#retirement-savings

#retirement-savings

The entrepreneur said that within just a few years, we will live in a world marked by a great surplus, where "better medical care than anyone has today" will be "available for everyone within five years." He also said that there will be "no scarcity of goods and services" and you'll be able to learn anything you want. Musk continued, explaining that there will be such a surplus that life will no longer require people to save in order to ensure they are taken care of later on.

Musk envisions a future of unprecedented productivity, where advances in artificial intelligence, energy and robotics produce economic abundance and even a so-called universal high income that might make long-term savings unnecessary, Business Insider reported. The good future is anyone can have whatever stuff they want, Musk said. That would mean better medical care than anyone has today, available for everyone within five years.

Assuming that you follow the 4% rule, which is a common method of deciding on a safe withdrawal rate, you would be able to access 4% of your $250K in year one of retirement and then adjust up for inflation - and you could do this without running a huge risk of draining your accounts. This would mean you'd have around $10,000 in income from your retirement investment accounts.

But still, if you're retiring with $3 million, you're clearly well ahead of your peers. A $3 million nest egg gives you the leeway to spend money on the things you've always wanted to do - especially if you're also getting a generous monthly Social Security check. Still, a $3 million nest egg needs to be managed carefully. You don't want to blow that money or risk running out of savings in your lifetime.

I think it's worth starting with a few assumptions people make and treat like they're facts. Just because some guy on the internet, or your dad, or even me, your trusted Money Changes Everything writer says something with confidence does not make it a universal fact. Unfortunately, you have to interrogate the platitude, compare it to your actual life, then decide whether it applies to you at all. One person's platitude is another person's bullshit.

Life expectancy is high; if you retire at 65, you're going to need to fund potentially decades of living expenses. A great many people underestimate how much they need to accumulate in a 401(k) or an IRA to fund a retirement of that length. People also tend to have smaller families and fewer people to rely on. But there's also a challenge that comes from the complexity of the financial system itself.

But you still have plenty of time to make up for it, especially if you're under 40. In fact, one of the top ways most Americans become millionaires by retirement is by consistently contributing to retirement accounts. According to a Fidelity survey, for example, there are more 401(k) millionaires on its platform than ever before.

What if your parents have no retirement savings? This is an issue that a Reddit user is currently dealing with. His parents are Baby Boomers who, he says, exhausted their funds five years ago - although they only told him when they were on the brink of homelessness. Because of health problems and age-related constraints that make work impossible, the user stepped in to support them and to manage their finances.

Seniors in 41 states are projected to have more expenses than income during their golden years, putting them at risk for outliving their retirement savings, according to a new study by Seniorly, an assisted living online marketplace. The amount they're missing, on average, over the course of their retirement years: $115,000. RELATED: Leaving California: Where's the best state to move to in 2025? In California, the gap between projected income and expenses for retirees is far higher: $337,000. Along with the Golden State, three other states New York, Hawaii and Alaska have the nation's highest retirement gaps, where people's income likely can't keep up with expenses.

Private credit allows investors to lend money to private companies rather than buying stock, offering high risk and high reward, often independent of the stock market.

President Trump is making moves to ease regulations on using retirement savings for investments in cryptocurrencies, private equity, and other non-traditional assets.

The federal government aims to encourage school children in Germany to think about saving for retirement from an early age through an early start pension initiative.

When Rivera started her second role in 2020, her pay increased to about $100,000 from roughly $60,000. Additionally, when she accepted the extra position, she initially worked 80-hour weeks but has since scaled back to about 60 hours.

When faced with rising rent and mounting debt, the temptation to dip into a 401(k) to buy a home can be strong, but personal finance expert Dave Ramsey warns against it.