I'm preparing to retire at 68 and seeking advice on managing my 401k distributions. I'm concerned about whether my savings will suffice for retirement, given that my current contributions are lower. Should I consider taking a lump sum payment and paying the upfront 20% tax, or would it be wiser to opt for periodic distributions and spread out the tax payments over several years? I'm looking for guidance on the most tax-efficient and beneficial option for my long-term financial situation.
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals
I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock values
I have seen loads of news of *TERESA JENSEN WHITE* on the internet, she must really be that good for she to be talked about in such a way. Is she on TH-cam? please how do I reach her
I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made. Great video! Thanks for sharing!>>>>>>>
I retired 15 years ago at age 57. Right at the start of the Great Recession. Talk about scary. But I had a good plan, and reasonable resources and came out of it fine. And it made me stronger and more confident. Markets go up and down. Be smart. Don't Panic, have a plan, and live your life.
this is a good video and useful information. Been retired 3 years, age 60 now, and with Vanguard for a long time because of their low expense ratios and $0 commissions for stock trading. A footnote about the age directed funds, I've stayed away from them due to their high expense charges and stayed in lower expense ratio ETFs i.e., VOO, VTI and at age 60 have generally double of your presented average 401K balances. Recently been putting some cash into company dividend aristocrats. I also go with self directed with self education & Vanguard information, stay away from popular brokerage firms and use good videos like this one.
I'm new to investing, but I've been considering the route you've taken. I'm in my 20s, would you still recommend ETFs like VOO and other index funds? Just looking to save until retirement but a 401k isn't an option for me currently
I am 60 and try not to compare where I am against others. I compare against where I need to be. So yes, my portfolio is down, but I started saving very early so my nest egg still has enough. The Market will go up, the Market will go down. Key to me is not to panic. Review the holdings and decide if the risk is what you are comfortable with and if not then look at other funds that are less risky and move there.
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million.
This is true. I'm in my mid 50's now. My Husband and I were following this same trajectory. Last two years, I pulled out my money and invested with his wealth manager. Not catching up with his profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
@@devereauxjnr 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 $21k 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.
@@Tsunaniis-j5l I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same.
@@Tsunaniis-j5l I might have heard this name somewhere, but can't really recall. I'll be following her up. Thank you. Do you know if she manages family fund too?
I would say the biggest benefit is starting to save early and especially to take advantage of any employer match. We started in our mid 20's and are both nearly 65. We lived most of our life on one income in order to raise our children the way we desired. That meant along the way we didn't take fancy vacations or buy expensive cars but the sacrifices paid off as we now have more than 10X the mean. We have seen markets go up and down over the past 40 years but have stayed the course and made sure we diversified enough to ride it out. If you're just starting out in your career SAVE as much as you can as EARLY you can and let compounding work for you.
I’m already retired at 52. $450k 401k and about 800k real estate. My wife still works and has her own 401k. Not tapping into 401k account until 60, but my real estate income allowed me to retire early.
I would have skewed these numbers. My 401k balance was a small part of my retirement assets and was around $300k in 2020 when I retired. I was putting 9% of my salary into 401k, getting the match, maxing out my Roth, and putting 15% into cash and a brokerage account. Of course my house was paid off and I had zero debt.
Thank you! Last year when looking at 401k balances, you commented that those with high balances had some kind of advantage, and started off with an advantage. Many people are there because they prioritize saving.
Yeah. I watched that and thought that comment was disgusting. I know a janitor who married a waitress who retired multi-millionaires because they lived below their means and saved money like crazy. My wife and I started with nothing and we are saving 30% of our income for retirement WHILE cash flowing her nursing school. We'll be millionaires in the next 5-7 years. It's about discipline and avoiding debt.
Times like these validate my push to diversity my holdings between 401k, bonds, and real estate. My net worth grew 8% even though my 401k balance went down, and it was all due to my rental holdings, both in private rentals we manage and REIT investments. We also are holding cash as I have always felt better holding 2 years' worth of expenses in liquid form even though I get laughed at by my friends for holding so much, but I'm getting older, and money pays for things; I don't want to have to sell anything just to pay my expenses. I still work but see layoffs on the horizon, and I hope I make it a couple more years with my job's healthcare before I can get Medicare; otherwise, private healthcare is an immense worry.
@TheMrDudiness I personally know someone who grandchildren are not getting the health test and care they need on time. They are begging their kids to seek care back in the states.
@TheMrDudiness🤣😂 The state of their "Free Healthcare" is despicable. Waiting times are long. They are starting to push doctor assisted suicide for all sorts of things... Depressed? Request a free home suicide kit. Having trouble getting up and down the stairs? Request a free home suicide kit. Unfortunately, this is where socialism always ends up. It's cheaper to offer people suicide than to actually provide treatment. Expect the number and quality of available treatments in Canada to go down from here on out.
I am 62. Plan to work to 67. Was just laid off. Already have another job lined up, but it occurs to me no job no matter how good is safe. I have 3 previous retirement accounts from different jobs. So at this point, after rolling over my accounts, probably to something at my bank, I am going to start putting more into savings than I was before. Number one goal is to pay off my house. At least I will have a roof over my head, and social security until it runs out and a small retirement account to buy groceries and utilities. I will be ok.
Been in Vanguards VFIAX S&P 500 Index Fund for years. 90+% of the financial advisors can't beat the S&P 500. Remember, what goes down always goes back up. I get over $8,000 a month from that fund.
@@joed3264 so you have ~$6M in VFIAX? That's a 1.68% yield - if you are looking for income/dividends, that's the wrong fund to be in with that kind of investment.
Rather than all the "average 401k" balance information, I'd like to hear about average retirement savings. This would put all savings into 1 bucket for better comparisons. For example, I have been one to roll 401ks into IRA when changing jobs. My 401k balance is small because I changed jobs a year ago.
I have always liked downturns because I've had my best gains investing into down markets. This time feels different because of inflation. That being said, although I'm down a lot this year, long term I'm at 8.4%, well over my 7% target.
💲💲 Graet video ~ already retired at 62 and 100% went into Vangaurd Retire & Income Fund a year ago. 👍 This fund is conservative and not down quite that much, I don't have any plans on leaving this fund. Conservative is the name of the game once you are retired, a modest 5% return is fine with me.
Vanguard Target Retirement Income Fund unfortunately only saw a 2.96% annualized return over 18 years (November 2003 through November 2021). Hope the fund sees better performance in the years ahead.
If you want to feel good about the amount in your 401k, don't get into a conversation on the topic with your pharmacist brother who doesn't have any children. This video made me feel much better about my 401k at 57 years old.
Seems like the answer is to max out 401k contributions as early in life as practical. Luckily my wife pushed me to max out at 30 years old. Recessions come and go, and starting early helps smooth out investments over time.
I’m about three years into my retirement, and quite honestly if my net worth drops 15 to 20% it bothers me but it’s not that big a deal. My problem is if the investments I have start dropping their dividends! I have yet to see anyone talking about the dividend situation in 6 to 12 months
I'm 52 and I guess I am doing quite well though my situation changed about a year and a half ago. The last time I checked about a month ago I had $95k in my 401k which is 100% in a S&P 500 index. I am maxing out my contribution at 39%, my catch up at 10%, and my company match of 3%. I can do this because I got my inheritance from my parents' trust. The inheritance was enough that I could retire right now on a limited income that is sustainable. But as long as I keep working, I really don't have any money problems and can do some wild thing if I chose to do so as long as it's not all that really stupid. I limited my stupid spending to a limit of $2k a month on anything that is not a multi month commitment like a new car or something like that. In just under 3 years, I will max out my vacation days at work and as I work 12-hour 3- or 4-day week shifts I will only have to work 155 days out of the year. This gives me a lot of time that I could go on many short one weeklong vacations. Unfortunately, I am not allowed to be gone from work for any longer than 12 days so overseas vacations are not all that reasonable. Though since I can only reasonably only go on domestic vacations that will help me keep to my self limiting $2K monthly budget.
I don't listen to people who boast about their returns. Boasters by their nature are unreliable reporters. I have no way of verifying their claims of being super-investors. I've met a couple of people who claim to have all their money in Apple stock they bought 20 years ago. Similarly, of all my friends who go to Las Vegas and gamble, not one of them reports doing any worse than break-even. Yeah, sure.
Wow, this was preceded by a commercial that started out "So you're 60, you've got a million dollars saved for retirement ..." That's some targeted advertising - or coincidence. As for your video itself, it's the usual good, informative, content.
My portfolio balance is down, however I keep buying the dips. This is a great time to buy, and buy low. “People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.” - Peter Lynch
Historically, yes. This dip is different. The world is unsettled. There is a lot of unknowns. War, supply chain issues. Fuel costs I hope you're right.
They are almost always different. I’m 70 and have been in it for the long run. Weathered several dips but kept on buying at those low prices. I was in a 403b at my hospital and the managers of the fund chose mostly safe investments and based the mix on your age ( aggressive to conservative based on age although I’m still in the middle). The point is that you have to make the commitment to save regularly. (And don’t look at it every day LOL)
@@Bandaid17 I look at my investments nearly daily, it's not easy at first but eventually you can remove the emotion. I like to understand what it's doing and why as best I can tell. I keep track in spreadsheets going back many years so I can see where I was, where I am, and consider where I'm going, what's working / not working over time. I'm preparing for a few things at this point in life, and slowly transitioning my investments to support my plans. The BozoBiden recession and the coming tax increases and audits (87,000 new IRS agents!) will make things interesting. Cheers!
I just turned 63, plan on working until 65 and started at the beginning of the year to put all future contributions into a stable fund. I realized that the market at some point will correct and earning even 20% on money I was contributing will not add a lot for the remaining years. I also am keeping cash on hand just in case I have to leave the work force Overall, I've lost about 21% but markets do this and it's usually good going forward. In 2007/2008 the market tanked and came back.i suspect the same will happen again. It's a paper loss until you pull the sell trigger.
@@Kuwandi true, the war is causing some issues but it comes on the heels of the world wide pandemic. Eventually things will straighten out. There is nobody on the planet who can say that this will last another month or decade. I have followed the markets for a few years listening to "experts " contradicting each other. If I had a long time before retirement I'd invest more money into it for long term gains but in the short term who knows when this will turn around. But with tat said I did recently transfer money from bond fund to S&P fund but that was before the latest drop. Even with my losses I'm OK since it is only paper at this point. I'm assuming that at some point the sellers have sold and the buyers will be picking up bargains. Putting is older and apparently I'll which will probably stop the war and countries will open up and ease the supply chain. I'm not saying it'll be like 2019 but better, much better.
It used to be that people worked at only a few companies throughout their career but nowadays, the current 401K is fairly small because multiple other 401k accounts have been transferred to an IRA or ROTH IRA account. My 401K savings in my last employer's account was only $150,000 over 6 years. When I retired at 63, I transferred that to my IRA. I would like to start collecting SS at age 70 but am also tempted to do so at full retirement age (66.75). It all depends upon whether my investments can beat the 8% per year guaranteed (by SS) increase per year if I wait until age 70.
I expect this recession to last for several years since it took well over a decade of foolish fiscal policies to get here. I'm almost 53 and I'm so glad this is happening now rather than right before I plan to retire. I expect to retire in about 9 years at 62 and that's plenty of time to rebound and reach new highs. Plus, I'll be adding to savings thru it all, taking advantage of discounted stock prices.
@@peterdallman4550 If memory serves me correctly, it took stocks (S&P500) a couple years to reach new highs after the 2007/2008 crash, so it was definitely long enough to ruin some people's plans. That said, this developing recession and recovery will likely take much longer to play out because the underlying causes are much deeper than just a housing/mortgage/financial industry crisis. There is a confluence of many problems coming to a head right now that will likely compound the severity of this one, but only time will tell...
@@peterdallman4550 Those weren't foolish fiscal policies, those were finely orchestrated and planned policies to pump and dump in order to steal billions from Americans (and worldwide). It's called a money transfer and they've been running this scheme for over 200 years.
I've been thinking about opening a dividend investment account for retirement, and I've set away $310k, but the present market volatility discourages me from doing so. Do you have any advice for me?
@@martinadangelo6663 Yes I am in touch with a broker and for the past 5months, I've been able to stay afloat the market crashes and I've watched my portfolio of $160,000 grow by over 40% these past few months.
If 60 year olds have a mean of $250K and an average of $90, its good news for the housing market entrants. Many older workers may have pensions, but still, it sounds like a lot of folks will need to sell their homes to support the 15-20 years following retirement. There's your extra inventory...if not your housing crash.
A great example of recency bias. At end June YTD performance was -16% (it is now -12%). At end June a client might have been saying "I can't afford to retire and will have to work another 2-3 years!", but only six months previous they would have been looking at past annual returns of 13%, 15% and 22% (and somehow had come to believe that was 'normal' and ignored the fact that the 10-year average annual return was 'only' 9%, and reversion to mean was a fact of life). Sigh.
My gosh! This is really terrible! I was self employed, never had an employer contribution! Paid in twice as much in Social Security! Managed to save twice the larger portfolio. I have been retired 10 years! And still have much more then these! Shocking!
I had 500k + in 2008. Then lost my job of 23 years due to the owebama economy. Then the wife divorced me and kept the house I paid for. Now at 63 I’m still working and praying.
The government is focusing on how to punish people who scrimped and saved all their lives. It is being discussed on how to reduce social security payments to those who saved.......giving more to those who did no planning and spent every dime.
Trying to time the market can't be done. You need to invest according to how much risk you wish to take on. You already missed +10% in there last 30 days
Everybody's missing the point and focusing on the short term. According s and p-500 calculator I just used the 10-year gain is 11.14%, I'll take that any day. If you're investing short term you don't belong in the market, the stock market is a long-term investment and looking at one year periods or 6 month periods is useless
Unless the fundamentals are very different, as they are now with an incompetent government. Also some people (60+) can't take that long term "Oh, I just lost 20% in one month, no big deal" view. For me the majority of my investments are in residential and commercial real estate but I do have securities and a Vanguard 401K. Two months ago I moved the 401K funds into cash account within the 401K despite the inflation tax on cash.
@@trustedsource1273 we've been through this over and over again with the market. Fundamentals always change. No matter what your age but especially 60 plus you should take no more stock market risk then you can handle. I'm putting my money were my mouth is I got way more aggressive with this downturn in the market. Historically it's a good bet
@@jreisz2003 you get what the market gives. But very few people invested all their money in exactly the year 2000. And exactly why did you pick the exact date?
The stock market isn't just a long term investment. Lots of people can and do invest successfully short term. It really depends on what you're trying to do. I mean options trading exists and that's definitely not a long term transaction.
I will just mention that it is possible to set up a Simple IRA with an employer that doesn't offer a 401K plan if they agree to it. It's a very simple process and it functions very similar to a 401K plan. I lived a lot of years before I became aware of this type of account.
Yes I set this up for my business. It saves several thousand dollars a year in expenses that I could put towards an employer match for my guys. It’s as easy to set up as any ira and there’s almost zero reporting requirements. So much cheaper and easier.
I’m down about 15%, but that’s how the market works. I’m up many multiples of that over the past 10-13 years. I just retired, and I live off of my investment income as I’m too young to tap my retirement accounts or collect social security. I’m looking at this sell off as a gift. Have started adding here and there to really beaten down investments, and am planning on funding my HSA till I’m 65, as I’m still paying for private insurance (I always have as I was self employed) I put this ability to be flexible down to living below my means and thankfully having no debt 💸
If we learned anything from the last recession in 07 which was nearly a depression its that holding is the smart man's strategy as the market ALWAYS recovers. The average American is by definition average which is why the balances referenced in this video are abysmal. Continue to invest in up times and down and never panic that's what will make more than average.
Its took 26 years for the Market to recover after '29, and for the next 50 years grew at an annual rate of return of just 1.5%, and for the next 60 years grew at just 3% per year. It all depends on what time period one lives in. Total happenstance.
@@Wasteoftime10 Wow, I never knew it was that bad, for that long. Nobody knows the future of this market correction, so it could keep going down for the next several months, or maybe flatline for years before any recovery takes place.
Thank you sir, I always gain valuable information on your channel. This recession (can we call it a recession yet?) has the feel of a longer time period than maybe some of the previous downturns. Maybe they all feel like this when we're going through them, but I'm hopeful that things will turn around by 2024. In the meantime, I'm just going to keep my head down and keep plugging away. What else can we do?
Like your tie...hope your daughter gave that to you! Happy Father's Day. Your example numbers parallel my own. My 401 is down 17% year to date. My employer did switch from Fidelity to Voya a couple of years ago and have not been happy with the choice of funds or their performance at Voya.
This was excellent information. It gave me a good understanding of where I am at the age of 66. Funny how I was thinking about this subject just the other day. Great timing. Thanks for the info.
Is this based on Vanguard investors only ? I have a Vanguard IRA and 5 other fund companies IRA and a 401K. How could they know about peoples other investments ? These stats seem misleading to me. I love to compare where I am but always question the data behind the report.
I just turned 60 and retired about 6 months ago, semi retired about 3 1/2 years ago, I'm typing this before I watch the video and curious to see where I fall against this average.
Lot around 11% so far. Retired two months ago at 60 . Have 45% in 2 year treasuries and trickling 1 -2 % back into stocks as mkt drops. Gonna be an interesting next 5 years
Skip to 7:25. I'm 59. December 31, 2021 to May 1, 2023 my 403b was unchanged. Sixteen months. I am putting in 18% of my salary and my employer another 10%. Sixteen months. Unchanged. Yes, 2012 to 2021 was great. But I never figured my gains would be 0.00% for sixteen months.
I have a tiny inherited IRA but it came unexpectedly and it is not even part of my retirement plan. I just watch it. Down 20% since December. Very glad it isn't part of my retirement plan. Lol.
We save aggressively, though as a small business owner, some of our retirement investment options are being terminated by the government. For instance, backdoor IRA's have been incredibly helpful, though will be looking for other alternatives. Really don't understand how the 2017 tax bill helped small businesses or the middle class. They stopped allowing the mortgage deduction. Along with our quarterly business taxes, it puts a huge dent in how much we could invest for retirement. That's not even considering putting our two children through college. Oh, and healthcare costs. It's very expensive living in the US and Portugal is now an option.
I am retired. My stock portfolio is down ~20% but haven’t “lost” a dime. You don’t lose anything until you sell and realize a loss. For now it’s only paper loss. People that panic sale or jump off the roller coaster are the losers. Remember 2008 & 2020 and people panic selling vs those that rode it out ?? I keep about 3 years worth of needed income in cash ,bonds & ultra conservative funds for moments like this. Buy when everyone is selling; sell when everyone is buying. Panic selling is assuming the economy will never return .I’ll be a buyer very soon at these current adjusted values. These cycles have happened more than a couple of times.
Great comments. I was able to retire at age 60, with no debt and 3 years worth of cash. I found that I sleep better with enough cash to ride out these market pertubations.
@@johnfetter3252 I plan to retire at age 61 at the end of the year and will live on cash but wife is still working part time job. Will collect SS at 62 which just covers bills. Don't plan on touching IRA funds for 3 years.
@@johnfetter3252 I totally agree. If you start young with just simple plan; time works in your favor. We did not hoard or go deprived; we just lived within our means.
This is terrible. I cashed out of my 401K 30 years ago and handled my retirement funding on my own. Ended up with better results and I'm not even an investment guru. Stayed with only the most protected things like CDs and treasury instruments, knowing that the economy was going to tank as everyone retired at the same time.
I am getting SS and a teacher pension. I also have a 403B but hate paying taxes on the withdrawals. Could I buy an electric vehicle with the money in the 403B and avoid paying tax on that money because of the $7,500 tax credit???
Median retirement savings are about $174,000 I believe. And this is after one of the longest bull markets in history. Yes people are going to have a hard time in retirement in general. Of course that has nothing to do with your individual choices
Yes, but these numbers don't reflect other 401k's individuals may have (many folks have multiple 401k's that they haven't combined from past employment), or IRA's, pensions, 457's, etc... So although there is a crisis, these numbers on their own make it look worse than it is.
@@ariefraiser140 most? Really The median income in retirement for a household over 75 years old is under $35,000 a year. I don't think you're correct in your statement
Great video with a lot of detailed info . My portfolio is down about 22%, but I’m around 10/12 years until retirement. Great opportunity to get some more holdings in my portfolio. Looking forward to the next group video since it is the age group I’m in. Thank you for your research.
However, please clarify: When you are talking about a person's 401(k) balance, it is unclear whether or not this is the total of all 401(k) balances that a particular person holds, quite often across multiple 401(k) accounts (i.e. if the person had multiple employers at points in their career, with a separate 401(k) account at each employer). Thus even if the median individual 401(k) account is ~$89,000.00, that has to be multiplied by the average (or median) total number of 401(k) accounts, per individual. So, if the median 401(k) account holder has 2.3 401(k) accounts, x $89,000 per account, you will end up with a larger total 401(k) balance per individual, across all accounts. Obv. this doesn't take into account, other types of accounts such as IRAs or taxable brokerage accounts. There are quite a few people who apparently have significant assets in taxable brokerage accounts. In the next video where you discuss this sort of information, could you please try to clarify some of these (perhaps rather picky) issues? Thanks, much appreciated, GREAT channel!
Due to a divorce at 50 yo, and contribution limits on 401ks, I wound up with more after tax savings than 401k/IRA savings when I retired at 65 yo, 5 years ago. To enable retirement I had to take contractor jobs in Iraq and Afghanistan.
I knew the market was going down and I was still a deer in headlights, frozen to do anything. But I finally pulled the plug when I lost 25%. now I have to figure out how to reinvest it.
Those balances are very concerning, regardless of the losses incurred over the last six months. …especially given how well the stock market did from 2017-2020.
What most employees are not aware is that they can take an ‘in service distribution’ from their plan provider, roll it over into a IRA (non-taxable event) and have much better choices than the plan providers limited investment choices. Vanguard is a very aggressive plan provider. They discourage their plan participants to move their 401(k) once they retire. They convince the participants that they are making a big mistake. Most retirees fall for their lies.
Individual equities we own and manage ourselves are fairing much better than the mutual funds my wife and I have through employer 401k and 403b plans. Every stock we own pays a dividend and so far, no recent dividend cuts among our holdings, except for T, which was telegraphed well in advance. Just sitting tight. 3.5 years out from FRA.
You may be in a different fund or are looking it up on a website that doesn’t update daily. Try your brokerage firm for a current quote. The screen shots in the video are from between June 13 and June 15
The average 401K balance means little unless you only look at accounts that have been active for lengths of time corresponding to age. The changing of jobs either leaves multiple 401k accounts or money rolled into IRA accounts. It would be nice to know the average age of the accounts. My guess is that the mean age is quite a bit higher than the median age of accounts as well. Better data might be from retirement calculators or sites like personal capital that have the accounts put together. But you are right that account balances have taken a hit this year and even balanced funds are down quite a bit due to falling bond prices.
Vanguard and fidelity have retirement tools. They help you determine your retirement goal. They do this by asking all your investments. So they take these into consideration
@@donh8833 I have used both Vanguard and Fidelity tools. We don't get statistics from them but even if we did, the people using the tools are mostly likely not representative of society.
OMG, I better get my spot under the good bridge now - How is anyone going to make it with 90K or even 250K in savings at age 60??? I know it does not take into account other assets, but how many "other" assets will they really have?
Big question is how much or what is an average Cestui Que Vie trust worth per individual? Recently I discovered a sliver of my own at Treasury Direct for $78.6M but I also know that Fidelity Investments holds thousands of mutual funds per account as well... I’m sure there are many other institutions that are in possession of bonds also. What’s your take on this now that the federal government lost the case against it thereby forcing them to reconcile all accounts.
So I'm 63 in March. 280k in down 8.6%. Not bad considering. But is the reason I'm only down 8.6 because I put continue to put in 1600/ month? How does this affect my losses? I'm I really down 13%m
We have four Rental Houses and a 401K between the two of us! We are aggressive investors! I think the Rental Houses will supply most of our Financial needs as we get to Retirement!
I'm preparing to retire at 68 and seeking advice on managing my 401k distributions. I'm concerned about whether my savings will suffice for retirement, given that my current contributions are lower. Should I consider taking a lump sum payment and paying the upfront 20% tax, or would it be wiser to opt for periodic distributions and spread out the tax payments over several years? I'm looking for guidance on the most tax-efficient and beneficial option for my long-term financial situation.
The best thing for you to do is pay a small fee and sit down with an experienced advisor near you. There are too many variables involved. Good luck!
A lot of folks downplay the role of advisors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850k.
This aligns perfectly with my desire to organize my finances prior to retirement. Could you provide me with access to your advisor?
Rebecca Noblett Roberts is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
I just checked her out on google and I have sent her an email. I hope she gets back to me soon.
Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals
I think it's not always about fear, Sometimes realistic factors discourage people from reaching their goals in life. For instance, I've tried investing in the stock market several times but always got discouraged by fluctuations of stock values
I have seen loads of news of *TERESA JENSEN WHITE* on the internet, she must really be that good for she to be talked about in such a way. Is she on TH-cam? please how do I reach her
Investment is that tiny line that separates the rich from the poor
I wasn't financial free until my 40’s and I’m still in my 40’s, bought my third house already, earn on a monthly through passive income, and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age INVEST and change your future! Investing in the financial market is a grand choice I made. Great video! Thanks for sharing!>>>>>>>
how can I reach this person because I am in need of a better investment approach?>
Numbers begin at 7:36
I retired 15 years ago at age 57. Right at the start of the Great Recession. Talk about scary. But I had a good plan, and reasonable resources and came out of it fine. And it made me stronger and more confident. Markets go up and down. Be smart. Don't Panic, have a plan, and live your life.
I retired last year at 57 and it very scary. At the moment living of cash savings. Will start to access my super start of 2024.
this is a good video and useful information. Been retired 3 years, age 60 now, and with Vanguard for a long time because of their low expense ratios and $0 commissions for stock trading. A footnote about the age directed funds, I've stayed away from them due to their high expense charges and stayed in lower expense ratio ETFs i.e., VOO, VTI and at age 60 have generally double of your presented average 401K balances. Recently been putting some cash into company dividend aristocrats. I also go with self directed with self education & Vanguard information, stay away from popular brokerage firms and use good videos like this one.
I'm new to investing, but I've been considering the route you've taken. I'm in my 20s, would you still recommend ETFs like VOO and other index funds? Just looking to save until retirement but a 401k isn't an option for me currently
This guy is one of the best I have seen. Very clear and very easy to understand 👍
No he wastes our time. He would not be a good Army.officer
He babbles and doesn't get to the point. I can never finish one of his videos.
@@paulk9985 superb comment!
Just wanna say I think you're great and provide a great service!
I am 60 and try not to compare where I am against others. I compare against where I need to be. So yes, my portfolio is down, but I started saving very early so my nest egg still has enough. The Market will go up, the Market will go down. Key to me is not to panic. Review the holdings and decide if the risk is what you are comfortable with and if not then look at other funds that are less risky and move there.
Retirees who struggle to meet their basic needs are the ones who could not accumulate enough money during their active years to meet their needs. Retirement choices determine a lot of things. My parents both spent same number of years in the civil service, but my mom was investing through a wealth manager, and my dad through the 401k. My mom retired with about 4.2 million, but my dad retired with roughly 1.8 million.
This is true. I'm in my mid 50's now. My Husband and I were following this same trajectory. Last two years, I pulled out my money and invested with his wealth manager. Not catching up with his profits over the years, but at least I earn more. I'm making money even before retiring, and my retirement fund has grown way more than it would have with just the 401(k). Haha.
@@devereauxjnr 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 $21k 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.
@@Tsunaniis-j5l I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same.
@@Tsunaniis-j5l I might have heard this name somewhere, but can't really recall. I'll be following her up. Thank you. Do you know if she manages family fund too?
⬆️💩😆
I would say the biggest benefit is starting to save early and especially to take advantage of any employer match. We started in our mid 20's and are both nearly 65. We lived most of our life on one income in order to raise our children the way we desired. That meant along the way we didn't take fancy vacations or buy expensive cars but the sacrifices paid off as we now have more than 10X the mean. We have seen markets go up and down over the past 40 years but have stayed the course and made sure we diversified enough to ride it out.
If you're just starting out in your career SAVE as much as you can as EARLY you can and let compounding work for you.
I’m already retired at 52. $450k 401k and about 800k real estate. My wife still works and has her own 401k. Not tapping into 401k account until 60, but my real estate income allowed me to retire early.
Retirement, as they say, "good work if you can get it."
@TheMrDudiness James, do you manage that real estate income or just sit around the pool?
Been with Vanguard since the 1990's with no regret.
Agree. People not admitting losses are either lying or just being schemed by fake investments.
I would have skewed these numbers.
My 401k balance was a small part of my retirement assets and was around $300k in 2020 when I retired.
I was putting 9% of my salary into 401k, getting the match, maxing out my Roth, and putting 15% into cash and a brokerage account.
Of course my house was paid off and I had zero debt.
Lol, your not even a rounding error big guy.
Thank you! Last year when looking at 401k balances, you commented that those with high balances had some kind of advantage, and started off with an advantage. Many people are there because they prioritize saving.
Yeah. I watched that and thought that comment was disgusting.
I know a janitor who married a waitress who retired multi-millionaires because they lived below their means and saved money like crazy.
My wife and I started with nothing and we are saving 30% of our income for retirement WHILE cash flowing her nursing school. We'll be millionaires in the next 5-7 years. It's about discipline and avoiding debt.
@@christopherbeddoe406 Tell it to a younger person with todays inflation, student debt and living expenses.
Times like these validate my push to diversity my holdings between 401k, bonds, and real estate. My net worth grew 8% even though my 401k balance went down, and it was all due to my rental holdings, both in private rentals we manage and REIT investments. We also are holding cash as I have always felt better holding 2 years' worth of expenses in liquid form even though I get laughed at by my friends for holding so much, but I'm getting older, and money pays for things; I don't want to have to sell anything just to pay my expenses. I still work but see layoffs on the horizon, and I hope I make it a couple more years with my job's healthcare before I can get Medicare; otherwise, private healthcare is an immense worry.
Nice, you practically just described my own portfolio.
@TheMrDudiness I personally know someone who grandchildren are not getting the health test and care they need on time. They are begging their kids to seek care back in the states.
It's gotta be a drag for you to devote so much time and anxiety to money. A true drag on life.
@TheMrDudiness🤣😂
The state of their "Free Healthcare" is despicable. Waiting times are long.
They are starting to push doctor assisted suicide for all sorts of things...
Depressed? Request a free home suicide kit.
Having trouble getting up and down the stairs? Request a free home suicide kit.
Unfortunately, this is where socialism always ends up. It's cheaper to offer people suicide than to actually provide treatment.
Expect the number and quality of available treatments in Canada to go down from here on out.
I am 62. Plan to work to 67. Was just laid off. Already have another job lined up, but it occurs to me no job no matter how good is safe. I have 3 previous retirement accounts from different jobs. So at this point, after rolling over my accounts, probably to something at my bank, I am going to start putting more into savings than I was before. Number one goal is to pay off my house. At least I will have a roof over my head, and social security until it runs out and a small retirement account to buy groceries and utilities. I will be ok.
Sorry about the layoff. That really sucks when you're our age. I agree with your plan though - get the mortgage paid off and you'll be just fine.
soc sec won't run out, don't worry too much about that
Been in Vanguards VFIAX S&P 500 Index Fund for years. 90+% of the financial advisors can't beat the S&P 500. Remember, what goes down always goes back up. I get over $8,000 a month from that fund.
You’re referring to dividends of $8k per month?
@@deciduous_99 yep.
@@joed3264 so you have ~$6M in VFIAX? That's a 1.68% yield - if you are looking for income/dividends, that's the wrong fund to be in with that kind of investment.
Rather than all the "average 401k" balance information, I'd like to hear about average retirement savings. This would put all savings into 1 bucket for better comparisons. For example, I have been one to roll 401ks into IRA when changing jobs. My 401k balance is small because I changed jobs a year ago.
I have always liked downturns because I've had my best gains investing into down markets. This time feels different because of inflation. That being said, although I'm down a lot this year, long term I'm at 8.4%, well over my 7% target.
You’re right, over the long term dips are buying opportunities, they don’t cause losses unless you choose to sell at the bottom.
💲💲 Graet video ~ already retired at 62 and 100% went into Vangaurd Retire & Income Fund a year ago. 👍 This fund is conservative and not down quite that much, I don't have any plans on leaving this fund. Conservative is the name of the game once you are retired, a modest 5% return is fine with me.
Vanguard Target Retirement Income Fund unfortunately only saw a 2.96% annualized return over 18 years (November 2003 through November 2021). Hope the fund sees better performance in the years ahead.
If you want to feel good about the amount in your 401k, don't get into a conversation on the topic with your pharmacist brother who doesn't have any children.
This video made me feel much better about my 401k at 57 years old.
This is a great channel. Carry on.
Thank you for this very helpful information. Much appreciated!
Seems like the answer is to max out 401k contributions as early in life as practical. Luckily my wife pushed me to max out at 30 years old. Recessions come and go, and starting early helps smooth out investments over time.
I’m about three years into my retirement, and quite honestly if my net worth drops 15 to 20% it bothers me but it’s not that big a deal. My problem is if the investments I have start dropping their dividends! I have yet to see anyone talking about the dividend situation in 6 to 12 months
I'm 52 and I guess I am doing quite well though my situation changed about a year and a half ago.
The last time I checked about a month ago I had $95k in my 401k which is 100% in a S&P 500 index. I am maxing out my contribution at 39%, my catch up at 10%, and my company match of 3%. I can do this because I got my inheritance from my parents' trust.
The inheritance was enough that I could retire right now on a limited income that is sustainable. But as long as I keep working, I really don't have any money problems and can do some wild thing if I chose to do so as long as it's not all that really stupid. I limited my stupid spending to a limit of $2k a month on anything that is not a multi month commitment like a new car or something like that.
In just under 3 years, I will max out my vacation days at work and as I work 12-hour 3- or 4-day week shifts I will only have to work 155 days out of the year. This gives me a lot of time that I could go on many short one weeklong vacations. Unfortunately, I am not allowed to be gone from work for any longer than 12 days so overseas vacations are not all that reasonable. Though since I can only reasonably only go on domestic vacations that will help me keep to my self limiting $2K monthly budget.
How is your 401k doing now?
I don't listen to people who boast about their returns. Boasters by their nature are unreliable reporters. I have no way of verifying their claims of being super-investors. I've met a couple of people who claim to have all their money in Apple stock they bought 20 years ago. Similarly, of all my friends who go to Las Vegas and gamble, not one of them reports doing any worse than break-even. Yeah, sure.
Wow, this was preceded by a commercial that started out "So you're 60, you've got a million dollars saved for retirement ..." That's some targeted advertising - or coincidence. As for your video itself, it's the usual good, informative, content.
Excellent information and delivery!
After watching this I'm way, way ahead. Feel blessed!
My portfolio balance is down, however I keep buying the dips. This is a great time to buy, and buy low.
“People who succeed in the stock market also accept periodic losses, setbacks, and unexpected occurrences. Calamitous drops do not scare them out of the game.” - Peter Lynch
Historically, yes. This dip is different. The world is unsettled. There is a lot of unknowns. War, supply chain issues. Fuel costs I hope you're right.
They are almost always different. I’m 70 and have been in it for the long run. Weathered several dips but kept on buying at those low prices. I was in a 403b at my hospital and the managers of the fund chose mostly safe investments and based the mix on your age ( aggressive to conservative based on age although I’m still in the middle). The point is that you have to make the commitment to save regularly. (And don’t look at it every day LOL)
@@Bandaid17 I look at my investments nearly daily, it's not easy at first but eventually you can remove the emotion. I like to understand what it's doing and why as best I can tell.
I keep track in spreadsheets going back many years so I can see where I was, where I am, and consider where I'm going, what's working / not working over time.
I'm preparing for a few things at this point in life, and slowly transitioning my investments to support my plans.
The BozoBiden recession and the coming tax increases and audits (87,000 new IRS agents!) will make things interesting.
Cheers!
I just turned 63, plan on working until 65 and started at the beginning of the year to put all future contributions into a stable fund. I realized that the market at some point will correct and earning even 20% on money I was contributing will not add a lot for the remaining years. I also am keeping cash on hand just in case I have to leave the work force Overall, I've lost about 21% but markets do this and it's usually good going forward. In 2007/2008 the market tanked and came back.i suspect the same will happen again. It's a paper loss until you pull the sell trigger.
The only diff this time is the war …. It’s very different now with that instability - but nobody wants to talk about it …like Vietnam in the beg.
@@Kuwandi true, the war is causing some issues but it comes on the heels of the world wide pandemic. Eventually things will straighten out. There is nobody on the planet who can say that this will last another month or decade. I have followed the markets for a few years listening to "experts " contradicting each other. If I had a long time before retirement I'd invest more money into it for long term gains but in the short term who knows when this will turn around. But with tat said I did recently transfer money from bond fund to S&P fund but that was before the latest drop.
Even with my losses I'm OK since it is only paper at this point. I'm assuming that at some point the sellers have sold and the buyers will be picking up bargains. Putting is older and apparently I'll which will probably stop the war and countries will open up and ease the supply chain. I'm not saying it'll be like 2019 but better, much better.
It used to be that people worked at only a few companies throughout their career but nowadays, the current 401K is fairly small because multiple other 401k accounts have been transferred to an IRA or ROTH IRA account. My 401K savings in my last employer's account was only $150,000 over 6 years. When I retired at 63, I transferred that to my IRA.
I would like to start collecting SS at age 70 but am also tempted to do so at full retirement age (66.75). It all depends upon whether my investments can beat the 8% per year guaranteed (by SS) increase per year if I wait until age 70.
Thanks for the info. Your content is very good!
Bottom line is, the poor remains as super poor, and the rich remains as super rich!!!
I expect this recession to last for several years since it took well over a decade of foolish fiscal policies to get here. I'm almost 53 and I'm so glad this is happening now rather than right before I plan to retire. I expect to retire in about 9 years at 62 and that's plenty of time to rebound and reach new highs. Plus, I'll be adding to savings thru it all, taking advantage of discounted stock prices.
Nice
The 2008 recession didn’t last years, completely different scenario but even more foolish fiscal policies taping the system for a decade.
@@peterdallman4550 If memory serves me correctly, it took stocks (S&P500) a couple years to reach new highs after the 2007/2008 crash, so it was definitely long enough to ruin some people's plans. That said, this developing recession and recovery will likely take much longer to play out because the underlying causes are much deeper than just a housing/mortgage/financial industry crisis. There is a confluence of many problems coming to a head right now that will likely compound the severity of this one, but only time will tell...
It’ll take 2 years to get out of this mess but we’ll see crashes/corrections more frequently
@@peterdallman4550 Those weren't foolish fiscal policies, those were finely orchestrated and planned policies to pump and dump in order to steal billions from Americans (and worldwide). It's called a money transfer and they've been running this scheme for over 200 years.
Time to start my own TH-cam channel and make side income talking about finances.
I've been thinking about opening a dividend investment account for retirement, and I've set away $310k, but the present market volatility discourages me from doing so. Do you have any advice for me?
You could just followup on his recommendation some of them turn out good.
At this stage, I believe professional services and coaching from a broker or advisor are your best bets for staying ahead of the market.
@@darrrichardson3159 Investment coaching sounds appealing, but I’m unsure how to go about it. Have you used a coach? What was the experience like?
@@martinadangelo6663 Yes I am in touch with a broker and for the past 5months, I've been able to stay afloat the market crashes and I've watched my portfolio of $160,000 grow by over 40% these past few months.
@@darrrichardson3159 That's true, during the pandemic, I was able to scale through the insane stock decline by contacting a consultant.
If 60 year olds have a mean of $250K and an average of $90, its good news for the housing market entrants. Many older workers may have pensions, but still, it sounds like a lot of folks will need to sell their homes to support the 15-20 years following retirement. There's your extra inventory...if not your housing crash.
A great example of recency bias. At end June YTD performance was -16% (it is now -12%). At end June a client might have been saying "I can't afford to retire and will have to work another 2-3 years!", but only six months previous they would have been looking at past annual returns of 13%, 15% and 22% (and somehow had come to believe that was 'normal' and ignored the fact that the 10-year average annual return was 'only' 9%, and reversion to mean was a fact of life). Sigh.
My gosh! This is really terrible! I was self employed, never had an employer contribution! Paid in twice as much in Social Security! Managed to save twice the larger portfolio. I have been retired 10 years! And still have much more then these! Shocking!
I had 500k + in 2008. Then lost my job of 23 years due to the owebama economy. Then the wife divorced me and kept the house I paid for. Now at 63 I’m still working and praying.
Very informative I'd like to see a few more of these tutorials on the 401K plans
The government is focusing on how to punish people who scrimped and saved all their lives. It is being discussed on how to reduce social security payments to those who saved.......giving more to those who did no planning and spent every dime.
I retired last year and my Vanguard is down 12%. It was transferred into more conservative positions at that time. Just in time I guess.
I got out of the market 2/24/22. Listening for when I might get back in.
Trying to time the market can't be done. You need to invest according to how much risk you wish to take on. You already missed +10% in there last 30 days
@@valvodka I don't believe that, I think we haven't begun to see the bottom yet.
Everybody's missing the point and focusing on the short term. According s and p-500 calculator I just used the 10-year gain is 11.14%, I'll take that any day.
If you're investing short term you don't belong in the market, the stock market is a long-term investment and looking at one year periods or 6 month periods is useless
Unless the fundamentals are very different, as they are now with an incompetent government. Also some people (60+) can't take that long term "Oh, I just lost 20% in one month, no big deal" view. For me the majority of my investments are in residential and commercial real estate but I do have securities and a Vanguard 401K. Two months ago I moved the 401K funds into cash account within the 401K despite the inflation tax on cash.
@@trustedsource1273 we've been through this over and over again with the market. Fundamentals always change.
No matter what your age but especially 60 plus you should take no more stock market risk then you can handle.
I'm putting my money were my mouth is I got way more aggressive with this downturn in the market. Historically it's a good bet
How about s&p 500 return since 2000 of 6.3%?
@@jreisz2003 you get what the market gives. But very few people invested all their money in exactly the year 2000. And exactly why did you pick the exact date?
The stock market isn't just a long term investment. Lots of people can and do invest successfully short term. It really depends on what you're trying to do. I mean options trading exists and that's definitely not a long term transaction.
I will just mention that it is possible to set up a Simple IRA with an employer that doesn't offer a 401K plan if they agree to it. It's a very simple process and it functions very similar to a 401K plan. I lived a lot of years before I became aware of this type of account.
Yes I set this up for my business. It saves several thousand dollars a year in expenses that I could put towards an employer match for my guys. It’s as easy to set up as any ira and there’s almost zero reporting requirements. So much cheaper and easier.
Thank you for your thorough explanations.
My pleasure
20% down from the highs. See the returns over the last 12 months or 5 years. When the market shows a loss in the last 5 years, we in big big trouble.
I’m down about 15%, but that’s how the market works. I’m up many multiples of that over the past 10-13 years. I just retired, and I live off of my investment income as I’m too young to tap my retirement accounts or collect social security. I’m looking at this sell off as a gift. Have started adding here and there to really beaten down investments, and am planning on funding my HSA till I’m 65, as I’m still paying for private insurance (I always have as I was self employed) I put this ability to be flexible down to living below my means and thankfully having no debt 💸
If we learned anything from the last recession in 07 which was nearly a depression its that holding is the smart man's strategy as the market ALWAYS recovers. The average American is by definition average which is why the balances referenced in this video are abysmal. Continue to invest in up times and down and never panic that's what will make more than average.
Its took 26 years for the Market to recover after '29, and for the next 50 years grew at an annual rate of return of just 1.5%, and for the next 60 years grew at just 3% per year. It all depends on what time period one lives in. Total happenstance.
@@Wasteoftime10 Wow, I never knew it was that bad, for that long. Nobody knows the future of this market correction, so it could keep going down for the next several months, or maybe flatline for years before any recovery takes place.
@@Wasteoftime10 Your numbers are way off! Where the heck did you get them?? Lol....!!!
@@darlenepaul2918 Actually, "my numbers" are dead on,. These numbers reflect the Dow Jones Index, without Dividends reinvested.
Thank you sir, I always gain valuable information on your channel. This recession (can we call it a recession yet?) has the feel of a longer time period than maybe some of the previous downturns. Maybe they all feel like this when we're going through them, but I'm hopeful that things will turn around by 2024. In the meantime, I'm just going to keep my head down and keep plugging away. What else can we do?
Like your tie...hope your daughter gave that to you! Happy Father's Day. Your example numbers parallel my own. My 401 is down 17% year to date. My employer did switch from Fidelity to Voya a couple of years ago and have not been happy with the choice of funds or their performance at Voya.
My employer switched us to Voya and it sucks. They did give us each a tie.
Prior employer switched to Voya and their performance is horrific.
This was excellent information. It gave me a good understanding of where I am at the age of 66. Funny how I was thinking about this subject just the other day. Great timing. Thanks for the info.
My pleasure Walter
Is this based on Vanguard investors only ? I have a Vanguard IRA and 5 other fund companies IRA and a 401K. How could they know about peoples other investments ? These stats seem misleading to me. I love to compare where I am but always question the data behind the report.
Each time I left a company with a 401(k), I rolled them over into my IRA, so 401(k) balance doesn't mean much.
It's the same thing for practical purposes.
I just turned 60 and retired about 6 months ago, semi retired about 3 1/2 years ago, I'm typing this before I watch the video and curious to see where I fall against this average.
Get out of debt and pay off your mortgage, if you do this life is good.
Lot around 11% so far. Retired two months ago at 60 . Have 45% in 2 year treasuries and trickling 1 -2 % back into stocks as mkt drops. Gonna be an interesting next 5 years
Skip to 7:25. I'm 59. December 31, 2021 to May 1, 2023 my 403b was unchanged. Sixteen months. I am putting in 18% of my salary and my employer another 10%. Sixteen months. Unchanged. Yes, 2012 to 2021 was great. But I never figured my gains would be 0.00% for sixteen months.
I have a tiny inherited IRA but it came unexpectedly and it is not even part of my retirement plan.
I just watch it.
Down 20% since December.
Very glad it isn't part of my retirement plan.
Lol.
I hear you.
We save aggressively, though as a small business owner, some of our retirement investment options are being terminated by the government. For instance, backdoor IRA's have been incredibly helpful, though will be looking for other alternatives. Really don't understand how the 2017 tax bill helped small businesses or the middle class. They stopped allowing the mortgage deduction. Along with our quarterly business taxes, it puts a huge dent in how much we could invest for retirement. That's not even considering putting our two children through college. Oh, and healthcare costs. It's very expensive living in the US and Portugal is now an option.
I am retired. My stock portfolio is down ~20% but haven’t “lost” a dime. You don’t lose anything until you sell and realize a loss. For now it’s only paper loss. People that panic sale or jump off the roller coaster are the losers. Remember 2008 & 2020 and people panic selling vs those that rode it out ?? I keep about 3 years worth of needed income in cash ,bonds & ultra conservative funds for moments like this. Buy when everyone is selling; sell when everyone is buying. Panic selling is assuming the economy will never return .I’ll be a buyer very soon at these current adjusted values. These cycles have happened more than a couple of times.
Great comments. I was able to retire at age 60, with no debt and 3 years worth of cash. I found that I sleep better with enough cash to ride out these market pertubations.
@@johnfetter3252 I plan to retire at age 61 at the end of the year and will live on cash but wife is still working part time job. Will collect SS at 62 which just covers bills. Don't plan on touching IRA funds for 3 years.
@@keithwiebe1787 great plan
@@johnfetter3252 I totally agree. If you start young with just simple plan; time works in your favor. We did not hoard or go deprived; we just lived within our means.
@@herb7877 couldn't agree more. You can't miss what you never had. Live simply. Pay cash whenever you can.
Yea. Hit by a bus that rolled over me, put it in reverse and backed over me again. Down 20%. Ooooh man. :(
Need to update this!
Waited 7 1/2 minutes to get to the number? Plus some people have multiple 401k's, how did Vanguard account for that?
I have been in GIC since I retired at 56. I am now 61. I have only made 2.4 percent per year. No bragging here but it works well for me.
Thanks T
This is terrible. I cashed out of my 401K 30 years ago and handled my retirement funding on my own. Ended up with better results and I'm not even an investment guru. Stayed with only the most protected things like CDs and treasury instruments, knowing that the economy was going to tank as everyone retired at the same time.
Just be debt free and don’t live above your means, have your bills low, downsize and you will be alright
We paid cash in 2003 for a $500,000 house. Have never financed a car either. Can't get my wife to downsize though. lol
I am getting SS and a teacher pension. I also have a 403B but hate paying taxes on the withdrawals. Could I buy an electric vehicle with the money in the 403B and avoid paying tax on that money because of the $7,500 tax credit???
If this is even close to a reflection of a boomers total 401k amount, there is going to be a severe retirement crisis.
Median retirement savings are about $174,000 I believe. And this is after one of the longest bull markets in history. Yes people are going to have a hard time in retirement in general. Of course that has nothing to do with your individual choices
Yes, but these numbers don't reflect other 401k's individuals may have (many folks have multiple 401k's that they haven't combined from past employment), or IRA's, pensions, 457's, etc... So although there is a crisis, these numbers on their own make it look worse than it is.
I was shocked too!
I've heard people say that for years yet most retirees are doing ok. For most married people a paid off house and 2 social security checks are enough.
@@ariefraiser140 most? Really
The median income in retirement for a household over 75 years old is under $35,000 a year. I don't think you're correct in your statement
Great job on the video. Thanks.
Plus 9% inflation. Real loss 26% .
Maybe it's better to invest in real estate than the market..Rent is at its highest and the market not doing so well..
Great video with a lot of detailed info . My portfolio is down about 22%, but I’m around 10/12 years until retirement. Great opportunity to get some more holdings in my portfolio. Looking forward to the next group video since it is the age group I’m in. Thank you for your research.
I’m guessing there are many now sayin is today a good day to start buying the “DIP”?………
Even if it’s $1,000, start a ROTH this week!
It must age for 5 years before you can withdraw gains tax-free.
However, please clarify: When you are talking about a person's 401(k) balance, it is unclear whether or not this is the total of all 401(k) balances that a particular person holds, quite often across multiple 401(k) accounts (i.e. if the person had multiple employers at points in their career, with a separate 401(k) account at each employer). Thus even if the median individual 401(k) account is ~$89,000.00, that has to be multiplied by the average (or median) total number of 401(k) accounts, per individual. So, if the median 401(k) account holder has 2.3 401(k) accounts, x $89,000 per account, you will end up with a larger total 401(k) balance per individual, across all accounts. Obv. this doesn't take into account, other types of accounts such as IRAs or taxable brokerage accounts. There are quite a few people who apparently have significant assets in taxable brokerage accounts. In the next video where you discuss this sort of information, could you please try to clarify some of these (perhaps rather picky) issues? Thanks, much appreciated, GREAT channel!
Due to a divorce at 50 yo, and contribution limits on 401ks, I wound up with more after tax savings than 401k/IRA savings when I retired at 65 yo, 5 years ago. To enable retirement I had to take contractor jobs in Iraq and Afghanistan.
Thanks for the comment Don. Sounds like an interesting life.
I knew the market was going down and I was still a deer in headlights, frozen to do anything. But I finally pulled the plug when I lost 25%. now I have to figure out how to reinvest it.
Thank you sir wonderful channel
Thanks for the kind words Karry
My investments are conservative and dumping. I'm so panicked and not sleeping being 64yrs.old
Thank you Smidty, down about $200K this year :(
You are not alone. Hang in there.
Yikes, that's a bunch.
Yep. We are all in this together.
Those balances are very concerning, regardless of the losses incurred over the last six months. …especially given how well the stock market did from 2017-2020.
The median is the one that sticks out
@@HolySchmidt yes… the pre and post 2022 median balances are BOTH concerning. Very.
What most employees are not aware is that they can take an ‘in service distribution’ from their plan provider, roll it over into a IRA (non-taxable event) and have much better choices than the plan providers limited investment choices. Vanguard is a very aggressive plan provider. They discourage their plan participants to move their 401(k) once they retire. They convince the participants that they are making a big mistake. Most retirees fall for their lies.
Individual equities we own and manage ourselves are fairing much better than the mutual funds my wife and I have through employer 401k and 403b plans. Every stock we own pays a dividend and so far, no recent dividend cuts among our holdings, except for T, which was telegraphed well in advance. Just sitting tight. 3.5 years out from FRA.
Sounds good Cliff
I roll over all 401ks to IRAs when I switch jobs and most people do the same.
Boy, I’m lucky, I’m in Fidelity and are down 11.65%.
You may be in a different fund or are looking it up on a website that doesn’t update daily. Try your brokerage firm for a current quote. The screen shots in the video are from between June 13 and June 15
The average 401K balance means little unless you only look at accounts that have been active for lengths of time corresponding to age. The changing of jobs either leaves multiple 401k accounts or money rolled into IRA accounts. It would be nice to know the average age of the accounts. My guess is that the mean age is quite a bit higher than the median age of accounts as well. Better data might be from retirement calculators or sites like personal capital that have the accounts put together. But you are right that account balances have taken a hit this year and even balanced funds are down quite a bit due to falling bond prices.
Vanguard and fidelity have retirement tools. They help you determine your retirement goal. They do this by asking all your investments. So they take these into consideration
@@donh8833 I have used both Vanguard and Fidelity tools. We don't get statistics from them but even if we did, the people using the tools are mostly likely not representative of society.
OMG, I better get my spot under the good bridge now - How is anyone going to make it with 90K or even 250K in savings at age 60??? I know it does not take into account other assets, but how many "other" assets will they really have?
Thanks for the points
Exactly- and how many will be inclined to tap home equity, if they own a home.
At 60 you might have savings bonds, cash, or even a pension. Those are things we used to have access to 42 years ago.
Hopefully you can get a good Social Security benefits at 62 and move to a low cost of living country. It's not the end of the world
God has blessed us...we sold our home at "the top" and retired with our 401K "at the top".
Fort Wayne Indian area has the best rentals in 🇺🇸. I’m getting >$2K rent per $100K.
Big question is how much or what is an average Cestui Que Vie trust worth per individual? Recently I discovered a sliver of my own at Treasury Direct for $78.6M but I also know that Fidelity Investments holds thousands of mutual funds per account as well... I’m sure there are many other institutions that are in possession of bonds also. What’s your take on this now that the federal government lost the case against it thereby forcing them to reconcile all accounts.
Skip to 7:30 for any information.
So I'm 63 in March. 280k in down 8.6%. Not bad considering. But is the reason I'm only down 8.6 because I put continue to put in 1600/ month? How does this affect my losses? I'm I really down 13%m
We have four Rental Houses and a 401K between the two of us!
We are aggressive investors!
I think the Rental Houses will supply most of our Financial needs as we get to Retirement!
!
$89K? That's enough to buy a nice car these days.