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Comment by sidlls | Hacker News Reader

All these replies with the typical 7% return for 20-30 years calculations are missing the point. I know what the arithmetic is. It is not common to be in a position to do that, even in the software industry.

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Software Developer Median Salary (2020): $110,140 per year

That sounds like a lot of software developers are in a position to put away $10k+/year to me.

Source: BLS, https://www.bls.gov/ooh/computer-and-information-technology/...

That doesn't account for the events of life, like illness, maintenance on vehicles and property, etc.

If you start maxing out retirements in your first job and continue to do so throughout your career, raises will be raises and you'll continue to save. If you tap into your max savings per year in start of your career, you'll have trouble pairing that income back and putting it away for savings. Max out your retirement funds early and never look back.

That's all great until you have to use your retirement funds for medical emergencies.

Life can add obstacles, not sure that's basis to dismiss the point.

The fact that over 80% of individuals don’t even have $1MM in assets certainly is a basis to dismiss the point. “It’s possible” is technically correct (no, that’s not the best kind of correct), but leaves out just a ton of context. “It’s possible” for a Boltzmann brain to form. Doesn’t mean it’s likely, common, or that people who don’t achieve it have somehow done something wrong.

How does the percentage of those with 1MM in assets relate to whether or not you should prioritize savings?

Are you suggesting individuals should not be saving for retirement or long term financial well being? If so I'm not sure I have anything to offer to you.

Who has $19k plus another $6k to put away every year to max retire accounts?

I can only speak for myself. I do and I know lots of friends who do as well. I made 42k when I finished undergrad and have always maxed out my available tax beneficial savings (401k/403b/IRAs). Doing anything else would be negligent on my ability to prepare for my future where I would like to retire and not rely on social security, children or other programs.

Where were you living and when was that? My starting salary about $15k higher than that, but I still couldn't max out. Rent, insurances, car payment (eventually), food, taxes, etc really eat a big chunk. I always tried to save a lot, but it was probably only $14k per year (IRA + 401k). I'd say I'm still only around that because I now have a family to support and medical bills.

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