According to a 2017 Gallup poll, 54% of Americans held direct (stocks) or indirect (mutual funds, ETFs, warrants, etc.) equity ownership. And while that's down about 8% from before the financial crisis, it's still a majority.
What you
need to retire has a lot to do with lifestyle and health. But $1 million is a common figure that's thrown around in many studies. The trap that many people fall into is sacrificing their financial futures for current "wants".
Investing is all about
time in the market, not
timing the market (unless you're a trader - and most people shouldn't try that). I can't guarantee anyone that their stocks, mutual funds or ETFs will appreciate over time, although history suggests that a well diversified equity based portfolio will appreciate over time. But I can guarantee that the new car that they
want will depreciate significantly the second that it leaves the dealer's lot. Americans of recent generations have bought into the
keeping up with the Joneses,
gotta have it now mentality. And the dollars that they spend now (even if it's cash) cannot be invested for the future. And it gets even worse for those who take on debt to get their "must have" toys. Are there cases where people have medical bills or go through a divorce/life changing event? Sure, but that's a different situation. Excluding mortgage, medical, student debt, cars and other revolving debt, Americans still had $5,673 per U.S. adult with a credit card. And the average credit card APR is 16.91%. Even a 10% annual yield is a great investment. But the people who sell their souls to the revolving debt devil are going even that much more in the wrong direction. The only thing that
guarantees failure is not trying. And not investing in the available equity based programs and vehicles is most certainly a form of not trying.
It reminds me of the late, great Tom Petty's lyric in All or Nothing:
"I don't mind working, but I'm scared to suffer…"
Most of the millionaires that I know, you'd never know that they were worth some money by looking at them. But the poor, dumb bastards driving BMWs and such (the ones that you *think* have money), they're the ones who depend on Amex and Visa to buy Christmas present.
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Capitalism is the exploitation of men by men
Socialism is the opposite
The opposite? Uh, the exploitation by men of men? Yeah, OK... I'm with ya.
Wishing for a centralized nanny (state) that will make everything "fair". If we some day have some kind of AI based super computer that will control everything and not be susceptible to human frailties, perhaps that'll work. Otherwise, nah.
Humans be humans. It's a nice ***** though.
