What percentage of your income should be sent directly to savings/retirement accounts?
I have read 10% at the least. I have read 20% at the least.
And I have seen charts like this.
What would /biz/ say is the accurate percentage to put back?
What is this chart explaining? I don't get it.
>>1021897
Retirement age. at a 4% yield.
>>1022013
chinese bro?
>>1022020
lol
idk who you are, or if there is more than one of you, but this shit cracks me up
lol if you're 18 and you saved 95% of your income for a year you can retire
>>1023516
kek
>>1023516
That assumes you can live off the 5% you don't save and your spending doesn't increase
>>1023704
>25
>If I save 50% of income, I can "retire" at 43, sustaining my frugal meagre existence.
>ASSUMING the stock market doesn't fart big time somewhere inbetween the current moment in time and the time I die.
Life is hard.
May as well be wage slave and #yolo out.
>>1023747
>May as well be wage slave and #yolo out.
Well it all depends on what you value in life
I consider free time to be worth its weight in gold. Stress kills, buddy
>>1021735
whats the point of money if not to spend it?
>>1023817
Whats the point of posting in this board if you like "makin it rain" my colored friend? Why don't you post on instagram instead?
>>1023817
The point of money is to get more money until you have enough to retire
>>1023830
what's the point of retiring when you're old and frail?
>>1023851
Poor, inactive people with no future are old and frail. Life doesn't stop because your knees are a bit sore or hands hurt from decades of labor.
You have 2 choices:
a) Spend it up in your youth. Piss it away on "living life to the fullest". Aka get shitfaced in hostels, buy crap you don't need, collect a lifetime of debt and form short-term bonds with people who couldn't care less if you lived or died. Proceed to die in a pool of your own piss while your cat eats your face with all those "fun time" memories corroded behind the pain and suffering bought on by decades of poor medical care and neglect. If you're lucky. More likely dementia will rob you of your past much like you robbed yourself of your future.
or
b) Exploit the vigor of youth. Work hard, save and invest harder. Exploit the virtue of compounding interest and build a solid retirement fund that will sustain you comfortably from your 50s onwards. Enjoy the fruits of your labor for decades with the sound body and mind that quality health care and solid financial security afford. Leave this mortal coil with enough left over to pass down to your progeny so they too can build their base wealth. With the leg-up you afforded them they can continue a legacy that will result in a lineage of old money and opportunity not available to most.
>>1024333
> b) Work hard and save all your money just to get cancer and die without enjoying any of your life.
>>1024361
>work hard and save all your money.
>get cancer, have 1 year to live
>live more in 1 year than you did all your life because you have the funds to
or
>save nothing
>get cancer
>die a slow, miserable, empty death. Regret and faded memories of better times your only company.
Alternatively scenario
>Work hard and save all your money
>Don't get cancer
>live more in later life
or
>save nothing
>die a slow, miserable death
Outcomes are the same regardless of fate. Worry about what you can control.
>>1022013
Are you a chinaman?
>>1022013
For some reason when I this tripfag I imagine hiroshima's picture that is stickied on /biz/
>>1022013
Are you chinese?
>>1023851
You work until your brain and body don't function well enough to do your job anymore. The retirement money is so you can pay your bills while waiting for death without being a burden on others.
>>1021735
Thier is no " right" number, becuse it's so dependant on future variables and personal stuff. All that being said. The total needs be at least 12 or 14 percent total ( including an employer match) to maintain current lifestyle in retirement. Could be a little less if you invest really well, could be more if inflation projections are wrong or if you don't have good spending habbits.
The earlier you start, the more forgiving the math.
>source
I am a boring retirement investment faggot sitting at my office hating life
>>1025763
Edit:
That should have said 12-14 percent MINIMUM
>>1021735
Well, according to this, I'll likely be dead before I can retire. So is saving really even worth it then...
>>1022013
>4% yield
Year over year for the big indices since their inception is ~7%
You should do the math a bit conservative, but you can save less and retire early if you stay frugal and make decent money.
Personally I have no problem working, but having enough money to fall back on it shit goes sideways is nice.
>>1024361
this, the way of my father
>>1023704
>make $20,000 age 19
>save 95% of your income ($19k)
>live on the other $1,000 for a year
>even if you did that for the rest of your life, it would run out age 38.
>>1025855
if it's impossible for you to retire, then don't save for retirement, but for emergencies. Saving will still be helpful and your circumstances may change for the better in the future.
>>1025884
how could you ever run out of money if you're saving 19k and spending only 1k each year??? Are you doing money laundering in some step?
>>1025942
the charts indicate that he could retire after one year, so he's not saving 19k each year, just the first, then living off returns of his investments.
he neglected to calculate the theoretical 4% return, but since you'd still withdrawing more than accumulates, his point still stands.
it will run out pretty quick.
