While you are correct that it would require pretty above median savings, it wouldn't require anywhere near $125,000 back then. Interest is a very powerful force over 40 years.
From 1949 to 1989, the stock market averaged 7.2% annually. Saving and investing only $20,000 per year for those years would net you about $5m at the end.
Comments
While you are correct that it would require pretty above median savings, it wouldn't require anywhere near $125,000 back then. Interest is a very powerful force over 40 years.
From 1949 to 1989, the stock market averaged 7.2% annually. Saving and investing only $20,000 per year for those years would net you about $5m at the end.
$20k was very good money from 1949 into the 1970s.
The BLS CPI calculator puts $20k in 1949 at $198,565.55 today.