Pocketbook Review
In early November 2021 I wrote a post on how much money an average person need at retirement in the US, to have an average life, at an average place. Note my use (overuse) of the word average. That post got a lot of good discussions, more than most of my usual posts. In that post I have argued that it is possible to retire with $1M saving (plus social security) at most parts of the US. Granted you may not splurge, but you won't be uncomfortable if you have an average health.
That leads to the current infographic above. This is the current compilation of financial assets binned by age groups. There are few interesting items I observed here:
- Net worth slowly increases till 60s and then it declines slightly, not surprise there, as 60-65 is where average people are retiring and then drawing from their retirement assets in their 70s
- Average assets at retirement is about $1M. The fact that I argued in the November post
- Interestingly the demographic at 30s now have some cyrpto currency assets! Wow! Mind you, this is average. So maybe finally the mainstream is catching on.
New Trend
What I have seen personally around my bubble is during the last two years many have finally took the 'big leap'. It is different in different cases. These two years of working from home, lack of job, whatever the reason maybe, gave people time to think about their lives. People finally not only had time to think about what is important to them and plan for it, but this is for the first time people actually executed their plans. What this translates to is people did quit their 8-5 jobs to do something else that they enjoy and earn at the same time. I personally know people who actually quit their day jobs to invest in gaming VCs and plays splinterlands full-time now. I know people are doing blogging at hive as their primary source of income. No, not just in the developing world, in the US and in Europe.
This is what is getting called the 'great resignation' in the media. I am uncertain how long it will persists, but certainly it is a trend right now. If you look at these top authors in hive, you can certainly run a family at these earning at current prices.
The point is not about the top authors though. It is the next level down, perhaps the top 100 or top 200 earnings that probably will define the middle class better. Also from my personal point of view, if this distribution is slightly more squashed, I will feel a bit better. I am glad to see also that there are almost no witnesses here on this list towards the top. Almost no 'projects' except @khaleelkazi, which is a recent appearance. I think that could be just due to leo.voter (self-vote) and typical trending vote by rancho. Usually a lot of 'projects' either post rather infrequently (only posts when needed) and/or burn their hive earning (Splinterlands is an excellent example of that, which I highly appreciate personally). I have commented about this on Khal's post, and I am hoping that it can be mitigated simply. This will be better for hive investors. I also appreciate if people at least consider holding some hive powered up, which is often not the case. This should be considered a community service, which is what Hive is after all.
Thanks for sharing this (doubly) interesting analysis.
I was wondering about getting a European equivalent to the Americans' Financial Asset infography that you shared. We can of course find many things online (I have tried this obviously), but I didn't manage to find a similar breakdown in terms of age. As we have a very different health, education and pension system, we may get a potentially different outcome (in particular as European salaries are very different from US ones). Anyways, I will check that out further on Sunday, when I will have more free time.
I would also like to come back to the second part of your blog, where you mention top authors. Whereas it is definitely cool to see those stats and what some authors manage to realise (I am personally a big fan of stats, coding various things myself to generate what I want to see at my level), we must be careful about how to interpret these publicly. I am in particular always afraid about messages leading tons of newcomers to get attracted by the "write and get rich" scheme that is very bad in terms of user retention.
Anyways, cheers!
PS: My employer just went back into a "fulltime at office" mode last Monday. As was the case before 2020, home-office is allowed, but needs to be set up on a case by case basis (with everything clarified within a contract). While this is not necessarily bad or crazy, I don't see a COVID impact as I would expected to see one.
Thank you for the visit. I enjoy your posts on dark matter myself. I read you often but typically do not comment due to lack of time, but I welcome your type of content which is rather rare at hive. Scientific writing is rare and easy at the same time, but most do not practice it.
Getting back to the topic about savings are difference stages of life and retirement, I do agree it can be highly variable between countries. My experience is mostly on the US system, but the demographics of Europe fascinates me. Actually the whole 'view of life' if you will, if I can rather generalize, for the Europeans is very different from the Americans. It is also very different from the Asians (conventionally). Although we mix and merge in this age of globalization.
I suspect the aging demographics and lack of children in general will have an impact in the infrastructure of western Europe. It will be highly different among the 'new Europeans' who are immigrants.
Yes, regarding the top authors and getting paid to earn model has always been problematic and the reward and quality are both very difficult topics to discuss even after 4 plus years of blockchain for most people, and it is definitely difficult for the noobs.
I am writing this to you from work. I have never stopped coming to work. In Texas we never really had a lockdown. I live very near work, so I came to work. But it was an empty office. Just like your workplace, next week onwards, it was told that the office will be populated again! I will have to see how that goes :)
It was also great for me to pass by. I got attracted by the topic of this blog that I found interesting and deserving some discussion (I consider myself as a content consumer here, at my level of course as my time is quite limited).
Before going back to the topic, thank you for reading my texts. I am always pleased to learn that someone enjoys what I write about. Note that I would not consider scientific writing an easy task, at least if the goal is to share some current (and not necessarily click-bait) news with the general audience. The main difficulty in my case is to get the right level of complexity so that both readers can learn and understand something. I do my best, and sometimes I fail. Somehow I am here to learn as well. Interestingly enough, this helped me quite a bit to tune my speech when discussing with middle-school and high-school kids.
As a side (personal) note, I wanted to have a blog for a very long time. Having a family member well involved in Hive (actually Steem, since this was 5.5 years ago) convinced me to try this out. I hence discovered blogging and crypto all together. As you can see, I have never left (even if this family member did leave). I am currently quite excited by all new developments on chain and see this as a good investment for the future. At my level, I have my own little project (STEMsocial) that may become bigger one day if we manage to concretise all our ideas. In short, we would love to build on Hive a full science communication platform for scientists, so that we could get rid of the middlemen who mostly focus on click-bait and bizarre news and get a very nice platform were passionate could exchange with experts in a cool atmosphere.
Anyways. I will stop mumbling now. This different way of life that you mention is really interesting. I have visited many places because of my job (from the US to Asia) and the way people live is quite an interesting thing to compare. At home we often compare Europe and North America as my wife is from Quebec (which is somehow located between the US and Europe in terms of lifestyle).
Currently, Western Europe seems to move towards the American system whereas Asia (at least Japan, Korea and China that I know best) seem to follow a different and specific path. Let's focus on Europe and in particular on France (where I live for about 15 years). Here, the public system (principally education and healthcare) seems to collapse more and more, month after month, whereas the private options are getting more and more traction. On the contrary, the salaries often do not follow. This gives very weird situation that is not US-like but not Europe-like anymore.
Is it good or bad? I don't know. There are good things in the US system and good things in the European system. But there are also bad things in both (as usual there is no free lunch). What scares me is that only the worst parts seem to emerge... I see it in the context of the university, although we try to fix the issues as much as we could.
That's tricky. Europe definitely needs immigration not only because its current demographics, but both to fill low-level jobs (which most locals refuse to take) and sometimes high-level jobs (it is nice to attract good people from abroad so that we could learn from them and improve). But for many, an immigrant is an immigrant and should leave. I have myself several times been considered as a good immigrant (even if I an European). That's a really uncomfortable situation.
PS : Let's hope traveling will become easier soon. I had to cancel a trip to Japan planned for next month, and I am supposed to go to the US in 2.5 months.
I know about STEMsocial. It is quiet out there which is a shame. If anything, during this mad time of pseudoscience, and conspiracy theories, we actually need to make sure that science to speak up. As scientists (I have two masters degress and a PhD, Geology), we are often not very vocal, and introverts (I am certainly not introvert). But statistics makes generalization. Our main problem is, we often can't bring the science down to the level of the common people, and we also tend to lose engagement when our ideas do not bounce off, or met with disagreement. We just tend to move on.
But these pseudoscience morons; they have nothing to do, so they keep at it for the longest times. In the present world, whoever is loud, is actually right. Can you believe, 'alternative fact' is now an acceptable word!! Shame on us as a society!
In fact, the situation was way worst in the early days (5.5 years ago). Flat Earth and other awkward stories were trending in #science. This is how STEMsocial was born, from the frustration of real scientists on chain and passionate STEM lovers. At present, the community is somewhat calmer, but we have at least constant and regular authors writing about legit stuff (about 15-20 regulars, plus a few newcomers who may or may not stay).
I hope to be able to contribute to a change in a mid-term future, but for that we need a working app in which we can really tune what we show (the trending category) from the chain content. As the two developers (@bambukah and myself) are overwhelmed with many other things, it moves very slowly. However, I won't complain as things move! When the app will be ready, it will be time to approach those who want to attract here.
This is very true. Many people have troubles today with logic and common sense. I also see that with my students (I teach basic physics every year to classes of 60 bachelors in science), and it is worse and worse with time. We (as lecturers) are aware of the situation, but the means we have to solve it are really limited (politics quickly kicks in, and we end being stuck). The society definitely evolves in a direction I am not happy with (and I thus fully agree with you) :(
Have a nice week-end! I will discuss the job of being a physicist (that goes beyond scientific research) with high-schoolers aiming to enter university next year (it is the Doors Open Day at Sorbonne today), so that it announced to be fun.
PS: I knew about the geology degree. By the way, we have a very nice collection of minerals on site (see here; the French description being however much more detailed). I have a friend who has a degree in geology and who knew about it, which is why I am sharing this information that may interest you.
Yep. Some guys are earning some handsome rewards here. Me being not at that position but I try to save whatever I earn from my posts.
And it's good to powerup because one can also earn some good rewards while curating.
Keep at it and try engaging with the community. More people know you better it is.
Agree
It grows over time. You keep engaging, especially with the focus upon upvoting comments, and you will find your rewards grow. The tribes can be a great way to get notice. Focus upon the tribes, something like Leofinance, and become a valued part of the community.
Your rewards will end up reflecting that.
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Yep thanks
It's interesting how the financial investments have changed over time and will continue to change, mainly with crypto I mean. The great resignation is an interesting phenomenon of our time. It is clear that the world is changing. I think some of the changes will remain as well. I don't think we will go back to where we were post 2019. It will be important for companies to adapt to these times as well. I know that some are embracing the change and others are fighting it.
I support the great resignation. It is a good changing of the work-force, and also the way we work. People need to understand what financial freedom means to them and work towards it.
Agreed 👍
This is a given. One of the biggest things that happened is the shift in the workforce. The Boomer retirement accelerated with many exiting earlier than planned. This shifted the balance of power a bit back to the employees.
At the same time, people found out they enjoyed being home when their kids got home and didnt miss the commute in traffic. People become creatures of habit. This only fueled the transition.
One they go accustomed to not going into the office, that became the norm. Technology made it possible long ago but human resistance altered that. Now it is the norm for many people.
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Yeah I agree. Often we need something to disrupt the normal pattern in our lives in order for us to make changes. I think it's that way for the individual and even more so for society. It's pretty interesting times really, at least from a work and economic perspective.
We are seeing so much advancement with technology and the fact that more of the population is now technically advancement, the time to accept changes should lessen.
The younger generations grew up with change. It is the Boomers and Gen X who resist the change for the most part.
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Yeah I agree for sure. Change isn't always easy and I think it gets harder with age to as we all get set in our ways. There's probably that feeling of "I just started to figure this world out and now you want to change everything?!?!" As well.
The young generations definitely have an advantage with things changing so rapidly these days. Have you ever seen a child with an iPad scrolling through 15 second videos or watching youtube or Disney plus shows that change every 5 minutes? I think that generation is going to have a harder time focusing on things that maintain any sort of consistency than things that change haha😆.
Yeah and what is amazing is they know exactly where to go. They require very little training or do not require a course. Instead, they figure it out in short order and keep going back to it.
As more of our population is those who grew up in the age of change due to technology, this will only accelerate all that is taking place. After all, it is the old foggies who resist change that are slowing everything down.
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Yes, very true in regards to both points.
I hate the concept of retirement. I'd rather think of it as a cash flow transition. Can I work hard enough to build and allocate in my younger years that I can harvest more and more as I get older. Rather than cannibalize assets after a certain age, create something that endures. But as you implied, this ecosystem is perfect for that paradigm.
Yes, of course, Josh. I tend to agree with your view myself. I see myself slowing down already but having a whole bunch of passive income streams. That is just logical.
Hope you are doing fine!
That was less for your benefit of course! ;)
Doing well, about to make a major transition. Will chat at you soon!
Things certainly are changing a great deal. Cryptocurrency is offering a new path forward. Hive is already changing lives. As mentioned there are people living off Splinterlands.
One thing to keep in mind about the retirement discussion, which most overlook, is the fact we are in a major technological age. This means that, by definition, we are going to see deflationary forces only increasing over the next couple decades. Depending upon the time line, most will be able to retire on far less than a million dollars since they are going to see the costs of transportation, housing, and, finger crossed, healthcare all plummet as technology invades those areas.
It is the unique position where incomes can rise due to cryptocurrency and all the related tentacles while technology pushes down costs for most of the basics.
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I am glad you mentioned deflation. Just a few min back, I was casually listening to the 'inflation talk' at the 7.5% headline number reported at the market open and people are saying sky is falling!! It is to the contrary. If you look at Japan you should know what deflation does to a society. It is deflation we need to worry about not inflation (in the US at least)!
That is absolutely correct. People complain about inflation, thus believing that deflation is much preferred. They do not realize that the inventors of QE, Japan, are mired in a 25 year deflationary spiral. If Central Bank policy actually led to inflation, they should be at 80% with all they did.
We are seeing cyclical inflation due to supply chain disruption along with a bull market in commodities. However, we are in a secular deflationary cycle, one that started more than 20 years ago.
Communication, information, music, and video all deflated. We are about to see transportation, medical, upper level education, and construction experience similar paths.
The other factor is developed countries have a major demographic crisis brewing. This is also inflationary.
Thanks for the inflation number. I had not seen it yet but figured it would go up. The BLS changed how this are determining it which was going to push it higher. They are weighing things different suddenly.
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https://www.visualcapitalist.com/global-debt-to-gdp-ratio/
257% debt to gdp ratio! Several generation of folks completely demotivated from investing.
China is reported to now be over 300%. Hard to know since their numbers are even more fictitious than most governments.
A lot of European countries on there. The non EU banks wont touch European debt from what I hear. The EU is in really rough shape.
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Many people are using this platform as permanent job and they are earning more here.
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Trick is to use it and not misuse it
Yes
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I'd argue having hive powered up is an investment in its own right dada.
Community service is difficult to sell to large proportion of the middle class, investment on the other hand rings nicely 😉
Agree Doc! Your version sounds better than mine!
Certainly it is a sound investment providing a ROI.
However the quoted comment is correct. Most people do not understand the cooperative concept since they are reared in this world where our focus is solely upon ourselves.
For Hive, or any other blockchain ecosystem, to excel, it requires the efforts of all of us. Sometimes that means doing things that do not provide a direct financial benefit immediately into our wallets. However, through our holdings it certainly can end up paying off in the long run for all of us.
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That exactly is the difficult part to explain. I have always believed patience is key to progress, and that is especially true when it comes to blogging on hive. Of course, investing big into hive power gives much quicker returns....the majority are not direct investors.
That is what we want people to realize, no matter how small the amount...they are going to add up!
*sigh!
It's sad that this is so true.
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I actually find the information in that info graphic a bit surprising. Everything I have been reading states that most people in their 30's to 40's are investing much less than they should be. The average number I saw was people having maybe half a million if they are lucky by the time they get to their retirement age. That million dollar marks just seems really high. I agree it should be the target number, but I don't feel like most people are on target to hit it.
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Most people (how do you define most is comlicated and variable) are not on target with $1M mark. But currently social security may still provide a $200K cushion, and lots of calculation are not factoring that. So, bottomline, statistics and sampling bias is a bitch! It depends on how you slice and dice the data.
Yeah, that is a good point. I don't really know the validity of the stuff I have read. I just remember reading it from multiple sources. Mostly MSM, so you kind of have to take it with a grain of salt. I do know that being in my mid 40's I am nowhere near the target mark in the infographic, but it is hard to tell because I also have a pension that I don't factor into my savings. Then like you said add SSI on top of that and I might be closer than I think.
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well you have to add your Pension (very few people have them these days, you are lucky) and SS and probably you are closer. Then you have to add in your crypto :)
Yeah, for sure! I don't honestly know how to figure all of that. I am getting close to retirement, so I should sit down with a financial planner at some point.
Considering more than half the US cant come up with $500 for an emergency bill without selling something and only a fraction of the workers max out their 401K contributions, I would say that few are even on track for the $200K.
I use to know what the retirement balances were but it is awful. I think the medium retirement is like $28K or something. A really horrific number.
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That would make sense. They have the equivalent to a mortgage payment walking out of college. When one is $120K in the hole and cant bankrupt out of it, that means we see a lot of people who cant afford much of anything.
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Yeah, I hear that. I knew a guy that went to Pratt in Brooklyn for his college. Came back to Michigan and couldn't make enough here to even put a dent in the debt. Ended up having to move somewhere with a higher income level.
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Wow, it is really cool to see that crypto is becoming large enough to be listed under the types of assets! Something interesting about the rise of telework and the possibility of making a living doing crypto activities (which are also not tied to a specific location) is that you're free to live in places where the cost of living is lower. There are places in the US where you'll be fine with a $1M nest egg, and other places where it will be way too low. With location flexibility, you have the option to go somewhere that works with your budget (I suppose you could even look outside of the US, but I'm not sure how that would work with SS...).
Also, I didn't realize that people were were able to make that much income off of blogging, good for them - it must take a lot of hard work and effort to write quality content and build a following that large 😄
Regarding blogging and earning from it at hive at least, it depends on who you know and how long are you here, and then there is a critical moment when the 'magic' happens and from that point onwards it is a self-fullfilling prophecy! :)
The key in crypto is to get your bags filling and keep them going. Whether that is by investing in a token and staking it for a fine return or making the effort to get involved with something like Hive.
We are going to see the #Play2Earn move really help people in this area. That is likely to really entice the younger generations.
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To be honest, I think the whole concept of retirement and financial planning for retirement is rather outdated.
In the future, and thanks to crypto, we will be able to live from passive income so the plan should be to be build the system of passive income rather aim towards a lump sum and then stop working.
there is a point of distinction with the term 'retirement' where we go from working to not working but in reality, and in the future, this will be much more blurred as we simply alter our lifestyle to suit our current situation in life.
Nothing wrong with saving up obviously, but I think it becomes a non-sensical obsession to aim for an exact amount of money to simply stop working at an exact time.
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