How much should you have in savings at each age?

[steve2470]

https://www.bankrate.com/banking/savings/how-much-do-you-need-in-savings-retirement-emergency-fund/

(I know this article will probably prove highly controversial, only presenting for critique and discussion)

You save to mitigate personal disaster.

Let’s zoom out from granular advice on maximizing returns on your taxable and retirement investments, or deep dives on CD yields or mortgage rates. At the most basic level, savings enable you and your family to enjoy the freedom associated with money and avoid the pain of debt.

There are two main reasons to set money aside: Insurance against bad financial weather and provision for your retirement. You might also save for a down payment on a house or for your wedding, but the first two are the must-haves.

Bad news: We’re not doing so well on either point. About half of Americans are at risk of lowering their standard of living in retirement, according to the Boston College Center for Retirement Research, while less than 20 percent of people feel very confident they’ll enjoy a comfortable retirement.

[exboyfil]

1. Without question standard of living is going down

after retirement. I shocked the wife that we better plan on selling the house after the dogs and cat are gone. I have been shocked how many people actually move up on price after the kids are out of the house.

[Sanity Claws]

2. This presumes that people have sufficient disposable income to save

Real wages are down. Housing costs have increased way out of proportion to wages. Student debt has risen tremendously and are 20 years long. People are put in a tough situation.

[Sherman A1]

6. Precisely

I am glad I’m not starting out in this environment.

[steve2470]

9. excellent point

This article, imho, is tone-deaf to most of us who struggle to save even 10% of our gross income. Our entire society gives us so many messages to spend, spend, spend and then of course there are the things you must spend money on, like housing, student debt, medical expenses, etc.

[The River]

3. That Story

is aimed at professionals who are making 70K or more per year. The average blue collar worker makes a lot less. Best case, assuming you have a spouse, you both worked and your house is paid off, you might get by on Social Security and Medicare. If you're single with no assets, buy a used van and a good sleeping bag.

[msongs]

4. savings are sorta useless with interest rates of 0.0000000001% these days nt

[MarvinGardens]

7. Rates are going up.

I make 1.6% on mine, FDIC guaranteed, not money market. Check bankrate.com for a list of highest yields.

[progree]

8. Not bad, almost keeping up with inflation (on a before tax basis) n/t

[shraby]

5. For the average person who makes less than 40,000 per year,

life has a way of wiping out savings from time to time, so savings is a fungible figure.

[RileyRicketson]

10. Savings before retirement

Yeah, I agree. Planning for retirement at the initial stage of carrier can be smart thought to ensure the future. There are many options for investment are available like investing in real state, share funds, stock and many more. But, Investing in International funds is one of the safest way to secure your money and gain the profit, as this is a long term investing option. One can invest in a Forager Funds Management, Fidelity, Platinum, etc.

[A HERETIC I AM]

11. While we don't have a "host" in this group, nor is there a pinned post that directs conversation....

nor are there any hard and fast rules regarding specific investment recommendations, the fact is, for the most part the folks that participate in this group tend to refrain from suggesting specific investment securities or management companies.

I personally don't have a problem with recommending or highlighting a specific fund company as a potential investment vehicle, but as a long time poster in this group and as a former licensed broker, if I may suggest that when you do so, you include a disclaimer to the effect;

"Not all investments or funds and their relevant managers investment styles are appropriate for all investors, and your tolerance for risk may differ from the investment style and/or securities offered by this firm. Investors are advised to fully investigate and completely understand the risks involved before purchasing any security."

Fair enough?


Welcome to DU, BTW.