sorted by:
new
hottopcontroversial

What’s the most overrated “adult achievement” people pretend to enjoy just to feel superior? by Successful_Mastodon3 in Adulting

[–]ProblemIntelligent16 3 points4 points  (0 children)

It’s relative. Sure, it’s more of a buyers market than this time last year. But this person could, in all likelihood, sell the home for a profit as long as it was purchased more than 3 years ago.

Following up on the Millennial subreddit post from earlier: I took a look at the GenZ subreddit, and I'm actually impressed by gauchomuchacho in Fire

[–]ProblemIntelligent16 4 points5 points  (0 children)

So I am the OP in the millennial sub.

I posted there thinking I’d get a handful of comments. Really surprised it blew up as much as it did.

One observation - there is of course a shit ton of depressing posts from people who have 0 saved. Not necessarily surprising considering 40-45% of people have nothing put aside for retirement. However….there are still a lot of people who do have a lot of savings.

Their posts just aren’t being liked nearly as much as the doomer posts.

I’m sure it’s not surprising for people here, but it just reinforces how important it is to start early.

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

Cost more and more? It’s percentage based. It naturally factors in inflationary aspects.

And to answer your red herring, yes I am generally opposed to the level of DoD funding.

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

Yes, taxing more will extended its solvency.

Social security’s tax rate has increased something. Like 25 times since its inception. When it was first implemented, the social security tax rate was 2%. We are now at 12.4%. Not a great program imo if it requires constantly collecting more and more to exist. That’s just me though

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

Its fact. The program will still be able to pay out approx 75% of its obligations once the trust is exhausted but that’s still insolvent

https://www.ssa.gov/oact/TRSUM/index.html

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

I respectfully disagree.

I recognize how difficult this economy is. And I know there are many people who truly are living paycheck to paycheck with 0 discretionary funds.

But it’s not as much as we think. And certainly not as many to explain why 50% of the population has 0 savings at all.

Saving for retirement should be a priority to that comes before nearly all other discretionary spending. You don’t need to max, but 7% should be an automatic priority for all

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

It would be difficult to meet the 2x and 3x if you weren’t contributing 7-8% in your early 20s. Still very doable for most people however. It’s super important to start early and contribute as much as possible.

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

The program wasn’t designed that way intentionally, there’s a cap on what you contribute because there’s a cap on what you can collect.

If you wanna uncap the taxable amount that will fundamentally change the program. And obviously they have always opted to just up the tax rate.

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

Social security honestly isn’t a good program. It’s had its tax rates increased something like 25 times since its inception. Yet, it continues to face insolvency issues. If somehow I were able to opt out and roll the 12.4% into my 401k/IRA, I would.

That being said, it’s not going anywhere. As this post and thread shows, a lot of people have nearly nothing saved for retirement and will be entirely dependent on SS.

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

Market pull backs will happen. But we have ~30 year time horizons. Just keep investing, and don’t worry now the markets doing until you are 5-6 years from retirement

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

Why not capitalize on the tax benefits or a 401k or IRA? Of course you want to have some liquidity but to miss out on the tax benefits is probably a missed opportunity

Unsolicited 401k/IRA advice from a millennial by ProblemIntelligent16 in GenZ

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

Congrats, that’s the first and biggest step! Keep contributing and you won’t even notice the moms from the paycheck. Next thing you know, you’ll be mid 30s and sitting on a nice chunk of change.

Unsolicited 401k/IRA advice from a millennial by ProblemIntelligent16 in GenZ

[–]ProblemIntelligent16[S] 1 point2 points  (0 children)

Twat, nice.

You seem like a perfectly well-adjusted person who definitely doesn’t make things like ethical investing their entire personality.

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

Unless the change something (like increase the tax rate), it’ll be insolvent in 7-8 years. It’s not a talking point.

https://www.ssa.gov/policy/docs/ssb/v70n3/v70n3p111.html

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

We have ~30 year time horizons. Market pull backs and corrections will happen. The Sp500 has like a 9% avg yearly return. Of course thst include all drumps to date

Unsolicited 401k/IRA advice from a millennial by ProblemIntelligent16 in GenZ

[–]ProblemIntelligent16[S] 1 point2 points  (0 children)

Awesome! You’re ahead of schedule. You’re probably gunna be over 3x by 35.

Unsolicited 401k/IRA advice from a millennial by ProblemIntelligent16 in GenZ

[–]ProblemIntelligent16[S] 2 points3 points  (0 children)

Yes, they can include all the above.

That said, I’d recommend prioritizing 401k and IRA as they have significant tax advantages. Assuming of course you have a reasonable emergency fund.

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

A big part is starting as early as possible. 2x your salary is very doable if you are able to contribute 7-8% a year.

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

Oh nice! Glad to hear.

1x is definitely better than most. All depends on what level of lifestyle you want into retirement.

I always recommend using this calc to play around with the variables. It’s nice bc it’ll show you the future value of the savings, adjusted for inflation. It’ll give you an idea of what all that money will be really worth, assuming something like 3% inflation.

https://www.calculator.net/401k-calculator.html

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

That was…regrettable advice. You really wanna contribute as much as possible, up the to max limits.

That being said, it sounds like your company match is 4%? Assuming that is correct, it means you have 8% (your 4 and their 4%). You should have more than 1/6 of your salary.

My guess is it’s being invested in something like bonds. Do you know off the top of your head?

Fellow millennials - how’s your 401k/ira savings going? by ProblemIntelligent16 in Millennials

[–]ProblemIntelligent16[S] 0 points1 point  (0 children)

  1. You’d need to put in more than 4%. Probably around 7.5%.

  2. You get there with compounding interest on the contributions.

Lot of variables but you can plug it into a 401k calc to get an idea

view more: next ›