How Much You Should Have In Your 401(k) - By Age
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- เผยแพร่เมื่อ 7 มี.ค. 2024
- On this episode of The Table with Anthony ONeal, we share the critical importance of early investment, showcasing how even modest contributions can yield substantial rewards over time. AO navigates the intricate landscape of investment options, and explaining the differences between retirement accounts encouraging you to take control of your financial destiny!
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Stop chasing stuff! Get off that grind. Do what's best for you and yours!
I just turned 50, making $69k a year. No consumer debts, house will be payoff next month. Current contributing 15% into 401k. Total retirement account is about $354k. Hope I can retire comfortably at 67. 😬
You're doing great, compound interest over 17 years is extremely powerful
That's impressive Sir, keep up the good work!
There's no hope. There's just math. You have to do the math. I'd argue that you'd need to go higher than 15
According to a basic compound interest calculator, assuming a 7.8% APY (historic s&p 500 rate) and consistent deposits each month you'll have
Just over 1.7 million dollars when you reach retirement
According to Ramsey you can withdraw around 139,000 a year inflation adjusted in perpetuity without lowering your principal
According to everyone else in the finance world you can withdraw just under 70k a year inflation adjusted and maintain it in perpetuity. Do you think you can live on your current income in retirement?
Personally I think you'll do just dandy
@@alexpietsch7997 Thank you so much!
I’m 41 with $400k in my 401k.. hoping to retire early and enjoy life!!!
god bless enjoy it
Can you describe how did you achieved that amount of money??? Did you sell a property and put the money in a 401k account or since age 18 are you putting 15% of your salary??? Or other
@@edgardzayas8421 I’ve worked at my company since I was 21 (41 now).. averaged around 10-15% the whole time, except 20% for catch up after withdrawing some money for a house down payment (I know, not the best decision). And I don’t even make a crazy amount either. It really is slow and steady. Set it and forget it basically.
Put 150k in Fidelity growth stocks… 401k option if you can choose your own stocks.
Noice!
I'm 32 with $131,000 in retirement accounts and I only have $26,000 in debt left but should have it paid off in 6 months. Can't wait until I'm 100% debt free so I can start maxing out all my retirement accounts!
Sell from retirement accounts to pay debts
@@ryanthepianoman27 he'll no. You pay taxes plus 10% fee plus what ever gains you miss.
Vs the 20% interest rate and that's high.
If he had crazy debt yea
2024 - This channel has really changed my mindset.
Thank you for this wake up call
Assumption made that older people are working because they need the money. Sometimes theyre working because they feel more alive, needed, and relevant
True but work a perpuse doesn't need to be paid if you're set up
I'm 40 and I'm learning so much from you anthony ❤
At 39 I WISH someone talked about this in his digestible way. I had to start over after my marriage ended when I was 34 but I'm getting there slowly but surely.
👏🏽👏🏽👏🏽
Seniors go back to working not only for money but sometimes to have something to do that keep them active; and not have them sit at home and expire faster. Money is never too much.
The point is have to work I've met people like that they either work in the community for free or low pay. But you gotta be able to afford it.
Miss you from the Ramsey show. I messed up but geting back on track. 6k debt 70k retirement
Love Ramsey!
Why not take 6k from retirement and payoff your debt.
@@juliaMjesusgirlIf it's in a retiremenr account. The age to start withdrawing is 59 1/2. Anything before that you will be pentalized and have to pay taxes. In addition to that, you have to a have a reason to qualify. So, there is paperwork.
@@juliaMjesusgirlwould you take a personal loan at 40% to consolidate your debts?
This is such good information and a great reminder to stop stealing from our tomorrow (when we’ll need it more), to enjoy more today.
Great call on the estate planning. Life Insurance is important especially if you have a family.
I’m so interested in this episode! My husband is 29 and I am 25 and we have $170,000 as of this morning. No college degrees!
Yall are doing amazing
That’s Awesomeness keep going
God bless y'all 🙏💪❤️👍
I need to get you both on the show!!! Go to anthonyoneal.com/build
That's beautiful
This is GREAT information and very critical for the welfare and legacy of any family. Thank you for this episode.
Thanks for your wisdom.
Good morning Men and Women of God
AO the age is 59.5 with no penalties. Age 67 only applies to social security
Totally agree! I forgot to mention you can pull from your 401k, etc at 59.5
@@anthonyonealThere’s also the Rule of 55 that people can leverage if they leave their employer at or after age 55. This allows penalty-free withdrawals from the 401k sponsored by your last employer if you leave after age 55.
I don’t like when experts say you should save 80% of your salary by the time you retire. That rule assumes you are living the full extent on your salary and not well beneath your means. I’m 30 years old and make about 250k per year. But I live more of a 100k lifestyle. I’m maxing out retirement accounts and saving about 50k per year in cash. Depending on how bad inflation looks when I’m 60 I do not need 80% of 250k per year when I retire, which is 200k. I am literally working my tail off right now and saving like crazy so that when I do retire (hopefully early) I can just coast with an average life.
I applaud ppl who have 💰💰💰in retirement accounts, just keep investing, all 💰💰will make you comfortable👍🏿
Great call on the HSA and company match.
2:40 sometimes they just want to keep working and only do that so they can stay relevant. Most are probably already retired from their careers.
It’s great seeing Anthony carry the Ramsey philosophy on into the future. Great stuff man!
FYI, the 10X your salary is based on you needing 80% of your pre-retirement income AND Social Security benefits covering 40% of your pre-retirement income. As a result your investments will need to cover 40-45% of your income needs in retirement, so basically 4.0-4.5%
5:31 faithful to my family ONLY if they following my plan. If they out of pocket, they don't benefit from my planning.
Preach it brother Anthony your so right
Good stuff. Early investment into retirement accounts is very important. But don’t forget to invest in yourself! Learn a trade, become a professional, get ahead, and supercharge your ability to invest.
i just wanna say i am so happy to see what you have done, love the channel! and thanks for keeping it a buck 💯
Great Episode!!!!🔥🔥🔥🔥🔥❤️🙏🏾🔥🔥🔥🔥🔥
Nice video but some issues. First, you will not be trying to take the same amount per month that you made. Why? You will not be paying into Social Security or FICA anymore, on a $50,000 income that would be about $8500. You never saw that money while working so you cannot count it on how much you need. That pulls what you need down to $42500. If you get $2500 a month from Social Security, that adds up to $30,000 a year just from Social Security. In that case you need $12500 from your 401k to have equal income. Take standard deduction away, if single, $14,600, that leaves taxable income of $27900. With that income only 50% of your Social Security is taxable. That’s only $15000, not taxable. That leaves you with only $12500 dollars taxable, leaving you in the 10% tax bracket, with total tax of $1250 on the federal side, state will be less (or none in many states) so lets say total tax is $2000 federal and state all in. So out of your $42500 only $2000 is taken as tax (likely less), leaving you with $40500 take home. Probably still more than you were taking home per month with a $50,000 job. I big time recommend investing as much as you can into the 401K as early as possible. Your growth is largest the longer you have money in the 401K. I recommend taking an active role in controlling your investments.
My personal recommendation (not to be taken as investment advice) is that I like to keep all my investments in index funds for the S&P 500 and I keep updating a Stop Loss order going to drop me out of those investments if they drop below 5% of the all time high for that fund. For instance, if the index fund is currently priced at say $98, had an all time high of $100, I will purchase into it and create a stop loss order at $95 so that if the value drops to below 5% of the fund high, indicating the index is dropping, I will get out of the investment and hold cash until that fund returns to within 5% of the all time high and then get back in. Check a minimum of monthly, I prefer weekly, and update the stop loss to 95% of the new high as the fund goes up. So, if the all time high goes to $110 per share, the new stop loss exit point is $104.50. This way you can keep getting the fund increases as the market goes up but you automatically jump out if the market suddenly corrects. the over all affect is to reduce your exposure to large swings and is especially important after retiring to reduce possible sequence of return issues.
Good luck to everyone out there. I wish you all the best…
Thx ant, man I felt like you was all in my wallet / account info.
Anthony’s math is a little optimistic. 10% a year return on one’s investment portfolio is not guaranteed. It’s not even likely. There may be many years of lower than anticipated returns. Taking out 10% a year every year, when you are not necessarily earning a 10% return every year could deplete your principal quickly.
This is great but it would be better if we could see the math worked out on paper for visual learners that can fully comprehend the numbers fast enough as you say them.
Eye opener 😳 im so far behind! In my 60’s, no debt, renting, got 400k in 401, scared to retire
Looks like you are in good shape as long as your rent costs don't soar.
This is great advice in a life before retirement w/ low to no financial curveballs. The avg retirement savings at retirement is $200k or less because life happens vs ppl being irresponsible or unconscious spending.
My husband and I are both 28 with 65k in retirement between the two of us. No debt besides the mortgage, we pushed really hard before our daughter was born to pay off my student loans and always bought cars in cash. I want to quit my job to stay home with our kids before I'm 29. ❤
I have a 3 tier retirement. Govt worker. How does the pension come into play?
I have a question, what do you think should I get 401k through my company even when there is no match at all? Or should I just get a Roth IRA outside of my company like through a brokerage?
Great show today
What if you have a defined pension plan? How much should you save in your 401k when you have a defined pension plan that will pay you for life when you retire. My pension will pay me 70% of my paycheck at 55.
Bro... where did you get that shirt? It's 🔥
Thanks for spreading this wisdom sir.
Aye that lineup 🔥🔥😭
Good morning
I have 10k in my 401k and started last year. Hoping to be debt free by june so the following year i can contribute the max 23k to 401k and have a 1 year emergency fund.
Get your 401k match then prioritize maxing out a ROTH IRA before finishing maxing your 401k
@@Yugiboiican you explain why?
@@MT-yx5cu Roth is money that's been taxed already
@@MT-yx5cu ROTH IRA has a few advantages over the 401k and ROTH 401ks.
1. With 401k you are at the mercy of your employer's plan, if they have a plan with very few options then you are stuck with those. With ROTH IRA you get to choose your custodial (Fidelity, Vanguard, Charles Schwarb) basically you have more control over it.
2. ROTH IRA provides an "emergency break glass" way to pull out your contribution ONLY (not interest) penalty free. 401ks don't have that. Make sure you have an emergency fund (3-6 months) because you do not want to ever use this.
3. ROTH IRA don't require minimum required distribution (RMD) when you reach a certain age. 401k do require you to start taking that out at 73. Just recently RMD no longer applies to ROTH 401k but in the past it was subjected to it.
4. The contribution limit to a ROTH IRA is much lower than 401k. There's a reason why the government restrict who can "directly" contribute to this account. Its too good lol
Everyone should listen to this
What is your number? The last time I was asked that was in an entrepreneurship class, what is my success number for my business or endeavor? And how is it structured? I needed this breakdown in your video today for my personal life. You and your work is appreciated.
Im 27 and walking away from a house sale with my debts paid off and 10k cash in hand.
Currently renting 1 hour closer to work.
Our investments are a joke at 3200 in a rollover IRA. But at least I'm out of a four year hole.
AO I love your content. It's great and I really love what you're doing for our people, but I'm gonna tell you right now that many of our people are just gonna be poor. Their going to be poor seventies , eighties, and then even in their sixties because they love it. So many love staying on that hamster wheel chase the almighty dollar attached with 🎣 .
I skipped through the video looking for the information in the title but couldn't find it.😅
I agree retirement is based on the lifestyle we wish to have…so young people put as much as you can in your retirement accounts now and older people 35 and up maximize your savings and investments. Everyone spend less then you make so the goal is to live like no other in retirement.
What about the baby steps baby steps b4 investments right
I agree we all need to invest, but my thoughts about what experts are saying that Americans need $80,000 a year to live comfortably in retirement. Due to inflation we must fund our retirement enough now to meet the needed expense of $80,000 a year in retirement. So yes, $80,000 is not enough to maintain retirement so maximize your retirement accounts by fully funding it now.
Gotta be careful and balance accordingly l. You have to live well while you’re young. The thing about being 67 with lots of retirement is that you’re still 67. Having a cushy life then is not worth extreme deprivation while young.
Don’t agree- even with Medicare, one could run into expensive healthcare costs
@@ingridknighton3545 your disagreement doesn’t even fit my comment.
@@livennlearn I understood ur comment clearly, but I don’t justify…. You staying having a cushy life at 67 isn’t worth depriving oneself of living well & enjoying life… but I beg to differ…. Hence why we have do many ignorant people in their mid 60’s with nothing saved or not even enough to support them (even with social security). You stick to ur opinion & I will stick to mine…..we have many ignorant people out there living the life & not preparing for their later years.
This is a free forum last time I checked!!
Today's Scripture: Matthew 25:21
Today's Affirmation: "I am a good and faithful steward of the resources entrusted to me. I invest wisely and diligently knowing that through my faithfulness in the small things, I will be entrusted with greater responsibilities. I am preparing for my future with wisdom and courage. I am confident in the abundance that awaits me through diligence, stewardship, and faith."
Thank You!
@@jellybean1732 you're certainly welcome!
I don’t have kids and not married, I’m not sure who I should list as my beneficiaries?
What if you have your own business? Rebuilding my life and I have to start over. Just curious at 42 what accounts should I invest in?
Business owner here: open a SEP-IRA. You can put in 25% of all earned profits in it each year, up to $65k a year or so....
I love this!
$100,000 * 20(expect years to live after retiring) is about 2 million. Assuming inflation is about 2-3%
Sir, who/where is 10% stock market returns? Also, r we not including SSN?
What if you don't work for a company that offers 401k. They only off 403B with no match..what to I go to grow my money
403b is the same thing as a 401k, just what is used by non-profits typically. If no match, complain to your HR dept for sure but still invest for the tax benefits.
44 and have 450k. And I did some stupid stuff back in my 20’s. On two different occasions, I took out 10k 401k loans. I wish I never did that.
Help...debt free single i have no savings ...every one does not make 59000 a year pl..started saving give me some directions. Ty
You can disagree with the 80% rule, but that’s based on years of research on retirement trends, SS and pension payments. Most people will have lower expenses in retirement, so 80% is a realistic annual income replacement. Again, most people won’t even have that much. We have to be realistic about habits and trends.
Totally agree! I am not settling for 80% I want 100% and if i do it correct then we will be good.
Also realistic about SS too. Will it be there? If so what will that look like?
@@anthonyoneal I'm not even settling for 100%, I'm trying to get a pay raise when I retire lol
@@anthonyonealthat may be realistic for you and those within your tax bracket but not for the typical American, especially African American. Maybe you should tailor your advice by tax bracket/salary in order to give everyone a realistic approach to retiring well.
What if your spouse is not working? Should it be double then?
I get a 5% match but I get it twice so essentially 10% match.
The problem with this is that you’re not making that 10% every single year. Some years you’re up 20% 30% some years you’re down 20% 30%. During those down years, you’re actually taking more than what you take out because you’re going against compound interest you already made.
I need to start my 401k they do match 4% but I need to get ride of my loans 1st
Please don't get rid of loan first. start investing now! There will always be something in the way. start now
I'd recommend at least getting the match first before paying off your loans, its 100% free money
@@aishawilson7649 REALLY!!?? I have been at my job 5yrs and delayed 😢 I could have been put in 401k
Please start contributing to 401K don't wait Also that contribution will lower your taxable income so your take home wont be deeply impacted. You will adjust spending accordingly.
The correct answer is to put zero dollars into your 401K and look for an investment that accounts for all the purchasing power that you're giving away.
💯
Hello from honolulu
Hey! Thanks for watching.
I love love love, this guy laughter is like medicine and hearing him make me smile but at the same time he's so real and blessed in his knowledge and experience he has also given me the opportunity to nake a chance in my life fir the better
Sorry but this is bad advice. You need to speak about sequence of returns risk when you advocate a 10% annual withdrawal rate. Not accounting for down years in the market can destroy someone’s portfolio if they are no longer earning outside income. The 4% rule is a much more responsible model, and following it means a person needs a 3M portfolio for 10k a month, not 1.2M.
Shame on you if you’re touting a company that sells whole life insurance as well. Please speak to your viewers on the difference between term and whole life. One is good, the other is a scam.
Which is a scam?!
Whole life
You mean 18k including company match?
Bro fresh out the barbers chair 🫡
👀 where's Michelle?
FINANCES WERE NOT TAUGHT IN SCHOOL and PEOPLE OF COLOR WERE NOT NOT TAUGHT ABOUT MONEY!!!
I used majority of my 401k to pay for my child college so they would not go in debt.
Not smart.
Not a smart idea at all. Please join the E3 community.
Terrible move. Hopefully you have enough or else he will be taking care of you in your golden years.
Big mistake, there are no loans for retirement. Your kids can at least work while going to school to pay down tuition or go for scholarships/financial aid
FIAT MONEY!!!!!!!!!! HAS NO VALUE!!!!!!!