401k Balance by Age

[Strike 3,957]

16 minutes ago, bandrus1 said:

In the formula above given by fidelity how is housing measured at those times?

 

I could be saving a lot more for retirement but I have a personal goal of home ownership outright by 45.. I put a significant amount at my principal every month because it is a personal goal even though I know it's not financially the right decision

My guess would be that they don't take home ownership in to account at all because your house can't pay your monthly bills.  Unless your retirement plans include selling your house or taking out a reverse mortgage the only thing that counts is money you have access to.

[bandrus1 413]

I see. 

 

I'm ok having less accessable money but also less monthly obligation

[Patriotsfatboy1 1,432]

20 minutes ago, bandrus1 said:

I see. 

 

I'm ok having less accessable money but also less monthly obligation

That is your liquid assets that they are talking about.  Retirement savings (like 401k) are not usually in those calculations.

Ideally, you will be saving for retirement AND managing your liquid assets.  As mentioned by others, the advantage for many in saving for 401k is that, in addition to the investment growth opportunity, you also have employer match.  That match (if available) is free money once you are vested in their plan.  So, if I get matching each year of say $3000 in my 401k from my employer, it is like I had $3,000 extra dollars that will grow in time.  While you will not have the debt for the home hanging over you, you do need to consider the implications of foregoing a 401k investment that has a match.  

[MLCKAA 395]

Wife and I have $296k in the 401k at ages 44 and 45 respectively.

 

however, we have only $35k in college savings right now with a 14 YO freshman and a 3rd grader.

mortgage is $148k against market value of $220k and $2600 in CC debt plus a car loan still at $14k.  2018 household income $182k.

[vuduchile 1,941]

12 minutes ago, Patriotsfatboy1 said:

That is your liquid assets that they are talking about.  Retirement savings (like 401k) are not usually in those calculations.

Ideally, you will be saving for retirement AND managing your liquid assets.  As mentioned by others, the advantage for many in saving for 401k is that, in addition to the investment growth opportunity, you also have employer match.  That match (if available) is free money once you are vested in their plan.  So, if I get matching each year of say $3000 in my 401k from my employer, it is like I had $3,000 extra dollars that will grow in time.  While you will not have the debt for the home hanging over you, you do need to consider the implications of foregoing a 401k investment that has a match.  

Yes. The company match is the key.  Many small companies have 401Ks but don’t match.  Others have nothing at all.  Anyone who has a match should be investing at least enough to get those matching funds  

My wife’s company didn’t match until a few years ago   

My company is small and I don’t offer any employee plans. 

I have to use traditional or Roth IRA’s for retirement savings  

 

 

[bandrus1 413]

23 minutes ago, Patriotsfatboy1 said:

That is your liquid assets that they are talking about.  Retirement savings (like 401k) are not usually in those calculations.

Ideally, you will be saving for retirement AND managing your liquid assets.  As mentioned by others, the advantage for many in saving for 401k is that, in addition to the investment growth opportunity, you also have employer match.  That match (if available) is free money once you are vested in their plan.  So, if I get matching each year of say $3000 in my 401k from my employer, it is like I had $3,000 extra dollars that will grow in time.  While you will not have the debt for the home hanging over you, you do need to consider the implications of foregoing a 401k investment that has a match.  

My match is definitely maxed. Never give up free money

[cbfalcon 824]

17 minutes ago, MLCKAA said:

Wife and I have $296k in the 401k at ages 44 and 45 respectively.

 

however, we have only $35k in college savings right now with a 14 YO freshman and a 3rd grader.

mortgage is $148k against market value of $220k and $2600 in CC debt plus a car loan still at $14k.  2018 household income $182k.

Shiit, you are fuccked.

[Patriotsfatboy1 1,432]

34 minutes ago, MLCKAA said:

Wife and I have $296k in the 401k at ages 44 and 45 respectively.

 

however, we have only $35k in college savings right now with a 14 YO freshman and a 3rd grader.

mortgage is $148k against market value of $220k and $2600 in CC debt plus a car loan still at $14k.  2018 household income $182k.

Might want to check on your spending.  See where that dough is going each month.  

[Bert 1,091]

5 hours ago, Patriotsfatboy1 said:

That is your liquid assets that they are talking about.  Retirement savings (like 401k) are not usually in those calculations.

Ideally, you will be saving for retirement AND managing your liquid assets.  As mentioned by others, the advantage for many in saving for 401k is that, in addition to the investment growth opportunity, you also have employer match.  That match (if available) is free money once you are vested in their plan.  So, if I get matching each year of say $3000 in my 401k from my employer, it is like I had $3,000 extra dollars that will grow in time.  While you will not have the debt for the home hanging over you, you do need to consider the implications of foregoing a 401k investment that has a match.  

  Our company matches dollar for dollar up to 6% of your salary.  The match and the tax benefit added to the return make it almost impossible to beat the market. 

[sderk 1,040]

8 hours ago, MLCKAA said:

Wife and I have $296k in the 401k at ages 44 and 45 respectively.

 

however, we have only $35k in college savings right now with a 14 YO freshman and a 3rd grader.

mortgage is $148k against market value of $220k and $2600 in CC debt plus a car loan still at $14k.  2018 household income $182k.

Beans and rice dude. First get rid of the CC debt, then the car. Pay that off in the next 6 months.  Put the college fund on hold. The kid can still go to college no matter the situation but it will only be worse if you are in debt. And even worse than that if he learns how to get into debt himself.

[mmmmm...beer 691]

3 hours ago, Bert said:

  Our company matches dollar for dollar up to 6% of your salary.  The match and the tax benefit added to the return make it almost impossible to beat the market. 

Ya we get matched 5%...  which my wife puts in to at least get the match.  I max so that and the match have us putting in a decent amount.  But retiring early will have us drawing before it really gets to be a big number.  So I think we'll really have to watch that.  Maybe get a retirement job and let it keep growing a bit before drawing down to much.

There's a retirement guy I read, says he recommends at least $750k in there prior to utilizing it as a source.

[Patriotsfatboy1 1,432]

3 minutes ago, sderk said:

Beans and rice dude. First get rid of the CC debt, then the car. Pay that off in the next 6 months.  Put the college fund on hold. The kid can still go to college no matter the situation but it will only be worse if you are in debt. And even worse than that if he learns how to get into debt himself.

You forgot to ask what the car rate was at.  Could be a 0% financing deal.  CC debt will be expensive, so pay that one off first.

Again, check the spending too.

[Strike 3,957]

Just now, Patriotsfatboy1 said:

You forgot to ask what the car rate was at.  Could be a 0% financing deal.  CC debt will be expensive, so pay that one off first.

Again, check the spending too.

And buy lots of lottery tickets.  That's the real key to a comfortable retirement.

[sderk 1,040]

6 hours ago, Patriotsfatboy1 said:

You forgot to ask what the car rate was at.  Could be a 0% financing deal.  CC debt will be expensive, so pay that one off first.

Again, check the spending too.

My point is, owe no one anything. It's liberating.

[Patriotsfatboy1 1,432]

5 hours ago, sderk said:

My point is, owe no one anything. It's liberating.

Debt and I have a good relationship. I don’t have too much.