As the costs of everything from housing to healthcare increase, the amount needed for retirement rises comparably. This presents a significant problem to anyone below the upper class benchmark, with standard of living almost invariably dropping post-retirement due to inadequate resources.
Many middle- and lower-class retirees find they cannot retire at all, instead maintaining regular employment until physically no longer able to do so. Social Security’s insufficiencies have been well documented, as well as the disability payments many retirees have the mixed blessing to receive. 401k plans and funds already in investment portfolios often fall far short of subsistence level income once the consistent paycheck has evaporated.
For individuals who haven’t yet reached the corporate standard retirement age of 65, there’s hope yet. As with most investment strategies, the key lies with investing early and investing often, even if the frequent investments comprise relatively small sums, even pennies a day. With steady, regular investments from early on, achieving millionaire status by retirement becomes relatively easy. Compound interest and the historical predictability of the overall market work together to turn a few dollars now into a viable retirement fund in the future.
Here’s what Charlie Munger had to say at the Daily Journal meeting
Charlie Munger spoke at the Daily Journal Corporation's Annual Meeting of Shareholders today. Although Warren Buffett is the more well-known Berkshire Hathaway chief, Munger has been at his side through much of his investing career. Q4 2020 hedge fund letters, conferences and more Charlie Munger's speech at the Daily Journal meeting was live-streamed on Yahoo Read More
Not everyone was made aware of the importance of such early investments soon enough in their lives for it to be valuable, but even many older workers still stand in a position where a millionaire retirement lies within of the realm of possibility. The amount needed to invest regularly goes up significantly over time, but the amount remains attainable by anyone of even relatively modest means until quite late in the game.
While countless variables across the investment field, and the age of a worker when they begin investing, both heavily influence the investment required to achieve millionaire status by age 65, the infographic here shows the daily dollars necessary for a comfortable retirement, depending on an individual’s standard of living.
Here’s How Much You Need To Save Each Day To Become A Millionaire