Average 401(k) Balance by Age (2022 Edition)
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- เผยแพร่เมื่อ 29 ก.ย. 2024
- Average 401(k) Balance by Age (2022 Edition)
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The Market have been suffering over the past month, with all the three indexes recording losses in recent weeks. My $400,000 portfolio is down by approximately 20%, any recommendations to scale up my returns before retirement will be highly appreciated.
Find stocks with market-beating yields and shares that at least keep pace with the market for a long term. For a successful long-term strategy I recommend you seek the guidance a broker or financial advisor.
Very true , I diversified my $400K portfolio across multiple market with the aid of an investment advisor, I have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.
@@elliot985 Please can you leave the info of your investment advisor here? I’m in dire need for one.
@@robertosaviano215 You can do your research and be on the lookout for one with intelligent strategies who'll help your portfolio maintain an unwavering and a progressive growth. Isabel Cecilia Ramsey is my FA. She has the Flexibility & Expertise to Meet Your Needs. Verify her yourself
@@elliot985 .I just looked up the broker you suggested on Google and I'm incredibly impressed with her credentials, so thank you for sharing. I'm going to send her an email right away.
I am 29 years old and I currently have a 401k worth $43k. At 27 I bumped up my contribution rate from 12% to 20%. I just bumped it up to 25%.
Might want to reduce that and invest it in rental properties
@@joshuasethd either way is not a bad strategy
Does your company match all of that? I think myn only does up to 6%
Hey guys! Great content! For the contribution rate, is that only for the 401k or can it include all other retirement avenues (Roth IRA, HSA, 403b ect) all combined?
Contribute to the 401k at least up to your company match....more if you can. Overall contribution can be across all those other accounts too!
I love hearing these two dismantle tiktok plebeians who have no clue what they are talking about ❤️
Where’s the subscriber counter on the shelf!? :)
Time stamps would be a nice addition
They usually add them at some point
Seconded
Or break it up into chapters
Please
Next summer intern :)
20 year olds start at 28:00 mins
30 year old starts 34:30
Thanks man thats all I wanted
You might not have a hundred million dollars to invest, but that doesn’t mean your money can’t share in the same opportunities available to others. You work hard for your money; make sure your money works hard for you.
The wealth you pass to the next generation can have a profound impact on your heirs, providing educational opportunities, the capital to start a business, or financial support to your grandchildren.
To manage investment risk, consider maintaining a broad diversification of your investments that reflects your personal risk tolerance, time horizon, and the nature of your financial goal. Remember, diversification is an approach to help manage investment risk. It does not eliminate the risk of loss if security prices decline.Because investing can be complicated, consider working with a financial professional to help guide you on your wealth-building journey.
can you endorse any ?
TERESA JENSEN WHITE does a perfect job. look her up on the web
thanks a lot . Found her website and it really impressive
I've been thinking about opening an investment account for retirement, and I've set aside $430k, but the current market volatility keeps me from doing so. Do you have any advice for me?
All you have to do now is pick the right stocks and stick to them.
Based on what you've said, I believe you're still a novice; simply do your homework or, better yet, seek the advice of a financial advisor; this is the best way to enter the market during these uncertain times.
In order to uncover the numerous opportunities available in the market, thorough due diligence and research are required. Working with a FA is often advantageous because they are more adept and skilled at identifying high-performing stocks. They can also enter the market early and outperform the average investor when it comes to profit margins and returns.
@@kabirmabood5267 In regards to profit, what were the changes like?
@@maheernaadim3034 Well, using a FA, I was able to grow my money by nearly $470,000 in a year, which was twice as much as I would have made investing on my own.
Great content! Wish you would have covered the median 401K amount too. Averages are being skewed higher by larger portfolios.
Just think of it as being motivational to reach beyond the average and then you can rest assured. But really, everyone has a different plan for retirement…you may not even need to meet the average.
Please start doing time stamps! Thanks :)
I wish yall did time stamps on these long videos
"Your risk is not that tomorrow won't come. Your risk is that tomorrow WILL come, and you're unprepared." I love that quote! Very hard to wrap my head around the mindset some people have of just not planning at all for the future.
When someone like Tony Robbins is worth over half a billion dollars, they are doing a MAJOR disservice by discouraging the average person from investing into a 401k. And if your employer matches, you are throwing away free money like what these guys say!
40s start at 37:40
😅🙌🏻
Maxed out my 401k at age 27, by age 50 I had a cool mil in it! Had no idea what to invest in, so I equally spread it by 10% through out. It only takes time, consistency, and discipline.
Omg!!! I’m so proud of you!
Congratulations you can " if you want". Retire in five years for now off your 401k. PS Obama care is not wealth tested. Taxable income only.
It’s amazing what company matching does, isn’t it? Throw in maxxing it out and you got glorious returns!
@@tonycrabtree3416 true, but unfortunately in my case my company only matched the first thousand dollars!
@@arymonem $1,000 is definitely better than nothing. I worked for one company that didn’t match at all, even though they always promised a year end type of matching based on the company’s performance. Amazingly, they never made enough. I should have just set up an IRA with Fidelity during that time.
@The Money Guy Show, When you guys say "in your 20s" or "In your 30s" you're really saying an average, right? so 25, 35, etc? obviousy a 29 year old should have a fair bit more than a 21 year old, so these benchmarks should be used at 25,35,etc and then extrapolated out... right?
Am I missing something? This sounds very unrealistic for most of the country. I'm 36 years old, currently making 78k annually and this lines up with the average income in my state of Washington. How could we possibly save 25% of our income? We all know Uncle Sam takes his cut so we didn't actually get the full 78k. Rent alone is 25-30k. Already we are at 30-35k take home. How are we to save 18k and have anything to live on?
How come all the financial geniuses on TikTok are sitting in their cars probably waiting at the drive-through at McDonald’s?
I had profit sharing when I worked for Advanced Micro Devices. But their system was not setup to put money in your 401k. It was simply a check you received based on your time at the company and the companies profitability for that quarter. I remember a lot of people simply talked about what they were going to buy and very few people said they were going to save any of it.
Imagine if you just bought AMD stock
Scary part is these are AVERAGES, median is worse than these figures. People are barely making it :(
I'm a huge fan of earning more money, and I think everyone should have a side hustle. Side hustling can allow you to earn that little bit of extra money that can help you achieve your financial goals faster - whether it's paying off student loans or saving for retirement.
You are right. I also started my journey towards actualizing Financial independence. I am sick off earning from only one source especially 9-5daily. But I am having a tough time finding a good investment adviser. Seeing your testimonies, I believe that you achieved this through a good tactical means. I hope you don't mind sharing information on how you made it possible?
@@jarrettmacurdy3612 I invest across the top markets but not by myself tho. i follow the guidelines of Alexandra Diana Jose. you might have heard of her.. I can correctly say she’s worth her salt as a investment advisor as her diversification skills are top notch/ I say because i see that in her results as my portfolio grows by averages of 30 to 5O% on a monthly basis, unlike i can say for my IRA which has just been trudging along. my portfolio just mirrors what her place and not just on some particular industries of my choosing
@@davidreus9321 That’s great , your investment advisor must be really good,I have seen testimonies of people using the help of investment advisors in making them more financial stable. Do you mind sharing more info on this person?
@@jarrettmacurdy3612 yeah she is thankfully I’d definitely be glad to recommend her and Sure. Just check her on the internet her name is Alexandra Diana Jose. She works with anyone independent of their location
I'd always be willing to do this for the long-term as long as I’m assured of success. I think I've heard Alexandra Diana Jose mentioned a few times before and I reckon this number of people talking about one person can't be wrong about their experiences
Give me 90% percentile because thats my goal
At one of my last employers (consulting firm), The CEO didn't like to do 401k plans with the reasoning "didn't want to punish people who choose to not use one". So they did profit sharing instead supposedly.....
But you didn't get any of that profit share unless you had been there for two years, and most people got hired by the client or fired before that.
AND also paid way below the market average for tech, and the medical benefits were just ok.
The CEO was a born-again Christian. I hope there is a special place in hell for her and the other leaders of that company.
Sounds like a public accounting firm or something along those lines?
My company doesn’t match either, but does profit sharing. I’m 100% vested but still sucky.
These videos have really helped me focuse my grindset. My 401k and IRA are both in a Roth so I'm not going to be the one that foots the government's bills in 40 years.
I have Roth too but if you don't think they could implement a roth wealth tax, you haven't met the government.
I started putting money into a Roth IRA a couple years ago when I was able to max out my 401k and wanted to add some more.
But deep down I fear that as the money crunch gets worse with the government they’re going to try trickier and trickier ways of robbing the taxpayers. And the biggest mostly untapped source of wealth is retirement accounts.
I can totally see the government reneging on Roth savings, I mean for years they’ve been trying to change the rules in order to tax 401k savings prior to your retirement.
The government will do something insulting like give us social security credits in exchange and act like that’s the same thing. Be very careful about the rules you trust to protect you, a corrupt government will not honor them.
Hey guys, love the content. Next time you toss up one of these longer episodes, can you chapters (or whatever TH-cam calls them) for the different age groups. Cheers
I will be worried the day that Bo isn't super excited.
yep - it is almost a catchphrase --- i would also be worried but i believe i can count on enthusiasm ....
He often omits his excitement on tax videos.
Damn, that TikTok take at ~7:00 should be a crime, what a con artist that guy was. Either that or he is the most confident idiot I have ever seen. Both glad they talked about how wrong he is, and sad he even exists for someone to potentially listen to out there.
He was potentially just parroting what he had heard from other confident idiots on TicToc… because he’s definitely not the first I’ve seen embarrass himself with this same quote.
Asset that can make you rich
XRP
BNB
Shiba Inu
Stock
Real estate
Bo's going to be so excited and so looking forward to this one. These guys are great.
Us 20 something want instant gratification. My peers are not following the FOO :(
Unfortunately many will also not in their 30s or 40s either. Keep being the Financial Mutant and one day they will wonder why money and independence is so easy for you 👍
My friends in their 40s are in the same boat. Stay the course and do what’s right for you. Don’t worry about what others are doing, just worry about yourself.
So I’m in the military and a few years back they switched to the blended retirement system as opposed to the high three system. On the high three, for anybody who doesn’t know, at 20 years you would retire with 50% base pay every month. It was optional to put money into the TSP, 401(k). With the blended retirement system TSP’s are mandatory with a total match of 5% BUT you only receive 40% base pay at 20.
I did not opt into the blended retirement.
I personally would rather know I had an extra few hundred dollars each month starting at age 41 for the rest of my life while also still putting upwards of 16 to 17% into my own TSP.
100% agree with having a higher pension than more money in your retirement. In a nutshell, the BRS gives you 5% now to take away 10% later. (If you do 20, anything after 20 just increases the 10%)
@gimmpy91 I totally agree with your choice. And for me, who will have 8 years of service by the time I get out, the blended retirement system is a great deal as I have received a match almost the entire time I have been in. I knew all along I wasn't going to do 20, so opting into the new system was a no brainer.
This is gonna be depressing. But at least my house is paid off. Mehhhhh 😐😐
That is a HUGE accomplishment. Just redirect your funds to investing now. Never too late!
IRA balance by age next? Most folks don't stay with their employer long enough to have a huge 401k balance.
This is SAD to put a number on everyone by age lol. Not everyone needs $2.3M to retire. $2.3M is just a made up number, not everyone needs the same amount is what Im saying.
You sound broke.
Average 401k balance isn't helpful - we need to know the average retirement balance by including all IRA, 401k, 403b, etc.
When your right your right. I’m 52 and didn’t start saving like I should until about 45. It hurts how right you are about you will hate yourself for not taking care of your future self.
Thanks Johnny
Y’all are seriously great. Dave Ramsey is Charmander, which is awesome for where you may be in life, but y’all are Charizard.
Bo had to tell me that those were Pokémon references 😂
Chang it to the money guys please. The name doesn’t match the show format. Bo needs his pound of flesh.
They won't change it, I commented that years ago and they told me to pound sand
I followed Dave Ramsey's program and am in Baby Step 7. 31 yo, own my cars, no debt, own my house, and am maxing out retirement. 401(k) is an amazing tool!
Congrats on the high income.
@@Alan-jk1yi a high income is not responsible for his financial success. His PAYING ATTENTION to his finances is why he is winning with money. I just completed the Dave Ramsey Financial Coach Master Training program. His program is wildly successful because it WORKS...
@@WallaceDunn Dave's steps include saving 15% for retirement. The max you can contribute to retirement accounts is $26,500 (not counting after tax or mega backdoor Roth). For the sake of simplicity, let's round that down to $25,000 and ignore any potential contributions beyond that. If $25,000 is 15% of his income, that means his pay is around $170,000 per year. Maybe more depending on whether that 15% is gross or net pay. That qualifies as high pay to me.
So yes, a high income IS largely responsible for what he has. I save far more than 15%, and maxing out retirement isn't an option for me. The difference? Income.
@@Alan-jk1yi Teachers have made it on their salary- 90% Behavioral 10% Math.
@@2005Pilot I don't recall ever saying that you had to have a high income to be successful. Having a high income just makes it much easier to be successful, and increases the amount of success (i.e. amount of money you can save/invest) you can have. My point is that the OP's high income is the primary reason for his maxing his retirement accounts and having a paid for house and multiple cars at 31, not his behavior. The behavior is the first, most important step, but your income determines how far that behavior can take you.
Shooting for FIRE at 40 so maxing each year is HUGE
You're excited about this video, but it make me sad.... Kids, highly recommend to start your retirement fund early!!!!
It would be good to know what happens to the 401k if unexpected life events occur.
To be fair, the TikTok dude is ignoring benefits of match/investing over a time period. However, you are ignoring inflation. So it's still not an apples to apples comparison.
I have 4x my salary in my 401k and I’m 28. With that, I just backed my contribution for 10% to 6% (which is my company match), so I can begin to buy real-estate. Was this a good play or should I go back to 10% contribution?
4x is exceptional at that age. Typically, 1x by 30 is considered good as long as you’re upping contributions. If you feel good about it, might be worth dipping your toes into real estate to diversify and also create a new stream of income - just be ready to put in work. The great thing about investments vs real estate are that they’re passive - but you’re limited by what you can do with them.
Seems reasonable to me. I'm going on 50 and recently divorced, and think I'm too heavily invested in tax-deferred assets. As a result, I don't have the level of taxable investments to tap into for upcoming major expenses like a roof and HVAC replacement. I also need to try to catch up what was lost in the divorce settlement, which easily set me back 10-15 years.
Do you work in the oil industry?
On the 401k growth, I noticed he forgot the compounded growth interest too, but you guys forgot to add back inflation. It ends up being around $90 if it ALSO losses it's purchasing power.
Still no reason not to take the free money. Just wanted to be fair to both here
If Bo invested the $5 coffee from Starbucks….. he could have free coffee for all his retirement.
Bo should make some Tik Toks to counter all the bad advice out there. He could name his account Bo Toks 😜👍
I wonder if these balances take into consideration 401k rollovers into IRAs? I'm 26 and switched jobs 6 months ago, so my 401k at my new job is naturally low but my IRA has my old 401k assets rolled over into it.
People that get financial advice on TikTok deserve what they're taught 😂
Do these average 401k numbers include people's IRAs? If someone rolls over a 401k into an IRA every time they leave a job they would have a small 401k but a healthy IRA?
No, IRA's are not included.
My dad had to retire early than he wanted at 62 because he had a battle with cancer(he beat it). However, since he’s a big time saver everything was ok with my family. So the video making fun of that is silly. It’s good to save because you never no what will happen.
Glad to hear he’s okay! Great example that shows how powerful investing can be.
Time stamps
That's all well and good but you both need to realize people need money for these accounts that aren't going to bills and with wages not keeping pace with inflation, that's only getting more difficult to do. If someone is lucky enough to get a house, maintenance is going to squeeze that even further. Most people cannot even afford an emergency fund much less retirement. I agree that all of this requires planning and discipline and I know people can make more money if they try but to be honest, it's not relevant for most people right now.
As for me, I'm able to fill the Roth and get the employer 401k match but that's it. Upgrades and maintenance for my house takes the rest. I don't even have the money to buy new furniture or take vacations and I'm middle class and barely spend anything aside from bills which aren't that much. Don't get me wrong though, I'm still saving about 25% and hitting those milestones but that's every single drop of money not immediately going to bills. Noone is going to be able to afford early retirement while enjoying their life until they make at least 65k.
You do realize like many online they are running a business and so they likely work good jobs and do other money generating behaviors. They seem to assume the same for everyone else. But many don’t already make more than they spend by large margins so no their concerns are not focused on their more immediate problems.
Friendly feedback: The new mics are picking up a ton of table noise. The echo (reverb?) also makes your voices less clear.
I’m not an audio expert, but it’s just hard to listen to now compared to your old setup.
Thanks for the great video's can you please cover dollar cost averaging over the years 1965-1980ish (The relatively flat section of your graph of the DOW). Theoretically because there is no/ minimal gain that would be a worse time to invest?
The only flaw is working for American Companies
Up here in Deep Blue Mass Indian Body Shoppes have monopoliy on all jobs for Academia and Government
If you want to work in either sector be prepared to NOT have 401k from the Indians
american employees only you will need to fully fund your OWN retirement (possibly thru a SEP)
Please let me know when Money Guy does a video on SEP for Normal working Americans who work for H1b indians
I’m 28 and have a little over 60,000 invested total…401k, IRA and brokerage account combined. Is that decent for my age?
As a millennial, the challenge I always have with seeing numbers shown and generalized in topics like this is the underlying rat race assumptions still used that come from previous generations. You work the same job your whole adult life with moderate raises, save X percent, get to "retirement age", then relax and use your saved money to live the rest of your life.
This normalcy in previous generations led to financial experts taking average incomes, extrapolate X years saving X amount, assuming you will still be spending 80% income in retirement, etc. and then pushing that formula resulting in reinforcement for people forming their lives into a pre-defined box. Back in the day, that was totally fine since that's what most of society was. Companies did this themselves with pensions, and then that task ended up getting pushed to the employee (401k).
Personal finance is critically important for everyone to learn, but it's exactly that. Personal. My opinion is to learn the principals and habits you need to learn for your own situation and goals, and then run the numbers from there. Don't compare yourself to "others on the curve" or let someone put your life in a predefined box because in today's society there are a million variables that differentiate us.
I am a millennial fortunate to be making a 6 figure income, have no debt, have multiple investments and cash saved and will likely be FIRE by 40, but according to "the formula", i'm technically way "behind the curve" in my 401k because the places I've worked never had a 401k match or profit sharing so I decided to put my money elsewhere. Doesn't bother me one bit because I choose not to put myself in the box that previous generations put themselves in and urged me to follow. Society is different now. You do you, boo.
I am in a bit of a similar scenario. I have money outside my 401K as well. I use the 401K average as a factor. Most people have almost all of their money in a 401K so I multiply by 1.4 and see if I’m still above that number
Time to make myself depressed
The real sad fact is that too many Americans aren't paid a living wage. Yes, many sqander but more just can barely make rent and buy groceries.
I'm not one of those people. I have 6 times my modest salary invested in retirement accounts.
One could argue that if I was rich I wouldn't be so careful, but it's no excuse for many employers not paying enough to afford rent and basic necessities...much less save for retirement.
No amount of discipline will allow someone making $40k the ability to max out a 401k. I'm glad that I at least started investing when I was in college and working part time. I've never come close to maxing out a contribution. I did recently start a Roth IRA that I plan to max out now that my condo is paid off.
I just looked at my earnings from my first year of full-time work. I made a whopping $18k. I'm up to $68k at 49 years old. It's been a slog.
Start early even if it's only at 7% a year. The earlier you start the easier it is to catch up when you can afford more than the basics.
Good show!! I’m right on track and I’m 55!! Glad I also have a Roth IRA and max that out (to the catch up amount) every year!! Also my company now lets us contribute to a ROTH 401k!
That guy at 45:35 minute mark is from php agency - some insurance company, and google search says that it is some kind of MLM scheme.
This content is rather misleading,,,, a third of Americans can't even handle a 1000 dollar emergency, and you report inflation as 8%,,, its probably double. if your going to talk about how money compounds overtime you have to also factor compounding fees. Financial people like yourself never talk about how fees over a 40yr period can eat away your balance as well as negative years.
Holy moly I love some of these math crimes LOLLLL
❤ I was super happy that my employer got out of my pension and a check was sent to me and I rolled it over into my non-Roth IRA! I will be able to make WAY MORE than their horrible investments. I always joked that my pension would be enough to buy me a convertible Camaro when I retired!!
My wife's 401k is 6% match $1 for dollar for the first 3% then .50 cents per dollar the next 3% and I have her putting 20% in she will be fully vested after 5 years.
I love how filming yourself watching a video makes you a “content creator” in 2022..
Please stop the earth, I would like to get off.
Damn my coworker put up 30% to his 401k and retired at 53 with a million but he has a supporting wife with her own income so he could do 30%. I ask him for advice and he told me I don’t have to put up 30%, he told me to put 15% and go from there
Tony Robbins is a smart guy, possibly he may not have heard of the ROTH 401K. This is where you save AFTER income taxes are paid. When you make withdrawals they are TAX-FREE.
I have A pension, max out a 457b, max out a Roth IRA, and invest in PMs. Still feel like I might not be as comfortable as I want during retirement.
I get 50 cents on the dollar up to the 401k max $22,500. So that’s $11,250 of free money. ❤
How much of the 25% should be 401k? Also where else should it be spread to for investing
Investing long term is always a great solution but man company match will be the reason I use my 401k… free money? Thank you :)
They seemed confused why people didn't get the full match, but it is somewhat obvious, it is that you need to contribute a certain percentage with most employers to get the full match. If you can't afford to contribute 8% and your employer matches up to 8% then it makes lots of sense that you wouldn't get the match.
$5,400 a month in retirement lol. Did he not pay off his house? You probably really only need a thousand if you got everything paid off.
“401k’s were made to keep you average” coming from the TicToker with far below average math skills.
TikTok finance guru who barely made it through high school and has an average net worth.
401k gets you a match, you avoid taxes up front to lower your AGI in prime earning years when you're younger, and is an incredibly smart strategy to financial freedom. I wish I had started mine sooner
Saving 25% starting at 30, FI at 59. Does this assume starting at zero at 30? How can we apply these calculations to our actual real life circumstances?
Which calculations are you referring to? Playing around with a compound interest calculator can give a (rough) idea of what your planning should look like, and what 25% can do for you, with or without anything already saved.
Not knocking on these guys but 25% sound unrealistic for some
The world needs more people like Bo and Brian
Agreed. They helped me learn so much about personal finance for the year I’ve been following them. Thank you guys for the content you share! You’re literally changing lives.
The savings rates are misleading. Many people can't save anywhere near 25% in a 401(k) without exceeding the limit. 25% of just $82,000 fills a 401(k). 15% of $136,700 fills a 401(k). So, while the average X year old may save 9% in a 401(k), that excludes IRA contributions, brokerage savings, etc... All that said, the savings rates are likely only slightly higher than in the video.
I looked into this and spoke to a few. Max out your company 401k or company Roth. You can max out also a brokerage account without getting penalize. I think there is a catch with the Capital gain tax. Something to look into.
Max out pretax. Then if your company does inplan conversion, contribute to after-tax and rollover to a roth. If you max the 61000, then do brokerage.
I’m not asking for ways to invest more. I’m stating the data source deflates actual savings rates.
Lol who can afford to put 25% of your income on a 401k. I mean this is a sound plan and all but for an average person 25 is a lot.
32:04 Age 30s
I’m 30 years old. I contribute 6% to my 401k and my employer matches a total of 153% on first 6%, which ends up being 15.3% of contributions between us to 401k annually. The last 2 years I’ve maxed out my Roth IRA / and also began maxing out my HSA this year of which my employer contributes $500 annually. This puts my contributions (in addition to my employers contributions) above 25% of my income.
Good for you! Do all you can while you're young and family obligations are relatively small, and time is on your side.
153% match?! That's an awesome match.
How do we know what to invest in on our roth IRA's. So many choices 😵💫
VTSAX/VTI
This country is headed into a huge problem of people already in their 50's and 60's that for one reason or another have little or no 401k savings. They will either have to work the rest of their lives or be counted as part of this counties poverty population. Social Security alone day to day becoming a bigger problem especially if you take it early. This is why this information should be taught in school before folks enter the working class so they can get those dollars working and not have to face the issues so many of the boomers are staring in the face.
I life goal is to be as excited about my life Bo is about all these stuff.
I wish I could be as excited about anything in my life as Bo is about these episodes lol
If you are saving 25% of your income, why would you need to replace 80% of your preretirement income? Wouldn't you already be living on less than 80% of your income? It makes no sense to calculate what you will need based on how much you are making. A better gauge is looking at how much you are spending per year to determine how much you need to replace.
Perhaps you might want to spend a bit more in retirement than you do while you work. With more free time comes more opportunities to spend money.
Anyone who films a financial advice video inside their car should be banned from the Internet.
In my opinion, For those investors that Tony has credibility with it is reckless for him to have made such a statement.
PBS says investing is GAMBLING so it must be true!!!! 😊😊😊
I had the 2.6x number last year. Now…not so much😕
People who get there financial advice from TikTok deserve to be broke.
I have always wondered about the ratios of percentage by the end of each year. Hopefully when you 20 and when your 29 you will make different amounts. are you supposed to have 1.2 of the average or are you supposed to have 1.2 of the last day of your 29th year of life?
I thought about this as well and would guess it’s probably best to think about it as “income needed to maintain your lifestyle” rather than salary. You could be making $200k but live below your means.
Have you ever thought of putting out a chart of the money guy formula for networth but simplified to a multiple of your salary for both AAW's and PAW's? For example-the fidelity(I believe this is the source) multiple is 2.6 at age 40. When I compared this to your formula, someone at 40 should have a 4.0 multiple of a networth to be an AAW and an 8.0 multiple to be a PAW. I think a chart like this would be a simplified version of your formula for people to grasp, and would take out the (age-40) that seems to trip people up. Just a thought, keep up the great content
I do believe the fidelity multiple is describing retirement account value, and not net worth however.
Love the content. One basic question. Should all of the 401k balances be interpreted as total across all retirement accounts? Seems silly to talk exclusively about 401k if a person changes jobs and rolls it over to an IRA.
Came here with the same thought. "Average retirement savings by age" is what matters.
yeah, it's my biggest issue with this show every year. they champion these steps like, include cash savings, HSA savings, max a Roth, THEN save in a 401k. and if you ever change jobs, go self employed, or even roll previous employer 401k to IRA and 'restart' the 401k account at new job, it throws the total picture off. between my wife and I we have 9 different accounts with varying balances) The Feds report on consumer finances attempts to find a whole picture, even that isn't great because it's a voluntary survey and likely skews data higher.
TLDR, single vanguard account balance /= retirement savings for individuals or for both parents working households
I interpret it as the total amount you originally put into a 401k. Rollover IRAs would still be money you put into a 401k with a previous employer. Essentially any money you will have access to when you reach retirement age.
@@ankoortailor5090 but that's isn't specified in the data set that fidelity and vanguard publish and the guys use on this show. It's strictly 1 user account balance + age and not everyone has that neat and tidy account management. What if your work account sucks so you have separate old 401k/403b with better options and a separate ira with another provider? Incomplete dataset
@@ankoortailor5090 They are pulling their number's from Fidelity's 401k statistics, which includes only the balances of Fidelity's 401k's. This would include anything rolled into a Fidelity 401k, but would not include IRAs, any additional 401k's from previous employers someone might have, after-tax investments, etc. If it's not in Fidelity's 401k, it isn't counted.
Are these number for 20 year olds based on age 25?. 30 year olds based on 35 years of age?
You can’t be serious having Tony Robinson on here. Big yikes.
Unfortunately my employer doesn't match squat.
This video needs to be viewed at my work, you explained better than the John Hancock reps, so far i have influenced 6 of my co-workers to enroll in 401K for their financial independence, now they can see their money growing.
Can you guys share the median vs the average?
Another great show. Thank you so much. As a 40 year old/ hubby 43. We are contributing at 41% w/o counting employer’s contributions. 49% if we do count the matches. We did start investing in our early 20s. And over the years we just put our annual rise/ tax return into our retirement/ Roth. It helps that we changed jobs and got paid higher. We are on track to FIRE in 7 years. ( doubt we will actually RE) It’s such a great feeling. If we can do it anyone else can do it too. Also thank you for talking about mega back door Roth. Such a great tool. We are also utilizing that as well since both our employers provided that option.
Hey guys, thank you so much for the very informative content; I sincerely appreciate your efforts in helping so many be financially better prepared. I have been doing my best to teach my Girls about saving a minimum of 25% starting with their first job. One of my daughters (19) has a great opportunity for one of the best company matches I know of, dollar for dollar up to 8-10%. To my surprise and then disgust I have learned supposedly that there is a federal mandate that does not allow people under the age of 21 to participate in the company match programs? In my view this is completely unfair/discriminatory to our young adults entering in the workforce especially considering that money saved when they are teenagers could potentially have the largest impact on growing their 401K and financial future. I have tried to inquire with many differnt people about this subject but any information seems to be very hard to find a clear answer for. If possible could you please try to shed some light on this subject in one of your future videos? Thank you very much for the consideration!
I am 18 years old as I write this and my company will match 1% the first year. After the first year or 1000 hours they will contribute quarterly profit sharing.