On a long run Equities pay off

[eta2020]

401k Millionaires:
401(k) Millionaires: The Numbers Have Doubled In Just Two Years
Average age 60.
Average equities exposure 72%.
I would assume at age 50 they are maybe 90% in equities.

 

[UnrealizedPotential]

401k Millionaires:
401(k) Millionaires: The Numbers Have Doubled In Just Two Years
Average age 60.
Average equities exposure 72%.
I would assume at age 50 they are maybe 90% in equities.

Interesting article. Of course the hard part is staying at a job you don't like until you are 60. I suspect most Americans will not see millionaire status because the wear and tear of the job gets to them long before age 60.

 

[frayne]

Glanced at the article and saw nothing about staying debt free and living within or below your means. Other than that pretty good advice for folks starting out.

 

[Chuckanut]

The biggest problem I have seen for people who follow this good advice, is that they lose their job in their 50's, still have huge expenses, and end up nuking their savings in order to survive until SS age begins. Age discrimination is real, laws or no laws.

Thus, I must agree with those who emphasize that LBYM and keeping expenses low is also important. Job loss in one's 50's can nuke a retirement plan very quickly if one is not prepared with a 'Plan B'.

 

[eta2020]

The biggest problem I have seen for people who follow this good advice, is that they lose their job in their 50's, still have huge expenses, and end up nuking their savings in order to survive until SS age begins. Age discrimination is real, laws or no laws.

Thus, I must agree with those who emphasize that LBYM and keeping expenses low is also important. Job loss in one's 50's can nuke a retirement plan very quickly if one is not prepared with a 'Plan B'.

You should be prepared that you will loose a job by the time you are in your 50s.
I don't think being 90% in equities has any relation to that.