Average 401(k) Balance by Age (2024 Edition)
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- Опубликовано: 26 сен 2024
- Average 401(k) Balance by Age (2024 Edition)
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Recently retired and unsure if my 401(k) and IRA will provide a stable future. i need an approach that will align with my risk tolerance and financial goals, i set aside $1m to achieve this. Do you suggest i get into stocks or buy a rental property?
Look up dividend aristocrats. Pick six to ten from that list. Those companies have a track record of 25+ years of paying dividends. Also, its advisable you work with a financial advisor to help set up a well-structured portfolio.
I agree. Based on personal experience working with a financial advisor, I currently have $2 million in a well-diversified portfolio that has experienced exponential growth from when i started. It's not only about having money to invest, but you also need to be knowledgeable, persistent, and have strong hands to back it up.
Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
Rebecca Nassar Dunne is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
Thank you so much! This is exactly what I needed right now. I wrote her an email and am waiting for her reply. Hopefully, she responds soon.
A Financial Planner told me Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. How can one take advantage of compound interest and potentially grow your retirement savings/net-worth to about $3M over time?
Just try to diversify your portfolio to other market sectors, that way your investment is balanced and you don’t get to make so much losses.
I stopped listening and taking financial advise from these RUclipsrs, because at the end of the day, I end up with a bunch of confusing stocks without knowing when to take profit, In reality, all I needed was professional advice.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
Google SONYA LEE MITCHELL and do your own research. She has portfolio management down to a science
Thank you so much! This is exactly what I needed right now. I wrote her an email and am waiting for her reply. Hopefully, she responds soon.
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
Using a 401(k) or IRA is a valuable strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfolio management
Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2022
I've been looking to get one, but have been kind of relaxed about it. Could you recommend your advis0r? I'll be happy to use some help.
I looked up her name online and found her page. I emailed and made an appointment to talk with her. Thanks for the tip.
This is so relatable and true lol. I remembered how tough it was before I hit the $100k mark 37. I am 56 today with over $2.8 million in my retirement nest fund alone, didnt take me any stress to get there. Maybe its because my CFP is reliable, but point is, it was way easier from there.
I'm headed in the same direction, and it's not that difficult. Perhaps too complicated for beginners, but that's why it's best to consult an experienced market strategist.
Agreed. I deal with an investment advisor for this reason. I currently have over $800k invested in a diversified portfolio that has grown exponentially and is suitable for all market seasons. Our current project for this year is a more concrete ballpark target.
She goes by ‘Melissa Jean Taligdan’. I choose to delegate my excesses to her because of her great expertise. I suggest you look her up. To be honest, almost didn't buy the idea of letting someone handle growing my finances, but so glad I did!!!
Its reassuring hearing that. I've been playing catch up on my 401k this year. Trying to max out this year and get my account up to 85K by end of the year, age 36. Even with a near 30% combined contribution w/employer match it still feels like a crawl to 100K
This gives me hope, I'm at 145k at 36 but still feel behind. I want to retire ASAP. I truly hate being a wage slave.
After investing from my salary of 350k for 4 years, I've only made about 8% total, or 2% per year, which my friends say is very low. My employer 401k of $220K returns about 4%. What would you advice to do with my portfolio for improved returns?
Not a great July so far but if you step back and actually look you will see the S&P 500 was up for the first Quarter. In the last 60 days, my IRA saw a gain of $70k. You might also consider financial advisory looking at your capital.
The key is diversification. Personally, I delegate my day-to-day investing to a license advisor, cos my job doesn't permit the time to analyze stocks myself and thankfully, my portfolio has now 5X in 5 years, just about 10% shy of $1m. Stay positive friends.
@@SlowrideHome91i'm blown away! mind sharing more info please? i am a young adult living in Miami where i've encountered several millionaires, and my goal is to become one as well
i'm blown away! mind sharing more info please? i am a young adult living in Miami where i've encountered several millionaires, and my goal is to become one as well
I've stuck with the popularly ‘’Jennifer Leigh Hickman” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look her up.
I’m 27 . If I had $360k I would invest $100k in tech & $260k into dividend stock with a proven track record to grow with capital appreciation & dividend increase year over year
The current market might give opportunities to maximize profit within a short term, but in order to execute such strategy , you must be a skilled practitioner
The best market strategy is to work with a credible investing coach. Since a while ago, I've been in touch with a coach, mostly because I lack the depth of understanding and mental toughness to deal with the ongoing market conditions. You lack the information necessary to succeed in a competitive market, not because you're doing anything wrong, but rather because of your lack of experience.
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
Her name is. 'Rachel Sarah Parrish’. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@@alexyoung3126 this whole thread is just an advertisement lol. Professional investors and coaches rarely beat the market, BUT they always take a cut.
Money Guys: "Comparison is the thief of joy."
Also Money Guys: "Let's compare 401k balances." 😅😅😅
So true 😂
Only comparison that’s okay and should be encouraging!
Ah yes, 401k comparison. The third best thing to compare after a dick size comparison and a salary/compensation comparison.
Context is key. Comparing yourself to 401K balances by age is much more useful and transparent than comparing cars, homes, luxury vacations or other things that don’t tell one how secure one actually is financially.
You need to be able to compare to grasp if you r behind or not to be able to rap your head around it and do better instead of staying behind because you think you are doing well.
Becoming a millionaire through a Roth IRA or a 401(k) involves different strategies for maximizing profits. A Roth IRA offers tax-free withdrawals in retirement, which can be advantageous if you expect to be in a higher tax bracket later in life. On the other hand, a 401(k) provides tax-deferred growth and potential employer contributions, boosting your savings. The optimal choice depends on factors like your current and future tax situation, employer match, and investment options. Consulting a financial advisor can help tailor a strategy that aligns with your financial goals and circumstances.
Prioritizing effective personal finance management holds greater significance than the sheer amount saved, irrespective of income source. Consulting a certified financial advisor can offer tailored strategies to optimize financial results by reducing expenses and enhancing income, regardless of whether it's earned through employment or investments.
I wholeheartedly concur. At 40+ years old and newly retired, my external retirement funds total around One million two hundred fifty thousand dollars.. With no debt and minimal retirement fund allocation relative to my portfolio's value over the last three years, I recognize the importance of a financial advisor. Neglecting them isn't an option; however, thorough research is vital to find a trustworthy fiduciary advisor.
This aligns perfectly with my desire to organize my finances prior to retirement. Could you provide me with access to your advisor?
My CFA, Annette Christine Conte , is a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
My primary concern is how to grow my reserve of $300k which has been sitting duck since forever with zero to no gains, sure I know the risks of short term gains are much greater but if well managed one'd make a killing, am I wrong?
These strategies are quite rigorous for the regular-Joe. As a matter of fact, they are mostly successfully carried out by pros who have had a great deal of skillset/knowledge to pull such trades off.
I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $2m with the help of my advisor from an initial $350k investment.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
Laila artine kassardjian' is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
I am 23yrs old and have $17.5k in a 401a, $6.5k in RothIRA, and $4.7k in a 457b. I am a City Bus Operator in Tampa, Fl making $22.65/hr. Doesnt take a high income to win, just good habits and determination. Im debt free and hoping to surpass $100k net worth by 24 currently at 88k net worth.
I hope the vast bulk of your portfolio is in an index that follows the S&P500.
@@glasshalffull2930yes. It is completely in index funds that follow the general US market. My return on my 401a for 2023 was 24%.
That’s awesome kid. You’re gonna make it.
Awesome! Congratulations! I wish I was that smart at that age. I didn’t get serious until I was 30 and now that I’m 37 I’m stressing lol.
Just rename yourself to Josh beast :). 🎉🎉🎉😂😂😂 awesome work bro.
I have been retired for 6 years. I have a 130K annuity, plus a 401k depleted to $350,000 of money that I’m considering allocating in a 60/40 stocks and bond ratio. i'm hoping this is a valid thought process?
Wasn't a great April, but if you step back and actually look you will see the S&P 500 was up for the first Quarter. In the last 30 days, my IRA saw a gain of $40k. You might consider financial advisory if you're experiencing significant drop.
I was not an investment person and didn't know a lot about my 401k. I just took the standard advice of maximizing your 401k match when I first started working. To my surprise, I hit that million 6 years ago when I was 48.
Outstanding recommendation for contributing at least enough to get that match!!! You should be well on your way to hitting your 2nd million.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes.
That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@MaverickDylan-7 My advisor is Victoria Carmen Santaella
You can look her up online
@@Richardnnabuikediyoke You can look her up online
I think age bands have to be reconsidered. There is a huge difference compounding when you are banding ten years at a time. Would be interested in data within 5 year bands, or years in the work force. Something more meaningful than 30-39, 40-49 etc
As a soon-to-be retiree, keeping my 401k on track after a bumpy 2022 is a high goal. I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated.
Yes, you are right. it's been a brisk tailwind for investors in US stocks over the decades but it is still a delicate season now, so I advise you to consider the guidance of a financial advisor.
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one.
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with 'MICHELE KATHERINE SINGH' for the last five years or so, and her returns have been pretty much amazing.
She appears to be well-educated and well-read. I ran a Google search for her name and came across her website; thank you for sharing.
Is there anything Bo isn't excited about?
Debt?
Taking money out of your 401k lol
😂🤣😂
He uses a different scale. If he's only "excited" about something and not "super excited", that's a big red flag and the video might be a dud.
Bo is the man!
Im 22 with 400 into my 401K and 15k into my roth IRA. Thanks money guy started investing at 19!
That's insane to me for a 22 yr old...nice work🎉
Amazing great job will give you so many options later on!
@@OBaegloich3that $400.00
Great job!!
Considering that's an average ROI of over 80% a year, I do believe this individual is trolling
34 with 250k for retirement (income is 115k) started at 25 and didn’t hit 6 figures (income) until 30
What is your savings rate?
I have about $200k at 34 age, but my income is only 82k and that is only recently, most of my income has been more like 60k doing 30-50% savings rate.
Good job. I'm 50 now with about 250K in retirement plus a vested govt pension. At 35 I only had 30k in retirement plus over 20k in student loan debt. I only started making over 100k about 4 years ago, but luckily, I've been able to increase to 140k, likely to increase 3% to 5% per year. I'm now debt free and I max out my contributions so I'm confident I'll be comfortable to retire between 65 and 70.
sounds good until you tell us which overpriced metro area you live in.
👏🏽
*I didn't become financially independent until I was in my late 40's, and I'm still in my 40's. In addition to having purchased my second home and earning money on a monthly basis through passive income, I've also achieved three out of five goals. I just hope this inspires someone to realize that it doesn't matter if you don't have any of these things yet, you can start today no matter your age. Change your future by investing! I made a rather big decision by investing in the financial market.*
Investing in many sources of income that are independent on government paychecks is the prudent thing that everyone should be thinking about right now, especially given the global economic crisis. Stocks, forex, and digital currencies are still good investments at this time.
Sure, investing is essential for maintaining your financial stability, but making any kind of legitimate investment without the correct advice of a professional can result in a significant loss as well.
It's never easy in the financial market!
I made a lots of errors trying to do it myself
Yeah I have same issue also, sometimes I feel like the market is being manupulated
These guys continue to deliver so much value. Really appreciate this show
58 years old with $900k in 401k, $200k traditional IRA, $50k Roth IRA, $60k HSA, $150k cash bal employee pension. 9 years to go until retirement.
Not sure your expenses, but couldn't you retire now?
@@FriskyDingo1983could be a health insurance consideration to stay in the workforce
That 60k in the HSA huge! I hear health is wealth, and it looks like you are the example!
Pay out of pocket for medical and elect employer provider accident and hospital insurance as a backup.
@@AaBbCcDdEeFuntil 59 1/2 then no penalty
51 YO, 1.8M 401K, 1.4M Taxable brokerage acct, 400K Roth Ira, house paid off. Hope to retire in the next few years.
Wow …🎉
Why not now…? The models will work out at the most conservative draw rate and life expectancy for you guaranteed. Unless you’re grossly negligent with your expenses in retirement
You’re golden
Great job! Enjoy your retirement, you have earned some fun
@@Raylovepalomarthanks. Actually, in the next couple months I will be making my exit at my current job and go full 🔥.
I am 61 1/2, single, no kids and NO debt, currently with $975,000 in retirement savings in 403B and Roth IRA.
I am in my mid 30s and have around 60k in my 401k. I feel like I am doing okay... But the internet always makes me feel like I am behind.
You are doing WAY BETTER than most Americans. It's normal to feel that way ONLY if you let yourself feel like that by comparing yourself to others who are doing better than you. There will always be someone doing better than you, it's inevitable, but what matters is the progress and growth YOU are working on for yourself. KEEP IT UP YOUR FUTURE IS LOOKING BRIGHT MAN!
Working on my own portfolio and savings and it's nowhere near where everyone else is on the internet, but it leaves me peace of mind knowing I'm doing so much better than others who are living pay check to pay check and that I am NOT going to be struggling in the future with the financial cushion I am preparing for myself now.
@@dayulPHHard to say if that's good or not. It depends on your income.
I work for an extremely large recordkeeper and have seen thousands of participant balances. You're doing well. Keep it up! You're only ever in competition with your past self!
@@Rew123 Yeah I agree, income plays a big role. However, regardless of income, saving and investing your money for your future is still a way better option that letting it sit regardless of how much you make.
Also it's inevitable if you really want the success you envision, I am certain as humans we will find a way to get that growth even if it means lighting a fire under out butts.
@@dayulPH I meant was that if he makes $500,000 a year, $60K is pathetic
I love that Bo is always excited about the daily topic! 😂
I'm 50 now, debt free with about 250K in retirement plus a vested govt pension. At 35, I only had 30k in retirement plus over 20k in student loan debt. I finished my bachelors degree at age 40 and was making 46k to 50k. I only started making over 100k about 4 years ago, but luckily, I've been able to increase to 140k, likely to increase 3% to 5% per year. I'm now debt free and I max out my contributions so I'm confident I'll be comfortable to retire between 65 and 70. Even if you are a "Late Bloomer" like me, it is possible to catch up and have a comfortable retirement.
Im 22 and are about to have 14,000 between my Ira and 401k
That ain’t shit
@@samuelmonreal9035 maybe not for you but I live a minimalist lifestyle and am saving for a house down payment while also investing in a business
Thats really good at that age. Compounding interest will surprise you when you hit your 30s! I reached 10k into my 401k when I was 30 years old and I was super ecstatic about this at the time.
@@samuelmonreal9035clearly someone doesn't understand compounding
Good stuff
I love how you update this every year with new bits of information! I didn't know about the Rule of 55, and for myself who wants to retire at 55 (and currently on my way to hit that), glad to know I have more options once that stage of my life begins~
Currently going onto 23 years old, I have started wanting to do as much as i can with the advantage of time i have. Currently I back paid my Roth IRA for 2023 and set up max contributions on auto pay going forward. I am unsure of where to go next when it comes to saving for a home in the next 10 to 15 years.
I have a fully funded emergency fund and one debt in the form of a car loan. My work doest offer any 401k (they are THINKING of doing a 3% match Roth).
I appreciate learning of the existence of all these different tools, but i get lost at how to approach and apply these to my financial arsenal.
Keep up the good work ❤
Congrats! How about a brokerage account?
Precious metals are a good way to save up for a big purchase. Keeps you from going out and spending like it's in a bank account, but when have enough metals you can offload it easy at a bullion dealer or coin shop.
I think bullion is horrible advice. There are substantial fees when you buy. There are substantial fees when you sell. Historically precious metals keep up with inflation but are not gaining significant value above inflation like the stock market. And last but not least gain in precious metals is taxed at capital gains rate of 28 percent, which is almost double the most common capital gains tax rate for other investments.
@@netbenefits4595 You don't understand PMs at all. Capital gains sales tax lol😆
@netbenefits4595 you obviously don't have a clue about PMs. Capital gains tax lol 😆
Keep in mind a couple things.
1) this is only a person's 401k. I don't think that even the money guy show is suggesting a 25% savings rate all dedicated in a person's 401k. That 25% is going to be across your 401k, Roth, HSA, savings, and brokerage accounts. If you are saving 14% in your 401k, then you are likely not saving enough in your other account types.
2) this is the average account balance, not the average holdings of an individual. I mean, if the average contribution rate was 14%, and the average income of a working individual is $60-80k, then that doesn't add up at all. The average person changes jobs, swaps holdings institutions, or tries to not get too far out of scope with fdic insurance. By the time you retire I imagine the typical person has 2-3 different 401k accounts out in the wild. So if each of those are in the $150-200k level then they are doing pretty great.
3) do we know if this is the average mean? Or median? Because if these balances are one of those then the number is going to be skewed extremely high, and the other will be skewed extremely low. 😅
I would love to see these numbers with the top and bottom 10% removed, because I imagine a few whales out there are displacing the tub a lot more than the typical minnow.
4) keep in mind that most employers didn't even start offering a 401k until the mid-90s. So anyone over the age of 50 should have about the same balance, because they all started around the same time. Those closer to 65 are still more likely to have some kind of pension, while those closer to 50 never had a pension option, but have more time to grow their 401k.
On top of that, most people in the 50+ club are likely going to get full SSA benefits, while those of us who are younger are likely to see more limited inflation matches, higher taxes, or some other form of cost savings applied. I think that the good news though is that if you log in, regardless of age, the projected numbers are likely to be real, just don't expect those numbers to grow over time with income and cola. 😅
Agree. I don’t have a 401k. But, i have a 401a, Roth 403b, 457b, Roth IRA, and a brokerage account.
It’ll never be enough. No one can predict the future and the value of the dollar. Do what you can with what you got and good luck to everyone
Married my husband at 21 so many years ago. Was lucky enough at that age to have access to a 401k. While Louise in hr pushed me at 19 to contribute had no interest. My husband made sure I signed up. We are now entering financial abundance. Our career’s in engineering certainly didn’t hurt, but saving early and often certainly helped!
Don't listen to random people in comment section, (myself included). Do your own research and educate yourself.
Bad advice, everyone should listen to me. I’m quite intelligent and very modest.
@@OShackHennessy😂😅
I will not listen. I am not going to do any research. Take that!
If we don't listen to you that means we should listen to the comments
Listen, verify, learn and do better than your parents😉
My 401(k) is awesome. 5% matched at 100%, and an additional 3% non-elective my employer contributes. I max that sucker out, and my HSA, and my childcare FSA. There is basically no paycheck left lol
Bravo, Bra-f’n-vo. I’m clapping my hands too.
That's where it's at. Well done. Some plans allow you to also contribute post tax money to 401k; my company allows up to 10%.
@@WRBWRXWGN Yeah I do the ROTH 401k, all $23000 of it. My tax bill sucks 😂
@@Joenzinator My employer just started offering a Roth 401k 2 years ago. I'm slowly working to move over everything to it because I was maxing out the traditional already. But MAN, it's hard to do with the tax impacts, haha Great job!
Cool. My employer matches 10% dollar for dollar.
I’m 28, I have 200k in Roth IRA with no debt. I didn’t realize how good that was.
I’m 28, 401k is at $75k - Roth at $23k - and a VUL policy at around $10k. My biggest struggle has been maxing my Roth contributions year to year.
What’s your occupation and girl preference
You're right at the point where things are going to really take off. Keep the momentum. After 100k the snowball really happens.
At the beginning it's fun to watch your balance more than double as you match or best your own contributions, so the balance flies! Then you get a few years where it's like blowing air into the void because your balance may decrease the same amount as you contribute in a year. But if you stick with it a little longer, then you will normally see your compounding increase your balance more than your contribution. I'm just starting to hit that stage now, and it's kinda bonkers to watch.
Many of my friends went to Tech! Family were part of the Luters that owned Smithfield hams, but my side were peanut farmers in Zuni, VA. You are doing fantastic! What I did was every time I got a raise, I would up my contributions by 1%. That way I still got some of the raise in my wallet and so it wasn’t too bad. My contributions were automatically deducted.
@@glasshalffull2930 oh congratulations 🎊 we got a 6 grader coming bragging about his big group of friends 🤣🤣🤣
One thing I don't think gets talked about enough when comparing pre tax and Roth contributions is the pre tax is taking that money off the top of your income, so it would be taxed at your current bracket. When you withdraw it and it becomes taxable and the same rules apply where the first 11k is taxed at 10%, then 12% etc. This means comparing present to future tax brackets doesn't tell the whole story, you want to compare your current tax bracket to your future effective tax rate (or even just your current effective rate to get an idea of what that difference is).
Exactly this
Also what never get talked about with Roth is the growth is pulled out tax free. You only pay taxes on the principal you put in. After 30 years of gains when you pull it out it's all tax free.
With traditional you may have a higher starting principle but then you have to pay taxes on that principle AND 30 years of gains when you want to pull it out.
@CarlosDiaz-je1bg I feel like that does get talked about, or at least more then what I mentioned. It was the argument that had me going hard into my Roth 401k for awhile. However, this is what brought me back to traditional: what are you doing with those tax deductions? If you're already maxing out your 401k and ira with room to spare then yeah go roth no Brainer, but if you're still doing a budget and trying to increase your savings consider that saving 10% of your income in Roth nets you the same as 12% of your paycheck in traditional if you're in the 22 or 24% tax bracket (I'm rounding obviously) so while all that growth being tax free seems really tempting it's probably not going as far as increasing the seeds for that growth by 20%.
I'm not anti Roth and I do still make some Roth savings contributions as they will give me some flexibility to play the tax bracket game in retirement but I think most people looking to increase their savings rate at better off minimizing their current tax bill to do so
Investing in a traditional 401k is planning on being poorer in retirement, any way you look at it.
@@Re3iRtH ok troll
“I’m a man! I’m 40!” - Coach Mike Gundy
I’ve got 6 times my income saved in retirement accounts!
The hard part for most of us is we can’t do the max bc we need the money to pay bills
29.
175K in my 401K.
5k in my Roth IRA
~100k salary for now. Been saving since I was 21.
Going places. You’ll be set man!
Must be nice being a white suburban college boy with mommy and daddy
@@DoubleJabSlipRightHand it is nice. No shame in it tho
@@DoubleJabSlipRightHand I live up a holler in Appalachia, off several unpaved roads in a community that didn't get electric until 1960, 15 miles outside of a town of 150 people.
I run a farm that grosses 50k annually, I also work on the side as a software engineer, and I'm a Volunteer Fire Captain in a district that ranges from 5 people per square mile to 30 per square mile that is so far out there that the majority of our medical calls turn into me commanding a Landing Zone in a hay field for a medical helicopter to land because it's a 2hr to 3hr drive to a hospital.
But, clearly you know better and it's suburban LOL
Great content here. 25 years old. I have a better than average 401k balance, but I wasn't contributing as much as I could have beyond the employer match. This motivated me to bump up my contributions more, even if it requires some small sacrifices for the next few years. Now with my employer match and my contributions and other savings, I'm at about 20% gross savings. Hoping to get to that 25% level soon, but have some other expenses right now that prevent me from doing that. But motivated to try to get to that level as soon as I can!
I'm doing pretty well in this regard. I'm 41 with about $380k in my 401k. I'm fortunate in that my employer offers an excellent match; 6% for 150%
I’m 42 with $343K, just $37K behind you!
I’m in my 40s and have been really pushing for saving/investing for the last 8 years… I’m playing catch up now, but I wish I had started at a younger age, but unfortunately, I didn’t know much about investing when I was younger. Now I’m trying to tell anyone who will listen to save and invest for your future as early as you can!
My father didn’t believe in stocks as he lived through the Great Depression. So I didn’t invest in stocks til I was 30. Thankfully a coworker educated me and I went 100% in the S&P500. Now at 64 I have $3.3 million. Still fully in the S&P500.
That intro, Brian 🤣🤣
best intro to date! lol
I’m 100% stocks , I will change it to more conservative when I’m 10 years out from retirement.
Why?
@@jbris16 I got a lot of time and when I get close to retirement I don’t want to lost all the money I gained from a crash .
@@jbris16 I do the same, 100% stocks. The reasoning for me is that bonds, annuities, etc, statistically severely underperform stocks. The only reason in my eyes to buy into things outside of stocks and potentially realestate is simply to reduce portfolio volatility but as a young person that shouldn't matter assuming you only invest money you can afford to leave in the market until retirement, which is what you should be doing with IRA and 401k accounts. With that in mind, being in my early 20s I am and intend on continuing to hold 100% stocks until I am somewhere around 5-10 years away from my planned retirement.
For those of you starting early, you might change you mind as you get closer to retirement. You guys may have $1.5 million or more as you approach retirement. At that size, your annual contribution of $23K is really insignificant(1.5%) The gains in the market are the big driving force when you have a very large portfolio. I had about $1.2 as I approached retirement, but I have SS and a pension that brings in about $50K. Anyway, I decided to stay 100% in the S&P500. Nine years later and my portfolio is $3.3 million. Just something to think about if you have a big portfolio.
@@glasshalffull2930 what if you were going to retire in 2008 and your portfolio was 100% stocks . The market crashed and it took almost 5 years to recover now what .
Maybe a small critique, but is there a way to break down the 20s decade to 20, 25 and 29 year old? Theres typically a LOT of volatility in job market, income and debt reduction during that time period.
Can you do a video on ESOP companies and how I can plan on my employment stock program
I agree would love to see one.
I'm 50 with $900k in 401k, $200k traditional IRA, $50k Roth IRA, $60k HSA, $150k cash bal employee pension. 9 years to go until retirement.
wOW! You must have worked pretty hard to diversify your portfolio is good. PLs can i be friend, I'd love to get some tips🙏
@@Gwenn_Maki lol... It's all thanks to my FA "Mary Elizabeth Hanson" She's behind every decisions you see
You're so damn lucky i must say
@@LorrettaC.Torrez How do i contact her?
I really want to be part of this financial freedom, pls how can i reach out to her?
After 27 years the matching alone is over 500K. Best vehicle I have found to save and grow wealth. If it wasn't for the automatic contributions every check I never would have saved this much sending a check to another account on a regular basis. 55 next spring and the end of work is in sight.
Thanks for covering the rule of 55. I plan on using this for my 401k pre-tax and match (also pre-tax) and the Roth 401k monies above that when I retire. I wish someone would do a more in-depth conversation about this. I'm 41 and want to be prepared and informed at 55 to make sure it is right that I take advantage of this.
Same, I'm team shoot for 55 but be guaranteed by 65. I didn't know it applied to Ira accounts but it sounded like it does they way it was explained this time.
I have a bone to pick, not just with you guys but all financial planners. We need to stop using statistics such as "Average 401k balances" to really get a true snapshot of the American retirement situation. The average account balance is greatly skewed by the wealthy and ultra-wealthy......kind of like the Bill Gates walking into a room example. Even worse, the "Average 401k balance" statistic doesn't factor in the 30% of people who have a zero balance. The "median" household 401k balance is a much more realistic figure. Unfortunately, the difference between the average and median account balances is enormous.
worst mistake with my 401k... a colleague and i are aggressive savers. he finishes his max 401k contribution by Feb or March. I usually finish mine around June and later August(after age 50). we have a 3% match which we never completely received and i thought this was from being a " highly compensated employee". IT TURNS OUT, our employer stopped contributing our match once we are done for the year and their 3% match per paycheck was prorated for 26 pay periods. we discovered this in year 10. so i must have lost out on about 30K over the 9-10yrs. i don't think the increased "time in the market" made up for that. the year we found out we adjusted our contributions to last the whole year and the year after that they dissolved our department by May so I maxed out the 401K by then. so only 1 full match in 11 yrs.
That... That hurts man. I nearly did that to myself, but I'm friends with the finance lady at work, so when she saw me increase my percentage a lot she called and asked me for context and set me right. I don't think most people realize that it is a percentage of pay period that you contribute, and just assume it averages over the year. But it's not.
I almost made the same mistake, but I found out real early.
@@glasshalffull2930 i was so angry about it. if i wasn't maxing out my 401k but just distributed it through the 26 pay periods i would have gotten my full 3% match. up to now i don't see the logic in it.
Great point. I guess depending on the market, some years you did very well getting maxed out early
Aren’t most companies now correcting that?
Like if you did allot of OT they will match regardless if you hit the max contribution limit or not
30 and starting at 0.
Don’t be too caught up on what everyone is doing and just begin today.
Got a new job and maxing it out that way I can get the most from my employer match
Great video, as always, you two! Sharing this with a friend who's about to switch employers.
Another factor with Roth 401k contributions is people like me. I’m maxing out both my Roth IRA and my 401k. So in order to contribute more money to my retirement plans I switched from a traditional 401k to a Roth 401k. That way I’m paying taxes today, which is effectively putting more money into my retirement account and when I withdraw that money from my Roth 401k in the future it will not be taxed, so the money will go farther in retirement than it would go if I had to pay some of that money to the IRS in taxes.
Just want to make sure. Are these averages, or are they medians? Just seemed low for average. Thanks! Also having more than my current income is tough since I make way more than I did when I was younger. I do think I'll reach those numbers though. Thanks for the video!
Im 26 years old invest 40 percent into my 401k account and put it in all of my stocks!!!! Live below my means!!!
Our 401K plan sucks. I spoke with the financial representative I asked if there were lower expense options and was told that their plans are already low and I won't find anything lower. (the fees are 1.2%) Then I asked if I was to leave what would be the process in moving my 401K. I was told it's beneficial to keep it at their financial institution because, again, they have low fees. I felt stupid at the end so I just picked a target date fund and called it a day. -.- We are a TINY company - 5 people total - so we don't have an HR to speak with. oh well.
If you leave and move to a larger employer you will find much lower fees if you move it. I work for a very large company at the fee on my large co index is 0.007%, yes that is 0.7% of 1%. That's obviously an extreme example but there's plenty of middle ground they're
HR never understands investment options any better than you will anyway. They punt back to the investment company's 800 number.
Wife and I are 30y/o. $350K in 401ks, $170k in Individual Brokerage accounts, $83k in Roth IRAs. Basically have only lived off of one of our incomes since graduating college and saved the rest.
Nice work!
Rather than focusing on the aspirational (i.e., what your average balance SHOULD be by age), any chance you all can focus on where the average person really is, or on the median balance by age? What strategies would you suggest to those who are (for example) between 55-64 (average balance $207,874, median balance $71,168)? Since we are looking at quite the savings crisis across the board, the average person could really use your wisdom. Thanks!
You’re watching a personal finance show. By default you’re not avg
Median balance would definitely be interesting, where it's not biased by the highest earners/savers.
However, looking at the average person doesn't really help as most aren't interested in their pension until too late.
You need a know your numbers evening, work out what you think you need vs what you have now. Then a strategy to make up the difference
@@TheUnluckyGamaexactly. Knowing your monthly burn is most important.
The advice doesn’t really change too much. Higher savings rate = better retirement. Saving earlier really = better retirement. If you’re behind, which the average person is, and the median definitely is, you need to contribute to retirement plans. If you’re not behind, you still need to contribute. Once money goes in, never take it out. That applies to everyone.
40 yo. 500K in 401k. 200k in liquid brokerage account, another 20-30k in my Roth but working on it. Maxing my annual 401k contribution for another 20 years and I’m guessing I’ll have another 1M in the brokerage account, pending I just don’t reinvest it (which I likely will along the way in a basic index fund).
Hoping to get out at 60 with 5-6Million and live on a beach somewhere with a drink in hand.
I'm 42 and currently have $306000 in 401K & $46K in HSA. Wife has $73K IRA. All stocks full risk. We Max out contributions every year.
Sounds like you’re kicking ass 👍
I was in the military, got out during the recession and decided on college. I didn't have a job with a 401k until I was 29. I'm 39 now and in 10 years I went from 0 to $205k in my traditional 401k and $88k in my Roth IRA. It was a video like this at that age where I thought, " I better get going". I'm on track now but catching up isn't fun.
Is this strictly for 401k (I know, dumb question), or does it include your own investments as well? For me, I'm mid 30 and I'm just right under 60k in my 401k, but I also invest around 25% of my take home pay monthly with stock brokerage, like M1, Fidelity etc.
Just keep in mind that once your brokerage account qualifies, the capital gains tax is applied, not ordinary income.
Good info! I’d be interested to see what the median numbers look like as well since taking just an average can skew pretty heavily
Median number is scary low! 🤑
Does this include 401ks rolled over to IRAs? If not, this is only showing current employer 401ks.
30 years old - 200k 401k, 100k HYSA, 100k traditional IRA, 150k equity in home.
Nice! What’s your average income and how much do you try to invest monthly?
30’s here. Just had a kid and it was either pay $1600 a month in daycare or have the wife go down to part time work so my savings rate has dropped significantly to afford this. I don’t see 25% savings rate being a realistic number for me for a looong time.
What state are you in? 1600 a month is not a crazy number, but we found that if we just kept looking. There were a lot of at home day care options that were closer to the 900 a month range for a kid under 2. They are a lot more research to find them. We live on Oahu for reference.
It depends on lifestyle. My wife has always been a stay at home mother. We've sacrificed quite a bit. I'm 36 and she's 34 and we have multiple six figure accounts. I didn't start investing until 27. We has student loan debt which we paid off. There's so many factors.
Have cut out restaurants? Do you grow your own food? Do you shop store brand? Do you go camping rather than cruising?
Look at your budget and see what you can adjust. Cut the subscriptions. Adios Netflix, Amazon Prime, Costco...
We invest 37% of my income and live a good life but we are intentional in how we live and invest.
Same boat
IMO your wife should stay home or you both can work different shifts to avoid the daycare cost. My wife and I do that and by cutting daycare you save a fortune lol
My employer automatically enrolled me in a target date fund and automatically raises the percentage saved every year unless you stop it. Love it!
27 y/o with $52k in my 401k. Just started my IRA with $1200 this year so far. My employer matches 8% on top of an automatic 6% contribution, my wife’s new employer contributes 16%! We also have $200k in equity in our home at 2.3%, mortgage (P&I) is 25% of our current net income. I feel like we’ll be set once our emergency fund hits 6 months!
Bo is always excited
Since watching (years back now) I’ve been able to get my 401k/457 to a combined 25%. So on top of that 25% savings rate, I’m also maxing IRA. My savings rate at this point I have no idea what it is, but it’s got to be beyond 40% thanks to you guys!
Yeah, I'm doing 10% in my 401k, which is about 20% after employer match and profit share.
But then maxing out my HSA, and my and my wife's roths, and that puts us well above 40%. If I max out those 3 accounts and get my full employer match then I'm going to over save for retirement. But I'd rather have options in the future than not. Better to be ahead with the option to slow down or take a life detour, than be right on the rickity edge and then get derailed.
Your videos were great!! I'm one of your viewers and have been watching your videos lately. I would like to invest, but I still can't find the right investment to commit to. I will appreciate any help here.
Open a Fidelity Roth IRA account. Direct deposit from your paycheck to the account number. Set up automatic trades to FXPGX within Fidelity. Grow your money the next 30 years.
Are these Numbers for an individual or for a household?
Starting early really is the only way
And never borrow from it!!
I got into stocks at 30 and still retired a millionaire at 55, but the earlier and maxing out are the best things you can do to get there. BTW-100% S&P500.
26 with 65K in my 401k. Need to start my Roth but I also recently started an etf portfolio
You should just open the Roth IRA, even of you only put in $100. By the time i got serious (this year), i learned i was making too much…
@@mandypdx appreciate the advice! Definitely going to open one asap can’t miss out
I invest all of my 401k to an S&P500 fund.
Stick with that winner and NO trying to time the market
Why are the numbers so different than what’s shown on your website? For example, your site says $21,529 is the average balance for people in their 20s, which is quite different than $13,124. Are the numbers changing that drastically year over year?
Currently 35 with less than $10k saved for retirement. But am currently focused on becoming debt free (will take at least another year or two depending on how things pan out), and then maxing out all contributions for 401k and IRAs after that. I have a lot of catching up to do.
Follow the FOO, deductibles covered, match, then debt (I think, off the top of my head)
turning 50 this year, so I can take advantage of adding more to 401k this year? 401k is about 200k, spouse n I have about 600k in cd's/stocks and high y savings, fully funded emergency fund, husband is already retired on a military pension and disability, and I do have a small employee pension as well. I am retiring from my current job at age 55 and we are moving from our home in the states, to France, so I can aforrd to fully retire at an age I can enjoy all the travel I want to do. I feel like this next 5 years as I go towards 55, is very important for our families wealth health, is there a bucket I am overlooking or should max out now?
If you are turning 50 this year, you can contribute an additional $7,500 to your existing limit.
@@gobot4455 thank you!
I'm 40. That 4.8x income is such a moving target, but it's a great target.
Our income just went way up.
The target went from $480k to $1.5 million by 50.
We are keeping the same standard of living and investing $140k a year, to get to $2.5 million invested outside retirement to retire early in our 50's.
Putting this in early and hoping it ends up in the hopper…. If you’re thinking of retiring (or a partial retirement) in your mid to late 50s, can you include contributing a small portion of the 25% goal of Step 6 to a Brokerage account? I’m currently 34 years old with a 21% retirement savings rate.
IMHO- The foo generally seems to be agnostic to age. Saving in a brokerage account has two modes …3 bucket strategy savings and 3 bucket strategy execution(aka tax strategy)
Nelson, unfortunately this is a premiere of their podcast, not a live Q&A. I also am interested in this question, but you may want to come back next Tuesday when they are doing Q&A.
Up voting for Q&A
Look into the 72(t) rule, aka SEPP (substatially equal periodic payments). Allows penalty-free access to retirement assets for early retirees. I hear you need a professional to help you file.
I work at a tribal organization with 2 different matches. The company matches 3% that is immediately vested and the tribe matches 2.5% with a 5 year vesting. It's a little strange, but they're pretty generous.
People have to understand that this is "averages" meaning these numbers include financial mutant saving rates as well as those who make 6 figures or more. The median number is the true number of how much people have saved, which is way lower. Looking at these numbers, Im on the right track for a 34 year old. Projected to have 4.5/4.6 million when I reach retirement age of 67. Great video Money Guys.
Man now I need to go back and rewatch Better Luck Tomorrow, it's been so long
I think this was prerecorded, but this series never mentions that the 401k balance is not the full picture. I started a new job last year, for example, and have 40k in my Roth IRA, but only 4k in my 401k
Good point! I have the same situation from my most recent job change.
Yes, I’d like to know if they include a Roth IRA in their calculations.
They do a yearly video of 'net worth by age' which they show 'financial assets' vs 'home' vs 'debts'. You can look at the government data separately as well as it's publicly available
This video doesn't, but this series does mention it. They had a video on Roth IRA a week ago, it is on their channel.
They also briefly mention Roth option around 21:20 in this video too
At the 3:20 mark in the video, this talks about increased limits. The values shown are the updates for 2024, but the slide is labeled 2023
I turn 40 here in a few months and I feel incredibly far behind as far as retirement goes.....
Plenty of time to tighten up and get serious my friend.
Didn't start until 50. Pay debts off and you'll do great 👍
Don’t worry. You can always I’ve in a van.
Switch from watching the money guys to Caleb Hammer. You’ll feel better. Then download Rocket Money and get to work.
@highbrass3749 wouldn't be the worst situation I've been in thats for sure.
Here’s my advice. Put your 401k into growth mutual funds at least through your 40’s and leave it. I took a financial advisors advice and put all my money into one of these target funds that’s a mix of stocks and bonds. All it did was guarantee I always significantly trailed the market as a whole. And don’t be trying to jump in and out. Just leave it in there and let dollar cost averaging work.
April fools day bo should have said he hated that days subject matter.
Curious if these numbers are only for a 401k. If I have less in my 401k then these numbers noted in the video but I make up for them with other accounts (ira, brokerage, etc) would that be considered "on track"
I am not sure how to submit my question but here goes: we are 47 and have not been high earners our whole lives. We are behind with $550,000 in investments mainly in 401k/pre-tax accounts. Only have emergency fund of $5,000. At this point of age, should we save more into emergency fund (fully funded will take 2 years since we don't make too much) or keep saving towards our 401ks and start funding roth iras instead of saving to E-fund since time for compound growth is running out for us?
Edit: thank you everyone for advice! We will focus on e fund at least to 10k and then go half half towards Roth and e fund ($500 -$500 each). We are also bringing down E fund amount from $30k to $20k. Hopefully, at this trajectory, we should be able to start on our Roth IRA contribution starting sometime within 2025. Thanks to everyone
Hey, not sure if MGS will answer in comments, but here’s my best go of it. It’s my understanding, you’ll have to weigh the risk vs reward. How much job security do you have? How many months does 5k cover? Personally, I’d build the emergency fund cash into a HYSA. I can’t explain how useful it’s been as it’s so unique to your life plus the added bonus of peace of mind. 500k is great as 10% interest is 50k which is probably greater than or equal to your contribution, so the snowball is rolling with or without your added contributions! Again, if it were me, I would do cash first (at 4% in HYSA) while getting the 401k match minimum. Once the emergency fund is built up to whatever you’re comfortable with, I’d return to the IRA and 401k, etc.
Thank you! That makes sense. My husband is a construction worker so his work a lot of times is seasonal or on projects so, definitely not stable. We will have to do e fund first. However, I don't see 50k growth in our accounts each year. I feel like growth is so slow..our IRA account went down last year and now, it's back up to same amount as two years ago. We need to financially educate ourselves cuz I don't think we have them in correct mutual funds
If you are limited on your ability to save both for an e fund and Roth IRA. Invest in the IRA if there’s an emergency you can always take out your original contribution to a Roth IRA with zero penalty and zero tax since you’ve already paid taxes on it. You just can’t take out any gains you’ve made on it
I’m terrified to think it would take 2 years to fully find an emergency fund. If you don’t mind could you share what you believe you need an emergency fund of and how you got that number? I expect that either the correct emergency fund number isn’t as large of a number as you believe it is. If it is the correct number you seriously need to find a way to have more expendable income to put toward that Efund. Making more money, cutting expenses, whatever it takes.
Next time, you have to slide over to the Live Chat, not comments section.
Loved the dollar cost average of a 6 year flat market. I have not see that illustrated better anywhere. Thumbs up.
Declaring bankruptcy at 34. Imagine ever being able to retire 😂
Ouch, that sucks. IMHO Retirement is possible someday only if you learn from it and change course now. You've still got time on your side.
My parents went through it later than 34 and they made it! You got this!
Retirement accounts are immune to bankruptcy in most cases. So if you had a bunch of money in there you didn't touch it wouldn't detail retirement at all.
Favorite show every year
My parents, 62, 69, have $5,000 in their 401ks. I’m not missing any zeros. They aren’t retiring without me. Please, if you are in your 40s and have nothing, please start aggressively saving, your kids will thank you.
Two things come to my mind that aren't addressed here:
1) If this data is collected automatically (i.e. without people giving the numbers), then it probably doesn't take into account people who have multiple 401(k) accounts. Maybe some of the people in their 40's with only $80,000 in their account have one from a previous employer with $300,000. Now, instead of contributing a data point of $380,000, they look like either just $80,000 if you look at active accounts or 380,000/2 = $190,000. So they're grossly misrepresented in the data even though they're on solid footing.
2) The 25% always seems to be touted as though it all has to be in retirement accounts. What about the people putting 14% into retirement and 11% into a brokerage account? They're still saving 25%, but they get dinged because it's not all legally earmarked for retirement. There are ways to "save for the future" outside of retirement accounts.
Loved this. You got a new subscriber
This info is always great. I think the other number we need here is the median. Averages in financial matters are usually dragged up by high earners/savers. Even though the averages are sad the median is depressing 😢
Contributing the max to the FHSA is also helpful with savings and medical in retirement that rolls over. I max out 401K and FHSA $$$ then continue my contributions after tax because my employer allows it.