tag:blogger.com,1999:blog-17478547.post1225002804755303116..comments2024-03-27T20:17:30.597+08:00Comments on Growing your tree of prosperity: [iFast TV] Unconventional Financial Tips You Don't Hear About EverydayChristopher Ng Wai Chunghttp://www.blogger.com/profile/15534057160494859977noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-17478547.post-41306581632037460062021-12-21T13:20:41.674+08:002021-12-21T13:20:41.674+08:00This must be seen with a US context.
In the US, f...This must be seen with a US context.<br /><br />In the US, for the typical worker, saving just 10% of take home pay is almost impossible. It's just the mentality & culture there. With a low proportion of saving & investing, hitting $1M after 35 years of work is already a stretch target.<br /><br />Even accounting for DPS growth, the average US stock is still relatively low-yielding. So if the retirement pot is just $1M, there's high probability of having to draw down capital to fund retirement.<br /><br />Ditto culture for consumption smoothing.<br /><br />I mean in the US, over 20% of 65+ are still paying a mortgage. And a larger % are still renting and not owning a home. It's perfectly ok for them as long as they're happy with their lifestyle, and the total of their 401Ks, IRAs, cash investments, and Social Security are enough to service it.<br /><br />In East Asian context where saving 20% of take home pay is considered the minimum, aiming for perpetual dividend or rental machine is more mainstream.Unknownhttps://www.blogger.com/profile/02938450718690565242noreply@blogger.com