[qixv]

This is not controversial, at least not in Denmark. All big pension providers invests your money in this way (unless you explicitly drop out).

I’m an actuary and reasearcher, and the theory is well explained in the academic literature. And you are of course right with respect to the volatility of your future earnings.

[thebean11]

If you were guaranteed some perpetual income if you were unable to work for any reason (including getting fired and just not being able to find a job) I think it'd be a great model. In the US I think the model is too risky given the huge salaries and our collective precarity.

[tkojames]

Depends though. For example if you are say 30. Own a house with decent mortgage cheaper than rent. If you have let's say more invested than your total debt including mortgage not counting hopefully equity in the house. Plus 2-4 years invested in taxable account. Why not go 100 stock in retirement accounts.

Working in tech you can bank alot of money quickly. If you keep your lifestyle low. Then if something happens and everything blows up. If you have enough saved you can get by. Plus alot benefits in the united states are based on income not assets.

I have thought a lot about this. I have been extremely lucky to fall into a decent tech job that is way better than working for my local university a few years ago.

Our current spending for a year with so and I is around 60k a year.

The 4 percent rule says that is about 1.5 million or so. Not there yet plus I like working so far.

But if I have say 500k saved and something happens. I can withdraw around 20k a year. But if let's both of us got minimum wage jobs. So 30 an hour total we can cover that gap.