If you are a young person right now who aims to have $1 million in your bank account by the time you retire then here is something that will dampen your day: the $1 million figure will be worth $306,000 within the next 40 years. That’s right. $1 million ain’t what it used to be, as the song goes.
A new infographic from Visual Capitalist takes a look at $1 million and provides some interesting facts: 70 percent of the wealth is gone by the second generation, nine percent of American households are millionaires and 80 percent of millionaires are college graduates
Here is the chart:
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Using an inflation calculator from 1976 to 2016 $1,000,000 lost 76.5% of its buying power, so it is going to be worse. More like $230,000.
“Is a million dollars enough to last a lifetime?”
I am 60 now and have earned only $613,000 I stopped working and in retirement I should have about an additional $700,000 spent by age 82. The age both my grandfathers died. My dad died in a car accident at age 66. So $1,000,000 is not enough.
Maybe $2,000,000 will not be enough. I lived in some much cheaper times, now I know why they call them the good old days. When I was younger they told me some day you will live your golden years, but they failed to tell me I would be doing it on copper.