Quote:
Originally Posted by Rainger99
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.
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When you remove 7% from the "average income" then the net income becomes lower than average.
Meanwhile, MY average income from the time I was 16 until my retirement in 2020 was around $20,000/year. When I was 20 years old, $20k/year was a pretty decent living, the cost of living was low, I could rent a studio apartment on Beacon Hill in Boston for only $400/month including heat and hot water. That same studio was most recently rented for $2100/month. So no, $20,000 wouldn't work to cover the cost of living today. But it absolutely did in the early 1980's.
Eventually I discovered I wasn't cut out for full time work. I'm not disabled, since if I was disabled, I wouldn't be able to work at all. But I am autistic and have ADD, and working a normal full-time job has never been in the cards for me. It took me years to realize this. I worked sometimes 3 jobs every week, averaging more than 40 hours a week, but had to pay for my health insurance out of pocket, because all of the jobs were part-time jobs that didn't come with any benefits at all. I was actually the highest paid and most-assigned Kelly Girl for 7 years, getting my pick of temp jobs because I was so good with typing and data entry. I just couldn't deal with 8 hours a day, 5 days a week, at the same office for more than a few months before I'd burn out.
Everyone here is so quick to judge - to say "oh just work harder" or "oh just save better" or "oh get a better job" but that only works if you're ABLE to do all those things. When you're only earning part-time wages, and have to pay the bills, and are not CAPABLE of doing more, then it's pretty hurtful to constantly hear that you're not doing it right, or doing enough.
If you're capable of work, you're not allowed to be "disabled." Even if the work you're capable of doing is short-term, or part-time, or low-wage. You can work? Great. You can't get disability benefits. You can't work a long-term full time job or have a long-term career? Sucks to be you. That's how this system operates.