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- เผยแพร่เมื่อ 20 มี.ค. 2024
- There’s a reason so many of us don’t have enough retirement savings.
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Vox sat down with people in our New York City studio to talk to them about the state of their retirement savings.
By the standards of most financial experts, Americans are woefully behind on saving for retirement. The reason why is rooted in changes in policy to our retirement system with today's result being a flawed design in how people set aside money so they can one day stop working.
In this video, we interviewed four people about their level of retirement preparedness and two experts about the state of retirement readiness more broadly in the US. One culprit lies in changes to the country’s pension system, which sets the US apart from countries like Australia and the UK; these places have systems which help more people save more money for retirement.
Sources and further reading:
Vanguard’s “How America Saves” report was recommended by one of our experts, John Scott, and provided some of the data in the video:
institutional.vanguard.com/co...
crr.bc.edu/the-national-retir...
John Scott’s work at the Pew Charitable Trusts includes how lack of retirement readiness impacts state and federal budgets:
www.pewtrusts.org/en/research...
Teresa Ghilarducci has written extensively about retirement, including her book Work, Retire, Repeat:
press.uchicago.edu/ucp/books/...
Sen. Bernie Sanders has released a report about how the state of US retirement impacts low-income seniors:
www.sanders.senate.gov/press-...
We used the TransAmerica Retirement survey for some of our data:
transamericacenter.org/retire...
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No conversations with people who earn less than 6 figures 🙄
Exactly like this video was lowkey pointless and touched on nothing at all.
it’s extremely bad journalism from their part
Below or above 6 figures, the biggest points the video is making is that Americans aren't good with money and things come up. A high income doesn't guarantee financial literacy. The majority of us don't think ahead, live in a way we can afford, and our wants overpower our needs
I feel like the whole point of this video is to show that even for people who make six figures, they’ll find it hard to save for retirement - so imagine how tough it is for the average person.
They probably didn't want to be on the show
If you make 140k and only managed to save 3k on your own, that's on you.
@@VGBNDGRL I just turned 23 this month, but worked for the first time, part time, at TJ max for a year and a half during Covid while in college for Econ, and 2 months part time at Macy's the year after and I already have 27k, give or take, in my Fidelity IRA, 3k in savings, and 7k in my Robinhood.
I'm in the Air Force now and planning on investing $1500+ every month while living/eating in the dorms and plan to let compound interest work for me.
Just don't waste money and buy/hold safe long-term stocks and time will do the heavy lifting.
@@VGBNDGRL thats on you. at your age you have time. what about other people making 50k to 70k and working their ssa off at a high end job yet being underpaid?
@@VGBNDGRLyeah I’m the same way. I finished grad school and bought my first car in 2022-23. Making about 80k a year and only about 5k in savings. I chose to aggressively pay off my debts and as a result I’m not expecting my savings to increase until 5 months or so. I would agree on higher income people often not having savings that match their income at first because they may choose to focus of paying off debt first. Honestly it is hard to say which is the better approach
And guess what? all the people interviewed are noticeably older than you. They've had time to pay off school. If you'd made a point about disability, or other extreme situations where circumstances demand a high salary, beyond what most people would say is comfortable middle class, I'd see your point. Most people making 140,000 a year are definitely not in situations where they need to spend it all, not only to live, but to live comfortably. So i'd say yes, if you're middle aged, on a salary of 140,000 a year, you're most likely on a track that has A: had you at and above 100,000 for a while which is upper middle class in most of the US and B: Still got a couple decades of only making more and more money than most Americans will see in their lifetime. So conclusion TimGabriel's comment is most likely correct, and while even if it's wrong in this guy's specific case, most Americans in his shoes that only have 3k are horrendous at money management. @@VGBNDGRL
But she has 15k in a guaranteed salary pension???
More and more people might face a tough time in retirement. Low-paying jobs, inflation, and high rents make it hard to save. Now, middle-class Americans find it tough to own a home too, leaving them without a place to retire.
The increasing prices have impacted my plan to retire at 62, work part-time, and save for the future. I'm concerned about whether those who navigated the 2008 financial crisis had an easier time than I am currently experiencing. The combination of stock market volatility and a decrease in income is causing anxiety about whether I'll have sufficient funds for retirement.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
@@emmaarmandoMind if I ask you to recommend this particular coach you using their service?
"Gertrude Margaret Quinto" is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment
Insightful... I was curious about her, so I looked her up online. I discovered her website, and I must say that she seems knowledgeable. I sent her an email outlining my goals. I appreciate you sharing.
You should've interviewed some middle-aged people making 35k or less. That'll paint a more realistic picture of how bad things actually are. Not a bunch of people making over six-figures.
This. Exactly
Exactly let's ask people who made 100k a year about retirement vs average Americans who literally live pay check to pay check
I only make $350 million per year. I can't survive on only 3 houses and 2 yachts. 😂
@@brianvieira157 people making 100k still live paycheck to paycheck. Those people have jobs that require them to live in expensive cities like SF, NY, LA, etc where the cost of living is much higher and the $$ doesn’t go as far. Those people are not elites like you think, they are still working class. And don’t forget about the crushing student debt all these people have to pay. That engineer I’m sure is drowning in student debt. He only had $4.8k in retirement savings. It’s not like he’s living the dream. I live in LA and make a pretty decent amount of money comparatively and know plenty of people in the same boat who are counting pennies everyday just trying to make it. We are all working class. The enemy is the rich elites who own everything and don’t have to worry about working because we do all the work for them!!
Why would a Middle aged person be making 30-35 thousand dollars per year? Choices really do matter and information is free.
Retirement is now more difficult than it was in the past. I've been saving for a long time instead of investing, and right now I only have about $400K. considering all the inflation, i'm thinking of investing in stocks, i dont just have idea on market strategies.
At a point like this, when the pressure is already on you to retire, its best recommended you seek the services of an advisor, as this allows you make smarter investing decisions.
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 $30k passively 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.
Who is this your FA , my portfolio needs urgent attention , been a lot of loss.
This is definitely considerable! think you could suggest any professional/advisors I can connect with? I'm in dire need of proper portfolio allocation
Bro you could have easily doubled your money if you had put them in an index fund. Easily more.
I love how this completely ignores people who make less than $100k, which is well over half of Americans.
Exactly. 82% of individual Americans make less than $100k per year as of 2023.
@@sunkorgThe presumption is that the point is self-inclusive. If the upper middle class is staring at cutting coupons in social security age, then it implies the 82% are there too.
they should have a combined household income of at least 100k these days.
@@GonzoT38 Upper middle class people live with upper middle class standards of living which cost them more. It's easier for them to cut back and live more modest lives, but they chose not to. They're cutting coupons in old age because they spent all their money foolishly before they got there.
There is still hope. I came to this country as an immigrant student with no money over 20 years ago. Am 50 now and have liquid net worth of over $1.3 million (about $520,000 in 401k and the rest in stocks, ETFs and a year’s worth of cash as emergency savings). In 2011, my liquid net worth was less than $70,000. I didn’t earn much and partied a lot. But then got serious and got a higher paying six figure job. Started maxing out my 401k and put money consistently and frequently into stocks like Apple, NVIDIA and S&P 500 ETFs like VOO. Due to Dollar Cost Averaging and Compounding effect, I was able to reach over $1.3 Million a month ago. I live a balanced life…I’m careful with saving and investing, but also live the best life I can today. Oh, and I always use coupons whenever I get a chance. Fact is…even if you start late, you can achieve your retirement goals, provided you invest small amounts regularly and frequently into stocks, ETFs and your 401k. Let compounding do the heavy lifting for you.
I'm 54 and my wife and I are VERY worried about our future, gas and food prices rising daily. We have had our savings dwindle with the cost of living into the stratosphere, and we are finding it impossible to replace them. We can get by, but can't seem to get ahead. My condolences to anyone retiring in this crisis, 30 years nonstop just for a crooked system to take all you worked for.
I feel your pain mate, as a fellow retiree, I’d suggest you look into passive index fund investing and learn some more. For me, I had my share of ups and downs when I first started looking for a consistent passive income so I hired an expert advisor for aid, and following her advice, I poured $30k in value stocks and digital assets, Up to 200k so far and pretty sure I'm ready for whatever comes
@@Adelinde-Isabell That's actually quite impressive, I could use some Info on your FA, I am looking to make a change on my finances this year as well
@@sanikura837 My advisor is Victoria Carmen Santaella
You can look her up online
Nah I Can't say I can relate, Victoria Carmen Santaella charge is one-off and pretty reasonable when compared to what I benefit in returns.
Why is everyone in this video upper class? This does not represent the majority of america
Edit: to avoid having to reply to everyone. classes in the US are calculated by your marriage status and how many dependents you have (children, elderly). If you are single with no dependents, these incomes would be considered upper class.
They're more upper middle class, but I agree it's weird not to have a few median salaried workers in there. Maybe most median workers don't want to talk about their income.
If these people don't have proper retirements, what is the hope for anyone else?
Californians
Maybe you’re just poor. Ever think of that?
@@TheFireGiver Agreed, $100k is roughly upper middle class.
The avg salary in the US is around 50-60k. Using all these ppl with salaries above 100k suggests that the reason why ppl don’t save is financial literacy.
When you have to decide between paying rent and eating or saving for the future, it’s just simple math
These people are all from New York, in NY if you make 50k and have a family you are basically destitute because of cost of living.
Financial literacy is definitely a huge factor. Saving for retirement as early as possible was something drilled into by my father because he didn’t want me to make the same mistakes he did. Another issue could be how many people don’t have a career with a retirement plan that can be automatically contributed to through payroll. Because for me I struggle to make the long term money choices when the money is liquid, but when the money is automatically deducted and contributed from the pay it removes the option to spend that money. But when it comes to my coworkers and friends a lot of the time they are unaware how important saving while young is in order to maximize compounding interest
@@jacobjankowski"Compounding interest" isn't real. You don't make retirement level returns from a savings account in the bank. Stocks do not "compound." If you buy a stock for $10 and it is $11 next year it didn't "compound at 10%," that's just a capital gain.
Do yourself a favor, and think in terms of how things actually work, not pointless abstractions.
The median is $45K.
@@aluisious I don't think you understand compounding interest. Your example is only over one year on a stock that apparently doesn't have a dividend. Using your exact example, you could sell your stock at the end of 1 year, now you have $11 that you can invest in a different stock. If that stock grows 10% like your last stock did, now you have $12.10. Your last investment only made you $1 in profit, but because of that additional $1 in your next investment, you were able to gain an additional $0.10. The interest you initially gained, compounded into the next gain. There are also plenty of other examples, like a high-yield savings account that compounds monthly. Every month you earn interest that gets added to your balance. The next month, you earn interest on the "new" balance, that included last month's interest payment, so your gain gets bigger every month. You could also consider a stock that pays dividends, which you can automatically reinvest into that same stock. So every quarter when they pay you a dividend, you continue to add more shares to your ownership without having to sell anything.
I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.
Consider buying stocks when the economy is not doing well, like during a recession. It could be a chance to buy them at a lower price and sell later when prices go up. Just keep in mind, this isn't financial advice, but sometimes it's better than keeping a lot of cash.
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.
Mind if I ask you to recommend this particular coach you using their service?
“Sonya lee Mitchell’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
Most Americans find it hard to retire comfortably amid economy downtrend. Some have close to nothing going into retirement, my question is, will you pay off mortgage as a near-retiree, or spread money for cashflow, to afford lifestyle after retirement?
as most investing-related questions, the answer is, it depends.. my best suggestion is to consider advisory management
who is your advisor please, if you don't mind me asking?
I just looked her up on the web and I would say she really has an impressive background in investing. I will write her an email shortly.
My mortgage is paid off as of 4/2024!. It's all about stacking gold, silver, Bitcoin and little bit of US $ at this point. Took my chances in the Dow and NASDEQ, and it paid off big time. Life on cruise control is a really good thing. My son and wife will really appreciate what is coming to them.
I would have never quit working with a mortgage
Just 9% of US workers earn over 100k in individual salary or 100% of people in online videos for some reason.
I agree. It's shameful.
Because they’re all middle class. I make 6 figures too I’m middle class
@@dantheman6607 middle actually means middle, not top 9%
@dantheman6607 middle class means the two middle 25% and 25% not the top 25% by definition. Due to the cost of living in some regions it can feel like scraping by.
I think they're using people with those salaries to show where people are with what 'is said you should save' and how hard it is. If they showed everybody with a 45k and they had nothing, that wouldn't show anything. Most of the people with 100k plus salary still don't have enough, so this shows how hard it is.
Overall, 51% of traders think this year would favor stocks, mutual funds, and other equity-based investments, despite Treasury yields and other safer cash-like investments paying big. I’m looking for opportunities in the market that could fetch me $1m ahead of retirement by 2025
For the average person, the strategies are fairly demanding. In actuality, most professionals who have the necessary expertise to pull off such trades effectively carry them out.
It comes down to technique; a downtrend gives you room to focus on the market and grow significantly in the short or long term. While it is easier to make money when the market is rising, a downtrend can still yield high returns if you have the necessary knowledge and skills. For this reason, I have been scaling up during this difficult period by working with an investment advisor; this has been the only way I have raised up to $150K in the last six months.
I've wanted to start investing for a few months, but just haven't had the courage to start because the market has been down for most of last year. Please how can I reach out to your financial advisor and what are their services like?
I work with Jennifer Lea Jenson, who is a licensed fiduciary. Just look up the name. All the information you need to work with a letter to set up an appointment is included.
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.
Why Americans cant retire: featurng four upper class individuals who are terrible at managing their expenses. Very insightful.
I wouldn't call nurses upper class. At most upper middle class.
God, you are a poet
The engineer is 27, and makes $100k. He's plenty young to save and retire early as a 401k millionaire. I'm 60, I make ~$150k, all I think about is retirement. I put all my
money in a savings account. REALLY?! Not one day looking up anything about investing, index funds, compound interest? This video is infantilizing adults. America is about freedom, which also means the freedom to be foolish. Maybe spend a bit of time educating yourselves instead of asking for govt or your company to think for you.
Maybe also learn about the flip side of pensions, as when it's not under your control it means it can disappear entirely. Tell those stories Vox where a union worker's company went bankrupt and left them with pennies, broken promises and no other savings because they thought someone else was saving for them.
Upper class is over 200k in income and over 620K in net worth. Upper class means the top twenty percent by net worth, Upper quintile.
America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..
Impressive can you share more info?
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 resume.
Edna makes her comment in March, giving us figures for April....
@@earlysda Yeah, that metric doesn't make sense lol. Although US revolving (Credit card) debt is currently at an all time high at $1.13 trillion.
Inflation for 2023 is just 3.4%. US GDP rose 6.3% in 2023. Unemployment in 2023 was a little over 3% (in 2021 it was over 6%). During the pandemic, prices did skyrocket, and yes, everyone would like them to come down. However, when prices go down, that is called deflation, and is exceedingly rare (also, not good for the economy). Increasing credit card debt is a problem, but by itself does not define inflation or a recession. It is also very difficult to determine a recession when it is actually happening. Most economists do not label a period a recession until months afterward.
I am not saying things don't cost a lot. I am saying that fear-mongering is harmful and unjustified.
Median yearly salary in the US is like 60 000$. Seems those making twice that in the video aren't very representative.
and even they dont have enough saved!
I think this makes it even more dramatic, that not even those who earn more are on track.
@@mael1515 Not to sound like the avocado toast boomers but they definitely just don't know how to budget. Those salaries can definitely retire, just need to lower their lifestyle to something simpler. I could pay off my house in 4 years max if me and my partner made around that much annually.
Depends on where they live. 100k in NYC doesn't go very far@@tonycooper4437
They could be living in California or NYC you don't know. Cost of living is higher there and making six figures is equivalent to the median.
The guy saying he makes $135k and "that's not bad" is hilarious. That's like double the median annual household income.
REALLY bad especially since he started with a 40k max SECOND INCOME!!!
@@lilblue00750k
If he's in California or NYC that's how it is. That's very average there.
@@bradenhazle4378 Still above average for California, especially given his second income of $40k. That would put him at the upper end of the median HOUSEHOLD income for Ca, which is highest in San Fran at 167k (for a household, not person).
The guy was trying to be modest. Give him a break.
This makes me want to throw up
Why?
Same. 😭
Stop buying useless stuff
Because a video greatly exaggerates a problem for clicks?
@@Homer-OJ-Simpson It doesn't, this is a huge problem.
Sir this is an eye opener video and I would be retiring in 5 years and I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $90,000 per annum but nothing to show for it yet
Sincerely it's best to seek an advisor right now, unless you're canny yourself. As an eBay reseller of all product categories, I can tell you we’re in a deep recession and everyone is running out of money.
@@Angelavaldess Speaking from personal experience, I would say engage professional guidance. Not sure where you get an experienced one, but if your knowledge of the market is limited, it seems like a good bet.
Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?
@@Angelavaldess Glad to have stumbled on this comment, Please who is the consultant that assist you and if you don't mind, how do I get in touch with them?
My consultant is ALICIA ESTELA CABOULI She has since provide entry and exit points on the securities I focus on. You can look her up online if you care for supervision. I basically follow her trade pattern and haven’t regretted doing so
This video is incorrect....retirement savings need to be based on what you think your expenses will be in retirement, not your current income.
They always do this. It's so frustrating.
These 401k companies want it seems like you are way behind so you can contribute as much as you can and as long as you can. It's in their interest for you to invest as much as possible and to withdraw as little as possible.
Exactly this, plus medical bills in the US ain't cheap. Older folks tend to need a lot more care than their younger selves, even if they stay in very good health for their age... which isn't guaranteed even if we eat healthy, stay active, and never get injured. There's still a ton of stuff outside our control like cancer, arthritis, dementia, heart attacks, etc. Lifestyle choices can make those more or less likely to happen, but can't 100% guarantee a particular person won't get them. Assuming you live to retirement age, SOME sort of medical expenses should be built into your savings goal unless you've locked in guaranteed lifelong total medical care from a job like the military.
Came to the comments to say this. So silly to base it on your arbitrary income at a particular point in time.
I learned about this. I'm 29, earn $120k, no debt. 40k in cash and 100k in retirement so far. Came from a poor first generation American background. I currently contribute 10% into 401k with employer match forgot the percent, and 3% Roth. Financial advisor stated I should retire with roughly $1.5mil but that if I invest more it can be 2.5mil. I told him no. I want to live right now and that requires money. Also I plan for a simple retirement. Small paid off house in California and in Mexico. Simple healthy meals made at home, simple trips throughout Mexico with 1 destination trip a year or so. Simple commuter car. Nothing fancy just a secure retirement.
How do you earn six figures and not be able to save.
People lifestyle inflate. If you're not good at money management then then it doesn't matter if you make 7 figures a year. You'll spend it as fast as you make it.
Everything in America is very expensive. Healthcare, housing, education, transportation, etc. So many Americans go into bankruptcy due to medical costs alone.
That's an interesting thing. You could spend all your money regardless of how much you earn.
More wealth also has more requirements to defend and develop it. Most of us don't hire personal bodyguards and tax avoidance accountants, but the financial elite certainly would.
Easily! Between cars, insurance, student loans, rent, etc. The money goes fast, cost of living is outrageous
I guess they didn’t talk to more people who like work at restaurants or other service workers because they’d be like “I make $2.25/hr plus tips” and it’d be way too depressing.
Employers are required to pay them up to the federal minimum wage, if their tips don't cover the difference. Your tips are subsidizing employer costs. Whether the US federal minimum wage is a living wage is a different conversation. (spoiler: it's not)
@@LiamRappaport Minimum wage should NOT be a living wage. That's why it is minimum. It is supposed to be a stepping stone to someone who is interested in learning more and doing better in life.
However, many people today are lazy, and not interested in working hard or learning more, then they complain that they don't have enough money.
@@earlysda Are you also anti-union and anti-40-hour-workweek? I encourage you to look into the history of the minimum wage.
Imho, a job in the richest country in the world paying a wage that promotes poverty is unconscionable. Also, if you support unlivable wages you shouldn’t be against government support of those workers. Your tax dollars are literally subsidizing those companies’ expenses.
@@LiamRappaport Liam, you make it clear that you have no idea what you are talking about.
.
Start a company, employ people, and then come back and talk.
@@earlysda what a great counter argument. If you're not willing to debate, don't join the conversation.
The more I find out about american finance, the more I start to think that being born in eastern Europe wasn't so bad after all
Land of extremes. Easy to fall victim and miss out on compounding interest because you were simply trying to stay afloat.
It’s not totally difficult to be way further ahead on retirement than what this video suggests, either.
Nah, don't be that type. Americans LOVE to complain about their country more than any other country, at least online. You rarely hear the good news of the US. Sure, I would rather be born in some western European countries but from financial and financial stability, I would rather be born in the US than most or all Eastern European countries.
@@frotocsr 100% agree. For most not in the 30% lowest income, it almost entirely comes down to financial illiteracy and or just a problem with Americans being uber consumers who don't like to save for retirement.
haha! so true. half the time watching this video i’m also like thank goodness wasn’t born in the US’ (im English)
@@onemorechris sometimes the grass isn’t greener. I’ve visited our UK offices and I make significantly more for the same work in comparison.
people don't have enough money to keep themselves alive now, there is no money to save if you're a young person now
Everytime I save a bit, I end up with a blank account at the end of the month and need the savings to get by the last few days until payday.
Actually you do. But you can't buy stuff or eat out for 5 years while investing. Why? Minimum income was based upon uncooked food products and basic necessities. After 5 years, your 20% savings would generate passive income and you would increase your wages too, which should mean you can invest 2x whatever you invested
What sort of investment schedule are you envisioning that achieves a passive income after 5 years?
For a minimal, £1000/Mo passive income, with yearly interest at 5%, my calculations say:
n * 1.05 = n + (12 * £1000)
n = £144,000 in savings.
To make that in 5 years:
£144,000 /(5*12) = £2400 put away every month, which you would need quite a high salary to achieve.
@@electron8262 Yearly interest is closer to 6-8% long term (but yes entering the workforce during an unlucky market would be unfortunate for your first few years)
I notice you're using GBP though, Americans on a full time salary tend to make much more than Europeans might be accustomed to. My first job out of university was $70k/yr and I was still living with my parents so I was saving like $4000/month, my next (current) job is $120k/yr and I rent a $800 room in shared housing and I'm saving closer to like $6000/month now.
@@OutsideYourBoxjoined Sept 2021. You haven't lived long enough to be advising or to have experienced life.
why feature 4 people making 100K+? none of them sound like they are in any dire situation.
They have nothing saved. What people are making is meaningless if they don’t save anything. Also they won’t make that forever.
They’re all middle class
Middle class is average. They are not middle class.
@@dnsjtoh you mean median. If you want average household income then yes they are average. Median would be around 74k.
Retirees facing financial struggles often didn't save enough during their active years. Retirement choices are crucial. As for investing, is now a good time to buy stocks? With uncertainty looming, I'm pondering what 2024 holds. Having sold my home and sitting on $745K equity, I'm uncertain about my next move.
If you want to rebuild your retirement by yourself, without the help of a partner, I will tell you it is near impossible. Even NewRetirement and co can’t do the job of an FA with expertise, a large following/client base and experience. Vet and hire one and so you could allocate your resources with the help of a financial advisor.
Yeah, I’m also closing in on retirement, and I have benefitted much from using a financial advisor. I didn’t really start early, so I knew the compound interest of index fund investing would not work for me. Funny how I pulled in more profit than some of my peers who have been investing for many years.
This caught my interest. I worry that I have a couple more months before retirement, and I want to switch to using a financial advisor, but I don’t really know how to find one.
Monica Shawn Marti 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 appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
I was born in the 90's.
retirement.
doesn’t seem so bad tbh 😂
Sounds like a solid plan. It’s what many of us have.
I would be surprised if I even make it to 60. Such a great comment.
kurt cobain strategy
Respectfully, how does someone make 140000 and have 18000 in retirement..
Larger bills. Just because someone makes a high wage doesn’t mean they’re wealthy. If you’re in San Francisco or New York, you might be barely scraping by. And what do you want them to do, move? Maybe they’re from there, their family is there?
Answer: they live in LA
Could be that she recently just started making that much
Taxes go up percentagewise.
Financially illiterate or incredibly indulgent lifestyle, probably both.
At 140,000 salary and 34yo, you really shouldn't be struggling with retirement savings, even in an expensive city. This video really doesn't address bad spending habits. This is an issue of capitalism AND psychology.
Psychology is the big one. You have people going broke on 200k+. That's just bad lifestyle management.
Right. As they are using graphs and charts with income vs savings, there is no chart for wasted $. The bottom line was actually covered in another VOX video. Plain and simple....most Americans are financially illiterate.
Are you serious? These people's income is really good. Unless they all live in LA, there is no reason for them to have this little in savings
I was thinking the same thing. Either they are lying about their income or they picked a group of people who are earning way above average income.
Healthcare, housing, education, and transportation are ridiculously expensive in the US. Student loans and medical costs alone are out of control.
they probably live in expensive cities to earn this much, those salaries are rare in cheaper places so it all evens out.
I think most live in NYC. The Labor Economics professor is at the New School, which is located there. So, very expensive area.
Try graduating from school with crippling debt($50k+), to then work a $38k a year job, pay $1,400 for a one bedroom in any city (or more), pay $600 a month for a lousy car that will breakdown in 2 years.. shall I go on?? 😂😂😂😂😂
Michigan, US here. I make $71,000 per year ($43,798 take-home-pay after taxes, insurance, HSA, 401k, etc.) and I have WAY more in my retirement savings than these upper-class-income earners in the video. AND I was drowning in debt from ages 22-35 (I fixed that: now my only debt is my mortgage). AND I'm on track to retire around age ~56. (I will not "do nothing" when I retire, but I hope to have income from a FUN job, perhaps something like making custom clothes to sell on Etsy.)
Wow......I cannot imagine making $120,000 and not having enough to retire. I guess I'm WAY luckier than I already knew.
Also, the tax ad in the video is silly. If you're getting a refund, you're not claiming on your taxes correctly. You should aim for breaking even; that's how my tax preparer (a private accountant, not a chain store) advised me.
I am in a very similar position to you but from Ohio. And I agree, if you are getting a big refund you are essentially loaning the government money interest free. At least, that is the way I think about it.
Mathematically getting a $0 tax return does make sense - you are essentially loaning money to the government without interest if you get a tax return. From an emotional perspective, however, its nice to receive that gob of money come spring. Also, it does force someone to "save" the money, though that person becomes accountable for it once it hits their bank account.
I make 6 figures now but 3 years ago I was making 60k a year. So yeah I don't have that much in my retirement because I only recently was able to contribute more. That's something a lot of people are glossing over. You can tell immediately who has been making good money for a while because they have accumulated more money than someone who just got the bump. On top of the fact that to be able to save for a down payment to buy a home and save for a wedding, I wasn't able to contribute a lot to 401k when id rather put it toward my current life not some life I will have 45 years from now. People arent being realistic when analyzing the situation, there are a lot of reasons you may not be able to contribute a lot immediately after starting working. Life gets in the way - one year I spent a lot on medical care because i broke by shoulder (fell off a ladder) so instead I put more towards my HSA to pay medical bills. So soooo many factors. I can't believe everyone saying that they "can't understand how these people can't save" 🙄
You don't need to contribute "a lot" if you save early. Make a budget in your 20s to put $500/mo into an index fund, don't touch it, and you will be a 401k millionaire at retirement.
I’m also from Michigan, but moved to a city for work and moved back to work remotely. Michigan is cheap, it’s absolutely possible to make this much in New York or Los Angeles and be worse off for retirement than someone in Michigan or Ohio. Housing can be multiples more expensive, taxes are higher, food cost is higher, gas is higher, child care is way higher. 100k can easily look modest. If you can work that job remotely, it’s almost like spending money in a foreign country. What your salary gets you multiplies. That’s why you can’t find reasonable housing in Montana, San Francisco bought it up.
All these people make over $100k a year and THEY are worried about retiring????? Talk to people making $50k
how do you only make 50k? I literally made that starting 20 years ago?
They are all middle class that’s why
@@dantheman6607 according to the Census, middle class is between $50K and $150K
@@johnzizzo3976 yeah, it kind of boggles my mind that people just level out at a low salary and complain as if it’s someone else’s fault…? You can learn a ton of high-paying skills online, if you want the money hard enough.
@@johnzizzo3976You are so disconnected from reality.
Americans be like my plans for retirement are “working at ___”
i don't understand how none of the people in the beginning of the video have much saved...I make less then all of them and have been able to max out my 401k for many years now...yes i live with a strict budget and do very little extra spending such as eating out...but I am able to raise 3 kids, take 1 vacation per year and own a home...also live in one of the most expensive areas in the country (Seattle). Now at 40 my 401k is 3x my salary but I am also fortunate that I will retire with a pension on top of my 401k.
Excellent job! 👏👏👏
Way to go man. Blink it and will be 6x your salary with how you're going. Many good times in front of you
1 vacation a year and not able to eat out doesnt sound like an enjoyable life. most people want to do a lot more while young. cant wait until you are 70 to travel the world and enjoy it. unless you want to be wheeled around in a wheelchair
I’m about to 27, graduated two years ago with my Bachelors in marketing and can’t even find a job, let alone think about retiring.
You can't get a job, pick a $20 an hour job and work it, as you look for a job in marketing. Don't limit yourself by only looking in the area that you live in now. Open a Roth IRA and put in $50 a week, and work yourself up to $100 a week. Save 10% of your pay. If your job has a 401k and you can pick the investment, pick the large cap S&P 500 stock. If the employer will add matching funds, put in enough to match at a minimum. Take that free money. Other wise at least contribute $1 an hour, it lowers the amount that you are taxed at the end of the year. Do not give up, and plan for retirement. Think about starting your own marketing company.
@@JohnDoe-jq1br lol even finding a $20 hour retail job full time is next to impossible.
@@sterlingross919 mcdonalds
why arent you making $100k like everyone else
has marketing degree, cant market his way into a job....
Single family home mandates and housing density restrictions are making the US unaffordable for most Americans.
The general attitude is. “Now that I’m here we need to stop building”.
Because all the riches of the country are going to the top 0.1% despite worker productivity going UP over the last several decades. Working your whole life just to 'enjoy' a few years when you're close to death is the biggest scam.
All the profits of technology went to 10% of people
1. Why is working your whole life to enjoy retirement bad?
2. Its not just to enjoy those few years.
You realize you'll ne physically broken when you get old right? Retirement isn't just to enjoy those few years. It's also so you have money to be taken care of. Otherwise you'll be a burden on your family.
@@TheFireGiverThey have a different mindset than we do🤣
I'm Korean and it's one of the most depressed and negative countries in the world, but even here I think anyone can become rich if they stick to their life☺️
If not, it's your problem, not the country's.
All you have to do is ignore the chaebol and other born-privileged "good families" who collude with the authorities to drop legal barriers on rising startups by those outside their personal social circles, in order to prevent viable competition to their revenue stream and social status.
Part of the problem is we don't become true adults until our late 20's. Our grandparents went straight to work at aged 18. That's almost ten years of wealth-building we missed out on.
My previous employer was union/pension. When I started - they had bargained 26 years or service, couple years later it was renegotiated to 26 years of service as long as you are 55 years old, shortly after it was renegotiated to 26 years of service as long as you are 65 years old. I started thinking I could retire at 50 to realizing I’d be working 40 years. Pension is still a good thing and secure but the draw backs are still relying on the strength of the union and dependent on how well the union negotiates their contracts.
VOX is heavily left-wing. It's not a shock that they would prefer a mandated system that restricts but protects over a choice-based system that works phenomenally if you just have a little sense.
I’m in the UK and my employer puts in a sum equal to 5% of my salary into my pension pot. I then add in 8% of my salary. All this is income tax free. I don’t earn fortunes but at 53 I want to be able to be comfortable in retirement. My brother retired at 55 and had about 18 times his yearly salary in his pension pot. A lot more than the 8 times suggested here.
You got that bit wrong. Your employer contributes 3%, and you, the employee, pay the remaining 5% into the workplace pension plan. This, along with the state pension (National Insurance contributions) and any private / personal pension plan (optional), combine to form a full retirement fund for U.K. citizens.
@@fbaallied 3% employer and 5% employee is the minimum you have to put unless you opt out. You can choose to put more and an employer can put more also
@daveys5 Yes, you can match what your employer contributes.
though in the uk we have salarys worth a FRACTION of the US. £100k is considered impossible for many as asalary whereas in america it seems the average watching this vid
It all depends some of us like myself have pensions plus the 401k account along with social security. I’m retiring at 57
0:35 no, that's not what abstract means. It's quite the opposite, very concrete. You can look at the money you're making now and multiply that by what she said to have at any given age.
If that what she's proposing isn't viable to you or anyone like she later states, that doesn't make that number any more abstract. Unrealistic perhaps, or unattainable to most.
Right? Thats what I thought too. Also I wish they had said the number you should have at 50 just so in a couple years I'll know how short I am. 😂
I, also, just want to say that when it said ERMA was 72, I was shook. I really expected it to day 43 or something.
what about those who make less than $100,000? lol
Make extra income on OnlyFans. (Seriously)
Which is like 75% of the population l9l
@@luxxy707if not more
Stay away from living in cities
@@Nunta9539 miami’s not a city right? /s lol
im kinda depressed that, everyone in this video is high middle class and they are complaining that "woe is me, i dont know what to do with retirement"
vox didnt even have a single reperesentive of someone who is normal working class. why does this video even exist .... how even is it relateable .... why cant they have at least one random min wage worker,
probably cause it would be even more depressing cause the retirement doesnt even exist anymore for them.
I like how the professor said that retirement was all the thinks about, yet he hasn’t educated himself on how to invest his savings…
What you need to retire is not about your income, it’s about your expenses. Very different concepts (sorry Vox)
It’s both. (Sorry Javier)
Wow, where did you find these people? I would have easily retired early if i was making $100k+ per year.
Because it’s not about the size of the shovel, but how you use it. So many people just don’t do the math or are deliberate about it. Just because you make more doesn’t mean you are smart about money.
I think the point of the video is that it's very rarely easy.
dude where do you live? 100k after taxes is nothing
@@johnzizzo3976 Its a ton of money, and if you don't think so, you live a pretty charmed life.
Not if you recently started making that much. We don't know how long these people have been making that much and where they are located.
4:10 this is literally wrong, everyone has access to an IRA. It's just not employee sponsored, which they do not clarify here
True, but IRA contribution limits are about 1/3 of a 401k contribution limit. ($7k / yr vs $23k / yr)
And really, you need to be putting away serious $$ to hit the ideal benchmarks of 1x/3x/8x annual salary in most places.
@@Fireballof3or you can open up a vanguard brokerage account. I have almost half of my savings in a (non-IRA) brokerage account, with the rest in a 401k. none of these excuses make a bit of sense. maybe if there was a single financial literacy course in high school...
@@Fireballof3 But the people who have $45,000 saved for retirement didn't hit the maximums. If they can't put away even $5,000 a year, having a higher contribution limit wouldn't change anything.
I'd love to make half as much as any of these people. The real retirement problem is that 40% of all US jobs pay less than $16/hr and a large amount of jobs now are part time. How is anyone supposed to retire when half the jobs in the US barely pay enough to afford a sandwich for lunch? I'll be lucky if I can retire at 85 in a cardboard box under a bridge.
I never see myself retiring. I love how they mock the person who uses the 401k money they receive when changing a job to pay down debt. Usually the debt is high interest such as credit cards about 20% interest and the ROI on investments, after taxes and management fees averages 4%. The best use of that 401k money was to pay down the debt but that decision gets made fun of. Enjoy life while you're young, and don't expect a retirement. You may not live long enough to enjoy it nor may you be healthy enough to enjoy your retirement.
She can't turn the clock back so yes, using the 401k to pay down high interest loans was a good move. But I guarantee she's gonna run up the credit card debt again. And a large CC debt does not happen overnight. It's a long string of bad decisions. She shouldn't have put herself in that position in the first place.
@adamtki I just disagree with your assertion that credit card debt is a string of bad decisions. 1) So many people have credit card debt, I struggle to so confidently say they all are bad with their money. Usually people make the best decision available to them at the time with the resources they have and the circumstances they find themselves in. 2) We have chose to create zoning that undersupplies housing and makes housing too expensive, we have chosen to underinvest in education and force people to go into debt to have a chance at a decent paying job, we have chosen policies that make healthcare so expensive and the list goes on ad infinitum. She is thrust into an environment where the odds are stacked against her. 3) We cannot expect people to live a monk-like existence where they just wake up work and go home to sleep without vacations or hobbies or anything else. If she isn't paid enough to afford these things, it makes sense she went into debt. 4) Americans have some of the worst financial literacy education provided in school
Did she make some bad decisions, I am sure she did. I just assume that probably contributes less to her situation than the structural factors of society out of her control.
Vox be like "why it's hard for Americans to afford college/buy a house/have kids/pay their rent/retire". I wonder if anyone watches these videos and goes "oh yeah, actually I'm going to do something about it".
Like take responsibility?
Lol 😂
@@dallastaylor5479 And forget about ever having more than a weekend off?
bitcoin fixes this
not everyone who watches these videos are american or know about america's issues, so it could help inform them
I make around $60,000 a year and I should be able to retire at 45-50 year. It's a blessing that I started preparing early
It's a blessing that you get out of your bed every day and breathing
@@davidbrooks8809 I'm happy to be alive and well
❤❤
@@HughJass-jv2lt 👍🏿
@@NicksDynasty
I'll be switching to parttime at 50.
But I don't have any kids.
i honestly have No Clue how the rest of yall pulled it off 😆
I saved $50k for retirement at 22. But this is basically my entire net worth
Don't feel bad, that's an excellent start!
Canada isn't a great example to use for automatic retirement plans. 30-45% of Canadians have pension plans, and it's becoming less common. You typically only see pension plans in the public service or crown corporations. Unfortunately there is a caveat to securing a career with a pension plan - the wages are lower, there can be less mobility, and you see a lot of miserable people staying in jobs they hate because of the golden handcuffs. Most employers ofter group retirement plans that an employee can opt into. The employee can select how much they want to contribute and most employers offer a match. People can also take funds of out these accounts, but they will be taxed heavily for it.
I think they are referring to the Canada Pension Plan (CPP) which covers virtually all employed or self-employed Canadians. There is also the old age security pension which applies to everyone over the age of 65 who has lived in Canada for greater than 10 years - even if you have never worked.
@@joshbraun8768 They have social security which I believe is equivalent to our CPP
Canada is a virtual mirror image of the US in this regard, except that Social Security is quite a bit more generous than CPP. Virtually all Americans who work in federal, state, or local government are covered by pensions, as well. Every state has a "retirement system" to cover its employees -- including teachers.
Why does she have two mortgages? Why does he have 250k in a saving account? Why is she constantly dipping into her retirement funds? All of these people seem to make good money. This video is an indictment of their personal choices, not the retirement system.
Man, he's going to be bummed when he realizes that in the last year that $250 in savings made 0.6% while the stock market returned 30% normalizing after the covid years. He literally gave away ~$75k.
That's the story of the millennials and gen Z. Blame their failures on "the system"
I had a good safety margin when I retired. I had a well-maintained house and newer cars which were paid off. Easily 25% of my pension check went into savings.
Then inflation hit.
I've now lost a fifth of my purchasing power, and my pension gives me a piddling 2% cost of living allowance a year. I'm looking for ways to economize and I'm considering applying for Social Security at 62.
Whatever you think you need to retire, it's not enough.
In Spain we are automatically enrolled, and even if you earn minimum wage your entire life you are guaranteed a livable retirement wage. We of course have our issues with an older population and shrinking workforce
I looked it up, and I see that the average pension is less than 1500 euros per month. Is that right?
i love how every solution to these huge systemic issues that are lowering our quality of life is "idk you do you"
In Germany, one is only automatically enrolled into a retirement plan when you are employed, not when you are a freelancer. So it's not entirely accurate when she says "everybody" in other countries has a retirement plan.
That’s still profoundly better than the US. You can be employed and your employer provides no retirement plan.
@@afrinaut3094 Theoretically, although most employers do. The catch is, you have to contribute your own money to it. This is the same as in those other countries where it's mandatory.
@@afrinaut3094 You don't need an employer-sponsored plan to invest for retirement. IRAs, for example, are much like 401ks and you don't need an employer to sponsor it. Even if you make too much for a tax-advantaged account (you'd have to be making quite a bit), you can still invest in a regular, taxable brokerage account. The issue is not employers' fault, or even the governments. While I think the government could do a much better job on promoting retirement savings, it is ultimately your own responsibility to save. It requires sacrificing some things you want (e.g. nice phone, bigger apartment, Netflix subscription, etc.) but just about everyone can find something to save, even if it is just a small amount.
@4:24 It's not true that in Canada one automatically gets enrolled in a retirement plan! Some employers don't even offer an RRSP (Registered Retirement Saving Plan) to begin with, or offer an RRSP but don't make it mandatory to enroll. It varies greatly from one employer to the next, and the people who don't have an employer's RRSP, need to actively open an RRSP in a financial institution. The Canadian pension system is much more complex than this lady is implying.
They were playing pretty fast and loose with the facts.
Well this was depressing
Stuff like this really makes it seem like defined contribution plans are really hard to use and manage. When really, they are very easy to set and forget. But so many people just don’t choose to invest and look to get all the money they can now. It’s a shame.
Saving for retirement isn’t a priority for most people. Americans spend an average of $1000 per person for Christmas every year which is less than what most people put into a retirement fund annually. That is just for Christmas, not to mention excessive frivolous spending on other things throughout the year.
Most Americans increase spending when their income increases and a significant percentage unnecessarily live beyond their means.
In Japan average savings rate is 20-30% even though the cost of real estate is about twice that per square foot than in the US.
People don’t take the time and energy and apply the self discipline make trade offs necessary to save for the future regardless of income.
Most will ignore these facts and then blame the rich or society for their shortcomings.
America’s system is broken and they scapegoat it all on “personal responsibility “ or “God”. I don’t know if I’ll ever be able to afford a house, go back to college, afford student loans, afford to have children….. and you want me to think about retirement… we have a cost of living crisis and you want people to think about retirement. 🤦🏾♂️
Edit: America has a population decline because of all of these cost-of-living issues. Half of Millennials Zillennials, & Gen Z are under-employed (no surprise it’s even worse for marginalized people like AfricanAmericans & Native people) and “do not want to have kids” either because they just don’t want to & the other percent because they don’t see being able to ever afford children on top of all the other expenses of existing in the country. Yet, price gouging, mass lay offs over the years, slashing of benefits (that are not even federally mandated), tax breaks for the wealthy etc while shareholders, board of directors, & CEOs make record profits…..
Edit: & of course struggle wages, poverty wages, wage theft by rich business owners etc. And you shouldn’t have to make six figures in order to live a decent life (ie work life balance, afford a family & other worth-living benefits) and retire in your 60s.. it’s a right for every working person…
Don't feel too bad about owning a house. Roughly 80% of homeowners only own a home for less than 10 years then they buy and move into a different house not keeping the older house.
And here I'm wanting to retire as early as possible.
Same
I retired at age 36, as a normal engineer / data analyst. Having a good time now. Just don't spend so much, and invest in the S&P500
You can want!
@@John_Smith_86 just stop being poor! It’s simple
@@DefenestrateYourself Exactly!!! So simple and straightforward!!! (except for the disabled)
I was happy beyond what mere words can describe when two young colleagues came to me & said, "I just qualified for the 403(b) retirement program & was thinking you might know how I should invest it." I was an Accountant with decades of experience in the realm. I didn't just blurt out boilerplate percentages. I spent time with them & learned about their risk-tolerance, along with their intermediate & long-term plans, grad school, marriage, buying a house, etc.
I believe that some in this video and many others watching it know someone to whom they can turn for advice in this Arena. You might already know someone, but are hesitant to ask. Please don't be.
The “lAnD of ThE fReE” is designed to keep you complacent, compliant, and needing to work for your whole lifetime, for someone else’s gains.
If you hate America, then leave?
@@pinkisforpimps Or we can change it.
@@jebkermen6087 most people want to complain, not change anything
@@pinkisforpimps
Are you going to just complain?
@@jebkermen6087 I'm not complaining about America. It's the best country in the world 🇺🇲
Poor me, I had to pay two mortgages 🤣
What in the world did I just watch 😑 6:39
Always remember if you don’t have it. Someone else does. Once upon a time people worked and pensioned out. Now that’s practically gone so who has it? Where’d all that money go?
A pension for a private sector business/company seems really risky to me and inhibits a person's movement and there's no diversification because your entire retirement is held within one company which could easily go bankrupt due to no fault of your own no?
If you have a 401k or IRA you can get fired or leave or the company can go bankrupt and that money goes with you and stays with you. All the while you can be investing that money in a total market index fund so you are diversified across the entire US or World. So why is a pension better?
@@SGyruPensions are held separate from the company and are funded as the employee works specifically to avoid issues with companies going bankrupt. Even if you leave that company the pension is still there and yours - but sometimes it's cashed out if you no longer work for that company.
@@Fireballof3 So what are some good reasons why a pension is better for a employee than a 401k?
They really should look at total net worth rather than "retirement savings". The woman who sacrificed her 401k contributions to pay two mortgages probably does have a low 401k balance but SHE HAS TWO HOUSES.
Does having a house pay for food on the table?
@@coolsteven2 If you sell it it does. It's no different than a 401k in that respect.
Everyone’s salary and savings in this video is high. This doesn’t rep the other folks that aren’t making wages like this. Not sure why they didn’t balance this with more income diversity.
The poor people didn't want to come on
They have pretty elitist views. For example, "every country in the world" to them means northern and western Europe.
Even making half as much as most of the people in this video, I'm saving about half my income towards my retirement. Having enough to retire early is my #1 priority.
Money management is so poorly understood. As someone in the UK, im thankful for how private pensions are enforced... especially given the evergrowing chance of a state pension not existing by the time im 70+.
We were provided no guidance on future planning whilst in education. Ive just always feared being in a poor financial position and have made several plans to prevent that occuring to me
All of these people should be able to put the annual maximum in their 401k and IRA and live comfortably. They are terrible with money if they aren't doing that.
I don’t get it. I have never made over 6 figures and yet because I saved a little since I was 20 my nest eggs are worth over 7 figures and I have 10 years until an early retirement . Compounding interest is key. Maybe the government needs to mandate a retirement account like Australia.
Yep, make your money work for you. Don't pay interest or make loans. If you can do that, you are good.
I can't be the only one who recognize the PBS "Two Cents" Theme song during the ad read.
The low average invome is an issue, but people are also easily lured into things they dont need
The median income in the USA is just over 30k. But every single person interviewed in this was earning 6 figures...if you can't save enough for retirement on over 100k then that's on you at that point.
Bro, what? The avg salary in USA in 2023 $59,384 a year. Which is more than me already. Yet the video talks about the average expected savings for Americans to retire…
These people make more then double I make. Like not even a single person that makes under 100k a year.
I mean it’s all good info but where is the diversity in income class.
earning 100-125k in a HCOL city is probably equivalent to 60k-$70k in other states
Why do you make less than $59k?
I'm an immigrant to the US and I've been maxing out my 401k since I was 27. All these people who say they can't save while making 6 figures are just irresponsible and can't live within their means.
None of these ppl are in real trouble. It's tone deaf and sad that Vox chose them.
The us median income 2023 was $59,384. Most of those people are living paycheck to paycheck. Based on the the information in this video, the US is going to have an elderly homeless crisis looming...
Bring back the poor house
I'd retiring or working less in 8 years, and considering this financial recession, Im deciding to begin taking up skilled trades. I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, I earn around $120K per year but nothing to show for it yet.
You should contribute to your retirement diligently, or better still look into financial planning don't come to youtube for advise, consult a Local or trusted advisory firm
Very true, I find myself lucky enough exposed to money management at an early age. Worked full time when I was 19, purchased first home at 28 fact forward timo I'm 57 now not laid off
I consulted with an advisory firm to match me with a planner to stay afloat and with subsequent i investment, i am only 5% short of 1 million as of today
This is huge! would love to grow my reserve regardless of the economy situation, my 407k has lost everything accrued since early 2019, at this point, i'm in need of guidance, can you point me?
Name- Folmar Advisory
Look at the folks that worked for TWA, US Steel, or the hundreds of companies that had their pension plans taken over by the PBGC. Also, if you decide to change jobs with a pension, you risk losing everything. With a 401K, your contributions move on with you.
i promise you - if you want to retire, you don't want to teach in your retirement. - a 10 year teacher
It's actually not a tall order, save 5% of your salary at 5% annual return and you'll have 10x your salary when you retire. Where I live there's a mandatory 3% saving and return is a bit higher so most get there. Many save another ~3% privately. And then there's of course a minimum pension for those who for various reasons haven't made a lot of money.
Minimum pension? Never heard of this for Americans. Are you conflating Social Security with a pension? SS was never designed to be a pension, more of income assistance rather than replacement.
@@VintageToiletsRock What makes you think I'm American?
What doesn't make sense about the amount of retirement savings you "should" have is that your income goes up. Say if at 30 your salary is $60K and you saved (1X), at 40 Years old, this recommends to have 3X your salary, however your salary might not be $60K anymore, maybe it's $80-100K. The much better measurement for your retirement number is 25-30X annual expense.
Lifestyle creep needs to be talked about faaaaaar more than it actually is in this video.
Agree completely.
why... why did they interview only people making 6 figures?
Median Wage in the US: Under 50k
Literally everyone Vox interviewed: "So I make six figures."
It's not about how much you make, but more about how much you are able to save/invest. I know people who make $75K who owns a house and have a modest but decent nest egg for their age. I also know people who make $140K but is renting and have a subpar amount for retirement savings for her age because she's more of a spender. It's a lot harder to retire than it used to be due to lower wage growth and higher inflation, but it's still very doable if you are disciplined about frugality and delayed gratification.
A 27yo and a 34yo making 6-figure salaries aren't really the most representative examples of their age cohort, Vox...
Where are the people who make way under 100k?
One piece of advice I wish I had followed was to start contributing to a retirement fund very early in my working life and *not* touching it. Even if it’s only 5% of salary it will grow significantly over many decades
Yeah, I feel like 401K isn't worth it, the fees.. if you roll it over it loses money and I could have used it like she said.
Right! I just recently looked at my 401k options and even if I chose to just keep it all in cash they wanted to charge me 0.8%/year! I'm giving them all my money for the next 30+ years and they are charging ME?! But the only way to get that measly $10 of company match/year is to put money there so I chose the minimum to get the 50% company match and chose whatever stock fund that had the lowest fee (which is still like 1%).
@@michaeld4861 Yeah, I'm gonna put money into high yield money market savings. At least that way I'm making money, even if it's a small amount. I'm not contributing to the retirement funds anymore. Nearly everything I had in stock is also gone. Not doing that again either. Everyone says to invest. It's like flushing money down the 🚽.
4:27 American's don't have auto enrollment in a pension plan? She's never heard of Social Security. That's weird.
I'm so glad I had the foresight at the age of 22 to pursue work at a public university with 2:1 retirement matching (I put in 5% of my salary, they contribute 10%, and there are multiple IRA options for saving additional funds).
Double entry accounting is 700 years old but educators and economists have not been able to suggest mandatory accounting in the schools since Sputnik.
Oh yeah, that Adam Smith guy wrote "read, write and account" multiple times in his book.
*starts Vox video*
*immediately prepares to skip Metro by T-Mobile sponsorship*
If these six figure individuals are struggling...than I'm drowning! ☠☠