Average 401(k) Balance by Age (2021 Edition): Are You Behind?
HTML-код
- Опубликовано: 3 окт 2024
- Take Your Finances to the Next Level ➡️ Subscribe now: / moneyguysho. .
Download FREE Financial Resources from the show ➡️ www.moneyguy.c...
Sign up for the Financial Order of Operations course ➡️ learn.moneyguy...
Download The Money Guy Net Worth Tool ➡️ learn.moneyguy...
Our professional focus is on financial planning and investment management, and we leverage our knowledge for your benefit. We help you focus on the things you can control and manage the things you can’t. Visit our site for more info ➡️ www.moneyguy.c...
Facebook: / themoneyguys. .
Instagram: / moneyguyshow
Twitter: / moneyguyshow
TikTok: / moneyguyshow
Let’s make sure you’re on the path to financial success - then help you stay there!
The Money Guy Show takes the edge off of personal finance. We’re financial advisors that believe anyone can be wealthy! First, LEARN smart financial principles. Next, APPLY those principles! Then watch your finances GROW!
We can’t wait to see you accomplish your goals and reach financial freedom! New shows every week on RUclips and your favorite podcast app. Thanks for coming along on the journey with us.
Most Americans find it hard to retire comfortably amid economy crisis. Some have close to nothing going into retirement, my question is, do I pull cash from my 401k and buy a house, or spread my money in stocks for cashflow? I'd love to afford my lifestyle after retirement?
Lately, I've been contemplating retirement, uncertain whether my 401(k) and IRA will ensure a secure future. I've also invested $200K in the stock market, experiencing fluctuations without substantial gains.
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 investment advisor 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 45% since Q2.
Market behavior can be complex and unpredictable. Mind if I ask you to recommend this particular coach to whom you have used their services?
My CFA ‘Grace Adams Cook’ , 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.
Didn't watch all of it, but I did jot down these times. 11:00 twenties 21:10 thirties 36:10 forties 44:25 fifties and beyond.
Thanks for that!
A hero
You are a hero my friend. Big Thank youuu !!
a saint!
Gracias!
For those who don't want to wait until they reach retirement age to get the info:
20s - 14:13 - 15k average but you should have 1.2x your income
30s - 23:00 - 51k average but you should have 2.6x your income
40s - 39:15 - 121k average but you should have 4.8x your income
50s - 48:00 - 204k average but you should have 8.1x your income
All very low, are people living off social security?
Thank you for your service!
A god amongst men
@@rrCHRISxx If they are then they are suffering.
I’m 60.
I have $28k in savings
And a $2500 a month CA pension.
2 more years and I get a $1200 SS check.
My home is paid off and no debt at all
I'm uncertain if my 401(k) and IRA will secure a stable future. I'm looking for an investment strategy that aligns with my risk tolerance and financial goals. I've set aside $1 million for this purpose. Would you recommend investing in stocks or purchasing rental property?
Stocks returns on average 10%. Property returns on average 10.5%. if you close to retirement id suggest stocks as it's easier to liquidate and less upkeep
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
Could you possibly recommend a CFA you've consulted with?
I work with Rebecca Nassar Dunne as my fiduciary advisor. Simply look up the name. You would discover the information you needed to schedule an appointment.
I just checked her out on google and I have sent her an email. I hope she gets back to me soon.
I grew up poor. Didn't learn about money until I was in my 30s. Started a 401k at 35, putting away 7% and then putting every raise I got into it until it hit the pre-tax max. Every raise after that I reduced it to comform to the pre-tax, and started cash savings. I'm 48 now, and right at that 4.8x your salary income threshold, with 2 years yet to go. In other words, I'm just now caught up to the bare bones minimum sans what i have in cash savings. I think I can I think I can....
Me too. I grew up poor and I just learned about investing... now that I'm in mid 30s... :(
I turned 18 2 months ago and started my 401k a few weeks ago. So far going strong.
i’m assuming you were working there before you turned 18?
@@MrOmegabob yes
You’re ahead of most people your age
Keep up the good work
Roth ira! Tax free money buddy
This whole program is excellent advice. Fast forward by decade:
20's @ 10:58
30s @ 21:20
40s @ 36:10
50s @ 44:30
MVP👍👍
Thank u
Planning retirement has never been this confusing! First SVB, then Signature bank and now First republic, these are all the signs of yet another 2008 market crash and recession 2.0, so my question is do I still save in the United States dollar, or could this be a good time to buy stocks? So I’m left wondering what 2023 has in store for us investors, I’ve been sitting on over $745K equity from a home sale and I’m not sure where to go from here,
Nobody knows anything, you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving
@@NotyourBusiness-urto6 I'm happy to have stumbled upon this discussion. If you don't mind, could you tell me the name of the financial adviser who helps you with your investments and how I might contact them? It Intrigues me to keep learning.
@@NotyourBusiness-urto6 Thanks for sharing, I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an e-mail shortly.
I signed up for my employers Roth 401k and a week later they asked me if I meant to do that. I Ofcourse said yes and they said “oh we’ve never had anyone do that before so we thought it was a mistake” I was shocked when they told me that. I’m 24 now and looking forward to tax free gains!
Nick, that's sad and hilarious at the same time!! You're well on your way to very fat retirement pockets!!
I was so excited when my workplace offered a Roth version of their 401k
Good move Nick. Just so you know, I’m a Financial Advisor and make about $1.3M a year. If there’s anyone who could use a tax break, it’s me! My wife is on payroll as well as myself, and I max out a ROTH 401k for both of us, every year- $39,000/yr. I’m 42 Yrs old. The theory is that when you retire, you might be spending less than you are now, hence taking the tax break now makes sense. In reality, most of my client live on the same as they do before retirement, or MORE! Very few of my clients, myself included, expect to live on substantially less when we retire. CONTINUE TO USE THE ROTH 401k!!
Good for you, Nick. Invest as much as you possibly can in that Roth……
@@R_Jon Being in that high of a tax bracket it would make way more sense to contribute to traditional dollars - making 1.3M your tax rate has to be close to 40%, odds are your taxes won’t be that high in retirement.
Wow, this is an incredibly valuable video! I am 60 y.o. today and I had the same brilliant advice from a good friend when I was 20 y.o. -- have a very high savings / investing rate NOW, in your early 20's and you will be practically guaranteed to be wealthy later in life. I took that advice to heart and it was so true. Now the savings / investments from 40 years are working for me! Choose highly diversified, low cost index funds.
I was saving 35% of my income to max out the amount I could put into my Roth 401k during COVID. Had a 38% total return that year. Just want to encourage people to continue to save, or save more if you can, during the times where the economy is rough. Just means you'll be gaining a lot more when it comes back up.
Yeah I'm a bit bummed out that I'm no longer eligible for a ROTH. really great way to get investments.
@@TheKurtPrice do Backdoor ROTH. It's available for high income earners
Thanks to my boy Trump
you are crying now
Turned 45 last month and have 610k in retirement spread across tax-free, tax deferred and taxable accounts, 100k emergency fund in online bank earning 3% basically the balance of my mortgage or two year's expenses, 2.5 years left on said mortgage, no car or credit card debt Changing to HSA next year to add that to the mix. Currently saving 45% of income and raising to more after mortgage. Looking to retire in 10 years.
Awesome!
Great job!
Where are you getting 3% in savings??? I researched savings accounts and almost all around 1%.
Not bad
Im 46
Hav over 1 .4 million assets
Not including my E*TRADE
Td Ameritrade and webull
Damn you youngins are putting me to shame.
Turned 53 this year. Been in my 401K since 18. I have 1.4M as of today. Easy money folks m listen up
What age do you think you’ll retire ?
@@Angulocarlos1 probably 55, so I don’t get my penalty on 401K
Way to go! I started my 401k at 34, now 40 and will have 100k by the end of the year.
@@cravenmoorehead3756 what do you plan on doing in retirement?
@@carlkpsplucky5554 I will probably sail 6 months of the year and relax the other 6 at home with kids/grandkids..
Most 20 somethings are short-sighted and will always think they have several lifetimes to worry about saving, or they will be a millionaire by retirement time; therefore, no need to worry until 30-40. The best part of this video and what directly relates to most of us is fifties and beyond and having close to nothing saved.
I would be interested to see more median, and percentiles for the 401(k) balances. Average is not as useful of a datapoint in my opinion here. Love you guys for all the context you do put out. I know I have made a lot of different choices in life based on your show.
I thought the same thing,
Exactly, since the super savers, like me, skew the data.
I was going to post the same exact thing.
@@mrgeorgeburdell and people in the top 5% of earners will skew it too. It's honestly unfair to compare someone making 60K to someone making 200K.
I always find it interesting when people that don’t even have a fraction of the recommended values end up surviving without an issue just off of social security and a small amount of savings. Plus when they say that people will spend 85% of what they made before retirement… but it’s not like people need to save in retirement, so if they were saving 40%… yes not everyone but savers are not going to just start blowing money. Savers always save.
I just turned 25 last week and I’ve got 32k in my retirement, mostly in my 401k but about 7k of it in my individual investment account and my Roth IRA. I’m pretty happy with that amount at this point of my life
You’re ahead of probably 70 percent of the kids your age
I think you’re likely in a better balance than my oldest sister, she’s turning 60 in a couple months. She used to have more, but has made some poor choices.
Wow. Kudos to you. I’m 26 with 1k in retirement and 6k in general savings
Proud of you young fella keep up the god work
@@stevenguzman7472 +p+
27 with 65k in my 401k and no student debt. Love your channel! Thanks for all the great videos.
Right behind ya! 27 with 55k.
Good stuff brother. Avoid the landmines of boats, cars, and divorce and you’ll keep crushing it.
Listen to this guy ☝️
I had 72k at 28 years old and then decided to go to law school full time. I'm turning 41 this year and just started back up (only 50k now). Stay the course your on, and warn others like me.
@@lawyerup8040 was law school worth the time and money in your experience?
thank you for providing free financial education. my parents would have benefitted greatly from you guys.
Cheers fellas
I just increased my 401k from 20 to 25% during this video. Thank you for the info!
I missed my 20's, 30's, 40's, and the first half of my 50's.
Now working my butt off trying to catch up for some sort of decent retirement.
Holy moly. Maybe you’ll only have to work full time until 70. Then only part time from then on. Hope it all works out for you.
You can do it!
Started saving 15% at 22 years of age. Just turned fifty. At 13X now on my own. Combined with wife's 401K (she stopped working to raise kids 16 years ago) we are at 23X. I am no genius. Compound interest works.
🤩🤩🤩
You had ginormous interest rates in the 80s and even 90s. People my age are fucked
@@michaelreed2787 because they had ginormous inflation
@@michaelreed2787 buy some BTC
Well done.
You got this guys. I just turned fifty and have one point three in my 401k. Worked very hard past twenty five and looking to retire in five. You can do this. Stay focused and God bless.
Married and in early 30’s with $220K combined in retirement accounts.
However, we are one year away from paying off our second mortgage. We are supercharging our investing with those savings and the passive income from rental property.
I’m so thankful i had family to give me advice in my 20’s to stay disciplined and despise debt.
I am exactly in same spot. But just me working. Nice stuff man!
Keep it up, man. Way to go.
Really wish you guys would add time stamps to your full episodes. Love the info though guys!
Agreed, I'd love time stamps especially for these by age videos where I may want to jump to my relevant age.
Please, make timestamps on your videos. Doesn't matter if that means I watch an add right before I get to see my agent's slide v
With the traditional vs roth conversation, it is important to point out that you should always have some sort of mix by the time you retire. Even if you are in a lower tax bracket, you need to have some traditional 401k/IRA dollars in your retirement accounts, because you can ALWAYS withdraw some money at an ultra-low tax rate (barring major and majorly unpopular tax reform).
Important to note that social security counts towards your tax bracket so if you earn a good amount of money throughout your career, very little or none of your pretax funds are going to that ultra low tax bracket. Taxes are also at an all time low and are likely to increase in the future. Also any employer contributions are always going directly to pretax (it’s a tax benefit for your employer) so you are likely going to have some pretax funds either way. Finally you have to take RMDs on traditional contributions but not on Roth and oftentimes people are using the 401k more to build an inheritance by the time they are 72 than planning for additional income. In this situation RMDs are a serious problem while Roth can maintain that tax benefit for generations. For most people contributing to traditional just doesn’t make sense. Sorry for the essay lol
Pitfall #1 - marriage
Pitfall #2 - children
Pitfall #3 - divorce
…that’s reality
ALWAYS write a prenup. Don’t have kids, live below your means (save at least 10% salary)
@@Metal_Stacking not self-centered, just saying kids and women aren’t cheap.
Don't forget funeral expenses.
Turning 42 Sunday so looking forward to crushing it before 50.
Wish I was back in my 20s doing 25% too much money went on stupid things but nobody teaches you these things. Thx to these videos they encourage you to push you further.
Ten minutes into my first episode I was sold by your passion and subscribed. Well done gentlemen!
The best advice I ever got from my dad was; I shouldn't only think of saving money, there's no growth but when you invest you tend to grow wealth 💡
you dad most be a wise man
What's the perfect investment there are just so many options?????
I have really been motivated to invest in cryptocurrency, what do you think?
The best advice I could give you is to get professional to help guide you and avoid lossing money, I learnt this the hard way
if you've got any, please shear 🤷🏼♂️
My goal was at least 32k by 32, pushed hard in my 20’s and ended up beating that by 6x, compound interest over time is a beautiful thing.
This is an excellent video, thank you so much. I am starting my 22 year old nieces on saving this weekend in their 401(k) and starting a Roth. I will be sure to share this video with them.
Just turned 31 and hit 103k in my 401k. Started an IRA last year and its at 3k. I try to get everyone to contribute but soo many people just dont want too for somereason.
For reference i make about 40k a year
@@wesleyskinner569 what percentage do you contribute and at what age did you start?
A lot of people are ok working at Home Depot at 72 years old
I know that feeling, I got like 16 new workers and I was telling all of them how to set it up, how much... even if they weren't interested to still set it up for matching the 5%.
@@wesleyskinner569 net or gross?
I have just turned 30 years old and my balance is $108,345. I'm a recent graduate and together with my employer contributions and my own contributions is 20% of my $71k income.
Brian and Bo do an EXCELLENT job at presenting information. I really hope their show audience continues to grow. They're still way underrated.
According to Vanguard: "In 2020, the average account balance for Vanguard participants was $129,157; the median balance was $33,472."
And, per Fidelity: ""The overall average 401(k) balance hit $129,300 as of June 30 [2021], up 24% from the same time last year, according to Fidelity.
Individual retirement account balances were also higher - reaching $134,900, on average, in the second quarter, up 21% from a year ago." So, given how close the averages are at Vanguard and Fidelity, you can probably surmise the median account balance at Fidelity is similar to that shown by Vanguard; which is not particularly encouraging given the last 10-ish years of this bull market.
Turning 40 this July. Family of 5. Net investments right at 1.5 million, not including real estate. Wife has stayed at home for 9 years. We started a side hustle 5 years ago that has super charged our savings rate. I remember when I was early 20’s someone tell me time will earn you wealth so start today. Let those army of dollar bills work for you! Thanks guys for all you two do!
Thanks for the motivation I started at 26 my company matches at 100 percent
I'm 39 and have 8x my income in 401k. Started my 401k at 18 years old
Agree with most of what they say. I'm in my early 40s. At age 30, I had 1.03x of my then salary saved. At age 40, I have 4x of my salary saved. Alot of it was due to budgeting where I saved on average 38% of my gross pay.
Great stocks and I just bought in on them, but I'm interested in making short term profit, let say turn a $150K to $500k in 6months, I'd appreciate tips on how what stocks to buy to make this much profit.
@Johannes Buchanan That sounds great and how do i connect with her ?
@Johannes Buchanan Okay i just found her website and left a message for her. thanks.
Yeah!!! Those kind of quick profits require taking extreme risks. Because that involves cocaine trafficking and that's a felony. Possible to make those profits, just not legal or advisable.
Age 52. My wife and I have maxed our 401k since we were both 24 years old. Rolled over 401ks as we've changed jobs. All mutual funds. We have done very well and are set. This stuff works.
I think it's important to point out that the median American gross income is less than $32,000 a year, with it being 13,000 at the age of 20. Not even half of Americans start making over 40,000 a year until the age of 31. Most Americans simply aren't making that much money.
I'm 22, and I save as much as I can, 50% employer contribution to 401k up to 2%, I put 5% in, and then I max out my Roth IRA, and then I've been putting for all the extra money I have 2/3 into the s&p 500, and 1/3 into clean energy ETFs
Clean energy funds have taken a beating this year. Hopefully they'll rebound in the 2nd half of the year.
I knew a guy who re-enlisted in the military for nearly 20k, but forgot that he had his bonus pay set up to go to his TSP. Screwed him short term, but future him will love it
I remember when I turned 30, I had a $55k income and a retirement balance of around $70k and thought I was hot stuff. By age 31, that balance was at around $35k plus the -$70k in home equity on the condo I bought the year before. Fun times. I never stopped saving, though, and now I'm close to financial independence.
How much did you have saved by 31? I have similar income
How old are you?
I'm 44. I was 31 in 2008, and my net worth went from $100k to -$15k. It's just a hair over $700k today.
@@ghjong001 what age do you want to retire by? You seem like you’re on the road to early retirement.
The moral of the story is. Do not Cash Out your 401k during employment changes.
Uh . . . duh . . .
@@VolksdeutscheSS you say duh but a lot of people do it.
No need in worrying about "cashing out" a 401k. You are not allowed to access any of your paid 401k.
I know this because that scam entity currently has well over $20,000 of my money, not even once being allowed any access regardless of job change or not.
I had to file suit in order to stop any more of my income being stolen under the guise of "401k". That's how bad the entire idea of this "401k" nonsense really is.
Save money on your own or risk losing every single penny. That is what 45 years of experience has shown.
Buying cash deposits are the best way to increase income for retirement. There is insurance and many laws protecting that investment, unlike "401k" which has NO protections whatsoever.
If you're still confused about roth vs traditional flip a coin and go with either one
The takeaway is just save and invest.
Remember this; If you contribute to a Roth 401K and then convert it to a Roth IRA before RMD age, there are NO RMDs.
i’m 25 years old and i’m currently saving 3640 per year in my roth ira (140 bi-weekly) in addition i have another 7615.92 into my 401k (292.92 bi-weekly) including my employer match. that makes a total of 11255.92 annually and 22% of my gross income. my wife does similar to this just without the roth ira for a total of 17755.92 or 18.5% of our joint gross income.
Keep it up! If I was 25, I’d be maxing out Roth contributions with the way things are headed.
Don't let the Mutual Fund companies eat your lunch! Go with Vanguard Index funds, And read books by John Bogle!
Ugh. I hate it when people report averages for metrics like this. What's the median balance by age?
That 121K average 401K figure for 40s is actually skewed by the rich folks who have a lot more saved. The real picture would be to look at the median savings and I bet it is much much lower.
People need to start early. If you start early, you’ll be good to go. Max out early on and it will pay out dividends later on!
Idk I got a friend whos only worked 15 years and hes got 200k saved up. Were blue collar, so not hedge fund trust babies and hes pushing late 30's
I was worried I'd be under average, but I'm over average for my age! watching this video made me increase my retirement contributions though 😄
What’s your average
I’m 33 and I’m doing 20% in the 401k, 10% in Roth. With a 6% match. I also have acorns, stash, robinhood. I don’t want to get caught lacking 35 years from now.
Employer sponsored retirement accounts are fantastic, assuming some kind of match or profit sharing!
Combined with compounding, it's hard to beat.
I wish I had this info 30 years ago in my 20’s. I worked in an environment where seasoned coworkers encouraged taking loans on 401k, instead of the bank. No one really talked much about savings because we had pensions. Now in my 50’s I need to play catch-up. I’ll be working well beyond my retirement years of service(30)/age (55) eligibility. I’ll still be a decent age 64 with 40 years of service in 13 years.
Get out before u age out
I’m 35 and hit 90K in my 401K. I think it has been the easiest way to save money. Set it and forget it. 👍🏼
Gotta start somewhere
Depending on how much you save, by the end of the year, you will have well over $100,000. If you save $500,000, providing you maintain 10% ROI, you could retire on that, probably in 10 or 11 years. Well done!
I don’t forget about it I check my funds to make sure it’s doing good
@@orion3706 that’s just my 401K. I have other non retirement accounts as well. 👍🏼
I’m 28 and I hit 100k
I took a 401(k) loan for a down payment on a house. It was a good decision, I think. I’m 30 years old. I had a little over 140k in my 401(k) but I had no cash for a down payment. I consider my 25k loan as a “correction” to my retirement contributions. My account balance is still on track, the money from the loan was growing tax free for 7 years.
I don’t see the problem with taking a 401(k) loan as opposed to borrowing from the bank IF doing so doesn’t take your retirement account off track (you’ve contributed more than your target amount) and you’re using the money to buy an asset that improves your net worth position (having a home gives me equity as opposed to the 2k per month I was throwing away on rent).
Every circumstance is unique. No one size fits all with finances.
I love it when you guys do this overview! It reminded me to up my contribution, as I'm about to get my raise. I'm saving 20% now at 25 years old. Planning on increasing every year until I get to at least 30%. This show has helped me so much! Thank you guys!
You can only increase up to my maximum limit set by the IRS. Once you hit that, you should strongly consider a Roth IRA.
Good luck!
Going to be a total geek here, and this is a 'do as I say, not as I do" moment, but Respect the FOO. You may want to fill up the Roth (FOO #5) BEFORE filling up the 401(k)-type plan. But definately make sure you are getting your full employer match (FOO #2) before doing #5. However, saving is the most important step of all, and you are nailing that!
Thank you for the advice, guys! I don't have a high income. I'm not going to be near the $19,500 limit for a 401(k), even if I put in 30%. Also, I'm using the roth 401(k) option and getting the full employer match.
@@stephaniem2743 I believe there is also a % max (at least there was a 25% max where I worked), so that is something to take into account. But if you are in Roth, that is great because it essentially maximizes your amount you have on the back end, since you don't have to take taxes off the top. If your income isn't too high, you can still also put money in a Roth IRA, in addition to a Roth 401k
Good for you! Check into Vanguard index funds, don't pay all your gains out in fee's!
The best money advice I ever received was this: have the retirement contribution deducted from your paycheck before you even see it. You will never miss it. (That being said, keep an eye on it.)
My Dad called it, paying yourself first. Cheers.
Here is the beautiful thing about contributing to the Roth option within a 401K plan that offers a Roth option. Although your contributions will go into the Roth side of the 401K, your employer match will ALWAYS go to the traditional side of the 401K meaning tax deferred. Therefore, for those who are unsure about which tax option may be most efficient for them later in life (and let's be honest, we cannot predict the future) by contributing to the Roth side and your employer matching in the traditional side you are diversifying your tax options later in life. Therefore, unless you are hitting higher income limits, just go with the Roth option because at the end of the day you will automatically be getting traditional dollars from your employer match.
My strategy. I'm in the grey zone but figured it I would like the flexibility of not having everything on the traditional side in case I needed extra distributions one year for larger purchases. Also starting to build out the cash and brokerage bucket to avoid being overly dependent on the retirement accounts. Still 53 but can see that runway in the distance but pretty much on autopilot now and thinking of risk mitigation and optimization.
I think it could be helpful if you could provide the median. That would help illustrate the impact of high earners. I am guessing the median would be a fair bit lower than the average
I'm in my mid-40s and my husband is just over 50 and I can honestly say the system does work if you trust the process: start early in your 20s, do not take out any 401K loans, buy the dip instead of selling off when the market tanks and you will have millions when you hit 60.
Ugh.... this can be a little depressing. My wife and I didn't learn much of this until we were 40. We lost almost 2 decades of building wealth. Now at 47 we are still behind and finding it difficult to catch up.
I used to take the bus into the city for work. There was an old gentleman on the bus every day. He always looked miserable, and at his age (I'm guessing 70+), I assume he didn't want to be there. That's my motivation - don't be that old guy who doesn't want to go to work but has no other choice due to poor financial decisions in the past.
Very true. I have been watching "stimulus updates" here. The number of people begging the federal government for money is pathetic. Americans are horrible about managing their finances.
28 year old here. My income has over doubled since I started working at 23. Unless there continues to be crazy market growth I will not hit 1.2x my current income. I started saving right away and was able to hit 27% savings (including 5% employer match) this year. I have just above 60% gross income in my retirement account. I’m likely not going to make the 30 year old bench mark, but don’t want to be afraid of not making the final retirement finish line. Y’all are a gut check on spending habits, and a strong push to do better. Would love to hear your thoughts.
I got every dime of interest I paid on a 401k loan inserted back into my account along with the principle. I bought almost every car I owned with a 401k loan and made more money with my interest payback then I did on my selected funds. It's risky but it always worked out for me for 30 years. And I wasn't paying interest to a stranger.
I just found out about Roth 401k options. Both my husband’s employer and my employer offer them! I switched them both to Roth contributions and upped the percentages. We are 29 and 30. I get discounted fiduciary services through my employer and I’m meeting with a local rep soon to go over our total picture and how to maximize our retirement. We want to have the option to retire between 55 and 60. Meaning we have enough to retire, but we can still work because we enjoy it while we let our big piles contribute to compound for a few more years. We want the OPTION to retire early with the benefit of working because we WANT to.
My employer matches 6% 401k so i do 6% of my paycheck there thats it. the rest goes into my roth and my individual. I like having an individual because I want to use the dividends or be able to sell some in my 40's before retirement
This yalls BEST episode, i reference it all the time. My husband and i both turn 30 in march and are only a few thousand from being future millionaires x2!
I'm 26 with $118,000 in my 401k.
Proud of you keep up the good work im on my way also im at 50k
I started my 401k at 24, now I am 47… my income has been in 50-90k range over those years in my medical job . Same job, so it has been a gradual climb in pay . The employer match has been about 5 percent most of this time. In my 20’s I put in 12 % to start off , but at times I’ve only done the 5% to get the match. I now have 660K in my account. Wishing I had also started a Roth a while back , but I do have one now.
Man, this rocked! 401k, HSA, I just mindlessly saved, but giving this visual representation made me bump everything up a smidge.
9
Once the car is paid, I'll be upping by 5%.
I appreciate the entire video but from from the 20 minute mark it was particularly beneficial to me, thanks for the video.
I have always saved 9% of my income since the day I qualified for 401k, at times, I have bumped it to 15 and 20% depending on my financial situation. Currently I am 39 years old and currently I am sitting on $177,331. I always wondered if I have saved enough after watching my dad struggle in retirement, but this video has put me a little at ease knowing I am in a decent spot so far. Great video and information.
Inflation and taxes are bound to be problematic at the rate things are going, so at least you’re in a relatively decent spot for your age and have time to adapt as the “new normal” takes shape.
I’ve got around $243k in my 401k at 50 due to unreliable employment and not contributing like I should since my current employer of the last 5.5 years. I make more than many do, but I also live and work in an expensive area.
I also have no real estate, and I know I can’t afford to live in an apartment during retirement. Then again, property taxes are going to go up, too, so that’s a factor.
People posting their personal information online with a seemingly real profile name is just baffling to me.
I'm in the same boat. My father is in his 70's & he's broke. I don't want that. I'm saving 20% & seriously considering bumping that up to 25%.
@@gregoryvierra6114 I couldn't agree more, Gregory.
Diversify, dont rely on just a 401k. Politician can and will screw it all up. Look at if you would have retired in 2008-2012. You want to invest in multiple income streams.
Even if the stock market crashes, at least we know Bo will be "very excited" for the next Money Guy Show!
As a financial mutant he would be super excited to buy shares on sale
Love it
As a 50-something, I am sure the reason we save a higher percentage is mostly due to our larger income, and reduced liabilities (kids and associated costs). This gives us a larger disposable income, and the ability to save at a higher rate.
I am sure the reason we save a higher percentage is mostly due to our larger income
Sorry but high income equals high savings rate is a myth. You might assume that a family income of $200k/year would invest more than a family income of $100k/year, but it is not factual.
Not necessarily. What i see around me is 50 year old people saving more because they didnt start early enough.
In general that may be correct; however, the statistic you state is probably a broad statistic that doesn’t apply here. In fact, the statistics that are stated on this video are contrary to that statistic. Furthermore, I can tell you, for a fact, that higher income, and reduced liabilities have allowed me to save a higher percentage.
Been waiting for this show all year!!
This is amazing. I’m learning so much. Thank you guys
Since distribution is probably highly uneven, I'd really like to know the median numbers, rather than the average. Averages can deceive.
40% taxes here yikesssss. Love roth but pre-tax too convincing.
I’m 40 so let’s see what you say I’m excited to watch
I missed out. I keep telling my nieces and nephews, and their friends, and even strangers! These kids don't want to listen.
The problem is that people do not want to do this when they are young- it was hard going against the grain, always buying used cars, no big time vacations. It was worth it folks. Just found these guys...
Same here, but I saw firsthand as a kid what happens to people (family members) when they don't invest for their future; it's very, very bleak.
I'm at 12% now at age 35, with 1% added per year to a cap of 15%, which I may increase. Employer match is 10% of my yearly salary. At 6% growth, I should have apx $200K in my 401k by 40. This video makes me feel pretty good about that. I also save $250 a month that I spread out $150 into short term investments and $100 just into a standard savings account for emergencies. Considering I was in debt about 4 years ago, with no 401K, it's very possible to build a hefty retirement account post age 30.
A 10% match is AMAZING mine only maxes a match to 6%.
I'm 28 and just starting to heavily save now, but was getting my feet wet starting at 24. Trying to get my wife on the boat too, but am thankful she was open to at least maxing out her employer match with her Roth 401k.
@@mac2pro99 its kind of a weird match. i get a bonus every year where the first 10% goes into my 401k, which is 10% of my yearly salary, so its dependent on profit sharing being at least that number, but so far has been very good. anything above 10% is a check unless you choose to put in more.
@@gdn86 this is exactly how my employer does it.
Stick to Vanguard Index funds, don't let the Mutual fund industry eat all your profits.
Please do a entire show on asset allocation 10 years out , 5 years out, and in retirement. Of course that varies, but what are some general guidelines . You touched on it but would like to see a more in depth analysis
@D. Allocation is different for everyone but rule states 110 minus age should be in bonds.
Lame
what are some general guidelines .
The general guideline is as you get older, adjust your "risk tolerance": move from equities to fixed income securities. Your risk tolerance is unique to you.
While I agree with you guys that most people and most in their 40’s are probably under funded for their retirement, I think that the Fidelity average of $121,000 for people in their 40’s, may be skewed as a lot of people have multiple accounts so they may have a Fidelity, a Vanguard, a brokerage account, real estate, etc. Don’t get me wrong, you guys have tons of good advice and love listening to you guys.
Love the info. Wife and I are 38. 330K in 401K with 22K in a Vanguard fund. Both state employees and will retire with a 160K yearly combined pension if all goes well. I was disappointed that the 401K yearly limits didn't increase this year :(
No one cares
@@DoubleJabSlipRightHand You cared enough to reply. Don't be salty.
how come you didnt put more into the vanguard account? they have very good returns over the long run, or did you only discover it later on?
@@bradturner7678 We put the left overs that we can after fully funding the 401k's into the Vanguard.
@@music4all317 what lonely hill billy state?
A lot of these knuckleheads in their 30's have a 50k 401k balance but a $42,000 car in the front yard.
You should have way more subscribers
1. Remember, you are handing out $100 if I give you $100-$150 and I don't see it from 20-40 years. You are not just "Handing out $100 bills"
2. 13.5% is actually good. The order of investing should be 401k up to the match, then Roth IRA to max, THEN max out 401k. So 13.5% average is a VERY good number for 401K only.
3. 25% of your GROSS pay is a lot for most people and families. 25% invested plus 30% in taxes and health insurance plus 25% of your take home pay for rent/mortgage doesn't leave a lot for the rest of things.
This balance should really include IRA;s in addition to 401K's. Many young people contribute only enough to get the full company match and then invest the rest through IRA's where the choice of investments are endless.
Seeing a balance of 401k in my 401k was sweet
I’m 60yrs old
And I know I’m way behind.
I have a CA pension. $2500 a month for life.
I have my home paid off.
Hopefully you have more than 2500/mo
@@rrCHRISxx I have no debt and
A job and a pension totaling $3800. Cash a month. My living expenses are $800 a month
@@PInk77W1 only $800/mo means you only need a $240,000 nest egg(according to the 4% rule,) should be an easy feat on a low monthly expenditure.
@@rrCHRISxx so my $2400. A month net pension don’t count ?
@@PInk77W1 So the $800/mo includes health insurance, food, and utilities?
I'm now 55 years old. I was way behind on my 401K so I took a chance and went all in on Tesla stock in 2015. Turned $297,000 into $4,400,000. Got lucky! It ain't how you start, it's how you finish. Believe in yourself...
My employer has seasonal overtime. I usually raise my contribution during those months which keeps my overtime from being Zapped by taxes and my take home pay remain the same as a 40 hr week.
So much knowledge in this show! I love it!
44 with $1.3mm in retirement savings including 401k. Guess I'm doing OK. Definitely no easy feat without persistent and aggressive saving habit after college.
Your killing it. What age did you reach millionaire status?
You're set, you could retire right now if you wanted. Or retire at 50 with alot more retirement income.
Great show Money Guy team! You all are changing lives.
I'm 49 and have $685,450 in my 401k and I thought I was behind
I'm almost 47 and have less than a fourth of that so you're doing much better than me.
You have over half a million in 401k and you think you're behind?
I'm just turned 36 last week and I have $572,563 in my 401k and I think I am behind as well!!!!!
@ m Bak no you didn’t 😑
How could someone in their 40s save 50% of their income in a retirement account? The 401k limit is only around 19k a year. What are these 40 year olds making? 40k a year? I don't think so. Need to talk about the limits here too and be realistic...can't just throw out percentages.
19.5k in an IRA, plus any company match, safe harbor or profit sharing. Then another $6500 in a Roth IRA. From there, although it wouldn't count towards retirement accounts, they could open a brokerage account.