Why it’s hard for Americans to retire

[@NicholasBall130]

I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

[@EleanorBaker474]

Consider buying stocks when the economy is not doing well, like during a recession. It could be a chance to buy them at a lower price and sell later when prices go up. Just keep in mind, this isn't financial advice, but sometimes it's better than keeping a lot of cash.

[@StacieBMui]

Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.

[@StocksWolf752]

Mind if I ask you to recommend this particular coach you using their service?

[@StacieBMui]

“Sonya lee Mitchell’’ 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.

[@crystalcassandra5597]

I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you

[@Alxium]

I love how this completely ignores people who make less than $100k, which is well over half of Americans.

[@sunkorg]

Exactly. 82% of individual Americans make less than $100k per year as of 2023.

[@GonzoT38]

@@sunkorgThe presumption is that the point is self-inclusive. If the upper middle class is staring at cutting coupons in social security age, then it implies the 82% are there too.

[@globalfamily8172]

they should have a combined household income of at least 100k these days.

[@PURENT]

​@@GonzoT38 Upper middle class people live with upper middle class standards of living which cost them more. It's easier for them to cut back and live more modest lives, but they chose not to. They're cutting coupons in old age because they spent all their money foolishly before they got there.

[@sauban71]

There is still hope. I came to this country as an immigrant student with no money over 20 years ago. Am 50 now and have liquid net worth of over $1.3 million (about $520,000 in 401k and the rest in stocks, ETFs and a year’s worth of cash as emergency savings). In 2011, my liquid net worth was less than $70,000. I didn’t earn much and partied a lot. But then got serious and got a higher paying six figure job. Started maxing out my 401k and put money consistently and frequently into stocks like Apple, NVIDIA and S&P 500 ETFs like VOO. Due to Dollar Cost Averaging and Compounding effect, I was able to reach over $1.3 Million a month ago. I live a balanced life…I’m careful with saving and investing, but also live the best life I can today. Oh, and I always use coupons whenever I get a chance. Fact is…even if you start late, you can achieve your retirement goals, provided you invest small amounts regularly and frequently into stocks, ETFs and your 401k. Let compounding do the heavy lifting for you.

[@jeffreynicol8287]

You should've interviewed some middle-aged people making 35k or less. That'll paint a more realistic picture of how bad things actually are. Not a bunch of people making over six-figures.

[@gregorynuttall]

This. Exactly

[@brianvieira157]

Exactly let's ask people who made 100k a year about retirement vs average Americans who literally live pay check to pay check

[@Kaede-Sasaki]

I only make $350 million per year. I can't survive on only 3 houses and 2 yachts. 😂

[@brianatippens3010]

@@brianvieira157 people making 100k still live paycheck to paycheck. Those people have jobs that require them to live in expensive cities like SF, NY, LA, etc where the cost of living is much higher and the $$ doesn’t go as far. Those people are not elites like you think, they are still working class. And don’t forget about the crushing student debt all these people have to pay. That engineer I’m sure is drowning in student debt. He only had $4.8k in retirement savings. It’s not like he’s living the dream. I live in LA and make a pretty decent amount of money comparatively and know plenty of people in the same boat who are counting pennies everyday just trying to make it. We are all working class. The enemy is the rich elites who own everything and don’t have to worry about working because we do all the work for them!!

[@pgppe9488]

Why would a Middle aged person be making 30-35 thousand dollars per year? Choices really do matter and information is free.

[@sludgeman]

The avg salary in the US is around 50-60k. Using all these ppl with salaries above 100k suggests that the reason why ppl don’t save is financial literacy. When you have to decide between paying rent and eating or saving for the future, it’s just simple math

[@gee8419]

These people are all from New York, in NY if you make 50k and have a family you are basically destitute because of cost of living.

[@jacobjankowski]

Financial literacy is definitely a huge factor. Saving for retirement as early as possible was something drilled into by my father because he didn’t want me to make the same mistakes he did. Another issue could be how many people don’t have a career with a retirement plan that can be automatically contributed to through payroll. Because for me I struggle to make the long term money choices when the money is liquid, but when the money is automatically deducted and contributed from the pay it removes the option to spend that money. But when it comes to my coworkers and friends a lot of the time they are unaware how important saving while young is in order to maximize compounding interest

[@aluisious]

@@jacobjankowski"Compounding interest" isn't real. You don't make retirement level returns from a savings account in the bank. Stocks do not "compound." If you buy a stock for $10 and it is $11 next year it didn't "compound at 10%," that's just a capital gain. Do yourself a favor, and think in terms of how things actually work, not pointless abstractions.

[@jacobdean1858]

The median is $45K.

[@DenimNeverNude]

@@aluisious I don't think you understand compounding interest. Your example is only over one year on a stock that apparently doesn't have a dividend. Using your exact example, you could sell your stock at the end of 1 year, now you have $11 that you can invest in a different stock. If that stock grows 10% like your last stock did, now you have $12.10. Your last investment only made you $1 in profit, but because of that additional $1 in your next investment, you were able to gain an additional $0.10. The interest you initially gained, compounded into the next gain. There are also plenty of other examples, like a high-yield savings account that compounds monthly. Every month you earn interest that gets added to your balance. The next month, you earn interest on the "new" balance, that included last month's interest payment, so your gain gets bigger every month. You could also consider a stock that pays dividends, which you can automatically reinvest into that same stock. So every quarter when they pay you a dividend, you continue to add more shares to your ownership without having to sell anything.

[@Greggsberdard]

The rising prices have impacted my plan to retire at 62, work part-time, and build my savings. I'm concerned that those who went through the 2008 financial crisis may have faced fewer challenges than I do now. The stock market's volatility, along with a reduced income, is making me anxious about having enough for retirement.

[@VictorBiggerstaff]

The retirement crisis will worsen because many can't save due to low wages, inflation, and high rent. Investing in stocks with a good strategy can help, but it's important to be cautious. I advise you to get a financial advisor for guidance on entry and exit points.

[@crystalcassandra5597]

Having an investment advisor is the best way to go about the stock market right now. I used to depend on KZbin videos but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.

[@lolitashaniel2342]

Can you share how to contact your advisor?

[@crystalcassandra5597]

Her name is ' Rebecca Noblett Roberts ' Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@BateserJoanne]

I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

[@OnlyDoniaUKnow]

No conversations with people who earn less than 6 figures 🙄

[@ohheyitsnicol]

Exactly like this video was lowkey pointless and touched on nothing at all.

[@sophiam698]

it’s extremely bad journalism from their part

[@Greg_Nieves]

Below or above 6 figures, the biggest points the video is making is that Americans aren't good with money and things come up. A high income doesn't guarantee financial literacy. The majority of us don't think ahead, live in a way we can afford, and our wants overpower our needs

[@aliadenwala8285]

I feel like the whole point of this video is to show that even for people who make six figures, they’ll find it hard to save for retirement - so imagine how tough it is for the average person.

[@esonon5210]

They probably didn't want to be on the show

[@5HTParty]

If you make 140k and only managed to save 3k on your own, that's on you.

[@usersdksdfg]

@@VGBNDGRL I just turned 23 this month, but worked for the first time, part time, at TJ max for a year and a half during Covid while in college for Econ, and 2 months part time at Macy's the year after and I already have 27k, give or take, in my Fidelity IRA, 3k in savings, and 7k in my Robinhood. I'm in the Air Force now and planning on investing $1500+ every month while living/eating in the dorms and plan to let compound interest work for me. Just don't waste money and buy/hold safe long-term stocks and time will do the heavy lifting.

[@WarpedTrekker]

@@VGBNDGRL thats on you. at your age you have time. what about other people making 50k to 70k and working their ssa off at a high end job yet being underpaid?

[@TheMajesticSeaPancake]

And guess what? all the people interviewed are noticeably older than you. They've had time to pay off school. If you'd made a point about disability, or other extreme situations where circumstances demand a high salary, beyond what most people would say is comfortable middle class, I'd see your point. Most people making 140,000 a year are definitely not in situations where they need to spend it all, not only to live, but to live comfortably. So i'd say yes, if you're middle aged, on a salary of 140,000 a year, you're most likely on a track that has A: had you at and above 100,000 for a while which is upper middle class in most of the US and B: Still got a couple decades of only making more and more money than most Americans will see in their lifetime. So conclusion TimGabriel's comment is most likely correct, and while even if it's wrong in this guy's specific case, most Americans in his shoes that only have 3k are horrendous at money management. @@VGBNDGRL

[@GG-hi5if]

But she has 15k in a guaranteed salary pension???

[@DefenestrateYourself]

Cost of living is location-dependent, sweetheart. Learn about the nuance inherent to people’s lived experience. We’ll pray for you 🫡

[@meadowsirl]

Just 9% of US workers earn over 100k in individual salary or 100% of people in online videos for some reason.

[@mikelentz833]

I agree. It's shameful.

[@dantheman6607]

Because they’re all middle class. I make 6 figures too I’m middle class

[@tanjurthurs2114]

@@dantheman6607 middle actually means middle, not top 9%

[@meadowsirl]

@dantheman6607 middle class means the two middle 25% and 25% not the top 25% by definition. Due to the cost of living in some regions it can feel like scraping by.

[@devonthompson8333]

I think they're using people with those salaries to show where people are with what 'is said you should save' and how hard it is. If they showed everybody with a 45k and they had nothing, that wouldn't show anything. Most of the people with 100k plus salary still don't have enough, so this shows how hard it is.

[@aceshigh5338]

Why Americans cant retire: featurng four upper class individuals who are terrible at managing their expenses. Very insightful.

[@TheFireGiver]

I wouldn't call nurses upper class. At most upper middle class.

[@sg5184]

God, you are a poet

[@MotoMeeple]

The engineer is 27, and makes $100k. He's plenty young to save and retire early as a 401k millionaire. I'm 60, I make ~$150k, all I think about is retirement. I put all my money in a savings account. REALLY?! Not one day looking up anything about investing, index funds, compound interest? This video is infantilizing adults. America is about freedom, which also means the freedom to be foolish. Maybe spend a bit of time educating yourselves instead of asking for govt or your company to think for you.

[@MotoMeeple]

Maybe also learn about the flip side of pensions, as when it's not under your control it means it can disappear entirely. Tell those stories Vox where a union worker's company went bankrupt and left them with pennies, broken promises and no other savings because they thought someone else was saving for them.

[@perfectscotty]

Upper class is over 200k in income and over 620K in net worth. Upper class means the top twenty percent by net worth, Upper quintile.

[@Peterl4290]

As a 48-year-old doctor, I'm experiencing burnout from extended work hours and stress. Because I've always thought the economy would eventually collapse, I've never invested in a retirement portfolio. But I'm curious, as I'm going to retire soon, how would you start investing $1 million in safe stocks over the course of four to five years to grow?

[@larrypaul-cw9nk]

I believe every investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.

[@Mrshuster]

Opting for a financial advisor is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with one for a while, and my portfolio has grown by 85% since Q4 2022.

[@Aarrenrhonda3]

How can I participate in this? I sincerely aspire to establish a secure financlal future and am eager to participate. Who is the driving force behind your success?

[@Mrshuster]

Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like

[@Aarrenrhonda3]

Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.

[@AccidentallyOnPurpose]

Why is everyone in this video upper class? This does not represent the majority of america Edit: to avoid having to reply to everyone. classes in the US are calculated by your marriage status and how many dependents you have (children, elderly). If you are single with no dependents, these incomes would be considered upper class.

[@TheFireGiver]

They're more upper middle class, but I agree it's weird not to have a few median salaried workers in there. Maybe most median workers don't want to talk about their income.

[@MarisaClardy]

If these people don't have proper retirements, what is the hope for anyone else?

[@kamekazekwago874]

Californians

[@n64central]

Maybe you’re just poor. Ever think of that?

[@KRYMauL]

@@TheFireGiver Agreed, $100k is roughly upper middle class.

[@tatianastarcic]

I need a way to draw up a plan to set up for retirement while still earning passive income to meet my day to day need and also get charged lesser taxes even while in a higher tax bracket. i want to invest around $250K savings.

[@winifred-k9e]

Don't put all your eggs in one basket; instead, diversify into different asset classes to mitigate risk. If you lack extensive knowledge, consult a financial advisor.

[@amoreauMike-t6z]

Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k 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 overtime.

[@maiadazz]

pls how can I reach this expert, I need someone to help me manage my portfolio thanks.

[@amoreauMike-t6z]

Melissa Terri Swayne is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

[@TinaJames222]

She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.

[@tonysilke]

Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?

[@PatrickLloyd-]

as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management

[@PhilipDunk]

who is your advisor please, if you don't mind me asking?

[@PhilipDunk]

I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.

[@JP-Au-Schulz]

My mortgage is paid off as of 4/2024!. It's all about stacking gold, silver, Bitcoin and little bit of US $ at this point. Took my chances in the Dow and NASDEQ, and it paid off big time. Life on cruise control is a really good thing. My son and wife will really appreciate what is coming to them.

[@debbieframpton3857]

I would have never quit working with a mortgage

[@CollinHeist20]

The guy saying he makes $135k and "that's not bad" is hilarious. That's like double the median annual household income.

[@lilblue007]

REALLY bad especially since he started with a 40k max SECOND INCOME!!!

[@shad3_king554]

@@lilblue00750k

[@bradenhazle4378]

If he's in California or NYC that's how it is. That's very average there.

[@CollinHeist20]

@@bradenhazle4378 Still above average for California, especially given his second income of $40k. That would put him at the upper end of the median HOUSEHOLD income for Ca, which is highest in San Fran at 167k (for a household, not person).

[@CjCollado2001]

That’s nothing if you live in nyc

[@SomeDudeQC]

Median yearly salary in the US is like 60 000$. Seems those making twice that in the video aren't very representative.

[@MsHumanOfTheDecade]

and even they dont have enough saved!

[@mael1515]

I think this makes it even more dramatic, that not even those who earn more are on track.

[@tonycooper4437]

​​@@mael1515 Not to sound like the avocado toast boomers but they definitely just don't know how to budget. Those salaries can definitely retire, just need to lower their lifestyle to something simpler. I could pay off my house in 4 years max if me and my partner made around that much annually.

[@bradenhazle4378]

They could be living in California or NYC you don't know. Cost of living is higher there and making six figures is equivalent to the median.

[@tonycooper4437]

@@bradenhazle4378 Yeah, I guess after research, these are like the easiest people to look up surprisingly, they're New Yorker. Idk if they ended up mentioning that, did not bother finishing it, I still don't think they picked people that best represented most Americans.

[@sanikura837]

I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.

[@sanikura837]

@Adelinde-Isabell That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well

[@sanikura837]

@Adelinde-Isabell I will give this a look, thanks a bunch for sharing.

[@santos-q3i]

Dont worry be happy bob marley

[@EvaHoffmann153]

I'm a 52yrs Director in a Tech company and I consider myself a high income earner at $350,000 per annum, I have a retirement account account but i still want to explore opportunities for short term gains before i start working less in few years.

[@TicheDebb0]

In my opinion, IRA is a valuable strategy for retirement planning, providing growth and tax advantages. While the market is promising, expert guidance is essential for portfolio management.

[@MarshalWagner457]

I learnt this when I got disabled from an accident, I had to reach out to a financial planner who devised a plan for me to live off dividends from my investments. Other than Disability Cheque, I earn enough from home and live comfortably with her help.

[@RowanBryson]

Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.

[@MarshalWagner457]

’Rebecca Noblett Roberts’ is the licensed fiduciary I use. Just research the name. Get to her. You’d find necessary details to work with a correspondence to set up an appointment..

[@vince9080h]

I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

[@noahzimmerman-yg6qt]

Most Americans find it hard to retire comfortably amid economy crisis. Some have close to nothing going into retirement, my question is, do I pull cash from my 401k and buy a house, or spread my money in stocks for cashflow? I'd love to afford my lifestyle after retirement?

[@ralfbrown-kl1gp]

Lately, I've been contemplating retirement, uncertain whether my 401(k) and IRA will ensure a secure future. I've also invested in the stock market, experiencing fluctuations without substantial gains.

[@marcellasilva4015]

Opting for an investment advisor is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 45% since Q2.

[@FennaVa]

Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?

[@marcellasilva4015]

Sharon Ann Meny, is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@McCachren]

Thanks, I just googled Sharon and I'm really impressed with her credentials. I reached out since I need all the assistance I can get.

[@cassif19]

The more I find out about american finance, the more I start to think that being born in eastern Europe wasn't so bad after all

[@frotocsr]

Land of extremes. Easy to fall victim and miss out on compounding interest because you were simply trying to stay afloat. It’s not totally difficult to be way further ahead on retirement than what this video suggests, either.

[@Homer-OJ-Simpson]

Nah, don't be that type. Americans LOVE to complain about their country more than any other country, at least online. You rarely hear the good news of the US. Sure, I would rather be born in some western European countries but from financial and financial stability, I would rather be born in the US than most or all Eastern European countries.

[@Homer-OJ-Simpson]

@@frotocsr 100% agree. For most not in the 30% lowest income, it almost entirely comes down to financial illiteracy and or just a problem with Americans being uber consumers who don't like to save for retirement.

[@onemorechris]

haha! so true. half the time watching this video i’m also like thank goodness wasn’t born in the US’ (im English)

[@frotocsr]

@@onemorechris sometimes the grass isn’t greener. I’ve visited our UK offices and I make significantly more for the same work in comparison.

[@whimsicalhamster88]

I guess they didn’t talk to more people who like work at restaurants or other service workers because they’d be like “I make $2.25/hr plus tips” and it’d be way too depressing.

[@LiamRappaport]

Employers are required to pay them up to the federal minimum wage, if their tips don't cover the difference. Your tips are subsidizing employer costs. Whether the US federal minimum wage is a living wage is a different conversation. (spoiler: it's not)

[@earlysda]

@@LiamRappaport Minimum wage should NOT be a living wage. That's why it is minimum. It is supposed to be a stepping stone to someone who is interested in learning more and doing better in life. However, many people today are lazy, and not interested in working hard or learning more, then they complain that they don't have enough money.

[@LiamRappaport]

@@earlysda Are you also anti-union and anti-40-hour-workweek? I encourage you to look into the history of the minimum wage. Imho, a job in the richest country in the world paying a wage that promotes poverty is unconscionable. Also, if you support unlivable wages you shouldn’t be against government support of those workers. Your tax dollars are literally subsidizing those companies’ expenses.

[@earlysda]

@@LiamRappaport Liam, you make it clear that you have no idea what you are talking about. . Start a company, employ people, and then come back and talk.

[@LiamRappaport]

@@earlysda what a great counter argument. If you're not willing to debate, don't join the conversation.

[@rldash]

why feature 4 people making 100K+? none of them sound like they are in any dire situation.

[@jonasking3670]

They have nothing saved. What people are making is meaningless if they don’t save anything. Also they won’t make that forever.

[@dantheman6607]

They’re all middle class

[@dnsjtoh]

Middle class is average. They are not middle class.

[@jonasking3670]

@@dnsjtoh you mean median. If you want average household income then yes they are average. Median would be around 74k.

[@FrostyIgnition]

@@dnsjtoh100k is middle class now. 50k is poverty line now.

[@binitamin4727]

This video is incorrect....retirement savings need to be based on what you think your expenses will be in retirement, not your current income.

[@mikelentz833]

They always do this. It's so frustrating.

[@untouchable360x]

These 401k companies want it seems like you are way behind so you can contribute as much as you can and as long as you can. It's in their interest for you to invest as much as possible and to withdraw as little as possible.

[@HumbleWooper]

Exactly this, plus medical bills in the US ain't cheap. Older folks tend to need a lot more care than their younger selves, even if they stay in very good health for their age... which isn't guaranteed even if we eat healthy, stay active, and never get injured. There's still a ton of stuff outside our control like cancer, arthritis, dementia, heart attacks, etc. Lifestyle choices can make those more or less likely to happen, but can't 100% guarantee a particular person won't get them. Assuming you live to retirement age, SOME sort of medical expenses should be built into your savings goal unless you've locked in guaranteed lifelong total medical care from a job like the military.

[@ccederlo]

Came to the comments to say this. So silly to base it on your arbitrary income at a particular point in time.

[@djm2189]

I learned about this. I'm 29, earn $120k, no debt. 40k in cash and 100k in retirement so far. Came from a poor first generation American background. I currently contribute 10% into 401k with employer match forgot the percent, and 3% Roth. Financial advisor stated I should retire with roughly $1.5mil but that if I invest more it can be 2.5mil. I told him no. I want to live right now and that requires money. Also I plan for a simple retirement. Small paid off house in California and in Mexico. Simple healthy meals made at home, simple trips throughout Mexico with 1 destination trip a year or so. Simple commuter car. Nothing fancy just a secure retirement.

[@chrismangwanda4777]

How do you earn six figures and not be able to save.

[@TheFireGiver]

People lifestyle inflate. If you're not good at money management then then it doesn't matter if you make 7 figures a year. You'll spend it as fast as you make it.

[@arcturionblade1077]

Everything in America is very expensive. Healthcare, housing, education, transportation, etc. So many Americans go into bankruptcy due to medical costs alone.

[@rummimg]

That's an interesting thing. You could spend all your money regardless of how much you earn.

[@doujinflip]

More wealth also has more requirements to defend and develop it. Most of us don't hire personal bodyguards and tax avoidance accountants, but the financial elite certainly would.

[@DivineBella1]

Easily! Between cars, insurance, student loans, rent, etc. The money goes fast, cost of living is outrageous

[@gmclucy]

people don't have enough money to keep themselves alive now, there is no money to save if you're a young person now

[@jessy1982]

Everytime I save a bit, I end up with a blank account at the end of the month and need the savings to get by the last few days until payday.

[@OutsideYourBox]

Actually you do. But you can't buy stuff or eat out for 5 years while investing. Why? Minimum income was based upon uncooked food products and basic necessities. After 5 years, your 20% savings would generate passive income and you would increase your wages too, which should mean you can invest 2x whatever you invested

[@electron8262]

What sort of investment schedule are you envisioning that achieves a passive income after 5 years? For a minimal, £1000/Mo passive income, with yearly interest at 5%, my calculations say: n * 1.05 = n + (12 * £1000) n = £144,000 in savings. To make that in 5 years: £144,000 /(5*12) = £2400 put away every month, which you would need quite a high salary to achieve.

[@GodHandFemto]

@@electron8262 Yearly interest is closer to 6-8% long term (but yes entering the workforce during an unlucky market would be unfortunate for your first few years) I notice you're using GBP though, Americans on a full time salary tend to make much more than Europeans might be accustomed to. My first job out of university was $70k/yr and I was still living with my parents so I was saving like $4000/month, my next (current) job is $120k/yr and I rent a $800 room in shared housing and I'm saving closer to like $6000/month now.

[@truthseeker243]

​@@OutsideYourBoxjoined Sept 2021. You haven't lived long enough to be advising or to have experienced life.

[@TheLolliganger]

This makes me want to throw up

[@fbaallied]

Why?

[@haygrif]

Same. 😭

[@blondie7240]

Stop buying useless stuff

[@Homer-OJ-Simpson]

Because a video greatly exaggerates a problem for clicks?

[@vectorhacker-r2]

@@Homer-OJ-Simpson It doesn't, this is a huge problem.

[@Larry1-pl2wq]

I retired at age 53, so I am in my early 60s. Many of them resisted me because they couldn't understand the idea of not working if it wasn't necessary. I considered the phases of my life. I worked very hard to achieve what I have now, but in my last years, I owe it to myself to "stop and smell the roses." In my instance, I departed the nation after retiring and currently reside in Latin America. It made it possible for me to appreciate my new surroundings while escaping all the bad things that were going on in America. Nobody that I know of regrets retiring has yet to come to me.

[@louisahernandez]

Nice way to retire. For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement fund has grown way more than it would have with just the 401(k). Haha

[@Larry1-pl2wq]

It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than a million dollars by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns

[@Bigwilli123]

I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation

[@Larry1-pl2wq]

I definitely share your sentiment about these firms. Finding financial advisors like Joseph Nick Cahill who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them

[@Colbe-lx7fb]

That’s smart. I’ve been feeling like I’m just guessing at my retirement goals, but having a plan like that sounds a lot better than just hoping for the best

[@DustinOranchuk]

Respectfully, how does someone make 140000 and have 18000 in retirement..

[@seste87]

Larger bills. Just because someone makes a high wage doesn’t mean they’re wealthy. If you’re in San Francisco or New York, you might be barely scraping by. And what do you want them to do, move? Maybe they’re from there, their family is there?

[@Alex-nh7cl]

Answer: they live in LA

[@Yugiboii]

Could be that she recently just started making that much

[@globalfamily8172]

Taxes go up percentagewise.

[@mikelentz833]

Financially illiterate or incredibly indulgent lifestyle, probably both.

[@DomyTheMad420]

I was born in the 90's. retirement.

[@KufLMAO]

doesn’t seem so bad tbh 😂

[@iamnotandyarnold]

Sounds like a solid plan. It’s what many of us have.

[@EveloGrave]

I would be surprised if I even make it to 60. Such a great comment.

[@stefanstoic]

kurt cobain strategy

[@lorelaimintz3034]

Are you serious? These people's income is really good. Unless they all live in LA, there is no reason for them to have this little in savings

[@JUNO-69]

I was thinking the same thing. Either they are lying about their income or they picked a group of people who are earning way above average income.

[@arcturionblade1077]

Healthcare, housing, education, and transportation are ridiculously expensive in the US. Student loans and medical costs alone are out of control.

[@ENGRAINING]

they probably live in expensive cities to earn this much, those salaries are rare in cheaper places so it all evens out.

[@barkomatic]

I think most live in NYC. The Labor Economics professor is at the New School, which is located there. So, very expensive area.

[@TheFireGiver]

They probably intentionally choose people with high income and low savings.

[@AA-wc3tw]

Michigan, US here. I make $71,000 per year ($43,798 take-home-pay after taxes, insurance, HSA, 401k, etc.) and I have WAY more in my retirement savings than these upper-class-income earners in the video. AND I was drowning in debt from ages 22-35 (I fixed that: now my only debt is my mortgage). AND I'm on track to retire around age ~56. (I will not "do nothing" when I retire, but I hope to have income from a FUN job, perhaps something like making custom clothes to sell on Etsy.) Wow......I cannot imagine making $120,000 and not having enough to retire. I guess I'm WAY luckier than I already knew. Also, the tax ad in the video is silly. If you're getting a refund, you're not claiming on your taxes correctly. You should aim for breaking even; that's how my tax preparer (a private accountant, not a chain store) advised me.

[@evanfreeh7129]

I am in a very similar position to you but from Ohio. And I agree, if you are getting a big refund you are essentially loaning the government money interest free. At least, that is the way I think about it.

[@kyleliegel]

Mathematically getting a $0 tax return does make sense - you are essentially loaning money to the government without interest if you get a tax return. From an emotional perspective, however, its nice to receive that gob of money come spring. Also, it does force someone to "save" the money, though that person becomes accountable for it once it hits their bank account.

[@xxgoodnevil17xx]

I make 6 figures now but 3 years ago I was making 60k a year. So yeah I don't have that much in my retirement because I only recently was able to contribute more. That's something a lot of people are glossing over. You can tell immediately who has been making good money for a while because they have accumulated more money than someone who just got the bump. On top of the fact that to be able to save for a down payment to buy a home and save for a wedding, I wasn't able to contribute a lot to 401k when id rather put it toward my current life not some life I will have 45 years from now. People arent being realistic when analyzing the situation, there are a lot of reasons you may not be able to contribute a lot immediately after starting working. Life gets in the way - one year I spent a lot on medical care because i broke by shoulder (fell off a ladder) so instead I put more towards my HSA to pay medical bills. So soooo many factors. I can't believe everyone saying that they "can't understand how these people can't save" 🙄

[@MotoMeeple]

You don't need to contribute "a lot" if you save early. Make a budget in your 20s to put $500/mo into an index fund, don't touch it, and you will be a 401k millionaire at retirement.

[@seste87]

I’m also from Michigan, but moved to a city for work and moved back to work remotely. Michigan is cheap, it’s absolutely possible to make this much in New York or Los Angeles and be worse off for retirement than someone in Michigan or Ohio. Housing can be multiples more expensive, taxes are higher, food cost is higher, gas is higher, child care is way higher. 100k can easily look modest. If you can work that job remotely, it’s almost like spending money in a foreign country. What your salary gets you multiplies. That’s why you can’t find reasonable housing in Montana, San Francisco bought it up.

[@BuzzLiteBeer]

At 140,000 salary and 34yo, you really shouldn't be struggling with retirement savings, even in an expensive city. This video really doesn't address bad spending habits. This is an issue of capitalism AND psychology.

[@Dynasty1818]

Psychology is the big one. You have people going broke on 200k+. That's just bad lifestyle management.

[@GenesisMuseum]

Right. As they are using graphs and charts with income vs savings, there is no chart for wasted $. The bottom line was actually covered in another VOX video. Plain and simple....most Americans are financially illiterate.

[@hc1616]

taking accountability for your own actions is a foreign concept these days. people acting like they are doing so bad making 2x more than average

[@sevalle]

i don't understand how none of the people in the beginning of the video have much saved...I make less then all of them and have been able to max out my 401k for many years now...yes i live with a strict budget and do very little extra spending such as eating out...but I am able to raise 3 kids, take 1 vacation per year and own a home...also live in one of the most expensive areas in the country (Seattle). Now at 40 my 401k is 3x my salary but I am also fortunate that I will retire with a pension on top of my 401k.

[@MrStanfordMD]

Excellent job! 👏👏👏

[@madbaumer215]

Way to go man. Blink it and will be 6x your salary with how you're going. Many good times in front of you

[@WarpedTrekker]

1 vacation a year and not able to eat out doesnt sound like an enjoyable life. most people want to do a lot more while young. cant wait until you are 70 to travel the world and enjoy it. unless you want to be wheeled around in a wheelchair

[@HeritageWealthPlanning]

4:27 American's don't have auto enrollment in a pension plan? She's never heard of Social Security. That's weird.

[@SaintYvess]

Retirement is now more difficult than it was in the past. I've been saving for a long time instead of investing, and right now I only have about $400K. considering all the inflation, i'm thinking of investing in stocks, i dont just have idea on market strategies.

[@FelineAirstrip]

At a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.

[@WestonScally7614]

Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach, and my portfolio has surged by 85% since this year alone. get one for yourself to be safe.

[@sting_grayl]

Partnering with a financial advisor has transformed my approach to investing. Their expertise and personalized guidance have not only helped me navigate complex financial markets but also optimized my portfolio to achieve my long-term goals efficiently.

[@VivianneLegault]

Could you please share the contact information for your investment advisor? I'm in urgent need of someone to help with my portfolio.

[@sting_grayl]

*Victoria Louisa Saylor* 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..

[@Morning404]

Because all the riches of the country are going to the top 0.1% despite worker productivity going UP over the last several decades. Working your whole life just to 'enjoy' a few years when you're close to death is the biggest scam.

[@samelmudir]

All the profits of technology went to 10% of people

[@TheFireGiver]

1. Why is working your whole life to enjoy retirement bad? 2. Its not just to enjoy those few years. You realize you'll ne physically broken when you get old right? Retirement isn't just to enjoy those few years. It's also so you have money to be taken care of. Otherwise you'll be a burden on your family.

[@ahn155]

​@@TheFireGiverThey have a different mindset than we do🤣

[@ahn155]

I'm Korean and it's one of the most depressed and negative countries in the world, but even here I think anyone can become rich if they stick to their life☺️ If not, it's your problem, not the country's.

[@doujinflip]

All you have to do is ignore the chaebol and other born-privileged "good families" who collude with the authorities to drop legal barriers on rising startups by those outside their personal social circles, in order to prevent viable competition to their revenue stream and social status.

[@Erickruiz562]

Overall, 51% of traders think this year would favor stocks, mutual funds, and other equity-based investments, despite Treasury yields and other safer cash-like investments paying big. I’m looking for opportunities in the market that could fetch me $1m ahead of retirement by 2025

[@JanineJ.Cromwell]

For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary expertise to pull off such trades effectively carry them out.

[@BeverleeR.Ziegler]

It comes down to technique; a downtrend gives you room to focus on the market and grow significantly in the short or long term. While it is easier to make money when the market is rising, a downtrend can still yield high returns if you have the necessary knowledge and skills. For this reason, I have been scaling up during this difficult period by working with an investment advisor; this has been the only way I have raised up to $150K in the last six months.

[@WyattSmith-v]

I've wanted to start investing for a few months, but just haven't had the courage to start because the market has been down for most of last year. Please how can I reach out to your financial advisor and what are their services like?

[@BeverleeR.Ziegler]

I work with Jennifer Lea Jenson, who is a licensed fiduciary. Just look up the name. All the information you need to work with a letter to set up an appointment is included.

[@PaxtonsPages]

@@WyattSmith-v a down market is a great time to be investing. The market is going to go up over time. A company like Fidelity or similar is a good start to reach out to and get an account opened. It doesn't have to be fancy. Mutual funds that you can invest and forget about it until you retire will see great results in the end for you, especially if you're young.

[@RhondaArmstrong-y4d]

As a soon retiree, keeping my 401k on course is my top priority. I have been reading of investors making up to 250k ROI in this current crashing market, any recommendations to scale up my ROI before retirement will be highly appreciated.

[@usmanyahaya9782]

The current market might give opportunities to maximize profit within the short term but to execute such a strategy, you must be a skilled practitioner or be working with one.

[@KarenDuncan-o5s]

@@usmanyahaya9782 Certainly, I've been consulting with a Certified Financial Planner (CFP) since the outbreak. Beginning with an initial fund of $80k, my advisor makes decisions on when to enter and exit positions in my portfolio, which has now expanded to around $350k.

[@RhondaArmstrong-y4d]

@@KarenDuncan-o5s How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

[@KarenDuncan-o5s]

@@RhondaArmstrong-y4d Victoria Carmen Santaella is the licensed advisor I use. Just research the name. You’ll find the necessary details to work with.

[@RhondaArmstrong-y4d]

@@KarenDuncan-o5s I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip.

[@fluxcapacitor1621]

Single family home mandates and housing density restrictions are making the US unaffordable for most Americans.

[@jeffa7671]

The general attitude is. “Now that I’m here we need to stop building”.

[@willmichael4033]

I like how the professor said that retirement was all the thinks about, yet he hasn’t educated himself on how to invest his savings…

[@jkbecker]

Americans be like my plans for retirement are “working at ___”

[@sterlingross919]

I’m about to 27, graduated two years ago with my Bachelors in marketing and can’t even find a job, let alone think about retiring.

[@JohnDoe-jq1br]

You can't get a job, pick a $20 an hour job and work it, as you look for a job in marketing. Don't limit yourself by only looking in the area that you live in now. Open a Roth IRA and put in $50 a week, and work yourself up to $100 a week. Save 10% of your pay. If your job has a 401k and you can pick the investment, pick the large cap S&P 500 stock. If the employer will add matching funds, put in enough to match at a minimum. Take that free money. Other wise at least contribute $1 an hour, it lowers the amount that you are taxed at the end of the year. Do not give up, and plan for retirement. Think about starting your own marketing company.

[@sterlingross919]

@@JohnDoe-jq1br lol even finding a $20 hour retail job full time is next to impossible.

[@WarpedTrekker]

@@sterlingross919 mcdonalds

[@JogBird]

why arent you making $100k like everyone else

[@Shredxcam22]

has marketing degree, cant market his way into a job....

[@kaylat63]

Success depends on the actions or steps you take to achieve it. Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Financial management is a crucial topic that most tend to shy away from, and ends up haunting them in the near future.., I pray that anyone who reads this will be successful in life!!

[@coolben854]

I agree with you and I believe that the secret to financial stability is having the right investment ideas to enable you earn more money, I don’t know who agrees with me but either way I recommend either real estate or bitcoin and stocks.

[@face2lune]

I keep wondering how people earn money in financial markets, i tried trading bitcoin on my own made a huge loss and now I'm scared of investing more.

[@kaylat63]

@@face2lune Understanding your financial needs and making effective decisions is very essential. If I could advise you, you should seek the help of a financial advisor. For the record, working with one has been the best for my finances.

[@face2lune]

I’m Glad i stumbled on this. Please, if its not too much of a hassle for you, can you drop the details of the expertise that assisted you and how to get in touch….

[@kaylat63]

@@face2lune I get guidance from *Susan Tori Davis* Most likely, the internet should have her basic info..

[@LesterHess-t1x]

My plan to work part-time, save money, and retire at age 62 has been affected by the escalating costs. I worry that people who experienced the 2008 financial crisis would not have had as many difficulties as I do now. I'm worried about having enough money for retirement because of the volatility of the stock market and my decreased salary.

[@wmwoods-l4f]

Due to high rent, inflation, and low salaries, many people will not be able to save, which will exacerbate the retirement issue. Using a sound plan while investing in stocks can be beneficial, but use caution. For advice on entry and exit points, I suggest seeing a financial counsellor.

[@j.ottinger]

The best method to approach the stock market at the moment is to work with an investment advisor. KZbin videos used to be my go-to source, but they weren't working. I've been working with an advisor for some time, and last year alone, I made more than 80% of my capital growth less dividends.

[@karitanaw]

Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.

[@j.ottinger]

Her name is ' Annette Marie Holt Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.

[@karitanaw]

I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.

[@MrAwachs]

My previous employer was union/pension. When I started - they had bargained 26 years or service, couple years later it was renegotiated to 26 years of service as long as you are 55 years old, shortly after it was renegotiated to 26 years of service as long as you are 65 years old. I started thinking I could retire at 50 to realizing I’d be working 40 years. Pension is still a good thing and secure but the draw backs are still relying on the strength of the union and dependent on how well the union negotiates their contracts.

[@tjt5055]

VOX is heavily left-wing. It's not a shock that they would prefer a mandated system that restricts but protects over a choice-based system that works phenomenally if you just have a little sense.

[@silverghini2629]

I’m in the UK and my employer puts in a sum equal to 5% of my salary into my pension pot. I then add in 8% of my salary. All this is income tax free. I don’t earn fortunes but at 53 I want to be able to be comfortable in retirement. My brother retired at 55 and had about 18 times his yearly salary in his pension pot. A lot more than the 8 times suggested here.

[@fbaallied]

You got that bit wrong. Your employer contributes 3%, and you, the employee, pay the remaining 5% into the workplace pension plan. This, along with the state pension (National Insurance contributions) and any private / personal pension plan (optional), combine to form a full retirement fund for U.K. citizens.

[@daveys5]

@@fbaallied 3% employer and 5% employee is the minimum you have to put unless you opt out. You can choose to put more and an employer can put more also

[@fbaallied]

@daveys5 Yes, you can match what your employer contributes.

[@MrBlackCoffee96]

though in the uk we have salarys worth a FRACTION of the US. £100k is considered impossible for many as asalary whereas in america it seems the average watching this vid

[@dantheman6607]

It all depends some of us like myself have pensions plus the 401k account along with social security. I’m retiring at 57

[@daniels.3062]

Part of the problem is we don't become true adults until our late 20's. Our grandparents went straight to work at aged 18. That's almost ten years of wealth-building we missed out on.

[@robertagren9360]

Technically it's 1/3 of your life, 1/3 is already slept away. Old age is not living

[@gibberishname]

All these people make over $100k a year and THEY are worried about retiring????? Talk to people making $50k

[@johnzizzo3976]

how do you only make 50k? I literally made that starting 20 years ago?

[@dantheman6607]

They are all middle class that’s why

[@gibberishname]

@@dantheman6607 according to the Census, middle class is between $50K and $150K

[@Britt4880]

@@johnzizzo3976 yeah, it kind of boggles my mind that people just level out at a low salary and complain as if it’s someone else’s fault…? You can learn a ton of high-paying skills online, if you want the money hard enough.

[@knightfox4121]

@@johnzizzo3976You are so disconnected from reality.

[@RossiPopa]

Retirees facing financial struggles often didn't save enough during their active years. Retirement choices are crucial. As for investing, is now a good time to buy stocks? With uncertainty looming, I'm pondering what 2024 holds. Having sold my home and sitting on $745K equity, I'm uncertain about my next move.

[@RichardMoore-jg5tl]

If you want to rebuild your retirement by yourself, without the help of a partner, I will tell you it is near impossible. Even NewRetirement and co can’t do the job of an FA with expertise, a large following/client base and experience. Vet and hire one and so you could allocate your resources with the help of a financial advisor.

[@RusuSilva]

Yeah, I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t really start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who have been investing for many years.

[@FusunTumsavas-cq7tp]

This caught my interest. I worry that I have a couple more months before retirement, and I want to switch to using a financial advisor, but I don’t really know how to find one.

[@RusuSilva]

Monica Shawn Marti is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.

[@FusunTumsavas-cq7tp]

I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.

[@davidalearmonth]

Wow, where did you find these people? I would have easily retired early if i was making $100k+ per year.

[@General8675]

Because it’s not about the size of the shovel, but how you use it. So many people just don’t do the math or are deliberate about it. Just because you make more doesn’t mean you are smart about money.

[@johnzizzo3976]

dude where do you live? 100k after taxes is nothing

[@General8675]

@@johnzizzo3976 Its a ton of money, and if you don't think so, you live a pretty charmed life.

[@dannylengyel5830]

Not if you recently started making that much. We don't know how long these people have been making that much and where they are located.

[@Britt4880]

After tax it’s ~75k. Minus an average budget for rent/mortgage, food, transportation, a little bit of fun, a little splurge on tech or furniture, and maybe a vacation, that leaves someone with like $30k. That much toward retirement per year will not get you to retire early.

[@1237tnb]

I, also, just want to say that when it said ERMA was 72, I was shook. I really expected it to day 43 or something.

[@michaeld4861]

I'd love to make half as much as any of these people. The real retirement problem is that 40% of all US jobs pay less than $16/hr and a large amount of jobs now are part time. How is anyone supposed to retire when half the jobs in the US barely pay enough to afford a sandwich for lunch? I'll be lucky if I can retire at 85 in a cardboard box under a bridge.

[@jrdl2290]

What you need to retire is not about your income, it’s about your expenses. Very different concepts (sorry Vox)

[@DefenestrateYourself]

It’s both. (Sorry Javier)

[@sket179]

0:35 no, that's not what abstract means. It's quite the opposite, very concrete. You can look at the money you're making now and multiply that by what she said to have at any given age. If that what she's proposing isn't viable to you or anyone like she later states, that doesn't make that number any more abstract. Unrealistic perhaps, or unattainable to most.

[@positivelycat]

Right? Thats what I thought too. Also I wish they had said the number you should have at 50 just so in a couple years I'll know how short I am. 😂

[@ligerbuddy]

im kinda depressed that, everyone in this video is high middle class and they are complaining that "woe is me, i dont know what to do with retirement" vox didnt even have a single reperesentive of someone who is normal working class. why does this video even exist .... how even is it relateable .... why cant they have at least one random min wage worker, probably cause it would be even more depressing cause the retirement doesnt even exist anymore for them.

[@JBoy340a]

They appear to be from NYC. One of the most expensive places to live.

[@supery0111]

Why does she have two mortgages? Why does he have 250k in a saving account? Why is she constantly dipping into her retirement funds? All of these people seem to make good money. This video is an indictment of their personal choices, not the retirement system.

[@IdleNomad]

Man, he's going to be bummed when he realizes that in the last year that $250 in savings made 0.6% while the stock market returned 30% normalizing after the covid years. He literally gave away ~$75k.

[@pinkisforpimps]

That's the story of the millennials and gen Z. Blame their failures on "the system"

[@juliaortiz6483]

@@pinkisforpimps none of the people mentioned in the comment are gen z or millennials, try again.

[@roddyeskew3909]

4:10 this is literally wrong, everyone has access to an IRA. It's just not employee sponsored, which they do not clarify here

[@Fireballof3]

True, but IRA contribution limits are about 1/3 of a 401k contribution limit. ($7k / yr vs $23k / yr) And really, you need to be putting away serious $$ to hit the ideal benchmarks of 1x/3x/8x annual salary in most places.

[@alquinn8576]

@@Fireballof3or you can open up a vanguard brokerage account. I have almost half of my savings in a (non-IRA) brokerage account, with the rest in a 401k. none of these excuses make a bit of sense. maybe if there was a single financial literacy course in high school...

[@markmyers5881]

@@Fireballof3 But the people who have $45,000 saved for retirement didn't hit the maximums. If they can't put away even $5,000 a year, having a higher contribution limit wouldn't change anything.

[@Medmann48]

The wild card is your spouse & how much money they will spend in retirement. I do all our finances & retirement planning & we both plan to retire in 1 year. However, last week my wife made the following statement "We are going to retire & if we run out of money, we run out of money". I informed her that running out of money in retirement is NOT an option.

[@jonferngut]

Vox be like "why it's hard for Americans to afford college/buy a house/have kids/pay their rent/retire". I wonder if anyone watches these videos and goes "oh yeah, actually I'm going to do something about it".

[@dallastaylor5479]

Like take responsibility?

[@4ElementGirl]

Lol 😂

[@fartexplosion4480]

@@dallastaylor5479 And forget about ever having more than a weekend off?

[@StacksSats]

bitcoin fixes this

[@casey1337]

not everyone who watches these videos are american or know about america's issues, so it could help inform them

[@afrinaut3094]

America’s system is broken and they scapegoat it all on “personal responsibility “ or “God”. I don’t know if I’ll ever be able to afford a house, go back to college, afford student loans, afford to have children….. and you want me to think about retirement… we have a cost of living crisis and you want people to think about retirement. 🤦🏾‍♂️ Edit: America has a population decline because of all of these cost-of-living issues. Half of Millennials Zillennials, & Gen Z are under-employed (no surprise it’s even worse for marginalized people like AfricanAmericans & Native people) and “do not want to have kids” either because they just don’t want to & the other percent because they don’t see being able to ever afford children on top of all the other expenses of existing in the country. Yet, price gouging, mass lay offs over the years, slashing of benefits (that are not even federally mandated), tax breaks for the wealthy etc while shareholders, board of directors, & CEOs make record profits….. Edit: & of course struggle wages, poverty wages, wage theft by rich business owners etc. And you shouldn’t have to make six figures in order to live a decent life (ie work life balance, afford a family & other worth-living benefits) and retire in your 60s.. it’s a right for every working person…

[@spicychad55]

Don't feel too bad about owning a house. Roughly 80% of homeowners only own a home for less than 10 years then they buy and move into a different house not keeping the older house.

[@CompletelyInadequate]

what about those who make less than $100,000? lol

[@starventure]

Make extra income on OnlyFans. (Seriously)

[@luxxy707]

Which is like 75% of the population l9l

[@Acteaon]

@@luxxy707if not more

[@Nunta9539]

Stay away from living in cities

[@CompletelyInadequate]

@@Nunta9539 miami’s not a city right? /s lol

[@NicksDynasty]

I make around $60,000 a year and I should be able to retire at 45-50 year. It's a blessing that I started preparing early

[@davidbrooks8809]

It's a blessing that you get out of your bed every day and breathing

[@NicksDynasty]

@@davidbrooks8809 I'm happy to be alive and well

[@HughJass-313]

❤❤

[@NicksDynasty]

@@HughJass-313 👍🏿

[@HughJass-313]

@@NicksDynasty I'll be switching to parttime at 50. But I don't have any kids. i honestly have No Clue how the rest of yall pulled it off 😆

[@nbonasoro]

I never see myself retiring. I love how they mock the person who uses the 401k money they receive when changing a job to pay down debt. Usually the debt is high interest such as credit cards about 20% interest and the ROI on investments, after taxes and management fees averages 4%. The best use of that 401k money was to pay down the debt but that decision gets made fun of. Enjoy life while you're young, and don't expect a retirement. You may not live long enough to enjoy it nor may you be healthy enough to enjoy your retirement.

[@adamtki]

She can't turn the clock back so yes, using the 401k to pay down high interest loans was a good move. But I guarantee she's gonna run up the credit card debt again. And a large CC debt does not happen overnight. It's a long string of bad decisions. She shouldn't have put herself in that position in the first place.

[@nbonasoro]

@adamtki I just disagree with your assertion that credit card debt is a string of bad decisions. 1) So many people have credit card debt, I struggle to so confidently say they all are bad with their money. Usually people make the best decision available to them at the time with the resources they have and the circumstances they find themselves in. 2) We have chose to create zoning that undersupplies housing and makes housing too expensive, we have chosen to underinvest in education and force people to go into debt to have a chance at a decent paying job, we have chosen policies that make healthcare so expensive and the list goes on ad infinitum. She is thrust into an environment where the odds are stacked against her. 3) We cannot expect people to live a monk-like existence where they just wake up work and go home to sleep without vacations or hobbies or anything else. If she isn't paid enough to afford these things, it makes sense she went into debt. 4) Americans have some of the worst financial literacy education provided in school Did she make some bad decisions, I am sure she did. I just assume that probably contributes less to her situation than the structural factors of society out of her control.

[@rctestchannel-xi9gg]

I only have a high-school diploma and have earned way less than 100.K per year (even in my best years). At 64 yrs old, now have a net worth of 5.1 million dollars. Those who say it can not be done are WRONG... Live beneath your means and be smart with your money.

[@Beanhill_94]

If it’s true for you then it must be true for everyone?

[@marielozoria]

i love how every solution to these huge systemic issues that are lowering our quality of life is "idk you do you"

[@CjCollado2001]

I saved $50k for retirement at 22. But this is basically my entire net worth

[@spgfcs]

Don't feel bad, that's an excellent start!

[@SergioFernandez-fh8pv]

In Spain we are automatically enrolled, and even if you earn minimum wage your entire life you are guaranteed a livable retirement wage. We of course have our issues with an older population and shrinking workforce

[@markmyers5881]

I looked it up, and I see that the average pension is less than 1500 euros per month. Is that right?

[@AlexMacallister-fl1vl]

I earn a stipulated amount of money annually, but still curious on how to diversify them on investments, savings and spendings. really concerned about my retirement plans.

[@LilianScott-dy5nz]

You should be looking into financial planning or consult a financial firm about your situation.

[@ForAnAngel]

Even making half as much as most of the people in this video, I'm saving about half my income towards my retirement. Having enough to retire early is my #1 priority.

[@thewb8329]

Saving for retirement isn’t a priority for most people. Americans spend an average of $1000 per person for Christmas every year which is less than what most people put into a retirement fund annually. That is just for Christmas, not to mention excessive frivolous spending on other things throughout the year. Most Americans increase spending when their income increases and a significant percentage unnecessarily live beyond their means. In Japan average savings rate is 20-30% even though the cost of real estate is about twice that per square foot than in the US. People don’t take the time and energy and apply the self discipline make trade offs necessary to save for the future regardless of income. Most will ignore these facts and then blame the rich or society for their shortcomings.

[@tommy32-k1n]

Excellent information, and I appreciate your breakdown! Even with the recent drop in crypt0, I'm glad that I can still grin at my $56,700 portfolio, which I built up quickly from my weekly trades.💯💯💯

[@zawzawzaw9719]

​@LucyPaloma-t8kDo you mind sharing info on the adviser who assisted you? I'm 39 now and would love to grow my portfolio and plan my retirement

[@tommy32-k1n]

​@@zawzawzaw9719She's ALICE LEE CHEN FINANCIALS

[@tommy32-k1n]

she's a known advisor. I actually did look her up curiously and went through her credentials on her webbsite... Top-notch! I wrote her an email, hopefully she's accepting new intakes.

[@zawzawzaw9719]

​@@tommy32-k1nI'm definitely gonna check her out. Do yo have any idea if she manages family fund?

[@Jasonn-o7j]

Getting Alice Lee chen to help me really helped me clear all my debts. I started with what I have left and it's been the best decision I ever made

[@casienwhey]

There are no excuses, zero, for not saving money if you work. You can always live more simply, cut costs, and go without. People who claim to be living paycheck to paycheck probably have a lot of credit card debt, and go out to restaurants to eat, and subscribe to streaming services, or have cars they can't afford. They are not committed to saving but are committed to spending. That is the problem. It's discipline.

[@mael1515]

In Germany, one is only automatically enrolled into a retirement plan when you are employed, not when you are a freelancer. So it's not entirely accurate when she says "everybody" in other countries has a retirement plan.

[@afrinaut3094]

That’s still profoundly better than the US. You can be employed and your employer provides no retirement plan.

[@markmyers5881]

@@afrinaut3094 Theoretically, although most employers do. The catch is, you have to contribute your own money to it. This is the same as in those other countries where it's mandatory.

[@tannerted]

​@@afrinaut3094 You don't need an employer-sponsored plan to invest for retirement. IRAs, for example, are much like 401ks and you don't need an employer to sponsor it. Even if you make too much for a tax-advantaged account (you'd have to be making quite a bit), you can still invest in a regular, taxable brokerage account. The issue is not employers' fault, or even the governments. While I think the government could do a much better job on promoting retirement savings, it is ultimately your own responsibility to save. It requires sacrificing some things you want (e.g. nice phone, bigger apartment, Netflix subscription, etc.) but just about everyone can find something to save, even if it is just a small amount.

[@MorganFraser]

Canada isn't a great example to use for automatic retirement plans. 30-45% of Canadians have pension plans, and it's becoming less common. You typically only see pension plans in the public service or crown corporations. Unfortunately there is a caveat to securing a career with a pension plan - the wages are lower, there can be less mobility, and you see a lot of miserable people staying in jobs they hate because of the golden handcuffs. Most employers ofter group retirement plans that an employee can opt into. The employee can select how much they want to contribute and most employers offer a match. People can also take funds of out these accounts, but they will be taxed heavily for it.

[@joshbraun8768]

I think they are referring to the Canada Pension Plan (CPP) which covers virtually all employed or self-employed Canadians. There is also the old age security pension which applies to everyone over the age of 65 who has lived in Canada for greater than 10 years - even if you have never worked.

[@MorganFraser]

@@joshbraun8768 They have social security which I believe is equivalent to our CPP

[@preferanonymous]

Canada is a virtual mirror image of the US in this regard, except that Social Security is quite a bit more generous than CPP. Virtually all Americans who work in federal, state, or local government are covered by pensions, as well. Every state has a "retirement system" to cover its employees -- including teachers.

[@domjervis]

I was happy beyond what mere words can describe when two young colleagues came to me & said, "I just qualified for the 403(b) retirement program & was thinking you might know how I should invest it." I was an Accountant with decades of experience in the realm. I didn't just blurt out boilerplate percentages. I spent time with them & learned about their risk-tolerance, along with their intermediate & long-term plans, grad school, marriage, buying a house, etc. I believe that some in this video and many others watching it know someone to whom they can turn for advice in this Arena. You might already know someone, but are hesitant to ask. Please don't be.

[@randeezydizzle]

How do you make 140k and not put any away for retirement? I make a similar salary and I'm maxing out my 401k and putting 10s of thousands in my retirement account every year. Not being able to save for retirement is an actual problem for a lot of people, but for people making 150k+, it's 100% your fault.

[@coolsteven2]

I make way less and am putting away ~$18k a year (due to employer match)... It's bonkers.

[@sunkorg]

More importantly, how does an employer think that a 27-year-old has enough experience and life skills to be their vice president?

[@dannylengyel5830]

Maybe they just recently started making that much.

[@devengudinas1649]

I started a 401 k when i was 19 making barely 30 k a year not take home. Now that 401/ roth is over 230k and I’m only 41 now. Start young people.

[@Jeffhowardmeade]

I had a good safety margin when I retired. I had a well-maintained house and newer cars which were paid off. Easily 25% of my pension check went into savings. Then inflation hit. I've now lost a fifth of my purchasing power, and my pension gives me a piddling 2% cost of living allowance a year. I'm looking for ways to economize and I'm considering applying for Social Security at 62. Whatever you think you need to retire, it's not enough.

[@Pihlalorjoone]

The USoA retirement system was never very good. Even in the 70s it only covered around 50% of workers. It also made it difficult to switch employers and it could even bankrupt your employer. The real problem presently is spend, spend, spend... Preferably using a credit-card.

[@Tabbylover55]

@4:24 It's not true that in Canada one automatically gets enrolled in a retirement plan! Some employers don't even offer an RRSP (Registered Retirement Saving Plan) to begin with, or offer an RRSP but don't make it mandatory to enroll. It varies greatly from one employer to the next, and the people who don't have an employer's RRSP, need to actively open an RRSP in a financial institution. The Canadian pension system is much more complex than this lady is implying.

[@markmyers5881]

They were playing pretty fast and loose with the facts.

[@TechnoCaveman1]

Very sad for Americans. Your politicians let you down. Your law that was changed 40 years ago, it wasn't for the employees benefit, it was for the employers benefit. That was the start of your problem. Living in Australia, 5% of my salary went into Superannuation automatically and it is extremely hard for me to touch it till I retire. Plus employer currently has to contribute 11.5% worth of salary as well. system is not perfect, but it works well. It's a form of forced savings, but as you can appreciate, there is a lot of pressure to tap into this pool of money, especially in the 20's and 30's. Now that I have retired I am very glad I could not touch my super before retirement. It has allowed me to happily and comfortably retire at 60yo. Many generations of Americans have been sold out by your political system not looking after the people, so sad.

[@DoctorAsLaboratory]

All of these people should be able to put the annual maximum in their 401k and IRA and live comfortably. They are terrible with money if they aren't doing that.

[@fratusd]

I make less money than all of these people on this show.. and I have 350,000 in my 401K at 40 years old.. also have a little bit in an IRA.. and I also have an emergency fund.. you just need to live in your means... These people are making too much money not to have savings.. I completely understand if you're making 45 50,000 maybe even $60,000 a year to not be able to save her retirement but these people making over $100,000 should have no problem saving for retirement..

[@ISpitHotFiyaa]

They really should look at total net worth rather than "retirement savings". The woman who sacrificed her 401k contributions to pay two mortgages probably does have a low 401k balance but SHE HAS TWO HOUSES.

[@coolsteven2]

Does having a house pay for food on the table?

[@ISpitHotFiyaa]

@@coolsteven2 If you sell it it does. It's no different than a 401k in that respect.

[@frankt1720]

Look at the folks that worked for TWA, US Steel, or the hundreds of companies that had their pension plans taken over by the PBGC. Also, if you decide to change jobs with a pension, you risk losing everything. With a 401K, your contributions move on with you.

[@salravioli]

I read a book called mutual funds for dummies. Please don’t make excuses about not knowing what to do.

[@lat7324]

These are not the average incomes of Americans. Depending on where they live, 100k can afford you the ability to live decent and save even with children, student loans, rent and financial mistakes ie., credit card debt. With some financial examination between necessities and wants a person making $100k can recover. The median income in the US is around 78k and even that’s a little high lol because you have the 100k+ earners in the mix. I would say the average US worker makes about 42k thur 58k a year with a college degree (including Masters). An 100k salary aka around $6000 a month after taxes, are you rich? No. Can you plan for a decent retirement with good planning? Yes. Now if you don’t want to plan with a 100k salary because you don’t think you have too, that’s a completely different story. I know this is all relative but this just shows how financially divided the country is and that’s scary.

[@helbertasprilla]

Always remember if you don’t have it. Someone else does. Once upon a time people worked and pensioned out. Now that’s practically gone so who has it? Where’d all that money go?

[@SGyru]

A pension for a private sector business/company seems really risky to me and inhibits a person's movement and there's no diversification because your entire retirement is held within one company which could easily go bankrupt due to no fault of your own no? If you have a 401k or IRA you can get fired or leave or the company can go bankrupt and that money goes with you and stays with you. All the while you can be investing that money in a total market index fund so you are diversified across the entire US or World. So why is a pension better?

[@Fireballof3]

@@SGyruPensions are held separate from the company and are funded as the employee works specifically to avoid issues with companies going bankrupt. Even if you leave that company the pension is still there and yours - but sometimes it's cashed out if you no longer work for that company.

[@SGyru]

@@Fireballof3 So what are some good reasons why a pension is better for a employee than a 401k?

[@dand5829]

I'm an immigrant to the US and I've been maxing out my 401k since I was 27. All these people who say they can't save while making 6 figures are just irresponsible and can't live within their means.

[@ashwiins92]

And here I'm wanting to retire as early as possible.

[@jakeedits312]

Same

[@John_Smith_86]

I retired at age 36, as a normal engineer / data analyst. Having a good time now. Just don't spend so much, and invest in the S&P500

[@DragonKingGaav]

You can want!

[@DefenestrateYourself]

@@John_Smith_86 just stop being poor! It’s simple

[@John_Smith_86]

@@DefenestrateYourself Exactly!!! So simple and straightforward!!! (except for the disabled)

[@janellemcleod]

Same thing in Africa too. In Africa, they have no choice but to have funds come out of their check towards retirement contribution, and the government forces them to retire at age 60, no one is allowed to work at age 60 “as in company jobs” work at 60, they are on retirement and they get their money every single month.

[@gilbertvehicleservices]

Unbelievable. This is a case studying people who are bad with money. It might be representative of the general population. Personally, I have been contributing to a 401k since I was 20. I started at 6% and slowly ramped up to the max annual contribution. How did I do this? By avoiding lifestyle creep. When I received a raise, I increase my percentage contribution. While my friends were buying new cars, I was buying three-year-old used cars and driving them to 200k miles. When they were buying new 3500+ sq.ft. McMansions, I bought a 2100sq fixer-upper house. I’m now 50 and should be in a position to retire in 3-4 years whereas they will be working well into their mid-60s.

[@nuke2373]

A consistent theme of financial videos on retirement is that the past had these wonderful pensions. That simply isn't true for most people. More people did but it was never the "solution" for most people. A 401k is actually more accessible to more people, and more empowering because you get to actually take responsibility for it.

[@markmyers5881]

Pensions still exist , although they're less common than they used to be. It's mainly because they're very expensive. They also provide benefits only to long-term employees. With people changing employment more often, they don't provide as much benefit to most people.

[@General8675]

Stuff like this really makes it seem like defined contribution plans are really hard to use and manage. When really, they are very easy to set and forget. But so many people just don’t choose to invest and look to get all the money they can now. It’s a shame.

[@itsa11good23]

Bro, what? The avg salary in USA in 2023 $59,384 a year. Which is more than me already. Yet the video talks about the average expected savings for Americans to retire… These people make more then double I make. Like not even a single person that makes under 100k a year. I mean it’s all good info but where is the diversity in income class.

[@hsk1778]

earning 100-125k in a HCOL city is probably equivalent to 60k-$70k in other states

[@pinkisforpimps]

Why do you make less than $59k?

[@TheRussianGenius]

NOO ugh, Come on Vox, majority of people are NOT MAKING $100K A YEAR!!! Even outside of your big American system. My grandpa is retired here in Europe, and he's getting $600 a month, so still he still works a job to make ends meet ah. I like that American doctor make $100K+ cuz in Denmark doctors are making 1/5 of those in America. Idk what circles people are in, but most people in my circle are making 15K or tops 60K a year (here in Denmark), I think Denmark is one of those country that least spends money on food, and you SEE people worldwide spending LESS and LESS on food. It's sad...

[@Faben202]

This video showed a massive lack of financial literacy and financial discipline, and it underlines the need for schools to teach the basics of living a financially responsible life (the power of compound interest, the consequences of consumer debt, etc...). The simple truth is that it is not that difficult to build wealth in America if you start early. Even just saving/investing $250 per month in an index fund within a Roth IRA a month from age 25 until 65 will turn into 7 figures tax-free, not to mention if you ramp up your savings rate as your income grows. But no, we live at or above our means and we're addicted to immediate gratification. There was a survey done of 10,000 self-made millionaires, and teachers were the third most common profession in that group. Most of them never made six figures in their careers, but they started saving early and they were disciplined. Also, no one expects the teacher to drive a fancy car or live in a fancy house, so that eliminates some of that "keeping up with the Joneses" pressure which may make it easier for them to save and invest. Personally, my wife and I came to this country at 22 years old, with no college degree (we still don't have one), and no money, but our investments are above the average for our age group and we diligently invest every month. If we keep going at this rate till age 65, we'll have multiple 7 figures, but we will most likely retire earlier than that. Also, neither of us has individually made six figures in a single year, although we're both likely going to cross that threshold soon.

[@VintageToiletsRock]

You hit the nail on the head with this comment! Teachers are also mostly government employees and most government employees still have mandatory pensions. I have friends that work for the government and are required to save a certain percentage of their income for their pension. I personally find it easy to save and invest copious amounts of money and live frugally, but 100% understand that most people need a system where money is automatically reserved for them for retirement, managed professionally, and is not liquid until they reach retirement.

[@bryan__m]

Ding ding ding! She spends almost 10 minutes complaining that Americans don't have a pension system anymore and that's why they can't retire -- even though all the pension system did is FORCE Americans to save. Turns out, when we aren't forced to do it, we don't do it.

[@solracrod]

Everyone’s salary and savings in this video is high. This doesn’t rep the other folks that aren’t making wages like this. Not sure why they didn’t balance this with more income diversity.

[@esonon5210]

The poor people didn't want to come on

[@markmyers5881]

They have pretty elitist views. For example, "every country in the world" to them means northern and western Europe.

[@kierananson6841]

Money management is so poorly understood. As someone in the UK, im thankful for how private pensions are enforced... especially given the evergrowing chance of a state pension not existing by the time im 70+. We were provided no guidance on future planning whilst in education. Ive just always feared being in a poor financial position and have made several plans to prevent that occuring to me

[@chrisbedwards]

Every single one of these people earns well over the average American income. Some of them make more than double! This is not representative.

[@esonon5210]

I think the point is if well above average earners are struggling, what does that say about everyone else.

[@davidjgill4902]

You can save $1M on a modest salary not by saving every cent but by putting money into a 401K early in your career and thereby profiting from compound interest on your savings over time. But you can't put that money into a savings account or other low-interest investment vehicle; you must put it into equity (stock market) investment funds. Many people are afraid of the volatility of the stock market and the fact that those equity investments are not protected from loss, unlike a savings account. Over the long term, equities reliably give you the best possible return on your investment, and a retirement fund is the definition of a long-term investment.