{{ With so many young adults continuing to rely on family support, it’s perhaps no surprise that Americans don’t become financially independent [i,e, no longer needing money from parents] until age 37 on average. }}
FIRE (i.e., having a portfolio value of 25 times your annual spending – the 4% rule) is a pipe dream today.
intercst
My nephews and niece seem to be getting free of the apron strings in their 20s.
Nephew number 3 is heading to Wageningen for a Masters in August. His sister off to Yale Law School at the same time. Nephew 2 is filling concert halls and getting serious with his girlfriend. Nephew number 1 is coding in NYC. There is six years from oldest to youngest. Love each of them.
To have an average that high there have to be a lot of respondents in an “older cohort”. The Northwestern Mutal report says that 17% of Boomers claim dependence; this while the youngest of them are in their 60s (with parents at 80+ and still alive). At the same time 22% say they never expect to be financial independent, a number that doesn’t fit well with the above 17%.
DB2
Re: 4% rule a pipedream
Still investments continue to do well. Those who maintain a steady savings and investment plan can get there.
Yes, savings and 401k participation are difficult when you begin. But becomes easier after that age 37 breakeven point.
Those who make investing/saving part of their routine can still do ok.