live off dividends without selling. Which means you can pass that on to your kids which will give them a leg up in life. $52k dividends received in 2022.
I agree! That's why it is advisable that you have to invest while you still have a regular job or earning a regular income, and do it constantly. You still need to have something that will keep you going even if you're investing. Good financial planning and money allocation is the key.
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
Carol Vivian Constable is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment..
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
Retired at 55 with $1.4M (60/40 split of stocks and bonds) liquid assets and about $300K in a paid off property/lot in Hawaii that I never built on. I'm now 57, have $1.5M liquid and am about to list the lot for $400k so I match this scenario pretty closely. Our budget since I retired was $9.2K/mo and we've spent only $8k on avg even with 6 months of global travel, a year living in Hawaii and golfing twice a week and some domestic travel. I too got similar (poor) results from my retirement planner but there was no way I would've kept working in a high stress job working 65hrs/wk average because of hypothetical scenarios and probabilities as we're highly adaptable... who in their right mind wouldn't cut back in discretionary expenses during a major recession? Besides, as long as you don't sell or do something dumb in a down market, historically they bounce back in 6 months on avg, maybe a year worst case so you just need to have about 1-2 yrs worth of cash (in a High yield MM) to live off of. At my age, worst case is I get a part-time job at Walmart or get a remote gig where I can work in my PJ's for a year to fund my discretionary spends and hobbies. My highly probable backup plan is to get travel health insurance for $500/mo for both me and my wife where we have to live abroad for 6 months and in the US for 6 months for a year or two. Already got quotes and can save $0.5 - 1k/mo in health insurance and travel abroad half the year. There are too many options to list but my advice is to retire as early as you can and be flexible. Is about financial literacy and great a financial advisor
With $1.7 million, we retired at the age of 56. Thanks a lot to our CFA. We just cut back on our spending a little and are content with life! Whoa! How things have changed. The duration of a flower's bloom surprised me. I had to say I was sorry for cursing Monday for the rest of my life.
It would be extremely wise to look for financial advisors such as Becky Lou Gordon who can help you with insurance, investing, making sure your retirement is adequately funded, discussing tax advantages, and figuring out how to have a volatility buffer for investment risk. There is a rough patch ahead of us, and getting through it will require careful personal money management.
Everyone whoever served 4 or 6 years in Congress and the Senate, for sure.
Took Bernie forever cuz he’s even a failure at grifting.
Exactly
@a012345 strange comment to call out one of the few honest ones.
😂😂😂😂
We know Nancy Pelosi has over a million
Given the persisting global economic crisis, it's essential for individuals to focus on diversifying their income streams independent of governmental reliance. This involves exploring options such as stocks, gold, silver, and digital currencies. Despite the adversity in the economy, now is an opportune moment to contemplate these investment avenues.
I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors I speak from experience.
this is great! think your advisor would get on the phone with an unknown? i'm in dire need of proper portfolio allocation
I've shuffled through investment coaches and yes, they can be positively impactful to an individual's portfolio, but do your due diligence to find a coach with grit, one that withstood the 08' crash. For me, Jane Nina Pickett turned out to be better and smarter than all the advisors I ever worked with till date, I’ve never met anyone with as much conviction.
Not hard to accumulate 1 million over a lifetime… just have to save and invest 😊
But few do, I did and its not easy
@@jayholiday256 did not say it was easy… after u have 800k it gets a lot easier…
$200 a month in an S&P 500 fund from age 25 to age 65. It is easy.
@@genxx2724that would do it easy.
Agreed. If you have discipline it is not that difficult. Most Americans live beyond their means. And “means” means saving for retirement.
57 married no kids, no debt whatsoever and we have 1.2 million, 150k in IRA, 300k Roth IRA, 625k Fidelity Brokerage account, 100k cash in money market, 35k 1oz gold bars. At 62 we collect social security and completely check out off grid to the mountains of Montana, Wyoming, South Dakota, Idaho in the summers and Key West in the winters. Sell everything and get some kind of RV and just go to a good climate area with not too many people. 5 more years and we should have between 1.5-2 million to live on. Figuring 10k a month to live should be doable. Be frugal now so you can really live the last 15 good years of your life before you slow down.
I need more details
im not abig fan of gold..it costs 2 percent to but it and 3OR4 TO SELL IT!unless it goes up faster than thisPLUS inflation ,its no good investment!....just think a minuteWHY DO THE GOLD DEALERS WANT TO TRADE IT AWAY FOR DOLLARS?
Having it in your retirement account and having a net worth of a million are different.
cant spend your house - well, you can but its not very liquid
@@agates9383 He means the tax hasn't been paid yet on the retirement account. So subtract the tax you pay in the future and that means a lot lower net worth.
@@parkerbohnn I read it as net worth is not only made up of your retirement accts - either way we're both correct
I retired 6 years ago with $325,000 in my 401k. My wife worked for government and gets a substantial pension. She also took social security at 62. I waited until 66 years and 4 months. The key is being debt free and living within your means. We have over $1,000,000 in net worth now. It also helps to live in a less costly area. Neither of us ever had expensive hobbies although we traveled quite a bit when we were younger. I never worked anywhere that paid a pension. After listening to you, if you are debt free, that’s the key.
My wife and I have more than a million combined in our retirement accounts!
This administration's degree of corruption and incompetence is getting ridiculous. I feel sorry for people who are disabled and do not get the support to which they are legally entitled. Leah Foster Alderman, you have my sincere gratitude. Imagine investing $1.5K and earning $6k in just four days.
That woman completely transformed my life for the better. I've met many people, but none seem as honest as Leah. I'm surprised you know her too
3.2% is very sad. They should teach people in high school how to manage money and invest.
Social Security is scam and that 6.8% taken from citizens should be an account with your name on it. All that money should be privatized and be able to be given to your children. With all that money I could have had it invested in the S&P, Apple, Microsoft, and would have had more money than the measley crumbs given to you when you retire. And god forbid you only live 2 years or so then all that money doesn't go to your family or grand kids. What a scam and the Sheep just accept it
There was economics & finance when I was going to high school back in the 1970's. It was an elective class.
They want the surf class uneducated and unimformed.
They don't want people to know how to save money for retirement, they want them to rely on the government so they can get votes.
Teach them in high school? Who's going to do this 'teaching' ... flat broke, liberal, union teachers? Bwahahaha!
Since we are talking in Spanish I have millions of PESOS in my 401K.
Same here. I have billions in Iranian Rial.😅
Fellow Americans. Stop buying stupid shit and stuff you can’t afford to impress the neighbors and relatives you dislike. Homes, cars, vacations, furnishings, etc. Drive an old car and stack the Benjamins.😊
Save, save, save...
It’s not how much you make, it’s how much you spend. I’m single, hard working… still. Live below my means. No debt, Net worth $2.2m Gotta watch the spending folks.
It's how much you make too.
@@DailyStalkerUpdate 100% agree - much easier if you make a large amount a year.
The squirrels in the woods have more sense than most people.
ha ha
Takes a LONG time to get there, but it’s possible. A few decades of discipline of saving and aggressively investing can get you there.
thats really it. Its like brushing teeth...its just something you do every paycheck and you do it for decades. I suppose thats why its called long term investing.
I'm 63 and I started out putting 5% in my 401K when I went to work. As I got a little raise, i just increased the amount I put in by that raise amount. Eventually I was putting in 15% and my employer put in 5% and so I had 20% of my salary going into my 401K for years. I was fortunate that my employer had a pension plan so I have 1.1 million in my retirement accounts. That doesn't include my house which is paid off and valued at $450K and my wife's business which is also paid off valued at $350K. We are debt free so I think we will be ok. I still may get Josh to look over my plan to make sure it is sound.
You're OK. A lot better off than a lot of people.
Nice to see I fall in the 0.1%. I never dreamed I would be in this position 5 years ago. Gotta learn to be thankful every day.
Yes thankful, no doubt, but you also did the work. Congrats.
It can be done. We are a single income family. I crossed the $1m mark in my retirement accounts at age 58. And that’s on a middle class income.
I’m now 60. It’s about $1.2m.
I started saving in my 401k and ESOP at age 27.
I do wish I had started sooner. My dad told me about IRAs when I was 17. I didn’t think I could afford it. I should have listened to him.
Been lucky on the house. Snagged a 2.9% fixed 30 year mortgage refinance back in 2020. So no way I’m giving that up. The house has $1.5m in equity. I’ll still have a mortgage when I retire. But I hope I’ll be okay.
We estimate $5900 a month in SS benefits if I retire at 68. I think that will cover medical and housing. So I plan to use the retirement accounts to fund everything else.
Congratulations on joining the 3%!
What do you want, a medal?
@@user-id7dh5jo5cI believe the person is trying to show what is possible as an encouragement to others. It can be done. Start early and consistently having the money automatically deposited. Increase the amount from the portion of any increase in income. Time of growth is the biggest multiplier. The first $100K is a pain and can take a long time, but after that growth happens faster and faster.
@@user-id7dh5jo5c Nope, just a little respect from those on a similar journey.
i hope you realize the one million had more buying power 2 years ago than the 1,2 now!..the loss of buying power ,nobody cares but ifsomeone had hacked a bank account for 200,000 YOU WOULDNT BE ABLE TO SLEEP AT NIGHT !
I’m 63. I don’t. But I have a pension and I’m good
Meanwhile, people will say “1 million isn’t worth what it used to be!” to justify undercontributing. Rate of contribution is the most important predictor of an adequate retirement.
Exactly!
Yes !!
I know it's a trick question.
I have a net worth of over $3 million but my "retirement" account is well below $1 million.
I'd say the answer is numero 4.
Yeah. Same boat. Business owner myself who owns assets. Revenue generating assets. TNW is $2m+ at 55. Work till 70-75 and then take a drip from my business as my kids will take it over. I already vacation 40 days a year.
If you have 100 rental units and $0 in a retirement account, you are considered “poor” according to this.
@@muzaaaaak I retired at 58 and haven't looked back. I had 5 weeks of vacation, every holiday known to man(except the made up holidays) and rarely took more than a week. I was just tired of the grind and finances weren't a concern, so I hit the road. Business owners are a bit different because that's your baby and you probably still love what you do. I was burnt out from 25 years of airline travel, hotels, and rental cars. I worked for a GREAT family owned company.
@@artemkalinchuk it's all in how they phrase the question. Is this household savings or individual? If you add in 20 to 40 year-olds the number is certainly going to be low. I imagine, and I haven't researched it, that probably 10% or so of households at age 60 have $1 million in net worth, largely because a higher percentage have a paid off home, kids are normally grown, and they've had more time to build up their worth.
Numbers don't lie? Maybe not, but they sure can be twisted.
@@jdollar5852 you’re spot on. I left working for others at 37 and built a business. Worked hard for 15 years and the started to enjoy the fruits of my labor. I used to do your gig. Airline and travel warrior. It got old by the time I was 34/35 and then set my go solo plans into motion. Had a fear of being released from the corporate world in my early 50’s and being unemployable. Self employment is a balance. Sometimes I have to grind. Other times I’m shopping for more assets to buy and planning trips to Europe.
I work with a lot of men who earn over $500k a year and have done for over 5 years. But many don't have more than $2m after 30 years. Scary.
Glad to be in the 3.2%
What's the old Steve Martin joke? How to become a millionaire. First- get a million dollars.😄
And then tell the IRS that you forgot that a million dollars might be taxable. You know a comedian is good if we still quote them.
Yeah, but I don't care about the households that are many years away from retirement. I only care about the households of people who are my age.
3. I'm a retired U.S. Navy chief petty officer. Wife and I have a tad more than 1.5 million dollars invested and more than $200,000 in cash. House is paid off; no car loan. I'm just an old CPO! Saved and invested some money every paycheck. Guess my wife and I are a but weird. Read your book on retiring on just Social Security: you're right! 😂
Great, but I think that having as much as you do, as a retired CPO, is not usual!
Too many relied on big daddy to save them
While I think some people did that, I think it's more likely the majority convinced themselves that they couldn't afford to save for retirement, or that there would be time to save for retirement later because they didn't consider retirement savings just as critical as the other items. Instead of that car they financed, a more reasonable car would have left money for retirement...
I think some of this comes down to a lack of financial understanding/education.
Married and put 2 kids through college. No debt and both fully retired at 58. Currently living off of my dividends and will soon apply for my max SS in a few years. I started my investment journey back in the 1980’s. Typical way, spend less and invest. I live in California in the same house I bought in 1979. Currently I have 2.1m in my investment accounts. I do not include my house as net worth unless I wanted to sell.
Well done sir. I am on a similar trajectory-2 of 3 kids through college…a year to go! I am 53
My wife and I rode the money train of CA as well. The timing from '79 is amazing. We started in 2010 and rode the doubling of assets 3 times. High wages as well which drove the 401's.
It is sad to think of someone trying to do that now, however. I'm not discounting discipline and smart financial handling, but a lot of this is timing and that's just luck. The asset bubble happened and I don't see it repeating anywhere near the same, while college (and everything really) is very expensive in comparison.
How many people are single and have $1million or more. People go thru divorce, help there parents,
Child support that prevents them also
From reaching that goal
Very true.
divorce is a real wealth killer. my ex counted each nickle and built a nice bit of change, but i think 30% of that will get wiped out as we deal with a split.
I do. I am 62 and single with 1.2 million retirement savings, with ZERO debt and very healthy.
@@crimsonpearl4686 me too, retiring next year. Can’t wait!
It has less to do with what you have and more to do with what you don't have!
That percentage needs to be based on a survey that’s limited to people at or near retirement age. It makes no sense to include people younger than 50.
Great point. At least somebody else besides me thinks this.
15% is difficult to save, to get to at least $1 mil?
Perhaps for modest income folks. But not for professionals, corporate types and dual income families.
You claim you can’t do it? Likely you’re living for today at the expense of tomorrow.
- Do you live in a fancier house than you really need?
- Are you driving fancier cars and buying them more frequently than you need?
- Are you taking fancier or more frequent trips than would fulfill your enjoyment?
- Eating out a lot, and at fancier places? Bar runs?
If you start early at 15%, you’ll never miss it. You’ll build your lifestyle around 85%.
Did it with four kids, single income. On a modest to nice income.
Just work for cash and pay no income tax that's how to make a million a year.
I think close to 25% had the OPPORTUNITY to have $1 million in their retirement accounts upon retirement. The problem is many do not save at all, others save a minimal amount, and others take loans, multiple loans against their 401Ks. I was alerted to this when the company I worked for was sold. All of a sudden, all 401K loans had to be paid back. Many blue collar employees in particular had multiple loans against their account. So the accounts were not growing, during prime earning years.
3. Love how Josh says God Bless after every video. Enjoy watching as a young investor.
Wife and I are 40 and have just under $500k. Started attacking hard about 4 years ago when my wife went back to work full time. She’s gotten multiple raises and now we have 25% going to retirement.
Ayyy same here! My wife and I are only the same age for a short time each year, but we're both 40 as I write this and are just under $500k as well. We started taking our finances seriously in early 2019, but we had to pay off a lot of debt first, and we've been putting in 30+% once we stopped paying interest. Ramming as much money as we could into the depressed COVID market really paid off!
I have an Investment portfolio that's worth $1million, I don't think that'll be enough for retirement. I need an average risk investment strategy in stocks that'll give me more yield.
investors like you should be cautious of the bull run, its best you connect with a well-qualified adviser to meet your growth goals and avoid blunder,
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 275 cash earning 5.25 interest, 685k in 401k, 120k cash account, 80k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed.
pls how can I reach this expert, I need someone to help me manage my portfolio
Melissa Elise Robinson is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
It ALL depends on your money expenses and what age you start in retirement to know if $1 million is enough. For many, $1 million is enough.
That's just retirement accounts ; but what about net worth? Supposedly, 6.6% of Americans are millionaires
Can’t spend a house tho if you are living in it so net worth isn’t really a good indication of anything.
Most peoples assets are
In the equity of there homes..
@deanrotering879 but a true definition of a millionaire or any "aire" is net worth, not what you have in a retirement account. And yes, there are ways of spending equity in your home.😊
@@TheGrizz1717 I disagree but that is ok too. To me it’s spendable money. If you are counting your house it doesn’t mean anything unless you sell it.
@@deanrotering879 exactly
This doesn’t take into account age of employees. Someone in their 20’s won’t be as close as those in their 60’s. Not really sure what to do with this information. Any advice?
I remember sitting around with friends during the cervesa hysteria, looking at the famous st Louis fed m2 chart going basically vertical. Our consensus was that being a millionaire was soon going to be the norm. Of course, it would lack the purchasing power to purchase a decent car. But it will sound good.
I wonder how many people that actually do have 1 million in their deferred accounts realize uncle fed is co-owner. So you really may not actually be a millionaire.
We know. We’re pretty savvy
Worse they are likely paying some hefty fees to "manage" that money.
How to get to a million plus in retirement accounts. Don’t buy things on credit credit cards & pay interest Don’t borrow against your house for things or trips you don’t need .. or buy more house than you can truly afford and without a full 20% down. Don’t buy new cars that you cannot pay for or pay off in a couple years… drive cars for at least 10 years if possible. Don’t increase lifestyle along with raises …
Amen! Exactly what I did.
None of that has anything to do with accumulating wealth in a retirement account. You have to pay yourself first; right off the top line. Years and years of doing that. I did it for 30 years which if you start at 18 or 22 still has you at the magic number right around 50 years of age with hopefully plenty of healthy years left in your life and career. My kids started with their 1st paycheck.
@@leonadams1053 YES these things have everything to do with it! I paid myself first also.. but all the things I mentioned allowed me to keep paying myself more and more in my retirement accounts as my income increased. I was satisfied and happy with my life now & then - and without a lack of patience, extra cost of debt, and those superficial things that don’t last or matter. I learned that valuable wisdom at a younger age than most and was able to comfortably retire in my 50s with more than enough in retirement accounts and a paid off house.
“Expenses” (money going out) has everything to do with saving, investing, throughout life - and retiring comfortably and early if you want or need to. TRUE FREEDOM & WEALTH!
It’s much harder to live high on the hog in luxury and then suddenly require less later on. Those who are wise from the start never have that problem as they find the sweet spot and are happy with it… therefore having the fat retirement accounts and managing them well.
The study is 3% of all American people not households. You are conflating the study
I noticed that also.
yep
So if we assume everyone is married (which they aren't) it is 6% of American households.
Wealthy people have multiple have multiple accounts also
@@patrickdennis7041 and a lot of those are not retirement accounts which have a lot of restrictions.
It can be done, my wife and I 62, 60 have been saving and investing for years. Our net worth is about 2.8 million. If we can, you can…
Congratulations!
4..........I have millions because I worked 2 jobs, lived off one salary and invested the other salary. Nobody's fault but your own if you don't have millions.
Always one of these guys 👆🏽
@@sycamore2789 Truth hurt?
@@billcarlson1730 not at all. That’s just your situation.
Not everyone has the same opportunities or hardships.
@@sycamore2789 Wrong, everyone can work 2 jobs and save for retirement. Many don't have that drive to do so. You one of those guys?
@@billcarlson1730 wrong. you’re being narrow minded.
Just watched a Heritage Wealth Planning video from 2018. Clean shaven, with a suit and tie? I had to double check the channel to make sure it was Josh.
It's all about income, expenses and time.
We control 2 of them 😅
He gave ya the answer not click bait!
In a way, how much you have doesn't matter, it's how much your net worth is. If you have 500K saved and 900K of loans, you're broke.
Somewhere else I saw that actually 10% of American households are millionaire households. However, this is slightly different than your stats. A millionaire is someone with a NET WORTH of 1 million or more. This would also include equity in your house. Your stats appear to not include equity in your house as the way you word it is "1 million dollars in retirement accounts." Obviously your home is not in your retirement accounts. Also some other funds that people own may not be considered "retirement accounts."
Retirement accounts are not total financial assets, excluding primary residence. If you do look at total financial assets, about one household in 13 has more than $1 million. That about 8% of all American households, or about 9 million households.
Of course, if you have $1 million or more in a regular brokerage account, it will come in mighty handy when you retire.
How many American households are in retirement age? For those in the retirement age, I would think about 85% have over a million.
Not even close to 85%
Maybe 10% have 1 million
My understanding is that 15% should include pension or matching funds your company puts away. That should mean putting 10% away and company matches will get you to 15%. In my opinion, 10% retirement savings is table stakes after you reduce credit card debt and set up an emergency fund.
In two thirds of Canada by population anyone who owns a house is a millionaire at least on paper.
This study seems to be about ALL Americans...I wonder what the stats are for those at (or near) retirement?
Fidelity releases the number of 401k millionaires they have on their system each quarter. At the end of the first quarter this year there were 485,000. This is 401k balances only, no other retirement accounts included in this number.
I wouldn’t want it in my retirement account. Then I’m paying IRMAA taxes and my social security is being taxed to death.
@@joycewright5386 I always tell people, having to worry about paying taxes in a nice problem to have.
Yes, I guessed correctly less than 5 percent. However, what would be a better statistic to know is the Net Worth (not by household), but by individuals in their 50's, 60's, and 70's. Now in my early 60's, I retired last year and, my present Net Worth is approximately $1.4 million. I live in "sunny" Southern California and, my modest home's mortgage is fully paid-off, no automobile loans, no personal loans, and no credit card debit. Combined in both my 401(k) and 457 plan retirement accounts, I have $400,000, plus I also have an inheritance of $300,000. However, my monthly bills can be paid using my private sector pension, my public sector pension, and social security. So guess that, my retirement fund accounts will, just continue to grow in the stock market until, I reach age 75, and will have to start taking mandatory withdraws (smile ... smile).
I’m sure the numbers are as you say. But I think the number of people with pensions is way understated. And as I keep saying every pension is worth a million dollars in saved money.
They are millions of teachers police fire and state workers all on the dole in this country. And their pensions are worth more than a million dollars saved IMO
If it was such a great deal why didn't you become a teacher or police officer? Those jobs have horrible pay and you have to deal with tons of bureaucracy if they didn't have good benefits and a retirement we would never get anyone to put up with it.
@@JohnSmith-oj9gw Honestly I didn’t know until just a few years ago how good a deal public pensions are. Most people don’t openly talk about their pensions. I certainly back in the 70-80s didn’t understand public service pensions. Looking back I wish I had understood and tried for one. But also those jobs were extremely hard to get back them. Almost had to know someone. As for putting up with stuff I say 25-30yrs couldn’t have been that bad compared to working 40-45 private sector. At least in a defined pension situation you could always see that light at the end of the tunnel and how bright it was going to be. Saving for yourself you really have no idea how long you might have to work. All my friends that retired public service got out at age 50. 17 yrs sooner. I’m pretty sure I could put up with a lot of shit for that.
@@JohnSmith-oj9gw In regards to the pay. I say it wasn’t that bad. It was offset by the retirement. If you got out in your 50s nearly no pay increase could have allowed you do what your pension allowed. In the last 5 yrs I was saving 51.00 for every hr I worked and I still will never have a retirement as good as someone making 20.00/hr for the state.
@@52CA - I was a Soldier for 24 years. I started at about $10,000 a year and made $90,000 a year by the time I retired. My pension is $3000 a month and the free healthcare I was promised I now pay for and it reverts to Medicare at age 65. The day I retired i stepped into the civilian world at double the pay. The grass is not always greener on the other side of the fence.
@@JohnSmith-oj9gw My BIL was a lifer Navy. He is really living the high life. Maybe it was a slow start but man does he have it now. And of course everybody gets out with some form of disability. That’s a given these days.
Typo on the $100k number in the article🤣
Like the article says, the figure does not count non-retirement brokerage accounts or real estate. It is hard to have over a million dollars just in retirement accounts.
I went by total net worth not just retirement accounts. My mistake.
Dont count your house
93% of Americans have less than $500k in their retirement accounts. But by your logic they are going to be ok, simply because they are in the majority. This is a catastrophe waiting to happen.
Catastrophic eh?
I'm up to 2.1 million as of this post. I live in and fully own a suburban starter home and drive a 2014 Chevrolet Impala. My money has doubled since 1/1/2020; in fact, during those 2 years of Covid, I spent a grand total of $21,000 total for everything. Now, I am a middle-aged bachelor that gets dirty looks because I look like an uneducated working-class guy. Thus, I am planning to retire early in the next year or two and move abroad, as I am not good enough for the US. I'm just trash in most people's eyes.
#4
I'd expect it to be a bit higher for those who are 60+ and retired, but for all Americans it should be extremely low.
Right on Josh.
One problem is that few people have the discipline (or often the ability) to start seriously saving for retirement in their 20s. They are building relationships, getting married, having children, trying to build a career. In my twenties I was living in a beat up old trailer I was renting, driving an old heap and just putting food on the table, while I was working on building a career. As for a million dollars? By the time folks who are 25 now reach 65, a million dollars will possibly be a year's salary for some! People flipping burgers will certainly make over $100,000.00. That's the hardest thing to wrap your head around. The goal post is constantly changing. Your savings strategy must change with it. Back when they sang "First thing you know old Jed's a millionaire..." a million dollars meant something. I remember thinking, "If I had $250,000.00 I'd be set for life!" That was my original goal. Now I have many times that and still am not sure it's enough! Oh! And I don't live in a mansion in Beverly Hills with a "cement pond!"
After retirment, thanks to my pension, I have used growth on my retirment accounts to make up the gap needed to cover my expenses. Now with SS on the horizon with a FRA my draws will stop and it will just grow hopefully up to the ranges noted.
A net worth over $1 million is fairly common, but $1 million in the bank is rare. That's my guess commenting before watching.
If you think Sharlott is going to “down size” into something less than what you have now, you better think again my friend. We men can live in the most spartan of conditions but our wives expect the finer things in life. You’ve given her a taste. The standard has been set.
With an IRA balance of 600,000 and a 5% withdrawal rate, that gives you 3,000 a month. Add a SS benefit of 3 grand and a spousal benefit of half that. You’re now looking at a monthly benefit of 7,500.00. That’s a lot of money if the house and cars are paid off. You don’t need a million. And you certainly don’t have to have it all in an IRA.
You married the wrong woman, I feel sorry for you.
My arithmetic works differently.
$600,000 x 0.05 / 12 = $2,500
@@TheGregWallace a friend of mine retired at 62. Single with a good income stream. He lives in a “toy hauler” in a trailer park. It’s a nice trailer park. It’s got communal showers and toilets. It’s got a coin op washer and dryer. And a hot tub that around 80 people use a week. My friend is happy as a clam is such living conditions. He’s lacking only female companionship. He’s finding it difficult to find someone to share the joy of public showers and toilets. I certainly wouldn’t want to live his lifestyle. I can’t imagine finding a woman to agree to such nonsense.
Downsizing works in theory not so much in practice. I’m 65. Josh is 54. I had two girls and then two boys all similar in age to when I was 54. Just like Josh. I’ve gone from having 4 kids to having 4 kids with spouses. In reality 8 kids. And did I mention the 9 grandchildren? We’ve got a big house, a big backyard and a big swimming pool that gets utilized now more than ever. We do Easter egg hunts in the back yard every year, BBQ and swim all summer long, and have holiday dinners during the winter. My wife tells me downsizing isn’t an option and she’s right.
Our wives Greg, even yours, want to live a comfortable life in retirement. That means a life full of family and grandchildren in a financially comfortable setting. They don’t want to listen to us whine and complain about office politics or the commute to work. They expect us to man up and get the job done. And they certainly don’t want to nurse maid us in retirement because we spent all our time on the couch drinking and smoking while watching reruns of “The Rockford Files.” All are wives deserve the absolute best we can offer them. Because they’ve given us so much….
No. 3. You are limiting it to retirement accounts only.
One lesson I've learnt from billionaires is to always put your money to work, and diversifying your investments. I'm planning to invest about $200k of my savings in stocks this year, and I hope I make profits.
You are right. The best approach I feel is to diversify investments- by spreading investments across different asset classes like bonds, real estate, and international stocks, they can reduce the impact of a market meltdown.
Just looking at how much people have in their retirement accounts is VERY misleading. The question should be what is people's net worth. That will bring in all the real estate, business valuations, etc.
I read somewhere that the average is about $134,00 per person saved in retirement- that would make sense according to the chart
Retired 19 years ago and our net worth at that time was a little under $1,000,000. Continued to invest in retirement and live on 70% of our income as we did during our working years. Today we have a net worth of a little over $5, 000,000.
It’s really not that hard when you have no debt for the last 40 years and always live below your means.
3. I think it's around 10%.
I think for net worth it is 10-12 percent but for just having 1M liquid assets its 3.2%
Great video! Really interesting stats!
If you save 20% and also take advantage of employee stock plans they can really help you out too. Then as you suggest sell those stocks and pay the taxes so when you retire it will all be tax free
Many think $1 million isn't much, even though they do not have $1 million yet. So, effectively they are saying "I don't have it, and even I do that's not much."
usually arrogant young people sadly
I said 2 but, I glossed over the part about, in a retirement account. I figure between 15 and 25 percent of Americans have a net worth of $1,000,000 but, it's everything and not just their retirement accounts.
4 for sure
I admit I voted 3 ; I thought it was between 5-15% far too many retirement articles make you think over 50% of the public are millionaires.
Thanks for doing these
This makes no difference. Someone could have less than $1million in a retirement account but have a much higher net worth, so what is your point?
I wonder why they limited the article to just retirement accounts? At /during retirement, I’m tapping all accounts. When you look at all accounts + house equity, I qualify as a “millionaire” (finally).
$1 million in a retirement account is like $50k. You can’t get the money out til your 70, as they raise the age limit, taxes eat half, then markets also will crash so everyone will loose principal and then inflation will also destroy principal once your able to take it out. Also assuming you can even access the money if you’re not in compliance once the CBDCs take over. A better question to ask is who has $1 million now cash or cash equivalents in there hand. Money not controlled by government that they have full access to it now. Close to zero.
I served 20 years, 8 months and 3 days. VA disability and retirement pays me about 6,000 per month until I die. does that count. We ( my wife and I together, had close to 1,000,000 for a minute. Until TTCF went bankrupt. Now we are 1/4 millionaires.)
333,000,000 people in Merica
"In their retirement accounts..." does NOT include ALL their financial assets. Correct. When I retired in January, my liquid financial assets (Roth IRAs, Traditional IRA, and Brokerage Accounts) exceeded $1.2M. Add to that my $450K home with a $85K mortgage balance on a reverse mortgage. And our Social Security benefits are on top that. Life is good!
I have a REAL net worth well into 8 figures (equities and real estate). Absolutely NO DEBT. Still working at 76 because I hate golf, fishing, hunting, traveling, visiting friends, visiting family, watching TV, and etc. . All I do is to watch my portfolio grow. In January 2024, our investment advisor called to tell me my investment portfolio grew by over $1,000,000.00. We both laughed because he said I was making more money sleeping than working (my annual income in 2023 was over $700,000.00!!). My wife wanted to go back to work because she is bored with retirement. The problem is the job a large bank offered her would put our gross income to over $850,000.00!!!! Living the dream!!! 🤣🤣🤣🤣🤣🤣
we'll have $1M when I'm around 62 (wife wil be 57) however unlike many people we don't have huge wealth in our home.
A million bucks today is a great goal to achieve, but it does NOT pack the punch of what it used to. What can it actually get you in 2024? A nice house is 400k-500k right off the bat, salt in a decent car and more than half of that million is gone. A million is plenty to secure a comfortable “modest” lifestyle, but true wealth and security in 2024 starts around 3 million.
Wow, 3.2% of Americans? That's crazy. Didn't know we were that privilege.
I didn't see if the money included in retirement accounts took into consideration that many people have more than one retirement account. If you have changed jobs (which is close to everyone) then you may have several 401(k) accounts, and an IRA, and maybe a Roth IRA, etc. Just looking at the amount per account doesn't tell you the whole picture of someone's retirement readiness.
If it was just my retirement accounts I'd be broke-azz dirt poor. Add in a brokerage account, Roth IRA, decent pension to build off of, social security, and savings, and I'm pretty much set. And that's not including the paid-off house. Just spend wisely and be diligent about saving/investing whatever you can.
My kids who are 20 don't have 1 million. How many households over 65 have 1 million in assets
If you live in a bubble city - like Scottsdale - many many wealthy people live in and around me and most everyone I know are well above the $1mm mark in their retirement/brokerage accts
Retirement accounts don't include standard brokerage accounts, so the question is meaningless. A better question would be how many people have a net worth of 1 million or more.
I disagree. A better question would be how many how many have $1M investable assets?
Its about 3.25% . . . I knew the answer already. But thank you for getting the answer out to everyone.
Its very acheivable if you can save and invest in your 20s. The money I saved in my 401k before I turned 30 is now over a 1 million. Not everyone starts saving in 401k at 22 years old but its more common now with automatic enrollment. But you don't need a million to retire either but might need to work a little longer.