How Much You Should Save In Your 401K By Age - 2024 Edition!
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- Опубліковано 26 лип 2024
- This is the average, and median balances of the 401k in the United States as of the MOST recent Vanguard report "How America Saves" released just LAST week on June 23.
Here's the link to the full report: institutional.vanguard.com/in...
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WHO AM I?
Hello 👋 I’m Humphrey, I used to be a financial advisor, worked in gaming/tech, and started my own eCommerce business. I make practical, rational content on investing, personal finance, the news, and much more with a data-backed approach. My goal is to help you with financial literacy and creating wealth.
PS: I am no longer a current Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel!
⏱️ Timestamps:
0:00 - Start Here
0:39 - Under 25
4:04 - Ages 25 - 34
6:18 - Ages 35 - 44
10:06 - Ages 45 - 54
12:34 - Ages 55 - 64
13:42 - Age 65+
Thanks for watching. How's your 401k balance? Let me know in the comments. Also...plz subscribe 🥹
Switched 6 months ago from the T Rowe price age based fund to Fidelity S&P500 index fund FXAIX, much lower expense ratio and so far better performance as well. $200k balance at 35 yrs old. Almost maxing out at $20k a year. Want to switch to Roth 401k but also don't want to foot the large tax bill with hefty fixed monthly expenses such as mortgage, car loan and daycare etc.
Age 35, currently $67k in my 401k. but have ~$200k in all of my portfolio (401k, Roth IRA, Trad. Brokerage Account)
Can't stress enough for anyone who's in their 30s and younger, to get that 401k and Roth IRA set up! I did not get serious until my later 30s and believe me, I'm trying to play catch up and it's stressful while also raising teens. Also Humphrey, go eat at Stillwater at Pebble Beach - great restaurant!
Started 10 months ago and just hit $10k!
31 $115K in my portfolio. Got some work to do but I’m getting there
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals?
keep contributing! I'd suggest you consider financial advisory at this point in time, remember you are in for the long haul
I'm in line with having an advisor oversee my day-to-day investing cos, my job doesn't permit me the time to analyze stocks myself. Thankfully, my portfolio has tripled in barely one year and half, summing up nearly $1m after subsequent investments to date.
This is superb! I appreciate the implementation of ideas and strategies that result to immeasurable progress. This now leads me to the search for a reputable advisor, mind sharing info of this person guiding you please?
She's ‘Kathleen Cheryl Constantz’ I suggest you look her up online. To be honest, I almost didn't buy the idea of letting someone handle growing my finance, but so glad I did
Thank you for putting this out, it has rekindled the fire in my goal. Was able to find Kathleen on the web and sent an email hoping it gets attended to.
Recently, I've been pondering retirement, unsure if my 401(k) and IRA will provide a stable future. I've also put $800K into the stock market, encountering fluctuations with limited gains. i need an approach that will align with my risk tolerance and financial goals
Using a 401(k) or IRA is a valuable strategy for retirement planning, providing potential savings growth and tax advantages. While the stock market is promising, expert guidance is essential for effective portfolio management
Opting for an inves-tment advisr is currently the optimal approach for navigating the stock market, particularly for those nearing retirement. I've been consulting with a coach for a while, and my portfolio has surged by 85% since 2022
This is definitely something I will consider! think you could suggest any professional/advisors i can get on the phone with? I'm in dire need of proper portfolio allocation
Her name is “Sharon Marissa Wolfe’” can't divulge much. Most likely, the internet should have her basic info, you can research if you like
I just googled her and I'm really impressed with her credentials; I reached out to her since I need all the assistance I can get. I just scheduled a caII.
What therefore should concern those of us over 50 with less than a million? I have a $500k Roth that I don't know how to build, therefore I'm concerned that I'm approaching too near to retirement.
I was in a similar circumstance a few years ago. I was constantly anxious. After I decided to start working with a financial counselor and started receiving sizable monthly gains, my concern disappeared.
That's my approach too, even though I'm not retired. I've relied on a fiduciary to handle my portfolio for seven years, as I don't have time to research assets. This method has expanded my portfolio by up to 300% and helped navigate market volatility effectively. You might consider a similar strategy.
That is just amazing. I've attempted to employ a financial advisor by doing some research on my own, but it's somewhat daunting. Would you kindly refer the people you work with?
Amber Michelle Smith 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.
Thank you for sharing, I must say she appears to be quite knowledgeable. After coming across her web page, I went through her resume and it was quite impressive. I reached out and scheduled
It's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time.
For me, I believe retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My wife and I both spent same number of years in the civil service, she invested through a wealth manager and myself through the 401k. We both still earning after our retirement.
It's unfortunate most people don't have such information. I don't really blame people who panic. Lack of information can be a big hurdle. I've been making more than $875k by just investing through an advisor, and I don't have to do much work. Doesn't matter if the economy is misbehaving; great wealth managers will always make returns.
Interesting. I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
Finding financial advisors like Melissa Terri Swayne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Thank you for this Pointer. It was easy to find her handler, She seems very proficient and flexible. I booked a call session with her.
Please never become a sellout like all the other financial youtubers. We need you , and thank you for everything 🙏
This video simultaneously makes me feel better about my situation, and anxious about the rest of my family's future.
Same
I'm 35 with $145k in a IRA and $27k in a 457b. I also can collect a pension at 52 years old. I also have 6k in crypto and 25k in a regular brokerage account. 50k cash in CDs. I have a GED and grew up without parents and managed to educate myself on finances when I got my first job at McDonald's at 17.
@@BlakeC341 hey smarty pants, he could be waiting to deploy on a house soon and doesn't want to risk short term volatility in the market.
@@TioMogi Smarty Pants? Such Language!
Good work.
Killing it, good job!
Nice. I am 38, only have 160 in 401k but have almost 800 in a taxable brokerage account. Don’t have a house yet though
23 living with parents with 18.5k in 401k and 13k saved. Car payed off in 2 years bought it when I was 19.
great work!
Yup, my parents blessed me to take me back in after my husband passed. He was doing unscrupulous activities and happened to have recently had drained every last penny, then had a heart attack (men be warned.) leaving me with nothing. I’m in a much better place now, thanks to them, I’m in my 30’s so have missed out on some decades of compound growth!!
With a name like Master Baiter, I would assume you’re 23.
Don't worry one divorce can change that
@@eclektric get married? Hell no 🤣
I’m 55 from southeastern Ohio but worked overseas all my life. I have savings of $1,000,000 and I'm ready for retirement, only concerned about the soaring inflation. Is this enough to retire comfortably, or do I need some sort of money management?
Glad to hear from another buckeye! comfortable retirement depends on your lifestyle...
I would get money management just in case. You’re only 55. I think the average life execting in the US is 77.5 years, but many people live well into their 80s so that $1 million has to last you all of that and the unforeseen. $1m is a great start though. Good for you!
I’m quite lucky exposed to personal finance at early age, started job 19, purchased first home 28. Going forward, got laid-off at 36 just after covid-outbreak, and at once hired an advisor with grit to help stay afloat. As of today, my portfolio has yielded over 300%, summing up $836k. Stay motivated friends
@@StephenTho42 this is huge! your advsor must be grade A, mind sharing more info pleas? in dire need of proper asset allocation
@@CaroLewis-j8k life expectancy depends on which age you are, at 65 the average life span is 83.5 years for men and 86 for females
Currently 26, only contributing my match from my employer. Rest of my contributions are in a roth. Have $400 in total. Started last month
Congrats, great to get the ball started
Keep going!
That’s really good. I started saving at almost 29, so in my point of view you’re ahead of schedule. Lol
s a soon retiree, keeping my $401k on course after a rocky 2022 is top priority. I have been reading of lnvestors making up to $25Ok R0I in this current crashing market, any recommendations to scale up my R0I before retirement will be highly appreciated
Having an lnvestment adviser is the best way to go about the market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I nettd over $220K so far, that made it clear there's more to the market that we avg joes don't know.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
Yes my go to person is a 'LUCIA ALICIA CRUZ'(heart) So easy and compassionate Lady. You should take a look at her work
.Thank you for this tip. it was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her résumé.
The market is anything but crashing right now. My portfolios are up 16% YTD lol and it the most generic ETFs. I’m up 600% on my personal portfolio but that’s way less value than my retirement accounts and pretty risky, but still. It’s easy money in a bull market lol
Canadian. 39 years old. Modest home (paid), crap car (paid), investment property (paid) but not much in investment accounts. Company pension. Stocks in TFSA. Net worth is about $881,000 and there is zero debt.
My income is not great but I am a good saver. (cheap AF)
I'm canadian and you're very fortunate to have a pension. You have a huge step up
Roughly the same! 39yo with $810k net worth. My friends are buying cars and I’m buying time!
I’m 37 single no kids been investing since I was 19 years old now I have 340k in my tsp/ Roth combined . Very thankful .
well done! congrats!
Easily $1 million by 50
@@RobertBeedle that’s the goal or maybe even earlier .
Excellent! Continue putting $500/month into C-Fund and you will get your 4.8mil by 62(retirement age). Or even at 57 FERS eligible for 30+ years of service. Money should not be an issue for your retirement, unless you need a luxury yacht.
@@xungngo yes sir that’s my plan . 70 C / 30 S .
I'm 38 and I have $220k in my 401K. I just started a Roth IRA and trying to put whatever I can in it. I feel like I am in good shape, I hope
Please start asap!! I thought I started late at 28, but now in my mid 40s I thought I wasn’t doing too good. Nope I’m almost at 700g. I actually dropped my contribution to the min company matching. Because basically what I got now is going to continue to grow. Technically I think I could retire now, but the job is too good 😢😢 anyway not trying to boast. I’m just saying you really don’t get compound Interest and time. But more importantly you don’t understand the freedom to choose and not be worried. Even if you starting late don’t fret. Just do what you can. You will be surprised.
I'm learning that Humphrey is one of the few financial UA-camrs we can consistently trust
thank you Daniel
Never trust ANYONE on youtube
Relax your anus@@marksherberg6458
Lol. They’re all crooks.
@@miketheyunggod2534 depends on if they're selling a course or not, the in video promos are pretty easy to avoid. Humphrey's math does add up
You have the best content of its kind! One of your videos covers two to three topics covered by other creators. Your presentation is easy to understand, succinct, and entertaining. It’s never a slog listening to your videos. Keep up the great work! It’s definitely helping me.
thank you Mario
I’m 34yo with roughly $7k in my 401k but I have $43k in my Roth IRA and $12k in HSA. Maxing out my Roth and HSA and not using those funds for health expenses until retirement. Getting very close to being able to max my 401k yearly contribution but I’m 6 months into new job so that’s why I’m behind there.
Lets go, you are killing it still
@spencerbets1785 awesome job so far! Try to do Roth 401k if you can (as opposed to Traditional 401k). Tax rates will likely be going up in the coming years as a response to the ballooning US national debt.
Dude, keep at it and you won’t believe what you’ll have when you’re my age (48). You have more than I had at your age but I kept increasing my contribution maxing out at everything by 40 and adding what extra I had. Be patient, learn, live below your means (but occasionally treat your self), don’t worry about the downs, and perhaps experiment a little with risk (stocks) and you’ll be set. I’m retiring within the next 5 or 7 years with more money I can handle 😅.
I am very fortunate and feel very encouraged by your videos. Our best advice we got out of school were two things: Don’t pretend to know things; be humble and ask for help AND start contributing to your 401k at the max; diversify. Now as middle agers, my husband and I are enjoying our careers, raising young adults 😅 (plus one corgi puppy) focusing on our health and relationships. We can’t feel more grown up than this!😂
Keep on Humphrey ❤
22 with 35k in retirement. 33k and change in 401k and 1.3k is in my Roth IRA since I just decided to start maxing it out. So 291.67/paycheck to hit 7k/year. All that is from my 2yrs at my company as a welder. I barely decided to start building an emergency fund as well so I got $600 in my 4.60% APY SoFi savings. $600/paycheck so in 8 months I’ll have 9k contributed and more from compound interest. 8 months cuz that’s when I’ll feel comfortable trying to switch careers, after having an emergency fund. Then I got 2.2k in savings and 1.3k in checkings. Caleb Hammer really b hammering these goals into my mind 😂
Do not despair young fella! Use an online investment calculator to prove what I am saying. $35K at 13% (QQQ a Nasdaq mutual fund) with monthly contribution of $100 and compounded daily for 40yrs(retirement age 62) will get you $8mil. Don't fool around with individual stocks they will break you.
Age 75. Retired at age 65. Compulsive saver and not an idiot investor over a 40 year career. 401 k after 10 years of retirement and taking required minimum distributions starting at age 71 is over $8,000,000 today. Didn’t skimp on lifestyle during working years. Saved at a pace of about 8% of income during my working years. No magical investment style, just simple broad based mutual funds and now ETF’s. I did, however had earnings in the higher range.
Congratulations, well done!
Where did your day to day living income pull from between years 65-71?
That's awesome!. Just think, the DJIA when you were 20 was only $875. Now it's at $39308. Talk about growth!
@@JC-kp1hr 65 - 71 funded by non retirement assets in marketable securities and rental real estate. I bought residential real estate as individual properties over a 25 year period. Started with low income housing. Was fortunate to enjoy price appreciation. Sold the low income properties and 131 exchanged in to 4 houses that I paid cash for and rent with the assistance of a property management company. Didn’t take social security until I turned 70.
I just turned 41 and awfully late to investing with barely any portfolio except my 401k, I have a decent amount of cash saved up and with inflation currently soaring AGAIN, I’m getting worried about retirement, my intention is to retire at 65 atleast, so how best do I maximize my savings of over $500k
Retirement is now more difficult than it was in the past. it's all about balancing your risk tolerance with your long-term goals. Maybe consider speaking to an advisor to help in diversifying your portfolio to spread out the risk.
Generally speaking, a good number of people discredit the effectiveness of financial advisor in planning for retirement, For over the past 10years, I’ve had a financial advisor consistently restructure and diversify my portfolio/expenses and I’ve made over $3m in gains… might not be a lot but retirement doesn’t seem so farfetched anymore.
Your advisor must be really good. How I can get in touch? My retirement portfolio's decline is a concern, and I could use some guidance.
Kristin Amber Landis"" 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 after scrolling a bit. I looked through her credentials and did my due diligence before contacting her.
I'm 33 and have $41k between my IRA and 401k but I didn't start contributing until I turned 30, I contribute about 18% of my income which includes a 7% employer match
Thats good. 18% is crazy! Still early enough, dont worry. Keep it consistent
Thanks for sharing this, I’m 32 and starting now
I didn't get started until I was 32 and started at 10% and moved up to 15% as I got raises. About 16 years from retirement now, and while it took a little while to get the snowball rolling retirement is looking like it'll be very comfortable. My account balances are ahead of the recommended values and just gotta keep on course. With an 18% savings rate you should be in excellent shape if you can keep it up.
I started at 35. Keep at it!
@@whorhaydelfuego7190 thank you for sharing!
All your videos are great. Thank you for sharing your knowledge.
I am very fortunate and feel very encouraged by your videos. Our best advice we got out of school were two things: Don’t pretend to know things; be humble and ask for help AND start contributing to your 401k at the max; diversify. Now as middle agers, my husband and I are enjoying our careers, raising young adults 😅 (plus one corgi puppy) focusing on our health and relationships. We can’t feel more grown up than this!😂
Congrats!
Thanks so much, this was a very informative video! 🎉
Prosperity doesn't come out that way overnight. What Most people see at a glance-wealth, a perfect career, purpose-is the results of hard labour and hustle over time. I pray anyone who reads this will be successful in life...
Assets that can make one successful in life
I. Forex
2.Stocks
3.Shares
You are right.
But I don't know why people remain poor due to ignorance
It's not ignorance but unprofessional broker in the market
Wow. I am blown away by this presentation. I was an insecure 49 year old on SS in January 2018 when I started buying Bitcoin/crypto. Everyone though I was irrational. Most still do. I put my income in every month and watched the value drop each month but for some reason really believed in Bitcoin and alt coins/blockchain even though I don't totally understand. Finally, the crypto market started turning around and I am astonished at the value of my crypto currency portfolio today. I engaged in active trading and managed to grow a nest egg of around 2.3B'tc to a decent 27B'tc....At the heart of this evolution is Kerrie Farrell, whose deep understanding of both cryptocurrency and traditional trading has been instrumental. Her holistic approach to investment and commitment to staying abreast of market trends make her an invaluable ally in navigating this new era in cryptocurrency investment....
I appreciate the professionalism and dedication of the team behind Kerrie’s trade signal service....
As a beginner, it's essential for you to have a mentor to keep you accountable..
Kerrie Farrell program is widely available online..
The fact that i got to learn and earn from her program is everything to me think about it, it's a win win for both ways...
On the grand scheme of things, once you understand the potential of trad!ng, you can bet on it but I think people need the education to fully understand....
very helpful ty
The grocery store sushi had me cracking up because that is so me! Living life on the edge the last Friday of every month. 🛒🍱 🍣🤣
I'm 57 and have a about 640K in the 401k, 80-90K is cash and my house will be paid off by the end of the year. At that time, I plan to raise my contribution from combined 18% to either 25 or 30%. My goal is to have 1.5 million in my retirement accounts when I finally decide to start my permanent vacation!
Awesome vid
I’m 29 with $130K in my 401K which is self-directed since I’m self-employed so I can max it out twice a year which is a big perk. Started contributing at 25 - these stats are encouraging!
Our household has accumulated 450k in 401k and 50k in hsa and we are at the age of 34. Without the data, i don't even know we are doing fairly great in our age group. Our saving rate for the past two years were close to 40% at 400k HHI in a HCOL area. We are very aggressively saving and still drive a 2006 Honda Civic (Super low maintenance which i love it). Keeping lifestyle inflation in check is definitely an important routine. We are those type of people who would review/adjust the fund selection at the end of every year and forget it till we need to reset my brokerage passwords next time trying logging in... and i just learnt a new words coast and barista FIRE today, thanks for bringing that up, it probably open up an option for us!
That’s amazing!! You are my hero! Hopefully my husband and I can be half that at your age!
28 years old. Been working for 6 years out of college, with an average salary of $98k across those 6 years (started out at $72k and now at $127k). Just hit a net worth of $400k ($300k in retirement, $100k liquid). Majority (> 90%) of retirement savings are in Roth. I've been maxing my Roth IRA since my first year of working, have maxed my Roth 401k since my second year of working, and have maxed my HSA the last 3 years. Total retirement savings rate of 30-40% (including employer match), liquid savings rate of 5-10%. Have lived in a moderate cost of living area (Philadelphia). The biggest things for me to achieve this have been living frugally (no debt), avoiding lifestyle inflation, increasing my salary (through negotiation and a strategic company change), and saving aggressively. Nothing magic here, just intense saving and investing in low cost S&P500 index funds. You can do it too!
Damn dude thats awesome. Most of my 401k is traditional because i only recently started contributing to roth. Im in a target date fund, and i feel like i should have just done s&p, but im scared to reallocate it at this point. Separately, i buy a share of VOO in a brokerage account every payday.
Well done🎉🎉
My husband and I were fortunate enough to be able to pay off our mortgage early. We were both still working, and took the payment amount that we had been using to pay off our mortgage faster and we put it straight into investments. We were able to retire early because of almost 7 years of putting away what would have been our mortgage payment as well as maxing out our 401K/403B plans. Thankfully we were taught by both of our parents the value of living within our means.
Thank you for your advice. I know it will help people. we are interested in investments that could set me up for retirement , I mean I've heard of people that netted hundreds of thousands during these crash, I listened to someone on a podcast who earned over $650K in less than a year, what's the strategy behind such returns?
Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.If you're new to investing or don't have much time, it's best to get advice from an expert.
Even with the right strategies and appropriate assets, investment returns can differ among investors. Recognizing the vital role of experience in investment success is crucial. Personally, I understood this significance and sought guidance from a market analyst, significantly growing my account to nearly a million. Strategically withdrawing profits just before the market correction, I'm now seizing buying opportunities once again.
How can one find a verifiable financial planner? I would not mind looking up the professional that helped you. I will be retiring in two years and I might need some management on my much larger portfolio. Don't want to take any chances.
My CFA Carol Vivian Constable, a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Wow! I am 53 years old and I have 360,000 in my 401k but I am saving 45 percent of my income!
Looks like most Americans aren’t saving enough for retirement unfortunately!
I am above average for my age range 😊
Gotta love consumerism....no one has sh*t saved by the time they want to retire
Can I interest you in a brand new Charger at 50% APR, good sir? It'll only be a $1600 per month payment! A real bargain!
I do 🤣
Lots of people save for retirement. Not the majority (yet) but plenty. Look into Ramsey Solutions or the FIRE community.
One thing to consider is looking at retirement savings/investing as a whole. I’m 50 with a $1.5M 401k, but I don’t have any other investments. I’m looking into Roth IRA’s now and will probably do some Roth conversions. But looking at all investments instead of just one type is definitely important.
My wife and I are at close to a million and we are early 50’s. Most in traditional, maybe 5 percent in Roth. I’ve changed all contributions to Roth. I contribute 18 percent and my employer contributes 10 percent, so 28 percent total of my income. My wife doesn’t contribute anymore, but has a pension when she retires that’ll pay roughly 45 percent of her pay. Trying to retire at 61 if possible.
Dude these videos make my insomnia and consistent dread of "oh I'm behind" go away for a couple of weeks; realizing I am not doing too awful. The anxiety will come back to kick my ass in a week tho.
Some level of anxiety is good, it will help you, but not too much.
25 years old. 10k in 401k. 20k in Roth IRA. 110k in an investment account. 140k all in. Plan to keep buying dips in big tech and semiconductor stocks.
Im turning 30 in a couple of weeks and im sitting at $67,300 between my Fidelity ROTH & 401K accounts.
I bought a duplex in 2020 for 316k and it’s worth about 550k. I owe 245k on it so I have just around 300k equity.
Humphrey, can you do a video or a short on calculating employer match and why it’s best not to contribute too much too early in the year if your employer doesn’t offer a true up match?
Just turned 27 with 139k in my 401k. Employer contributions are VERY powerful, make sure to take full advantage of them! So far this year I've contributed around 10k, while my employer has contributed 15k (!!!). Taking full advantage of any company matches or additional contributions, or even negotiating additional retirement contributions as part of your compensation package in the interview process can rapidly accelerate your retirement/financial independence timetable.
I started around 3 years ago and have made 16k in total towards my ROTH 401k. Now 28 and starting a Full Time Job and looking to give more towards it. Thanks for the info Humphrey!
Will be at 45k at 29 in 401k and a bit over 60k aggregated across tax advantaged accounts. Finished education and got my first white collar job recently. Now sustainably maxing 401k with goal of being 3x income by 40 and retiring by 55.
I’m not a financial advisor or anything but this is exactly what I’ve been doing. It’s just logical. I had 200k between my 403B and 401k. I loaned my 403B to buy a house during the pandemic. I put in 20% of my check to retirement. Also changed company so I can get a pension on top of my 401k. Plan on paying off the house at 55. Work part time till 60 so I can maximize my pension. If my 401k is at 1.5 mill by 55 I’m flat out retiring. The difference in pension at 55 compared to 60 is 3.5k a month.
Thoughts on geared investment choices?
At 35 (in 2020), was still in a lot of student debt, took a risk and borrowed from my 401k with the cares act benefits during the pandemic to pay off the ones who’s interest didn’t freeze. That brought my 401k balance down to 5k; 39 now, i paid myself back what i borrowed from my 401k and have been maxing out my 401k; also opened a roth and have been maxing that out as well. Current balance is 180k in 401k and 16k in a roth. Hoping to get close to the target salary multiplier balances noted in the video within the next 5 years… although that might require even more savings maybe in a brokerage if i can pull it off
Scary tactic - glad it worked out for you!
@@arh1234 thx! yes very risky 😅 but 1000% best decision I could have made. I’ll note that it also relied heavily on me continuing to work for a ny city company while moving to a much lower cost of living city in the midwest (closer to family).
Mine just activated last week! $160/mo will be going in, plus employer match of $120
42 yo- 450k in 401k and contributing ~25k a year through 12% employer salary match(yes 12% of my salary is employer contributed) and 8% employee contribution at an 80k salary and another 4k/yr employer contributed pension. Maxing Roth DCA at 258 every 2 weeks but just started this year. 75% in SP500. 25% in Blue chips.
Wow, amazing contribution rates.
Are we talking Individual 401k account snapshots for Average and Median values or consolidated? People go through multiple jobs and they may have multiple 401K / IRA / Roth IRA accounts, I presume and they may not always roll over and consolidate them into one retirement account? I am wondering if the Average and Median values give a true picture of a typical american's combined investment savings?
I’m 53 and I contribute 29% of my income to my 401k. I have $80k in my pension and $501k in my 401k. I owe $90k on a $300k home. No car notes or credit cards. No loans other than a house note. I plan to retire at 60.
Turning 31 this month and I moved back in with my parents 3 years ago. $117k in 401k with 6% employer match and maxing out both 401k and Roth
👌🏼👌🏼
Is that per household or per salaried employee? My wife goes to the office while I take care of the kids and I’m not sure how a stay at home parent calculates into the equation.
Love the graphics!❤😊😊
yay!
Im definitely behind because I was freelancing for 10 years and didn’t know about IRAs. Now I have a real job with a 401k!
Currently 27 with ~60k in my 401k, been contributing company match of 6%, we also get an extra 3% from the company each year, which ramps up to 4.5% and then 6% extra based on age and service years. Just upped my contributions to 17% of my salary, and planning on ramping up to maxing it out (~22%) as finances allow. Already maxing out my Roth IRA
Hi Humphrey! I think it would be helpful when you list invested totals when someone retires to also list the estimated purchasing power. $1.3 Million in 2023 will be a lot different than $1.3 Million in 2065
24 F. I only have $4k in my 401k since I just started it this year. However, I have $23k across my IRAs, $5.5k in my taxable brokerage, and another $5k saved in my transactional accounts. Currently contributing 15% to my 401k including employer match.
My gosh. You are killing it.
In my age range at the middle of the range I am at, I have about 1.9X more than median and about 70% of the average number. Regarding my other retirement accounts, I have almost $100K in Roth IRA, stocks, & pension balance at my job. In the past two years, my retirement total invested has nearly doubled thanks to maxing ira amounts and putting in at least $1000/month into 401Ks.
I'm 53 and have $1M in retirement between 401k and pension. Live in Ohio and salary is $140k, started contributing 15% to 401k about 22 years ago. I am planning to retire at the end of 2025 as the mortgage will be paid off by that summer, I'm tired of the rat race!
If I reach FI I'd walk into the office and act like I'm the boss just to see how long it takes for people to call me out. Afterall, that's when you can be as bold as you want because it won't affect your finances.
I drop out of university for 10 years and totally enjoying my youth years.
Started back at school at 30 years old . Bought a house at 33 . And finally got my pharmacy degree at 40 years old and save earnestly .
Luckily. I made several great real estate purchases for rental properties in the post 2010 crash.
Now I’m 54 and looking forward to retire at 62.5 .
860k in 401k now plus rental properties. It was a hard core saving and investing.
All in SP500
31yo, 34k in my 401k, 15k in HYSA, wife has 12k in an IRA. Pandemic really hit us hard and basically had to restart our careers in 2023. We were almost penniless. Saved up for a house and hoping that really helps us over time. We are in a relatively LCOL area. We should be paying off student loans in the next couple of years, and youngest will be out of daycare in a couple. We're just scrapping for anything we can get our hands on right now.
I'd be happy to even have a chance to retire by the time I'm 80 at this point. We lost at least 4 years of solid investing due to the state economy we left in 2023/24. We were on track to have over 100k in saving by the time we were 28. Had to make a lot of sacrifices to make ends meet.
I have right at 120K between 401K and traditional IRA, never contributing more than 6% at 32 years old. Company matches have always ranged between 3 and 4%. This is my wife and I combined, but hers is profit sharing with no contributions on that account from us.
Im at the start of my journey. 28 years old. Been on my own since 18 and struggled to get out of poverty for many years but I'm finally ready to kick off this savings journey. Right now I have 6k in a 401k, $500 in various stocks, and own a townhome. This was a great video to see what I should aim for.
To be a successful business owner and investor, you have to be emotionally neutral to winning and losing. Winning and losing are just part of the game. Risk comes from not knowing what you are doing.
Successful investment starts with clear goals and risk assessment, often best done with a financial advisor's help
James Clark's market insights have consistently led to profitable decisions.
Celebrating a $30k stock portfolio today from a $6k start. Investing wisely has given me time for family and future plans.
I'm 34 this year. For a long time, I always put on average 15-16% towards 401K - I didn't even need to cut out any of my treats either, I just reduce the frequency of it. I still eat out and enjoy a nice cup of coffee outside, but significantly less than when I was in my 20s. And if your company offers bonuses, I highly recommend putting 50% of those bonuses to retirement, you get taxed a lot less.
Currently 50 years old and wife is 48. Our house is paid off and we have no debt. I currently put 22% into my 401K and my wife puts 50%. My current balance is 710,000 and my wife's is 165,000. We plan on retiring in 11.5 years from now.
Great video 👍
Glad you enjoyed it!
Currently 50 years old and wife is 48. Our house is paid off and we have no debt. I currently put 22% into my 401K and my wife puts 50%. I current balance is 710,000 and my wife's is 165,000. We plan on retiring in 11.5 years from now.
The percent of saving for retirement from annual salary... is that pretax or posttax salary?
21 just got out of the military 3 months ago and have 140k with 52k in my 401k (TSP). Trying to hit 2MM before 30, just landed a killer job and will be making 135k a year only working 3 days and 4 days a week rotating.
Based on the figures for ages 25-34 I’m double! Well that’s feels reassuring.
lets go!
Are your expenses also double?😮
does the median and average range factor in that people have multiple 401k accounts from previous employers?
Could you do a video on more aggressive index funds/etfs for us younger people? I feel like I should be a little more aggressive than a boilerplate 3 or 4 fund portfolio at 22 years old but don’t know what the best way to do that is
Great video. Keyword is should. I have a 401k it’s a good idea to have it.
Agreed!
I've been very fortunate and have been able to live with my parents, paying a fairly low rent. I'm only 29 but have ~4x my income saved across all my accounts, since I have no big expenses. Looking to buy a house in the near future, but that'll really depend on the housing market. It's shocking to know the average at 65 is only ~280k.
Ur on point im 40 just hit 100k
That’s 100k more than $0 🙃
One thing is clear: most people won't have enough come retirement, and these days, retirement comes a lot earlier as companies lay off their top-earning workers.
Being from an immigrant family, having a retirement savings was not in my grandma or even parent’s vocabulary. My grandmother was busy working 2 full time jobs and every penny she earned went to sending her 3 teenage kids through the expensive American college system, putting foods in their bellies, and bought a home for them to live in. She came here well into her 50’s and only retired in her 70’s due to the pandemic. If the pandemic hadn’t happened, I fully believe she would’ve still been working. Even my parents who came to the US in their 30’s had struggled and we weren’t able to buy a home until 10 years later. They’re only now having a little wiggle room and starting to think about retirement but there’s only a little over a decade left before they retire. I feel really bad for them because there’s no way they will ever reach those numbers. I went to community college (not about to have $200k student debt like my cousins 😂), worked through college so that I can come out with no debt, have been contributing to a Roth IRA for the past four years and recently got a job that offers 401k with match. Gotta break that generational cycle of struggle!! 💪🏽💪🏽 But anyways, thank you for making these types of videos!! These kinds of things are not taught enough at school and not everyone has family members that know about these kinds of things!! So for that, thank you so much!!!
35, with around $106,000 in a 401k, and around 5,000 in a roth IRA. Saving 12% for about 7-8 years now with an additional 3% match for a total of 15%.
Where else can we contribute for retirement after maxing out the annual caps for 401ks, HSA, and back door Roth? I am 30 and started my career late because of extra schooling and I feel like I am playing catch up here.
Could you be on the lower end of these goals if you pay off your house early? Could you count your equity as a retirement account ?
For those of us who's lucky enough to still get pensions in retirement, how do we calculate pensions into this saving amount?
Heck yeah, I’m way ahead.
I think that maybe the average is really low for the 35 range is because on how mortgages, and having kids makes a huge differences for adults to make purchases and contributions. Huge change in lifestyle as most of them can't reach the 4x goal.
42: 401k/pension has about $300k. Investments about $150k. Plan to save aggressively for the next 10 years, pay off the mortgage and reevaluate when we want to retire.
These numbers are all fine and dandy but nobody is talking about the negative return years. These returns lately have been astronomical and you always see a bunch of happy investors in bull markets. Everyone always mentions an average return from index funds and blah blah, but most investors do not have the stomach to endure through 3 or 4 bad years which 100 percent are coming, and they will sell and never return again.
I’m a 28yo immigrant that just came in about 1.5years ago, your videos have helped me find a footing and I definitely know I can catch up
Those people with the huge % increases in value were probably only contributing for a month or two in the previous year, while still being continuing participants. 2-4% (those with 500% increases) is pretty close to normal churn rate.
I didn’t start until I was 24 but I’m so cheap, I was able to get one years salary by 30. Now I’m 32 with your 45-54 average 401 balance. Not counting my company’s stock purchase match
I feel so behind because I didn’t know about investing or how money works early on. I’m catching up though!
I’m 31 years old and my 401k is 53k and my Roth IRA is about 32k. Still got a long way to go but making baby steps.
Im right on track with retirement at 30 years old. I have some feedback for video structure. Since my mid 20s my income has continued to increase exponentially however in your examples you used lower yearly incomes as age rose. Ex if you made 50k in early 20s and now in your 30s make 100k+ to be at 3-5x your yearly income you’d need 300-500k.
Hi, I’m at 55k in my 401k at age 28 on a 100k salary. At this rate, will I still achieve 300k (3x salary) on a 8% contribution ?
After almost 5 years in the military im approaching 6 figures invested across TSP and Roth IRA, 28 years old. Come to this channel every now and then for info, appreciate you
appreciate you watching sir
I’m 36 and putting 16% into my 457b / have a pension / and started maxing out my Roth IRA (7k per year). That’s about 33% into my retirement I contribute