The average person has seen their real net worth decline over the past two decades. Despite record level intervention by both the central banks and governments, the average person has not seen the benefits of a devalued currency. Those who are in the 1% and higher group have seen much of the wealth transferred to them. This goes beyond a timeframe that most investors look to. Beyond just the 10 year timeline. This isn’t a 401k type investor either. When you look at the massive financial corporations, where money has moved to and from, you see a massively different strategy than what the average household is doing and of course, for most people an upcoming recession will result in the evisceration of their retirement accounts and leave them with nothing.
The 'average person' is a just a useful idiot that provides assets to the banks and financial institutions. Useful idiots that have no assets will provide forward income in exchange for credit, or they will obtain gov cash to hand over to other idiots that got credit and now land lord over them. They are already suffering. Maximum indebtedness is their fate. US household net worth will continue to trend lower in global rankings. These people have competitively indebted themselves because they believe in the boomer buy and hold RE story. Pure ignorance. Even if the valuations crater in a recession, they wouldn't have the balls to sell. Worst case scenario, US recession causes defaults and then fed rains money for a refi bonanza. Congress could even get in their and backstop something. The banks will just keep doing share buybacks. Multinationals are well positioned. They are milking the US consumer with record low effective tax rates. They will keep a lid on real wages.
%% Good question; dont be average. Stocks+ ETFs have done fine, YTD, past month, 10 years, 20 years, 200+ years.........................................................................................................................................................................................
I have ~35 years or so before I'll be eligible for social security. I figure if the boomers don't get us, global warming will. I have no plans to retire. Just not in the cards for anyone born after 1970. I still sack away enough money for a retirement (~22% of net) but I seriously have no real expectation of being able to actually retire. I'm one of the few (and I mean few) millennials actually capable of saving enough to retire and I still have zero hope for it. So that leaves only one question - who cares? Just wait until the boomers start drawing on their retirements and the PPT comes in to keep the market up. If you want to see 0% returns for the next decade - that will be when it'll happen.
That is a cowpie answer. Many ready-to retirees were placed on standby, postponed, and even cancelled in the 2007-09 debacle. Some "prepared" all their lives. And while "some" investments (you mention equity only) do well over measured periods, failing to take the stuffed animal at intervals is a failed strategy. IOW, buy and hold forever (or until needed) is proven not to work the closer one is to retirement.
Sad but indeed true... https://www.cnbc.com/2019/10/09/i-c...-is-main-reason-seniors-continue-to-work.html
%% OK. Since when has poor planning ever paid off?? Some panic sold in 2008 also. Sure it can work ,closer to age 65, just dont do poor planning ; or overweight stocks/ETFs which maybe what you implied...........................................................................................Thanks
Actually it is the low/zero/negative global interest rate environment that is the problem. Promises made based on impossible returns. The search for yield, risk on, risk off trades, hell... have you paid attention to GE this week... all about pensions. And how about UAW... pensions and job security are the deal breakers. And then there is the municipalities: police, fire, etc... looking for a single reason for civil war, there it is... us taxpayers vs public pensioners.