JVL, my theory on why people are bummed even though the economy is bad is that the question is always one of outlook. When I, and probably most, look at there retirement, like my 401K, it is ugly. For the past year, maybe even two, it's done nothing but go backwards. So even though I'm OK today, my outlook is that my future is in questio…
JVL, my theory on why people are bummed even though the economy is bad is that the question is always one of outlook. When I, and probably most, look at there retirement, like my 401K, it is ugly. For the past year, maybe even two, it's done nothing but go backwards. So even though I'm OK today, my outlook is that my future is in question because I've seen what I perceive to be my future security being eroded away. I'm retired so I don't have a super long horizon for my future but I'd like to leave something for my children and right now it's not looking good. Just a thought on why the outlook of people is so down even though the economy is up.
Guy #3: I also have retirement accounts that just make me gasp when I open them up to see their results.
JVL: I would love to know what this gentleman has his retirement savings in because here’s what Fidelity is seeing with the 401(k) plans they manage:
Fidelity Investments: "The second quarter of this year was a good one for retirement savers, according to a new analysis from Fidelity Investments.
"Thanks to continued employee and employer contributions, coupled with an improving market, 401(k) balances rose on average for all age groups not just in the second quarter, but compared to the same period a year earlier. . . .
"Overall the average 401(k) balance rose to $112,400, up 4% from the first quarter. This is the third straight quarter in which the average balance grew. And compared to a decade ago, the average balance is 39% higher. . . .
"Fidelity found that the average 401(k) account for Baby Boomers rose 6.3%. Millions of Boomers, of course, will be retiring over the next several years. And those who have been saving continuously since 2008 now have an average balance of $499,000. That’s well above the second quarter average — $220,900 — for everyone in that age group.
"Younger workers, meanwhile, saw double-digit percentage increases in their balances over the past year: 14.5% for Gen Xers to $153,300; 24.5% for Millennials to $48,300; and 66% for Gen Z workers to $8,100.
"Regardless of generation, people who have been saving consistently over the past 5, 10 and 15 years saw double-digit percentage increases as well, according to Fidelity."
JVL: Maybe Guy #3’s retirement funds were all in crypto in which case, sure, I’d gasp, too. Crypto is deader than disco. But for people who parked their savings in index funds geared toward their retirement dates? Their situation is good.
JVL, my theory on why people are bummed even though the economy is bad is that the question is always one of outlook. When I, and probably most, look at there retirement, like my 401K, it is ugly. For the past year, maybe even two, it's done nothing but go backwards. So even though I'm OK today, my outlook is that my future is in question because I've seen what I perceive to be my future security being eroded away. I'm retired so I don't have a super long horizon for my future but I'd like to leave something for my children and right now it's not looking good. Just a thought on why the outlook of people is so down even though the economy is up.
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Guy #3: I also have retirement accounts that just make me gasp when I open them up to see their results.
JVL: I would love to know what this gentleman has his retirement savings in because here’s what Fidelity is seeing with the 401(k) plans they manage:
Fidelity Investments: "The second quarter of this year was a good one for retirement savers, according to a new analysis from Fidelity Investments.
"Thanks to continued employee and employer contributions, coupled with an improving market, 401(k) balances rose on average for all age groups not just in the second quarter, but compared to the same period a year earlier. . . .
"Overall the average 401(k) balance rose to $112,400, up 4% from the first quarter. This is the third straight quarter in which the average balance grew. And compared to a decade ago, the average balance is 39% higher. . . .
"Fidelity found that the average 401(k) account for Baby Boomers rose 6.3%. Millions of Boomers, of course, will be retiring over the next several years. And those who have been saving continuously since 2008 now have an average balance of $499,000. That’s well above the second quarter average — $220,900 — for everyone in that age group.
"Younger workers, meanwhile, saw double-digit percentage increases in their balances over the past year: 14.5% for Gen Xers to $153,300; 24.5% for Millennials to $48,300; and 66% for Gen Z workers to $8,100.
"Regardless of generation, people who have been saving consistently over the past 5, 10 and 15 years saw double-digit percentage increases as well, according to Fidelity."
JVL: Maybe Guy #3’s retirement funds were all in crypto in which case, sure, I’d gasp, too. Crypto is deader than disco. But for people who parked their savings in index funds geared toward their retirement dates? Their situation is good.
https://plus.thebulwark.com/p/voters-are-unreliable-narrators
.https://www.cnn.com/2023/08/17/success/average-retirement-401k-savings-balance/index.html
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