401k Balance by Age

[mmmmm...beer 691]

https://www.tampabay.com/business/the-average-401k-balance-by-age-20190204/?template=amp

 

Wow... those averages have most working until they die.

[Patriotsfatboy1 1,432]

Ouch.  I am glad I am a saver. 

[Strike 3,968]

Bunch of idiots who think if they can't have it all now they can't have it ever.  Needs to be more of a focus on personal finance and basic investing in school to show what compounding can do with very modest ongoing contributions.

[Cruzer 1,992]

Most of this board is out of touch with reality. Generations no longer do better than their parents, most don't have cushy 401ks and hardly any live debt free. This board is the exception, not the rule....... Most will be working until they die, or if not - barely hanging on.

[bandrus1 413]

2 minutes ago, Cruzer said:

Most of this board is out of touch with reality. Generations no longer do better than their parents, most don't have cushy 401ks and hardly any live debt free. This board is the exception, not the rule....... Most will be working until they die, or if not - barely hanging on.

Combine that with showing what taking on massive student debt does

[Patriotsfatboy1 1,432]

2 minutes ago, Cruzer said:

Most of this board is out of touch with reality. Generations no longer do better than their parents, most don't have cushy 401ks and hardly any live debt free. This board is the exception, not the rule....... Most will be working until they die, or if not - barely hanging on.

I would agree with that, but I also think that many people are going to be working a lot later than they thought.  I know that I am feeling decent about my 401k, but I am not expecting to retire before say 70 or so.

[TD Ryan2 314]

The problem with 401k's... there are two outcomes:

1. Most people do save enough and 1.5 million dollars just isn't worth what you thought it would be b/c/ everyone has that laying around.

2. Most people don't save enough and with 1.5 million dollars, those who saved are considered "rich" and the tax/income laws are changed to take a much larger portion of that savings for the betterment of society.

 

 

[Patriotsfatboy1 1,432]

8 minutes ago, TD Ryan2 said:

The problem with 401k's... there are two outcomes:

1. Most people do save enough and 1.5 million dollars just isn't worth what you thought it would be b/c/ everyone has that laying around.

2. Most people don't save enough and with 1.5 million dollars, those who saved are considered "rich" and the tax/income laws are changed to take a much larger portion of that savings for the betterment of society.

 

 

That is why you have some money that is tax-deferred (like a 401k) and some that are tax-exempt (Roth).  Of course, I did not get enough dough into my Roth to make it worthwhile, so I will just keep working. 

[Filthy Fernadez 2,696]

YOLO is how this generation lives.

I have to preach to people to contribute at a minimum what your 401k matches. It's like I'm speaking Japanese.

[Cruzer 1,992]

22 minutes ago, bandrus1 said:

Combine that with showing what taking on massive student debt does

Not to mention the spiraling costs of medical insurance and prescription drugs...... More and more are not only carrying CC debt, they are living off their CCs. And in turn, more and more are refinancing their mortgages just to stay afloat........ An avalanche of seniors are never going to know what it's like to be out of the hole. They will be paying off medical bills and mortgages until they die.

[Patriotsfatboy1 1,432]

Just now, Filthy Fernadez said:

YOLO is how this generation lives.

I have to preach to people to contribute at a minimum what your 401k matches. It's like I'm speaking Japanese.

I am probably too much the other way.  We have always saved.  Didn't do a ton of vacations and maybe we didn't enjoy as much as we could have.  You can't take it all with you, so you might want to spend some.  I can now put in extra (catch up) dollars into my 401k and I am not going to do it.  I have some college to pay for and I am going to take some vacations while I can still enjoy them.  Nothing crazy, but there is some balance that can be achieved.  

[supermike80 1,285]

I was never a great saver....just never learned how to put a buck away here and there.  However, I started contributing to my work's 401K at my very first after college job and never touched it, and always put money in.  For that I'm grateful.   I feel very confident that my 401K can sustain my desired lifestyle well into my 80's.

 

 

[Drizzay 645]

I completely started over with my 401k balance at 34.  

[Filthy Fernadez 2,696]

3 minutes ago, Drizzay said:

I completely started over with my 401k balance at 34.  

You only have $34 in your 401k?!    Slacker........

[edjr 5,564]

This seems like a typical FFT thing to be 'honest' about.

My 401k is at 3 million 

[Filthy Fernadez 2,696]

Just now, edjr said:

This seems like a typical FFT thing to be 'honest' about.

My 401k is at 3 million 

Who needs a 401k when we all have 23" peemus to stud out?

[bandrus1 413]

22 minutes ago, Filthy Fernadez said:

 

Scary thing is these numbers only reflect those with an account

[patweisers44 697]

4 minutes ago, edjr said:

This seems like a typical FFT thing to be 'honest' about.

My 401k is at 3 million 

Nice Job Ed.  Still working on my second. 

[supermike80 1,285]

I should add...Never got divorced....yet....I have a buddy same age that just got divorced after 15 years....Half his 401k gone  POOF

[edjr 5,564]

33 minutes ago, patweisers44 said:

Nice Job Ed.  Still working on my second. 

It's good to diversify 401k accounts

[Patriotsfatboy1 1,432]

The key is matching plus putting your money away.  By my calculations, if you maxed out your individual 401k contributions between 1990-2018, you would have put away $381,656.  With a reasonable rate of return and some matching in there, then you get to $1m.  Otherwise, it is tough to catch up.  

[Gladiators 1,904]

1 hour ago, edjr said:

This seems like a typical FFT thing to be 'honest' about.

My 401k is at 3 million 

Sponsor a GC meet in Vegas?

[Hardcore troubadour 12,636]

23 minutes ago, Patriotsfatboy1 said:

The key is matching plus putting your money away.  By my calculations, if you maxed out your individual 401k contributions between 1990-2018, you would have put away $381,656.  With a reasonable rate of return and some matching in there, then you get to $1m.  Otherwise, it is tough to catch up.  

That would require putting away about 21k a year. You couldn't put that much in for most of that time. 

[Gladiators 1,904]

2 minutes ago, Hardcore troubadour said:

That would require putting away about 21k a year. You couldn't put that much in for most of that time. 

You missed 10 years in your calc.

[LOD01 190]

2 hours ago, mmmmm...beer said:

https://www.tampabay.com/business/the-average-401k-balance-by-age-20190204/?template=amp

 

Wow... those averages have most working until they die.

I've said this for well over 2 decades now. Most will work until they die or live like hermits. The 401k is fiction for the majority of workers. I jumped at the govt job with a defined pension and also contribute to a 457B and I actively manage my that. I have beat the markets the majority of years. 8 more year minimum and 10 max and I am done with this . My new job will be sitting on the couch watching CNBC and moving my $ around.

[Hardcore troubadour 12,636]

13 minutes ago, Gladiators said:

You missed 10 years in your calc.

Yes I did. Damn kids

[Strike 3,968]

2 hours ago, Patriotsfatboy1 said:

That is why you have some money that is tax-deferred (like a 401k) and some that are tax-exempt (Roth).  Of course, I did not get enough dough into my Roth to make it worthwhile, so I will just keep working. 

Have you looked in to a backdoor Roth?

[Cdub100 3,380]

3 hours ago, Filthy Fernadez said:

YOLO is how this generation lives.

I have to preach to people to contribute at a minimum what your 401k matches. It's like I'm speaking Japanese.

Yup 900 smart phones 1500 TV's 100k worthless liberal arts degrees.

[mmmmm...beer 691]

So yeah... those numbers look ghastly... but if you look at what fedelity recommends.  I'm focked...

I'd have to have over 600k by 45?  If it's just 401k... nope... not even close.

Though... lets be honest... these fockers that recommend these redic amounts also follow it up with, "but hey lets get you started down that right road by having you buy our services".

[Reality 2,710]

There's the look at me, I knew it was coming..

[bandrus1 413]

28 minutes ago, Cdub100 said:

Yup 900 smart phones 1500 TV's 100k worthless liberal arts degrees.

Don't know what soap box you are looking down on younger people from... Those numbers for people in 40-60 are awful

[Patriotsfatboy1 1,432]

2 hours ago, Strike said:

Have you looked in to a backdoor Roth?

Yes, fine for setting up the Roth, but you can’t make any contributions once your income is at a certain level. 

[mmmmm...beer 691]

10 minutes ago, Patriotsfatboy1 said:

Yes, fine for setting up the Roth, but you can’t make any contributions once your income is at a certain level. 

Look into conversion... thats what the backdoor is for... conversion over time.

[Patriotsfatboy1 1,432]

7 minutes ago, mmmmm...beer said:

Look into conversion... thats what the backdoor is for... conversion over time.

I am not sure I want to convert as there are tax implications. I just wanted to put some post tax funds in my existing Roth. I was told I couldn’t. 

[Brad GLuckman 518]

58 minutes ago, Reality said:

There's the look at me, I knew it was coming..

Usual suspect

[mmmmm...beer 691]

16 minutes ago, Patriotsfatboy1 said:

I am not sure I want to convert as there are tax implications. I just wanted to put some post tax funds in my existing Roth. I was told I couldn’t. 

There are tax implications.. but only on the specific amount you convert fro tradish to roth.  Pay now... save later.

[Patriotsfatboy1 1,432]

12 minutes ago, mmmmm...beer said:

There are tax implications.. but only on the specific amount you convert fro tradish to roth.  Pay now... save later.

You are assuming that my tax rate today is less than what it would be at distribution. I don’t know if that is true.

[Cdub100 3,380]

1 hour ago, bandrus1 said:

Don't know what soap box you are looking down on younger people from... Those numbers for people in 40-60 are awful

Those idiots are even worse.

[mmmmm...beer 691]

36 minutes ago, Patriotsfatboy1 said:

You are assuming that my tax rate today is less than what it would be at distribution. I don’t know if that is true.

True... but how nice would 10-15 years of growth be?  Oh hey... I have 200-300k i can pull tax free anytime I want.

[bandrus1 413]

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