From the article:
“...This means that if you’re 50 years old and don’t have a dime at present, maxing out your 401(k) until age 67 will leave you with roughly $755,000 in retirement savings provided your investments generate an average annual 7% return during that time (which is more than doable with a stock-focused strategy)....”
OK now, who actually has gotten an average of 7% on their 401(k) ??
OK, I will raise my hand and say: "I have". DW has also.
Actually 7% should be as easy as falling off a log. The Compound Annual Growth Rate for stocks has been close to 10% for a century. Nothing more exotic than putting it all in an S&P 500 tracking fund would accomplish that.
Of course if you fall for any of the financial film-flam, or decide that stocks are "too risky" you, and your 401(k), will be left in the dust. I fully believed that SS would run out of trust fund in my lifetime after reading about it 30 years ago, and saved accordingly. I have never believed the promises of the government. Ask any Native American how well that works out.
#22 Those kind of return forecasts are what has gotten the pensions in trouble in many states. In California the unions want the taxpayers to make up the losses.
I am lucky that some stock I own has made good returns and I think I will be retiring making more money then when working!
OK, agreed.
But what dumb fool waits until age 50 to start saving for retirement?