It's advisable to save at least 15% of your income in a 401(k). Online calculators can help you determine the ideal savings amount based on your age and income. Contributing this percentage can enhance your chances of retiring comfortably, as it allows you to benefit from compound interest and grow your savings over time.
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.
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.
While your 401(k) and IRA account will likely continue to grow after you stop contributing to it, that growth will be limited by the market, your plan’s balance and other factors, so i can perceive the preference for Annuities, I still want to know how best to compound at least $2m in retirement savings without holding cash.
For many years, bonds or other fixed-income assets could produce the yield needed to provide solid income for retirement needs.The importance of having financial safety could be why boomers are turning towards advisors in retirement planning
Agreed. It's always wise to be proactive and consider diversifying our investments to manage risks in uncertain economic times. I delegate my day-to-day investing to an advisor ever since suffering a major steep-down late 2019, amid rona-outbreak, and as of today, I'm semi-retired with barely 25% short of my $1m retirement goal after subsequent investments.
Yes indeed.... *Izella Annette Anderson* has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
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
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.
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.
A friend suggested that saving at least 15% of your income in a 401(k) can help build enough for a comfortable retirement. Is this a good strategy to potentially grow my retirement savings to around $3M over time?
There are strategies that could be put in place for solid gains regardless but such executions are usually carried out by investment experts or advisors with experience
Your friend is not a professional, Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
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?
I stopped listening and taking financial advise from these UA-camrs, 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?
*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.
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.
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.
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.
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.
Curious about top investors' millionaire-making strategies, I'm eager to grow my $295,000 nest egg. Investing in stocks could provide attractive returns through capital appreciation and dividend yields. But timing is crucial - should I invest now or wait for improved market conditions?
You're correct. I think the smartest way to go is to spread out your investments. By putting your money into different asset classes like bonds, real estate, and stocks from other countries, you can lower the risk if one part of the market goes bad.
Several individuals minimize the importance of counsel until their own feelings become overwhelming. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm afloat. I looked for licensed advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.
'Laurelyn Gross Pohlmeier' a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
I am 32 years old and have $35k in my Roth 401k and $3k in a Roth IRA i just started. I barely got into saving at age 24. Seeing all the homeless around scares and motivates me to save as much as possible.
Wuddup my fellow 32 y/o brethrun. Kinda funny how close we are. I am at 33K 401K and 8K in my Roth. Better late than never. Good luck to you, my friend!
Don't worry too much about it man. The 30yo goal is largely asperational. If you have anything at 32, then you are doing great! I didn't start until 32, and barely missed the 2x mark by 40. And that is with a pandemic and some major health setbacks in the last decade. A lot happens in your 30s, and as long as you keep focused then you are going to be fine. At 35 I had $10k saved for retirement, and at age 40 it was close to $150k. I plan to be waaaay ahead by age 50 so that compounding interest can take me the rest of the way to goal and I can cut loose and chill out a bit the decade before actual retirement sets in. But saving and sacrificing more now will open a lot of doors and options later in life. You are on a good track, so keep it up!
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.
This is a bot, money guys audience please beware of these types of posts. They’ll always go about the same type of discussions where they say they’re worried about their future, another bot replies empathizing with the original bot, and then they offer their “financial advisor” with a link/channel. Don’t click anything you don’t understand/know. Scams are everywhere.
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.
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.
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.
I’ve been investing for about 2 years now since I graduated college and got a full time job. My previous employer didn’t offer a 401k but I managed to invest $31k and $27k between my Roth IRA and Individual brokerage account respectively. I start a new job with a 401k this coming Monday.
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
Let’s say you start at 30 making $100k, 3% annual raise, 15% contribution into a 401k that starts at $100k. Rate of return at 10%, your range from 30-39 will go from $100k to $562k. It is so silly to set these bands instead of a single year - 30/35/40/45…
@@seanh7356 The range they are displaying is individuals between 30-39 have an average amount in their 401k of X dollars. I agree with your math, but it is irrelevant to my point. What I am suggesting is you break down the age bands differently as a 30 year old will have less in their 401k compared to a 39 year old, but yet they are in the same band. It does not give an accurate representation.
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.
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.
I've always been fascinated by how top investors achieve millionaire status through their investments. Currently, I'm sitting on $345K from a home sale and I'm torn between investing in stocks or holding out for a better opportunity?
I believe every Investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.
Many people underestimate the value of advisors until they've suffered financial losses due to emotional decisions. After my divorce, I sought professional guidance to save my business and found an exceptional advisor who grew my assets from $175k to $850k despite inflation.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation
NYCOLE CHRISTINA VANNATA a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
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.
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 ❤
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.
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).
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
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.
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
@@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!
@@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
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.
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
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~
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.
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!
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.
Nice Job!! When I got to that amount I cut back on my 401K contributions and starting buying rental properties with the money I was putting into my 401K. I retired 11 years ago at 50 with a summer condo on Maui (Napili Beach) and a winter townhome in Tahoe for ski season, and two rental properties. Everything is paid off and I've yet to take any money out of my 401K which grew a lot over a ten year period without barely putting anymore money into it. Good Luck, you're doing great.
@@genzlegacy7988i definitely left a lot of money on the table retiring at 50 but you only need so much to live comfortably! Luckily, I've been able to stay really active! Yesterday was day 111 for this ski season! Dream big dreams and put on your overalls!
You have chosen to keep working until you are old or dead by investing in a 401k. That makes you feel good? Your 401k pays you $0 in cash flow that could replace your day job income.
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.
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.
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!
@@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 .
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.
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.
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. 😅
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.
@@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.
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.
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.
I have one and use it as a bonus. The company I work for has seen the stock price go from 250 high to a low 43 back to 140ish. Some of use made money when we sold. And others are still in negative. My point is don't rely on this. Single stocks have more volatility then index funds found in most 401ks
I only just got access to a 401k and started making a decent income this past year so I have A LOT of catching up to do. Was stuck at or below a $40k income until age 32 but at 33 I'm at $121k. Need to max it out for a few years to catch up. Granted I'm at $33k in a Roth IRA.
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.
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
Open a roth and contribute after tax dollars for another bucket and max out your contributions of $ 6,500 a year when you retire that money will be tax free.
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.
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
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
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!
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
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.
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.
If someone has $51k in savings and that should be 2.6x their salary then they are only making $20k per year. Isn’t that extremely low for someone in their 30s? These scenarios don’t sound realistic.
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.
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.
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.
I'm 32. 200k in my 401k, 35k in my IRA, 240K in my brokerage account, 400K in equity in home and 30K in HYSA. Still owning 2019 Nissan Rogue but I fell I'm doing well :)
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?
Well that’s good! I’m saving 40% and just hit 25! Getting my EMRGY fund to my set goal and once I do. I’m going 15% in the 401K which is 21% total with the match.
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!
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.
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.
I do alternatives like Roth IRA. For my 401K, i contribute the LEAST amount possible to get the MOST company match possible because people dont realize how much fees are associated with your employer 401k plan.
Agreed, I have paid 1.2% Net Expense Ratio to Empower Retirement as recently as 2015. Through Fidelity, my net expense ration is .04% and they even have 0% funds. I'm grateful the competition between Vanguard, Fidelity, and Schwab has lowered Empowers Net down to .4%, but still much higher than the alternatives. These employer account need to pay the agents who show up during HR Open Enrollment days and explain the plans to all the other employees who don't care to educate themselves on these accounts and fees.
My 401(k) balance is $35K, so I'm bringing the average down for 401(k) holders. Started my current job in 2023, after being laid off from previous job of 20 years. Bulk of retirement is in Roth IRA, Rollover IRA, and other accounts.
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.
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.
If you make $120,000+ per year then saving 25% of your income hits the 401K upper limits from just that alone. How practical is it to save 25% or more in this income range?
I think this was prerecorded, but this series never mentions that the 401k balance is not the full picture. I started a new job last year, for example, and have 40k in my Roth IRA, but only 4k in my 401k
They do a yearly video of 'net worth by age' which they show 'financial assets' vs 'home' vs 'debts'. You can look at the government data separately as well as it's publicly available
I work for a union electrical shop in Washington. We have a pension program and 401k program, right now Im putting in 3$ per hour of work into the 401k and then the pension builds up depending on how many hours you work per year. On top of those 2 I’m trying to put money into individual stocks and have a cool million in my investments over the next 20-25 years so by the time I’m 45-50 I can cut back on the # of hours I have to work each year.
It's advisable to save at least 15% of your income in a 401(k). Online calculators can help you determine the ideal savings amount based on your age and income. Contributing this percentage can enhance your chances of retiring comfortably, as it allows you to benefit from compound interest and grow your savings over time.
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.
How do I meet this advisor, please? I need assistance investing my divorce settlement because it's now sitting in the bank earning little interest.
She's known as “Rebecca Nassar Dunne”. One of the finest portfolio managers in the field. She's widely recognized; you should take a look at her work.
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
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?
Her name is Annette Christine Conte can't divulge much. Most likely, the internet should have her basic info, you can research if you like
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
While your 401(k) and IRA account will likely continue to grow after you stop contributing to it, that growth will be limited by the market, your plan’s balance and other factors, so i can perceive the preference for Annuities, I still want to know how best to compound at least $2m in retirement savings without holding cash.
For many years, bonds or other fixed-income assets could produce the yield needed to provide solid income for retirement needs.The importance of having financial safety could be why boomers are turning towards advisors in retirement planning
Agreed. It's always wise to be proactive and consider diversifying our investments to manage risks in uncertain economic times. I delegate my day-to-day investing to an advisor ever since suffering a major steep-down late 2019, amid rona-outbreak, and as of today, I'm semi-retired with barely 25% short of my $1m retirement goal after subsequent investments.
@@mariaguerrero08Could you possibly recommend a CFA you've consulted with?
Yes indeed.... *Izella Annette Anderson* has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
27:29 for anyone who wants to skip to what they actually clicked on the video for.
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.
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.
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.
A friend suggested that saving at least 15% of your income in a 401(k) can help build enough for a comfortable retirement. Is this a good strategy to potentially grow my retirement savings to around $3M over time?
There are strategies that could be put in place for solid gains regardless but such executions are usually carried out by investment experts or advisors with experience
Your friend is not a professional, Working with a financial advisor has been a game-changer for me. They provided invaluable insights and tailored strategies that aligned perfectly with my risk tolerance and financial objectives. With their support, I've seen significant growth in my investments and gained confidence in my financial future.
Hmmm this is quite interesting, Please can you leave the info of your investment advisor here? I’m in dire need for one then
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
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.
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 UA-camrs, 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
When you say income is that yearly, monthly or by paycheck?
*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
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’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.
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.
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
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?
Her name is Sonya Lee Mitchell can't divulge much. Most likely, the internet should have her basic info, you can research if you like.
Curious about top investors' millionaire-making strategies, I'm eager to grow my $295,000 nest egg. Investing in stocks could provide attractive returns through capital appreciation and dividend yields. But timing is crucial - should I invest now or wait for improved market conditions?
You're correct. I think the smartest way to go is to spread out your investments. By putting your money into different asset classes like bonds, real estate, and stocks from other countries, you can lower the risk if one part of the market goes bad.
Several individuals minimize the importance of counsel until their own feelings become overwhelming. A few summers ago, following a protracted divorce, I needed a significant push to keep my firm afloat. I looked for licensed advisors and found someone with the highest qualifications. She has contributed to my reserve increasing from $275k to $850k despite inflation.
You seem to know the market better than we do, so that makes great sense. Who is the guide?
'Laurelyn Gross Pohlmeier' a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
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
I am 32 years old and have $35k in my Roth 401k and $3k in a Roth IRA i just started. I barely got into saving at age 24. Seeing all the homeless around scares and motivates me to save as much as possible.
Wuddup my fellow 32 y/o brethrun. Kinda funny how close we are. I am at 33K 401K and 8K in my Roth. Better late than never. Good luck to you, my friend!
Don't worry too much about it man. The 30yo goal is largely asperational. If you have anything at 32, then you are doing great! I didn't start until 32, and barely missed the 2x mark by 40. And that is with a pandemic and some major health setbacks in the last decade. A lot happens in your 30s, and as long as you keep focused then you are going to be fine. At 35 I had $10k saved for retirement, and at age 40 it was close to $150k. I plan to be waaaay ahead by age 50 so that compounding interest can take me the rest of the way to goal and I can cut loose and chill out a bit the decade before actual retirement sets in.
But saving and sacrificing more now will open a lot of doors and options later in life. You are on a good track, so keep it up!
The homeless and average debt balances makes me motivated to max out that Roth.
One thing to consider is having your money in the roths makes it worth 30-50% more depending on your tax liability.
@@cookieforawookiei am 33 with $115k in roth 401k and like $2k in roth ira
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.
@MaverickDylan-7 My advisor is Victoria Carmen Santaella
You can look her up online
I will give this a look, thanks a bunch for sharing.
It sounds like you didn't follow the Dave Ramsey plan!! The only person you should blame is yourself!!
This is a bot, money guys audience please beware of these types of posts. They’ll always go about the same type of discussions where they say they’re worried about their future, another bot replies empathizing with the original bot, and then they offer their “financial advisor” with a link/channel.
Don’t click anything you don’t understand/know. Scams are everywhere.
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.
I am 61 1/2, single, no kids and NO debt, currently with $975,000 in retirement savings in 403B and Roth IRA.
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.
So, for anyone who is here for the actual title of the video go to 25:50.
Good work my friend!
I’ve been investing for about 2 years now since I graduated college and got a full time job. My previous employer didn’t offer a 401k but I managed to invest $31k and $27k between my Roth IRA and Individual brokerage account respectively. I start a new job with a 401k this coming Monday.
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
Let’s say you start at 30 making $100k, 3% annual raise, 15% contribution into a 401k that starts at $100k. Rate of return at 10%, your range from 30-39 will go from $100k to $562k. It is so silly to set these bands instead of a single year - 30/35/40/45…
@@seanh7356 The range they are displaying is individuals between 30-39 have an average amount in their 401k of X dollars. I agree with your math, but it is irrelevant to my point. What I am suggesting is you break down the age bands differently as a 30 year old will have less in their 401k compared to a 39 year old, but yet they are in the same band. It does not give an accurate representation.
@@Sean-Hammond that’s exactly what I was showing in my math. I agree, a 10-year gap is a horrible way to do this.
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!
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've always been fascinated by how top investors achieve millionaire status through their investments. Currently, I'm sitting on $345K from a home sale and I'm torn between investing in stocks or holding out for a better opportunity?
I believe every Investor should start with ETFs for a solid foundation, then diversify across asset classes and maintain disciplined, regular investing to minimize risks and maximize growth.
Many people underestimate the value of advisors until they've suffered financial losses due to emotional decisions. After my divorce, I sought professional guidance to save my business and found an exceptional advisor who grew my assets from $175k to $850k despite inflation.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation
NYCOLE CHRISTINA VANNATA a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
I just Googled her name and her website came up right away. It looks interesting so far. I sent her an email and i hope she responds soon.
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
These guys continue to deliver so much value. Really appreciate this show
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 😆
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 love that Bo is always excited about the daily topic! 😂
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 🤣🤣🤣
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.
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
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
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😉
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.
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 🔥.
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
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~
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.
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!
That is an amazing match. My employer only gives a 3% match but have to do a minimum of 5%.
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!
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.
I'm feeling really good where I am at 40. I'm at $450k in my 401k. Winning ✊🏼
I thought I was the only crazy saver but glad to see there are others that are taking advantage of compounding interest and starting early too!
Nice Job!! When I got to that amount I cut back on my 401K contributions and starting buying rental properties with the money I was putting into my 401K. I retired 11 years ago at 50 with a summer condo on Maui (Napili Beach) and a winter townhome in Tahoe for ski season, and two rental properties. Everything is paid off and I've yet to take any money out of my 401K which grew a lot over a ten year period without barely putting anymore money into it. Good Luck, you're doing great.
@@bjbhehir Damn sounds like a dream life😂 im 24 and just passed 100k in investments and trying to retire like you
@@genzlegacy7988i definitely left a lot of money on the table retiring at 50 but you only need so much to live comfortably! Luckily, I've been able to stay really active! Yesterday was day 111 for this ski season!
Dream big dreams and put on your overalls!
You have chosen to keep working until you are old or dead by investing in a 401k. That makes you feel good?
Your 401k pays you $0 in cash flow that could replace your day job income.
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.
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.
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 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 .
I’m 28, I have 200k in Roth IRA with no debt. I didn’t realize how good that was.
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.
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.
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
Thanks!
54 with $1.4M in 401k, $100k in other investments, $1M in home equity. Planning to retire at 62. Can’t wait.
That is amazing. My goal is to be at 1.5M at a minimum at 55.
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.
Great video, as always, you two! Sharing this with a friend who's about to switch employers.
30 and just hit $100k. Just keep contributing and you will get there! Love these vids!
“I’m a man! I’m 40!” - Coach Mike Gundy
I’ve got 6 times my income saved in retirement accounts!
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.
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 have one and use it as a bonus. The company I work for has seen the stock price go from 250 high to a low 43 back to 140ish. Some of use made money when we sold. And others are still in negative. My point is don't rely on this. Single stocks have more volatility then index funds found in most 401ks
I only just got access to a 401k and started making a decent income this past year so I have A LOT of catching up to do. Was stuck at or below a $40k income until age 32 but at 33 I'm at $121k. Need to max it out for a few years to catch up. Granted I'm at $33k in a Roth IRA.
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?
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.
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.
Open a roth and contribute after tax dollars for another bucket and max out your contributions of $ 6,500 a year when you retire that money will be tax free.
Looks like I’m an average 40 year old at 24, thank you mom and dad for not charging me rent. Blessed.
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
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
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.
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.
That intro, Brian 🤣🤣
best intro to date! lol
If someone has $51k in savings and that should be 2.6x their salary then they are only making $20k per year. Isn’t that extremely low for someone in their 30s? These scenarios don’t sound realistic.
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.
Im 26 years old invest 40 percent into my 401k account and put it in all of my stocks!!!! Live below my means!!!
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.
38 @ 500k in 401k currently. 💪🏼
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.
I'm 32. 200k in my 401k, 35k in my IRA, 240K in my brokerage account, 400K in equity in home and 30K in HYSA. Still owning 2019 Nissan Rogue but I fell I'm doing well :)
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!
Well that’s good! I’m saving 40% and just hit 25! Getting my EMRGY fund to my set goal and once I do. I’m going 15% in the 401K which is 21% total with the match.
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!
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 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.
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.
Bo is always excited
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!
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 do alternatives like Roth IRA. For my 401K, i contribute the LEAST amount possible to get the MOST company match possible because people dont realize how much fees are associated with your employer 401k plan.
Agreed, I have paid 1.2% Net Expense Ratio to Empower Retirement as recently as 2015. Through Fidelity, my net expense ration is .04% and they even have 0% funds. I'm grateful the competition between Vanguard, Fidelity, and Schwab has lowered Empowers Net down to .4%, but still much higher than the alternatives. These employer account need to pay the agents who show up during HR Open Enrollment days and explain the plans to all the other employees who don't care to educate themselves on these accounts and fees.
I invest all of my 401k to an S&P500 fund.
Stick with that winner and NO trying to time the market
My 401(k) balance is $35K, so I'm bringing the average down for 401(k) holders. Started my current job in 2023, after being laid off from previous job of 20 years. Bulk of retirement is in Roth IRA, Rollover IRA, and other accounts.
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.
I have blackrock 1000 index in my 401k. Up 14.5% since 2009. With 0.01 expense
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.
My employer automatically enrolled me in a target date fund and automatically raises the percentage saved every year unless you stop it. Love it!
Does this include 401ks rolled over to IRAs? If not, this is only showing current employer 401ks.
If you make $120,000+ per year then saving 25% of your income hits the 401K upper limits from just that alone. How practical is it to save 25% or more in this income range?
I think this was prerecorded, but this series never mentions that the 401k balance is not the full picture. I started a new job last year, for example, and have 40k in my Roth IRA, but only 4k in my 401k
Good point! I have the same situation from my most recent job change.
Yes, I’d like to know if they include a Roth IRA in their calculations.
They do a yearly video of 'net worth by age' which they show 'financial assets' vs 'home' vs 'debts'. You can look at the government data separately as well as it's publicly available
This video doesn't, but this series does mention it. They had a video on Roth IRA a week ago, it is on their channel.
They also briefly mention Roth option around 21:20 in this video too
I work for a union electrical shop in Washington. We have a pension program and 401k program, right now Im putting in 3$ per hour of work into the 401k and then the pension builds up depending on how many hours you work per year. On top of those 2 I’m trying to put money into individual stocks and have a cool million in my investments over the next 20-25 years so by the time I’m 45-50 I can cut back on the # of hours I have to work each year.