[ams6110]

It's also remarkable how efficient it is at creating wealth for people willing to forego some immediate gratification.

My parents had over $1 million saved when they retired, and had never earned 6 figures in a year, combined. How? Investing a little every month in index funds in an IRA. Aside from that they also put two kids through college.

But yes, if you decide to spend every dollar you earn, capitalism will happily accomodate you.

[LaurensBER]

Do note, dollar.

In Europe the tax system works very different, e.g in The Netherlands they would tax you ~1.2% on the return of your stock investment tax plus the other taxes that you would pay means that for middle class incomes saving 1 million is basically impossible.

I assume that GB works exactly the same.

[petercooper]

Not really. In the UK we have "ISA" accounts which let you invest something like £20K per year at the moment and all gains are tax free. So after ten years you could have a £200K+ portfolio earning whatever. Except most people don't have £20K a year to invest, of course..

[ionised]

The point is, most of the struggling working class do not have the spare cash to invest in anything.

[_joel]

Completely this, if you have nothing.. then how do you begin to save?