What about the ones that can’t afford to save for retirement? That sounds like a “leading indicator of economic stress” too.
I was self-employed for 10 years. I was also unemployed for about 5 years. What retirement savings?
You too huh.
It could just be an indication of the stupidly high housing prices right now. I bet most people borrowing from their 401(k)s are using it for a down payment.
That’s why I borrowed from my 401k 8 years ago. I only have $70k in my 401k now. I didn’t borrow that much, but I’m 57. I was a terrible saver.
My brother in law took out 200k from his 401k to put a down payment on a $1.2mil USD house (in 2023) that sold for 600k in 2019, is currently assessed at $650k, and is surrounded by houses currently for sale under $700k.
His intention was to pay back once he sold his previous house, but he found out nothing the previous owner (of his old house) did had permits, and the entire house (including his own kitchen remodel by an unlicensed contractor ) was not up to code.
So he had to sell the old house “as is” or he wouldn’t be able to pay the first mortgage payment on his new house that’s over $8,000/m.
What a moron.
I am nearing ( < 10 years) a planned retirement and because of the articles I read/click on I end up seeing lots of stories like this.
I see both extremes, “I’m 55 and have 4 million in my 401k, can I retire?” as well as medium 401k by age showing like 55yo with 80k in retirement savings.
I get more stories talking about or showing how bad average Americans are doing from a savings/living perspective. Yet, I see new cars and big ass houses everywhere. Big ass GMC and Cadillac Denali SUVs, Tesla’s, all manor if expensive vehicles and fancy new houses. Everyone has the latest iPhone, etc…
I guess debt is a helluva thing.
So you see a Tesla driving down the road and suddenly everyone is doing fine?
Some people are doing better than others. A lot of the shitboxes of people who aren’t doing fine are driving aren’t anywhere near as noticeable.
I think they’re saying that these “nice things” are purchased with more debt.
Ah, so instead of “Some people are doing fine, thus everyone is doing fine” it’s “some people have poor money management skills, thus everyone has poor money management skills”.
Either way it’s a pointless generalization based on personal bias.
Not “a” Tesla,
I’m saying I’m driving around in one of two paid off vehicles (wife’s or mine) the newest is 2011.
Whenever we go anywhere, generally most other cars are newer/nicer.
I see a ton of Teslas. I see a ton of Denali’s I see a ton of Mercedes SUVs
Just saw a Lucid Air driving today.
So if everyone is doing so terrible, who owns all these cars?
I’m NOT saying Americans are not doing terrible… But externally people seem to be able to buy new vehicles,. Houses are easier to be bias since those are where you are physically, but there’s no shortage of big new houses being built. I’m just always amazed at the difference in what I HEAR and what I SEE. Around me. I live in a semi rural area in Indiana.
It’s ok, 8 people get to live like gods so it’s allllll worth it
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If you havent been taking 100% of your 401k to gamble in short term S&P options these last 3 years then you are a chump
