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America is minting more millionaire retirees than ever
Old 05-03-2018, 05:21 PM   #1
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America is minting more millionaire retirees than ever

Interesting article from Bloomberg


https://www.bloomberg.com/news/artic...rees-than-ever
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Old 05-03-2018, 06:03 PM   #2
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Their average wealth has risen more than 100 percent since 1989, to $752,000, and the share of those who are millionaires has doubled.
from the linked article.

So "wealth" doubled in about 30 years. So roughly 2.34% compounded annually. What is the total inflation in 30 years. And they not that housing is a big part.

a million is not what it use to be.
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Old 05-03-2018, 06:08 PM   #3
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Originally Posted by bingybear View Post
... What is the total inflation in 30 years. ...
The number I remember is 2.8%. Past 50 years: 4.5%.
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Old 05-03-2018, 06:15 PM   #4
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There's a reason many "news" sources don't allow comments on their articles. Meaningless fluff.
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Old 05-03-2018, 06:40 PM   #5
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Old 05-03-2018, 06:41 PM   #6
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Originally Posted by OldShooter View Post
The number I remember is 2.8%. Past 50 years: 4.5%.
Mine was meaning that 2.34% compounded annually for 30 years approximately doubles the original amount.

With your inflation number it seems we are loosing ground
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Old 05-03-2018, 07:53 PM   #7
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More digital bird cage lining. The previous generation sat around the radio listening to Orsen Wells, Mitch Miller, Dragnet, etc. I often have the TV on while doing other stuff. Actually watching TV - - - maybe few hours a week.

They were also kind enough to die around 67 so as to not burden SSI inordinately. As for me, I hope to bleed SSI until its white.
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Old 05-03-2018, 09:31 PM   #8
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It seemed I have read many different times that there has been a decline in millionaires. I'm happy for all who can accomplish FI and or retire wealthy.
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Old 05-03-2018, 09:36 PM   #9
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What did you find interesting about it?

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Old 05-03-2018, 10:21 PM   #10
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What did you find interesting about it?

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How little TV people are watching according to the article. Three hours per day with all the binge watching on Netfix. It's not possible. Not with series such as Breaking Bad, Better Call Saul, and the Walking Dead.
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Old 05-03-2018, 10:27 PM   #11
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The chart in the article shows that in 2016, the mean wealth of retirees was $750K, and the median wealth was just $200K.

Most posters here have several times the above numbers.

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Old 05-03-2018, 10:50 PM   #12
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I think that Figure 3 shows that the rich got richer, everyone else - not so much (since 2004 at least - the amounts are inflation adjusted).
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Old 05-03-2018, 10:54 PM   #13
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The chart in the article shows that in 2016, the mean wealth of retirees was $750K, and the median wealth was just $200K.

Most posters here have several times the above numbers.

One would expect early retirees to have accumulated much more than the mean and median retirement population. The data is skewed by the 5/6 that have not saved as much for retirement.
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Old 05-03-2018, 10:56 PM   #14
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I think that Figure 3 shows that the rich got richer, everyone else - not so much (since 2004 at least - the amounts are inflation adjusted).

Looking closely, I see that the median wealth was at the same $200K in 2004, 2010, and 2016.

However, the mean wealth which is affected more by richer people showed a decline from 2004 to 2010, then an increase in 2016.

One explanation for that is well-to-do retirees having more exposure to equities, and their wealth varies with the stock market.
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Old 05-03-2018, 11:53 PM   #15
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Also the wealthy own their homes - major meltdown in 2007 on that front as well. If one owns a home in certain areas, one is a millionaire or well on the way! My mother is a millionaire by virtue of owning a modest home in a major metro area.
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Old 05-04-2018, 03:39 AM   #16
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Also the wealthy own their homes - major meltdown in 2007 on that front as well. If one owns a home in certain areas, one is a millionaire or well on the way! My mother is a millionaire by virtue of owning a modest home in a major metro area.
Yeah, the term house poor is hitting my DM now. With limited income and ever rising property taxes and maintenance, net worth that includes a primary residence is a very misleading statistic. At age 88 her only option now is to move. And forget about a reverse mortgage if assisted living is even remotely in the picture.

Liquid assets and cash flow are where it's at.
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Old 05-04-2018, 04:52 AM   #17
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This was interesting though not suprising to me. I’m down to watching PBS Newshour and little else for news. More and more cable news is partisan garbage these days.
Quote:
The average retired 60-year-old now watches television almost three hours every day. The increases were largest in high-income, highly educated households, which experienced a 78 percent rise in couch time since 1975, versus 43 percent for lower-income households.

Retirees may not be learning much from their viewing habits, the report suggests. It cited 2016 Pew Research Center data showing that more than 55 percent of households older than age 65 watch cable news programs, and it noted that “one multi-country study found that public broadcast news (such as PBS) increased political knowledge, while cable news actually reduced knowledge that people have about actual events.”
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Old 05-04-2018, 06:47 AM   #18
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Originally Posted by bingybear View Post
from the linked article.

So "wealth" doubled in about 30 years. So roughly 2.34% compounded annually. What is the total inflation in 30 years. And they not that housing is a big part.

a million is not what it use to be.
Anyone remember when $10,000 a year was considered executive pay?
Main lesson for me: Forget about brokerage fees, inflation is the biggest risk to a 30-40 year retirement.
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Old 05-04-2018, 08:02 AM   #19
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Main lesson for me: Forget about brokerage fees, inflation is the biggest risk to a 30-40 year retirement.
Inflation is a big bogey, but brokerage fees could be a significant reason a portfolio doesn’t keep up with inflation, so I wouldn’t forget about brokerage fees. Portfolio returns can easily be reduced by 1% or more compounded with higher fees.
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Old 05-04-2018, 09:41 AM   #20
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Inflation is a big bogey, but brokerage fees could be a significant reason a portfolio doesn’t keep up with inflation, so I wouldn’t forget about brokerage fees. Portfolio returns can easily be reduced by 1% or more compounded with higher fees.
Agreed. It was more of a figure of speech than to be taken literally.
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