[randomdata]

You don't even need a fancy startup. Interest rates are quite low right now, which makes saving more difficult. But if we assume an average 5%, saving just $6,000 per year once you reach normal working age doing a regular old job will find you with well over $1.2M by the time you retire.

$6,000 is a lot of money, but it's not that much money. An iPhone, for example, costs approximately $2000-3000 by the time it is all said and done and I see a lot of them out on the street in the hands of normal Americans.

With enough time, $1.2M can be made with a regular job. Nobody said you had to be in the 1% of net worth holders by the time you turn 25, or it doesn't count.

[sbov]

The top 1% won't be $1.2M by the time I retire. For your comparison to be valid go ask someone who was born in the 40's how easy it would have been for them to save $6,000/year.

[randomdata]

A fair point. I was really just attempting to illustrate how $1.2M is not that difficult to acquire.

I admit, I come with a biased perspective. Everyone I know born in the 40s were farmers. They all pretty much lived a life of poverty, putting all their income into appreciating assets. They're now all sitting on multi-million dollar fortunes.

Assuming you are in the mid-to-high end earning range of the 99%ers, if you want to live a life of poverty, there's a good chance you'll make the 1% list someday too.

That's the problem with blanket statements. I would think someone who made their millions through questionable banking tricks is quite a bit different to the poor dirt farmer who sold his farm at retirement, no?

[Klinky]

The article suggests $300K - $400K income and $1.2M in wealth. As far as being in the 1% when you retire, $1.2M now is not the same as $1.2M in 40 years. I doubt $1.2M will put you in the 1% 40 years from now given inflation & cost of living changes.

[gburt]

Two mistakes.

1. Time value of money. $1.2 million in 40 years will be about $2.65 million then, assuming 2% inflation.

2. 5% average savings. As far as I can tell, interest rates are no longer exceeding inflation, and haven't been for quite a long time in market-time. I would count on your interest to barely have you breaking even, all in, unless you're taking risks with the money.