The market it down trillions from its high. As I pointed out in another post even Bill Gates has lost 1 billion since his high in '07.
How about the people who lost so much with Bernie Ebbers, Bernie Madoff, Ken Lay, Alan Stanford? They planned, they saved and they could sure use the 500 grand you talk about.
Your comment about your parents illustrates my point about you being genetically fortunate. What if you had had parents who were not quite so visionary? Let me answer that: No one can say where you may have been in other circumstances, or for that matter, even placed back in time about 50 years, before women had meaningful careers and women's educations counted for much. No one can say, not even you.
Financial advisors have been saying that for years. They are wrong. There are many, many people who are happily retired on far less than that.Originally Posted by Big Guy
There are only 6.7 million people - that would be 2% of the population - in the U.S. with liquid assets (that means not counting the house) of more than 1 million, and only 840,000 with assets of more than 5 million. Good for you for wanting to succeed and out perform your peers, but your financial advisor is fulla shit.
Of course, I recognize that you referred to a "target" lifestyle, and I am assuming that you have no experience with that lifestyle just yet. Maybe you'll get there; I hope so. But there will be a component of luck involved - just ask all those ex millionaires referenced above..
But Linda is right about one thing: People do not plan. Depending upon whose statistics you believe somewhere around 1/3 of the U.S. population have a net worth of less than zero. And I suppose we could agree on one thing and that is to a person with a net worth of zero, that 500 grand looks like an awful lot of money. Because it is.
Take someone who got lucky and worked steadily and well, and got his house and cars paid for; maxed out the Social Security income at about 2000/month; retired from a job that paid 2000/month retirement. Would he think his 500K was a lot? Of course he would. And chances are he wouldn't even need it for many years, because in the process of saving for his retirement he learned to live on what was available, not what he dreamed about.
I speak from some experience: I retired last year. I have 10% more money in my IRA than I had in January when I retired, and have no plans to take any out until the IRS makes me at 70 1/2 - that's another 4 years. I keep myself well insured and in good physical condition, and that counts, but the fact is I have no need for 2 million dollars in my IRA. Just because it's something you want, doesn't mean it is something you need.