The average 40 year old has $63,000 in savings

Maybe we can forgive student loans with the condition being that the degree that was fraudulently awarded is now rescinded. I think that's a fair enough deal, right? You all were tricked into purchasing what is evidently an overpriced credential so we might as well right this wrong and relieve you of the burden and cost of said credential.

Fidelity's guideline: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67

Federal min wage is $7.25 per hour. So just say your making $10 per hour that's $20,800 per year. At 3x salary then $63k is the correct # for a 40 year old.

Nope but what would you have done if your were unemployed with no job prospects and undergrad loans and rent due during a recession? I applied to at least 300 jobs in my field, cold called several offices and never heard anything back.

I've been working in IT a long time. I've had roles for years, and had no job for years. I've literally done nothing to build wealth, and will be retiring with more money than I need.

What would I have done? I would have moved somewhere not necessarily desirable, bought a cheap house, done WHATEVER job a couple years, sold the house in a good market for profit, moved up to a better place, gotten a better job, and repeated a few times.

If you think things are bad now, good thing you weren't around in the late-70s, the mid-80s, the late 00s.

You're living in the best possible time in history, and have every advantage. The world isn't out to get you, you just need to look in the mirror, look at the long game, and get to it.

Do you not know what a median is? In your example the median would be $250k not $150k.

I would say that's the average for people with steady careers and that actually have 401ks. Once you factor in homelessness, and people living pay check to pay check, the average probably drops significantly.

You're right, but all of that would have meant checking your ego in at the door. It would have required humility, sacrifice, integrity, foresight, and patience. These conversations go far beyond dollars and cents and really become a matter of values. For many millennials, their only value was entitlement. Governed by ego, they wanted the best of everything as a default. The car, parties, on campus residence, dating, drugs, etc.

I disagree. People can decide to move to cheaper location once they retire. It’s a good reason to live in HCOL for good job prospects and higher pay, but once done working, people decide to move to cheaper locations all of the time. Like in Florida. Although, Florida has gotten more expensive.

I’ve been living in HCOL area with good income and also seeing my house appreciate at faster rate over the last 8 years compared to LCOL. My net worth has probably accelerated much faster than people I know from where i grew up in the midwest. I don’t know for sure, but I’m pretty certain. But once I’m ready to retire after building up my net worth, I’ll probably move to somewhere that’s lower cost. Or, if my net worth accelerate fast enough, I may be able to retire without moving. We’ll see but having higher net worth definitely gives you options.

Not quite. Example: 100 people, 60 of them have an average of $250k. Of those 60, 59 have $1 and one has millions. The median would be $1 but the average $250k.

Millennials:

Watched Barney. Parents took them to see Barney. We're all okay, we're all wonderful. Everyone must win. Everyone wins!

Go figure.

I'm not sure what's stranger -- that the average 40 yr old actually has that much saved or that people think this is a good amount for someone that age.

I didn't have any money to buy a house two years out of school. I'm doing fine now, didn't say the world was out to get me. I just find it laughable when boomers say millennials had it easier. How many households have one working spouse and one stay at home parent with 2+ kids today? When I was a kid, that was the norm.

On campus residence was required for the first two years, I moved off campus the last two years. Drove a 2k beater that I paid cash for. Didn't party or do drugs. I dated though, don't see anything wrong with that.

the 'one working spouse used to be enough' is mostly a myth. It's mostly television that makes people believe it and maybe for a brief midcentury period for upper middle class white families. Otherwise both spouses have generally worked through history.

I stand by saying that no generation has had it as good as millennials. You personally are an exception, but most millennials have no idea what a bad economy is like. For 15 years if you've wanted a job you've got a job and your wages have just gone higher and higher. Didn't used to be like that. When I got out of college in the late 80s the talk was companies downsizing - shrinking their workforces. Forever, we all were told. I went to one of the best colleges in the world and corporate recruiting was a joke - we were told that unless we were econ majors who wanted wall street jobs, forget it. no company would hire us. And we were the elite. For 14 years now companies have been begging undergrads to work for them. Completely better now.

Sadly, though, I don't think millennials are faring quite so well in other terms. And a few that come to mind would be cost to buy a home or rent, access to many social services, inheriting huge govt. debt load, inheriting environmental conditions that spell disaster, and the list goes on. Add a livable wage as the norm, especially at the low end of the scale to that list as well.

* the increased cost of an education - add that to the list.

My entire childhood neighborhood had one working spouse. It was not an upper class white family area. It was mostly Mexican (Imperial Valley CA) with new home prices in the 70k range. Today the houses are 600k+.

Actual American 40yo here.
Born to HS grads.
Never saw father after 10yo.
Raised by single mother.
No inheritance.
Track scholarship for undergrad.
$160k student loans for professional school (paid in full).
$1.5M between IRAs and taxable.
$300k in 529s.
$750k in private equity venture.
$3M paid off primary residence.
$800k vacation rental ($250k mortgage).
Feels good to write it out.
Work hard and give thanks every day, and marry a good woman or none at all.

Congratulations. My situation is very similar which is why I do not understand the stats.