Retirement wasn't ever really going to be an option for this generation anyway
Retirement wasn't ever really going to be an option for this generation anyway
41 comments
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My MAGA dad before the election....
We gotta get Trump back in the White House. My 401k can't take the beating anymore. Wonder what he thinks now? Guess it's the short term pain.
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It’s those democrats causing the damn market to drop!
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The term conservative media is using is "globalists".
Easier to whip their voter into panic.
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The DJIA hit an all time high of about 45000 in Dec 24, not too long aftet the election.
It has been about 4 months since then, and the DJIA has dropped about 10%, to about 40500.
But before that, the average growth of thr DJIA, per year, for the last 10 years, was about 9%.
US median yearly wage is about $50k.
Avg Inflation for the last 10 years is about 3.5% a year.
Same for median wage growth.
Lets say you are 50, and have 150k vested into your 401k, the rough average for a 50 yo with a 401k, and you contribute 10% to your 401k, with a 50% (of your 10%, so 5%) employer match.
Ok then.
Here's what your retirement looks like if these trends all continue.
You have $761k to live off of for 20 years after you retire at 65 and die at 85.
$38k a year.
Now you're retiring with $706k, a $55k loss, about $35k a year.
Oh, well now your 401k is actually uh, $252k at age 65, $12.6k a year to live off.
If you think that's unrealistic... the stock market didn't top its peak in 1929 untill 1954.
That is a 25 year period with an average stock market growth of zero, over that time period.
The tariffs Trump just enacted average out to around a 22% effective tariff rate.
The Great Depression era Smoot Hawley tariffs were only 19%.
....Oh right, and thats all assuming you don't get laid off.
So that's a lot.of words to say your dad is a fucking imbecile, sorry about that.
My dad is also a MAGAtard, but he's also all the way down the QAnon rabbit hole, builds ghost guns in his garage... I now live many states away from him.
EDIT: It is now less than 24 hrs after I made this post ... and the DJIA is now under 39000.
Thats about a 13% drop from the top, 4 months ago, as opposed to the 10% drop i did all the numbers with yesterday.
Yee fucking haw!
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Proof?
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Americans 401ks are gonna be 40k soon with how grimdark it’s getting.
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DAKKA DAKKA
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All the death and stupidity of 40k but without the cool power armor and magic... I hate this timeline
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It's cool we're all just gonna go ork.
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If i wasn't convinced he was a gene stealer cultist id say Tzeench is impressed with the work.
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What do you mean? Just buy stock while it's at a low price with a small loan of a million dollars from your parents.
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Should be shorting tech and manufacturers.
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As a GenXer, we've been saying this for 30 years. The Boomers are going to destroy it for everyone.
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Can confirm as another GenXer. We've always been screwed by Boomers, and we expected the final "fuck you" to come just as we were approaching retirement age. Boomers always pulled up the ladders they used right behind them.
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GenX here. I'm 14 years from retirement, and I've never hated boomers more. They have fucked us at every turn and now they get to die right before the world implodes and once again we get left holding the bag.
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Good thing we still have social security when we get older...
/s, with a sigh
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My retirement plan:
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What in the name of AI is that gun?!
It's got a California neutered pistol grip, but wouldn't need one as that's only a legal issue on rifles not pistols, there's no magazine or cylinder so it would have to be a single shot break action, and that safety makes no sense. This is hilarious lmao.
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While it sucks for most other people, republicans never needed a retirement pension to begin with. Salt of the earth type should be working in the mines to their last breath. What with all that “hard work” ethos of theirs and whatnot.
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Lucky me, I'm in my 50s and don't have any kind of savings or investments at all.
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Are pensions safer? Ive only had it for 8 years but its a lot of money to just disappear
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Goddamn, been working since the late 90’s. Never figured my social security would pay out so I’ve been diligently following the path I have available. Seems like that is in the process of being stolen now too.
30 years planning for my future, looks gone now.
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I pulled out my retirement early to move states. When people told me it was a bad idea I told them that my retirement plan doesn't involve money.
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Choo choo mother fucker!
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Can't wait for tomorrow's black Friday. You guys in the banks don't forget your parachute in case of regerts. When you have regerts, just pull the chord!
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"Oh no, your retirement plans" -- the rest of the world, fucked by your orange leader , especially those that seemed particularly fucked in the first place that he decided to double fuck.
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Maybe I'm just being optimistic, but if you still have 15/30 years on your retirement horizon, this does not matter much and dollar cost averaging will make up for this in the end? I know people that "lost" their retirement in the 2008 recession because they sold rather than waiting for a recovery.
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Maybe I'm just being optimistic, but if you still have 15/30 years on your retirement horizon, this does not matter much
Really depends how things shake out. I mean, stocks were pretty overvalued etc so some correction felt inevitable.
But, if stocks continue to drop or this insane trade policy lasts long enough to actually restructure the economy, well it's likely that individual American turns would have less potential for growth and profit you'd thus expect their stocks to have lower potential growth.
But if you've got a 30 year time horizon, yeah, very little is super disastrous so much as just a tragic missed opportunity.
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Respectfully, only someone who doesn't know much about investing would make the argument this meme is making.
This generation isn't going to be cashing out any of their retirement funds for another generation, and isn't going to realize any gains or losses until that happens when they retire. Any gains or losses in the interim are generally inconsequential.
People at retirement age likely have the bulk of their funds in money markets and other exceedingly low risk investments, as that is money you cannot afford to lose.
Now is the time to buy stocks at a discount. Think of this as a Steam sale for your pocketbook and buy as much as you can while stock prices are in the tank.
(But yes, the news headlines are very scary.)
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Edit: Honestly, in large part, I think you're right. And I'm usually the one playing the "well actuaaaaally card" so I ought to respect it more. I think you make good points about where people are at in their investment lifecycle. That being said, like a lot of things, I think it's going to be harder for the younger folks. (I'm an elder, practically geriatric millenial.)
In part, yes, it's an exaggeration as it is a meme.
That being said, losing a year's worth of stock gains hurts.
That being said, I wouldn't trust the advice to buy low. You're banking on trump reversing course and other nations not ratcheting things up.
Really depends on what stocks you grab. Looks like at least Tesla may be in long term trouble (brand reputation is hard to recover) with competitors beating them on most fronts.
American defence contractors look to lose as Europe and other former purchasers will likely head to local firms instead so as to remove a strategic vulnerability.
And of course, most of the money that is moving through the markets are a few savvy financial players who have already priced in the odds and benefits of a return to normal.
Long term, stocks should come back but whether they do so faster relative to other stock markets or assets? Hard to say. American tech has been long seen as overvalued and wildly out of line with earnings, who knows if absurd valuations are really going to come back?
And of course, all of this ignores things like China taking Taiwan etc which could cripple global growth.
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Unless you've been laid off and are having a hard time getting a job - which may not be many people but still sucks for anyone trying to make it by without dedicated income :/
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It's really fucking shitty, I agree.
The sad fact of the US is that what you described is what we vote for every two years.
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People at retirement age likely have the bulk of their funds in money markets and other exceedingly low risk investments, as that is money you cannot afford to lose.
no, they SHOULD have their funds in low-risk investements. That's not the same as having it. There is no requirement for funds to automatically transition to something more safe, it's merely a good idea. So quite a few people are still getting fucked over.
Now is the time to buy stocks at a discount. Think of this as a Steam sale for your pocketbook and buy as much as you can while stock prices are in the tank.
That's nice, but Americans are also getting fired left and right, and more people are about to get fired when the shock of these tariffs makes its way through the supply chain. That makes it hard to spend money.
Another issue is that adjustments like these are often corrected, but not compensated. The line will go up again, but it also moves to the right, reducing your final amount.
Also, I personally haven't been timing the market, because my crystall ball hasn't been working well and my local wizard has been pondering it for months now.
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