Talk of The Villages Florida - View Single Post - Social Security Retirees Could Face $18,000 Cut
View Single Post
 
Old 07-31-2025, 10:51 AM
Bill14564 Bill14564 is offline
Sage
Join Date: Nov 2020
Location: Village of Hillsborough
Posts: 7,438
Thanks: 2,304
Thanked 7,784 Times in 3,062 Posts
Default

Quote:
Originally Posted by Rainger99 View Post
I asked AI to use the average income (about $66,000) and to invest it for 43 years (age 22 to 65) at various rates of return.

According to AI, investing 15% of the average income annually at a 7% return for 43 years could grow to approximately $2.81 million.

A more conservative return (e.g., 6%) would yield around $2.2 million, while a higher return (e.g., 10%) could push it toward $4.5 million.

If the worker made $33,000 a year, a 7% return for 43 years could grow to approximately $1.39 million.

A more conservative return (e.g., 6%) would yield around $1.09 million, while a higher return (e.g., 10%) could reach about $2.23 million.
So you know many 17 year olds who make even $33,000?

Looking forward you are putting a lot of trust into AI and the markets to assume 10% every year for the next 40 years to achieve the first multi million.

And if you are right, if the 17 year old starts at $33,000, and if the market increases by 10% for every year from now until 2058 then he will have $2M in the account with the buying power of $700,000. Not bad, but hardly a large nest egg.
__________________
Why do people insist on making claims without looking them up first, do they really think no one will check? Proof by emphatic assertion rarely works.
Confirmation bias is real; I can find any number of articles that say so.


Victor, NY - Randallstown, MD - Yakima, WA - Stevensville, MD - Village of Hillsborough