I’m trying to understand investing better, but one thing confuses me. If you already have a retirement account (super/401k type) contributing for 20–30 years, that already covers retirement. But people still invest separately in ETFs, stocks, crypto, etc for the same long-term horizon. What’s the actual plan with that extra money after retirement? Realistically by 60–70 you have less energy, simpler lifestyle, and your retirement account should cover living costs anyway. Also with inflation, something like $3M in 30 years might only feel like \~$1.5M today in buying power. So what’s the thought process behind building way more than you need, and why not spend more of it earlier in life when you actually have energy and time to enjoy it? Genuinely trying to understand the logic, not saying it’s wrong.
Am I missing something about investing?
byu/SubjectAromatic8215 ininvesting
Posted by SubjectAromatic8215
3 Comments
I want out of the corporate rat race early.
People with kids want to save for their college and inheritance.
Your strategy is totally fine though
For example i’m saving up because I want to buy “good start” for my kids (which I don’t even have yet). I’m 31yo
I want to have 2-3 kids, I want to provide education and give each of them some small apartament so they can call one place their own after they graduate – if they graduate, as a ‘reward’.
You’re raising a valid point that most personal finance content ignores. The traditional “accumulate as much as possible” mindset often leads to people dying with more money than they ever spent.
The practical reasons people invest beyond retirement accounts are usually tax diversification (different accounts have different tax treatment in retirement), flexibility to access money before retirement age without penalties, and building generational wealth to pass on.
But your core point stands — there is a real cost to over-saving which is experiences and quality of life in your younger healthier years. The concept of “die with zero” by Bill Perkins addresses this directly and is worth reading if this question interests you.
The sweet spot is probably somewhere between reckless spending and obsessive accumulation — enough saved to cover retirement comfortably, enough spent now to actually enjoy the journey.