- Assume: Joe has worked for 20 years at a company that matched the company 401(k) by 50% up to 6% of salary.
- Joe contributed 6% of salary and being risk averse allocated his contribution and the company match to 50% bonds (aggregate exchange traded fund, AGG) and 50% stocks (S&P 500,SPY).
Data sources: Average Joe made the average wage during his career. This data was obtained at http://www.ssa.gov/oact/cola/awiseries.html . The market return data was taken from the "20 Year Periodic Table of Returns" produced by BlackRock. Here's the data and results:
It is not easy to understand sometimes why people constantly complain. Suffice it to say that the human race has not always had it so easy and that billions would trade places today with Joe in the blink of an eye. And they wouldn't be stuck at an average wage for 20 years.