It’s true that a fairly large percentage of Baby Boomers have a lower net worth than they’d prefer–many times, not because of bad financial decisions–but because they are supporting themselves, their parents, their grown kids (who can’t find jobs, or buy homes) the government, etc., etc., but I believe that trend will continue to “infect” the majority of generations going forward. In fact, it could get even worse for them than it has been for the Baby Boomers.
Personally, like most of you, and as most financial professionals agree, we all may need multiple millions to sustain/enjoy retirement–and that’s what I was referring to with regard to “financial solvency.”
IMO, that’s when you can fully support yourself and/or your family for the balance of your life without being dependent on a job, and, as I mentioned, the stats are staggeringly low in that regard.
It’s easy to say we shouldn’t worry about things like that, and just blow it off, but, believe me, if things continue as they are with the ever-growing divide between the wealthy and the middle class (the poor will always be subsidized), there will inevitably be some price to pay (socially, politically, economically, etc.) In other words, you won’t be living in the same world you are enjoying today.
In one way or another, the “financial insolvency” in this country it will effect everyone’s quality of life.
edit: Case in point. Look for those 70% tax rates coming to a country near you. I jest now, but you never know![/quote]
What a great post flyer. And so true. You know something? NEVER would I ever have imagined growing up that being a “millionaire” would have meant so little. LOL.
The sad thing today is that isn’t really too much money these days, especially heading into retirement. I see all the facts and figures that show that many retirees have saved up less than $100,000 and I’m not sure how they manage in their twilight years.
And AN, your goal of $5 million by 55 sounds amazing! I hope you get there. I’d just say not to kill yourself trying to hit your # or become too obsessed with it. I’ve seen people sometimes that have their “#” and they will sometimes simply “try too hard” if you know what I mean.
Your parents sound like wonderful and amazing people that sacrificed quite a bit for their kids. But I wouldn’t stress too much on becoming old money for the AN generations to come.
