💰Average 401k Balances by Age: Are You Behind?🚨

[@PetShmidt]

It is crucial to save at least 20% of your income in a 401k or SIPP if you have one. You should estimate how much should be saved based on your age and earnings. Saving that can ensure that you have sufficient funds to retire well. You can take advantage of compound interest and potentially grow your retirement savings over time.

[@leonardblavatnik2690]

Effective personal finance management is more important than the amount of money saved,regardless of whether income is earned through job or investment. Individuals can seek counsel from a certified financial advisor to optimize positive financial outcome.

[@IanKemp-k4n]

This is precisely why I like having a Financial Advisor guide my day-to-day market decisions; with their extensive knowledge of the market dynamics in play, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns. I’ve been utilizing a financial strategist for over a year now and my portfolio has made a killing.

[@RitaMeyers-oc4le]

Impressive!! How can I contact this Advisor? My portfolio has really underperformed, and I need professional guidance.

[@IanKemp-k4n]

*Joseph Nick Cahill* is his name. He is regarded as a genius in his area. He is quite known in his field, look - him up.

[@RitaMeyers-oc4le]

Thank you for this Tip. It was easy to find your coach. Did my due diligence on him before scheduling a phone call. He seems very proficient, extremely professional and reliable.

[@martyi398]

Great Info, the top 3 retirement savings killer's in my opinion are 1. Excessive mortgage payments buying more house than necessary. 2. Purchasing/Leasing new cars frequently (especially upper trim level models) 3. Eating out frequently and or grocery shopping with no budget in mind (wasting food) and Bonus #4 not signing up for 401K plan/Roth IRA till later in life!

[@Orecatmeatprocessors]

And the #1 retirement killer is a wife that spends every penny she can get a hold of, but thankfully runs off with some other poor sucker! Thank God and Grayhound......

[@mucusofwanderhome6945]

@@Orecatmeatprocessors LOL so true. 😂The new vehicle churn is a killer, as well as, renting housing. Eliminate those and one’s networth has the potential to compound excessively .

[@florianmadison]

I am retiring next yr at 55 with 3 houses paid off worth 4.5 million. One is my place of residence the other 2 properties will give me $80,000per/yr rent. I will have an income stream of $20,000 per yr through my super which gives me total $100,000 a yr to live comfortably. I have no debts ... Stay Motivated!!

[@ibrahimaisaadan]

You have done great for yourself. I understand the fact that tomorrow isn't promised to anyone, but investing today is a hard thing to do. I would be happy if you could advise me based on how you went about yours.

[@dietmdew845]

sell it all, invest 4.5 million in berkshire hathaway stock and live on 400k a year in dividends.

[@mikes-wv3em]

not worth being a landlord. pick a house, sell the rest. enjoy life!

[@JonathanHart-t5m]

Gov " by 2030 you will own nothing and be happy "

[@GregoryVincent-d9u]

You have done amazingly well!

[@xlerb2286]

by the end of my 20's my 401k balance was zero, by the end of my 30's my balance was around $35K (in year 2000 dollars) Largely because I didn't work for places that offered any retirement savings plans and I was young and dumb. By the end of my 40's it had gone up considerable as I was at a place, that for all its faults, offered generous 401k matching and paid well and I'd wised up a somewhat. That trend continued in my 50's. I just turned 60 a bit ago and I'm a a bit ahead of that 10x my yearly salary benchmark and have been debt free for years. An earlier start would have made it easier. But if you're getting a late start like I did don't get discouraged. It takes a little more effort but you can do it.

[@Good-Enuff-Garage]

great real world feedback, thank you so much

[@truemore75]

That is a great point. Just because you wait doesn't mean you can't do it just takes a bit of harder work. I always tell the young people just do 15% from day one and don't change. Since you never had the money you don't miss it. And since it is a percentage as you get raises it naturally raises too.

[@1515cando]

Isn't the benchmark at 60 supposed to 8 x your salary? 10 x was when you're 65.

[@abubbleoff1742]

Am 68 and debt free. Didnt have a 401k until I was 45 at my company I worked for. Not rich by no means but enjoying life and still busy working pick and choose odd jobs. Love your channel. One thing I also learned along the way. Live rich dont die rich!

[@FrederickBlein]

At the very least, I now grasp the concept of leverage. Creating wealth and financial freedom isn't as tough as many people believe. Building wealth and remaining financially stable indefinitely is a lot easier with the appropriate information. Participating in financial programs and products is the only true approach to make a high income and remain affluent indefinitely.

[@GeorgiaMoore.]

Most people simply enter the foreign exchange market without comprehending matters like this. The first stage in building money is determining your goals and risk tolerance, which you may do on your own or with the assistance of a financial counselor who works with a verified Finance agency. And also you can learn the facts about saving and investing and create a clear plan, you should be able to acquire financial security over time and enjoy the benefits of income management.

[@genavazquez2943]

Yeah, that guy is one asset manager that gives the breakdown of everything on how things are done, joining an effective financial community can be 100% beneficial when joined properly that's all I can say out of experience

[@raymanmorrison3994]

Thank you so much for the advice. Your coach was simple to discover online. I did my research on him before I scheduled our phone call. He appears knowledgeable based on his online resume.

[@Stella34065]

I curiously made a research of his full names after reading what you shared, I came across his webpage on-line. My portfolio suffered a big hit, holding it further won't be any good. I've heard of people netting hundreds of thousands this red season I'm really glad to see this...

[@Hermanjackson89]

Exactly why i enjoy market decisions being guided by a professional, seeing that their entire skillset is built around going long and short at the same time both employing risk management and market experience, been using the expertise and guidance of John Desmond Heppolette, for over 5years+ and I've netted over $3million in that time frame..

[@dwoodygura]

My kids are both young adults 30 and 32. Both college educated with good career forecast. One of my children is married and one is single. Being single is a real detriment to being able to save. Not having another person to share expenses with, especially housing, makes everything harder.

[@dorissteve912]

Retirement is wonderful if you have two essentials - much to live on and much to live for. Invest wisely and get good returns.

[@yuikiyoshi1248]

thank you, can you give a pointer the best investment now ? i am thinking of getting stocks or cryto

[@dorissteve912]

The key to making money in stocks is not to get scared out of them. An important key to investing is to remember that stocks are not lottery tickets. get a financial assistant

[@dorissteve912]

I currently work with KATRINA VANRENSUM a financial expert i met in a seminar

[@dorissteve912]

I have been able to make maximum profits off my trade with $40,000 and I have amassed about $190,000 in net profit In 4 weeks

[@dorissteve912]

search her name on web to reach her through her website

[@stevegorkowski3246]

They make money having you save money and naturally they are on the high end. I live on 15k a year much less than SS check. I also have 401k money. Many things in life can be done for little or no money. As Americans we know how to waste money.

[@jillanglemyer3168]

Is that with some other government aid? That amount seems impossible.

[@stevegorkowski3246]

@@jillanglemyer3168 No government aid. Many retired Americans live on this amount of money and have very little savings. I have been fortunate to have saved a nice 401k , health savings account and a good size rainy day fund. None of this is needed so far. The key is to control your money and don't let your money control you! Thanks for asking the question and have a great day!

[@raymondbarry4196]

While new vs used car is a good example, what helped me most was not getting the house that was at the top end of my pre-approved amount. It is really tempting to hear you are pre-approved for $800K but if you bought a house for that amount then all of your money would be going to that house, not your savings or retirement. Additionally when those unexpected costly repairs happen you are using your saving to pay for that and not taking out loans.

[@carolyngeiger3634]

A good point to remember is that we should be looking at our net income, after taxes. Even though one makes 100 K, one would be netting much less between payroll taxes and 401 K. And take home pay is what we live on. So if one is netting 5K a month and living comfortably that would equate to 60K a year, much more attainable in retirement.

[@judynewsom1902]

it's recommended to save at least 15% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of compound interest and potentially grow your retirement savings over time. don't think I could retire with less than $3m in income generating investments and i'm not talking 401k, maybe $2m at the very minimum. I plan to work until I'm at least 45.

[@kaylawood9053]

Nobody knows anything, you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving

[@AddilynTuffin]

Having an investment adviser is the best way to go about the stock market right now, especially for near retirees, I've been in touch with a coach for awhile now mostly and I made over $800K within a short time

[@ericmendels]

How can I reach this adviser of yours? because I'm seeking for a more effective investment approach on my savings

[@AddilynTuffin]

My advisor is “Sharon Louise Count” who is easily searchable on the web. She has extensive knowledge of the financial market

[@ericmendels]

She actually appears to be well-read and educated. I just did a Google search for her name and found her webpage, I appreciate you sharing

[@deeplansandbudgets]

As a person who walks every day, pretty much no exception. I love how you walk and talk. I am going to be honest. I do not think there is any way that a person below 40 right now needs tax deferred savings. I am not a professional, but I see no way that over the next years our tax load in the US is not going to become vast. Trillions of debt with both parties just wanting to spend more on debt I believe is only going to end in incredibly high taxes in the future. I wish more companies offered and matched ROTH IRA's and I also hate that you have to pay 10% fee if you need your money before you are 59.5. This whole system I think leaves us all exposed and young people with little or no hope of retiring.

[@FreakyLynx]

My worry is that the rules will change for Roth account’s because the government is so desperate for money and retirement accounts are a largely untapped resource in their eyes.

[@51dbail]

Would be interesting to know how many people even have a 401k? As most people in the US live pay check to pay check.

[@51dbail]

The net says 32%. But I believe nothing I read as fact anymore!

[@Wong-Jack-Man]

Thanks for the tip on the Roth 401k. I will plan to max that out rather than regular 401k. Other big factors that play into your unique retirement goals. 1. Debt 2. Kids 3. Standard of living II’m a high income earner mid 40s, no kids and divorced and all out the way. I don’t plan to remarry or entertain a relationship nor kids and have no desires to own a home again. Today I pretty much throw all my money into retirement, savings and investments. I don’t envision I need 5x my salary I think a lot of these boiler plate scenarios are based on standard of living and your economic bracket. I’m ok living a modest simple existence.

[@NicholasBall130]

Biggest financial mistake I ever made was with my 401k. My company had a Roth 401k when my kids were in college, but I didn't actually start contributing until year 3 of the 6 years I had kids in college. Because I was helping them with expenses, I was entitled to the tax credits, so my effective tax rate was extremely low. That is the time you NEED to be in a roth! i still retired with about $350k in my 401k.

[@StacieBMui]

People don't really know this, You need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.

[@cowell621]

I totally agree; I am 66 years old, recently retired, with approximately $1.2 million in external retirement funds. I am debt free and have very little money in retirement funds compared to the total value of my portfolio over the past three years. To be honest, I didn't do all this alone, but with the help of a financial advisor. Having one is currently the best way to trade in the stock market, especially for people nearing retirement.

[@StocksWolf752]

How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?

[@cowell621]

Sharon Lee Peoples is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.

[@lolitashaniel2342]

I looked her up, and I have sent her an email. I hope she gets back to me soon. Thank you

[@wolverine9079]

Agree with you 4% withdrawal rate is extremely conservative 5% to 6% is what I plan

[@ErikOosterwal]

Using a 5% rule you can expect your retirement savings to last about 20 years. Using a 6% rule you can expect your retirement savings to last about 17 years. 🤔

[@ivanvarykino8202]

I too used to think I wanted a huge annual income to draw from in retirement. Then reality set in about having all my eggs in taxable accounts. I have zero debt but still around 40-45k annual expenses with a couple teen daughters soon to launch. I think many people that expect to travel and live a little larger will be surprised that it may require more than that 60k - maybe closer to 100k to keep the lights on at home, groceries, health insurance, property taxes etc., and then doing some nicer trips. The first 50k will soon be eaten up by the essential cost of living. The next 25-50 is what gets you out the door!

[@micon9460]

Where do you live? $60k in the Midwest would put you into upper middle class if you manage money right

[@lovelife7343]

I'm in my 50's I'm behind in my 401k balance . But I do have my home and cars paid off.

[@mikes-wv3em]

youll be fine. im ahead but i could live off SS and pension if i had to.

[@lucieciepka1031]

You can also start downsizing a little bit. My partners are in the late 60’s early 70’s and they “can’t” downsize anymore. It’s psychological at some point. I think this is more important at your age. Do throw away the burdens that your 70 yo you, won’t be able to.

[@Ashley-vl6fq]

What always confused me about the 2x, 3x, etc of salary, is that for many people salary changes so much over time. It's difficult to have 3x of my current salary when I was only making half that amount 10 years ago. I would have had to save more than half my salary at the start to get close to those numbers. Good problem to have, but hard to calculate a target.

[@ordinaryhuman5645]

I'd recommend ballparking an investment assets target as a function of annual expenses instead of annual income, but that might make too much sense.

[@FreakyLynx]

My feeling is that these benchmarks are more about motivating people to save. It’s more an art than a science as some might say. But although our salaries may go up and the value of 3x your salary might change dollar wise to where it’s harder to achieve - we also can’t forget that compounding interest plays a role as well. This is also why there’s a motivation to start saving when you’re younger and giving that money more time to grow.

[@stevedill2858]

Wow! No suit, stuffy board room, sterile white board or technical jargon? Awesome! Then throw in a simple walk somewhere nice while you lay out very relevant information and I'm hooked. I've seen a half dozen of your video's so far and I'm planning on checking out what else you've got available. My wife and I were the kind of people who were just happy to have a roof over our heads for many years, did what we could to keep a positive attitude about our financial future (and coped via lots of denial!) but ended up not figuring out what mattered until very late in the game. So, for now, we're planning to do the slowly retire plan...work less and less as we feel we need to physically and are able financially. Luckily, we've had some experience at living cheap.

[@jkbc]

average 401k balance doesnt tell much of anything, ones who have less 401k balance might have their house fully paid off compared to those who have more 401 k balance and dont own house or have high mortgage debt balance.

[@chriso6042]

It tells how much is set aside for retirement.. sure you can sell a house, but people don't typically think of their house as retirement. You can also have invested in roth ira mostly. But this data is for the average Joe.. and that's typically mostly 401k. Noone said it was a perfect picture of people's investments.

[@frostfox1208]

I worked for a large corporation that contributed a % to the retirement account. That was nice, but they then charged a high fund management fee. A yearly % taken off the top :(. This was the sort of thing that Warren Buffet warned against. “Buyer beware”.

[@hogewild5550]

Regarding Roth 401Ks, if your company offers both, what percent should be regular and what percent should be Roth?

[@ryanwilliams989]

As a soon-to-be retiree, keeping my 401k on track after a bumpy 2023 is a high goal. I've read about investors generating up to $250k ROI in this present sinking market; any suggestions for increasing my ROI before retirement would be greatly appreciated.

[@BiancaSherly-qt6sb]

Yes, you are right. it's been a brisk tailwind for investors in US stocks over the decades but it is still a delicate season now, so I advise you to consider the guidance of a financial advisor.

[@hunter-bourke21]

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.

[@maggysterling33254]

@@hunter-bourke21I actually subscribed for a few trading courses but it didn't help much, been getting suggestions to use a proper financial advisor, how did you go about touching base with your coach?

[@hunter-bourke21]

Big Credits too *Izella Annette Anderson* she has a web presence, so you can simply search for, there are some others but it might be difficult to get them, but Julia has been a good guide through the year.

[@hunter-bourke21]

Definitely! All of this happened in less than a year after *Izella Annette Anderson* told me what to do. I started with less than $100,000, and now I'm about 17,000 short of having a quarter million dollars.

[@Polostar79]

It’s important to remember that averages always skew higher. The median is a more realistic number of where most people are.

[@SkySkier]

It's all about what you need/want to spend in retirement. I worked hard to eliminate all debt before I retired. This allows me to live nicely on 40% of what I was making. Not the easiest thing to pull off but it is doable if you put your mind to it.

[@bigdogg361]

Good info, however 2 times income in my 20's !!! 🤣🤣🤣 the only thing I was concerned about in my 20's was beer and hot women!!! 401k was 0.

[@jimkearns534]

Well the last three years have done nothing for people on the 401k fields to speak of. Many people have taken a real hit to their accounts. I keep plugged it away because I know I would be worse off not contributing to it and I have to look at the long term progess but these past years have not been good.

[@Concerned_Citizen111]

#Bidenflation Please vote Trump in 2024 to save our country. 🇺🇸

[@mrd2500]

Once the market recovers you’ll be rewarded for continuously “buying the dip” over the last few years

[@chriso6042]

Yep, unless you're planning retirement shortly.. these dips are the most valuable investment time you have.

[@captainsouth4460]

@@Concerned_Citizen111 Trump is a con man, send him all your money fool! Go buy some stupid flags and hats!

[@glasshalffull2930]

I’ve been contributing for 40 years and when the market takes a dip, it is really hard, but keep your head down and keep the contributions flowing. You’re in it for the long haul.🙂 I actually don’t even open the statements during the downturns.

[@annahopp]

We are currently living on 40%-50% of our annual income. The rest gets invested. If you never adjust your spending level to 100% of what you make, retiring early becomes easier.

[@Orecatmeatprocessors]

The reality is most of us get fired a few times, etc. during our work careers and have to start over. Most of us are lucky to have anything after the "OLD LADY" runs off and we have to sell the house. So I like your pie-in-the-sky approach. Most of us take what we can get and save what we can then reduce our expenses to dirt floor levels. Then we buy most of our stuff at thrift stores, and hopefully, our health care program will take care of us till we die. Of course, I'm talking about us, successful retirees. Not most of the rest that is living in a refrigerator box somewhere in California!

[@johncarey3091]

Thanks for this. I watch a lot of these and I really like your style. Very clear and concise without all the fancy crap, sounds and logos. Please keep on keeping it simple and resist the temptation of all the cute bells and whistles.

[@AzulWells]

Thanks John. I appreciate the feedback. I started my KZbin channel with "all the bells and whistles" and felt they were more of a distraction than a help. Once I focused on just having a conversation with my viewers, the channel really took off. Thanks for being part of the community! Azul

[@OmaticFever]

@@AzulWells Good content is all you need. The rest will take care of itself.

[@mmmmmray]

Interesting to see from the perspective of Fidelity but I'd love to see it from the perspective of average spend vs average saved. Especially when compared to net worth, amount invested, and saved.

[@ordinaryhuman5645]

Basically no one has all of that information though, especially an average for a large group of people. At best, you can maybe infer net worth /savings from US BEA average savings data over time (~5%, but it varies by month) and average wages for an individual or household (which varies a lot over time, especially when considering demographics, especially age). One catch might be that money saved in one month may be spent in another month (or be more than offset by debt) so a given savings percentage or amount from one month doesn't necessarily contribute positively to net worth in the long run for someone.

[@mmmmmray]

@@ordinaryhuman5645 I've seen some interesting data collected from those who run finance channels although, the data could be falsified easily too.

[@jivefive99]

There is no savings no matter what kind of car you get. You can either pay a large monthly payment or you can spend a lot on maintenance and repairs. Also not considering spiking car insurance payments. There is no such thing as a cheap car.

[@mrright1068]

Does fidelity say what your income should be at each age as well? It never worked out that way for me

[@dforrest4503]

I’ve invested in a Roth IRA, but a conventional 457 plan. My rationale is that the Roth 457 just recently became available, and I don’t think I’d be able to put as much aside in that. Why pay 22% on money now to have a Roth when I can take withdrawals from the conventional 457 at a lower rate than that after I retire?

[@eyadismail4737]

Hello Azul , thanks for the valuable information . Can you please shed more light on 401 k contributions and loans and the taxes in general ? Thanks

[@OmaticFever]

Thanks @Azul for the content. I think it would be worth a video examining the traditional 401k vs. Roth. Is there a timing where one or the other is more beneficial? Is it better to do a Roth early in your career then a traditional later in life? Personally, I'm in my late 50's and have only done only a traditional 401k, but my employer does offer a Roth 401k. Would it make sense for me to switch for a few years? I'd like to get your take on the topic.

[@4u2c95]

I think the numbers that people want to live off from a percentage standpoint are actually lower than 60%. If they are over 60 years old, you would HOPE they don't have a mortgage, which is a large portion of an income.

[@51dbail]

I think you would be very surprised at the number of 60yr olds that have a mortgage. Even worse the number that rent and own nothing

[@vickiescholl9453]

At 66 I'm in big trouble after this video. Not everyone can save that kind of money.

[@greggis3691]

So here's where I'm confused. I don't understand why the Fidelity rule bases their calculation on gross salary instead of take home pay and/or annual spending. I've been contributing 33% for the last 10 years, and to do so, I live well below the means of my gross salary. I've recorded all my spending in Quicken for the last 15 years, and know exactly how much it costs me to live. This amount doesn't change much year to year. I don't plan to alter my spending habits in retirement. I'll spend more on healthcare, but will have my mortgage paid off (should wash). Is there a way to determine what I need based on what I have spent over the last 15 yrs?

[@Professor__Cow]

Just a reminder. When you submit into a Roth 401k and your company matches, their match goes into a traditional 401k. Not Roth.

[@truemore75]

So I started at 28 did the whole 15% and am 48 now. I have been blessed with consistent raises since I started working and now make 8 times what I started at. So every time I hit the multiple mark my pay jumps so I feel like I am behind :). In gross terms I have over 600k in retirement accounts. I did take 100k out during Covid because for my business it was allowed tax-free, so it went in tax-free and came out tax-free. So it allowed me a double tax savings and I used it to grow a business. So I consider that a very good investment both from the tax point of view and long-term passive income. It's funny but to be 5x I would need to be between 1-1.5 million dollars when I hit 50. Even maxing it out each year there is no way starting in my 20s I would have been able to reach that number. So I am curious how they come up with these multiples. Do they assume no real raises over time or only inflation?

[@hejiranyc]

The salary multiple makes no sense because the amount you can put into a 401(k) is capped annually. So, for example, if you are 59 and make $1 million per year, it would be impossible to have saved $8 million in the 401(k). I am 53 and have contributed the maximum allowable amount for nearly 25 years and I have not even 3x my current salary in 401(k).

[@moeck14]

It's not just 401K, include IRA, HSA, Backdoor Roth. Definitely helps bridge that gap

[@hejiranyc]

@@moeck14 no no no. Even IRAs are subject to an annual cap. And good luck with doing a back door Roth while also having an IRA at the same time. The tax implications are a disaster. People promoting back door Rothy’s either have never actually done it, or they don’t have a personal IRA.

[@moeck14]

@@hejiranyc it's definitely possible, which is why there are people with millions in a Roth IRA. Is it easy, no, but it's definitely possible

[@hejiranyc]

@@moeck14 Sure, it's easy to save more than $1 million into one's retirement accounts; I have done this myself. But it's extremely difficult/impossible for someone to save $8 million in their retirement accounts by the age of 59 due to IRS rules.

[@OmaticFever]

It would be impossible from an earned income perspective, but if you are self employed there are ways you can contribute huge amounts to your Roth IRA.

[@krickenthekraken8844]

Yes, I would like to hear more about the Roth 401(k) benefits!

[@beachbum4691]

In Australia, employers are required to pay 11% of the ordinary basic wage of each employee into a superannuation/retirement account, (scheduled to grow to 12% by 2025) the employee may contribute up to $25,000 per annum before tax in an endeavour to build a decent balance pre-retirement..it might be a little like the American 401 system? but importantly the law requires the employer currently contribute that 11%, or ultimately 12%....

[@deanlol]

I'm really envious. Despite your age your smile is much more natural and friendly than mine. I'm 60 and I just look creepy.

[@hojo70]

Wow. Where did that come from

[@jwardlewisIII]

Azul, Thank you for sharing your wisdom.

[@JoeMoran-k2x]

What is the recommended split between traditional and Roth?

[@davidroe2657]

Azul, I really enjoy your videos. Thank you for posting your valuable insights. With regard to a goal of saving 25X of ones salary for retirement. From what I can determine, the median salary of a 55 to 65 year old is $70,000. 25 times that is about $1,800,000. This is unattainable, or at least Herculean for 90% of people. How do you square that with your advice? Understanding that this is what could be the “best case”, or the ideal scenario.

[@UnkleAL1962]

I do not have 5 or 9 times by retiring salary in my IRA - but I also did not try to live like a rockstar when I did have a higher salary. Now that I'm retired and income is pared back, I'm still feeling ok. I make most of my own meals I don't spend $ on dining out incessantly which is VERY costly, I drive a humdrum but reliable vehicle, I'm in the process of minimalizing "stuff" and collections of crap I've obtained over the years and clearing out my house for a simpler lifestyle, I don't go spend absurd amounts of money at Disney World or for cruises - I like to garden and seek out local foods, I do home repairs and a simple daily routine. I DO like to buy quality food for cooking at home that is my bane so far! I like your style Mr. Azul of always being out in nature for your presentations, and essentially doing 'free' things and finding solace in our time on earth.

[@duneme]

We are 50 and The Wife and I would have had 8x her 401K balance if it didn’t keep freaking going down! I’m handling our Rental Houses and we are hopeful to pay the bills with those!

[@robertlopez9347]

Fire whomever is managing the 401k..

[@nikij.6058]

You are fortunate.

[@recabitejehonadab2654]

Yup, the stock market is killing a lot of people’s 401ks.

[@-MOYST-]

I’m 38. 200k in my retirement, 100k in my wife’s. I own two homes one is rented out and will be paid off in 24 months. The house is valued at 450k. I think I’m in good shape?

[@ihaveadreamformykids4400]

It seems impossible to achieve for many but it’s not the time to get discouraged. Be hungry and be motivated to achieve your goals. It doesn’t have to be $1M, anything saved is better than nothing. Also, there alternatives out there in terms of location. After retirement, travel or live in 🚢 cruise.

[@stevetassallo1069]

is there a time when you're in a high tax bracket that you're better off with a traditional 401K and shield 30,000 from a high tax rate , then take it out when retired and in a much lower tax bracket ?

[@SonarMan645]

What about those who are married? Should these numbers be doubled for two people?

[@dennytroy]

Roth vs Traditional 401. What if your state does not tax retirement income? In that case would it not make sense to avoid Roth since Roth you would be paying both federal and state tax upfront?

[@hope4thin65]

Hi Azul. Or as I like to call you “my Uncle Azul”. Thank you so much for all that you do and the invaluable service that you provide for us. Azul, do you mean 20% of your net income or gross income?

[@DoubleTFishing]

When I looked at my paycheck and lowered the taxes, took out retirement savings, United way etc. I found 75% was pretty close to 100% of my current income. The health insurance is were I take a hit, luckily my employer has discounted retirement insurance to hold me over till 65

[@paul_domici]

I'm in my 50s and been adding tax free money to my 401k. Should I switch over to a Roth 401k? When I start collecting will they know what is Roth money and tax free money?

[@michaelblock3998]

Yes, please break down the 401k and Roth 401k amounts especially over 55.

[@jamesspash5561]

Re retirement income. I work with a few who are fixated on retiring at their pre retirement level. They also will not retire until they physically are unable to come to work. Their work is their life. Sad. My original point is, figure out how much we/you spend going to work. Fuel, lunches, coffee breaks ect. The amount will surprise you.

[@MAHACoach2025]

Is it 8 or 10 times a net salary or gross salary?

[@vivekh7662]

Haha, I was at 0K at age 30. Not anymore!

[@BradCampbellmn]

Many different savings and income growth options. Yes, 410Ks and IRAs are great. But there are also municipal bonds, rental income, passive investing, money markets, stocks and investment accounts. I love municipal bonds and have them. Federal and state tax free.....awesome!

[@I_like_turtles_67]

Bonds are good right now because of the higher rates. They were very low for well over a decade. I love rentals and dividend stocks.

[@330_Crew]

I’ve been maxing my 401k either in % or total $ since I started my first job out of college. When I first started I’d hit max % contribution limits as my starting salary was low. As it’s grown I’m hitting max federal limit $ on annual 401k contributions. What blows my mind is despite maxing I’m just at the low end of the 4x salary total 401k balance for leaving your 40s. I don’t know how much more I could be doing or getting better returns.

[@a012345]

These are stupid metrics by Fidelity. So if I go make minimum wage, I can instantly retire? If you have no debt and your house is paid off, you don’t need anywhere near these numbers unless you live an extravagant lifestyle. You would save so much just by not working - less eating out, no commute, no work clothes, have time to fix your own stuff and services.

[@kathys754]

I really like the way you convey information. Thank you for the videos!

[@bige5188]

Been fortunate enough to do the max since i started working been in my job for 6.6 years. Can't wait to see time compound over and over. Switched over to our Roth 401k plan. Life is good baby, just trying to show our young guys what it can do one day.

[@rodrigocortes3641]

I kinda relied on the union pension which is $4,200 a month. But then in my 40’s I got cold feet and started to max out my Roth 401k , so yeah I’m right where fidelity says 40 to 50 year olds should be at. Inflation isn’t helping and I know it’s gonna get worse as time goes by.

[@chuckmilton]

What does fidelity assume for lifespan? My aunts, uncles, parents, and grandparents all live to between 95 and 103, so I’m thinking my retirement savings may need to last until I’m 95.

[@TripSoul10]

Regarding where I stand, my 401K is not at my base salary due to shuffling contract jobs for several years. However, I am over 100K for my retirement plan thanks to stocks and Roth IRA contributions. Just maxed my Roth IRA for last year. Contributed over $15000 among all retirement accounts in my portfolio for 2022.

[@bangDdrum]

Just discovering these awesome videos, delivered in a casual, easily understood fashion. Thanks for making them.

[@BigJohn6060]

what about Roth conversions? I've tried to find easily digestible info on whether it makes sense or not and had no luck.

[@UnkleAL1962]

I think Fidelity wants you to have these numbers so they can keep up and expand their profits and fees.

[@recabitejehonadab2654]

They want you to lose more money in the terrible performing stock market.

[@ultraknightowl]

It all depends how much you make a year and how much you can contribute for example you can be making about 30k a yaer and might only be able to contribute about 5k every year and that can go on for a few more years.... is tough out there great video 📹

[@acecalzadilla6878]

I have 9,800 in my 401k I'm 50. I started late, but I have a state pension that will be 98,000 to 103,000 a year. Plus I'll have drop account that will only be 300k when I retire at 57 or 58. Plus by 62 with my SS and my State pension I'll be at 130,000k a year

[@Jose_Jimenez]

What is a 401K? I'm 65, is it too late to start?

[@ButcherBird-FW190D]

Question. When we read/hear of the average amount in a 401k and all; is that per 401k, or is that in composite for the given person ? As an example, I retired from the FDIC after 33 years. Disregarding my d.b. pension (and I'm working on another), but dis-regardling this..... My TSP (fed-Speak for 401k) is $1M. We had an add-on, true "401k", and that has $200k in it. I worked for a bank for three years after retirement, and my 401k there has $100k in it. My last gig here.... Yeah, I'm working toward a second d.b. pension, and my 401k has $10k in it (I just started a few months ago). So.... I actually have four 401k's. -Noting, I'll get around to throwing it all to the Gov's TSP for various reasons, but yassir. So, I have four 401k's; at (roughly).... $10k, $100k, $200k, and $1M. Soooo..... Per the stats and all; does this mean it's reported as an average of $1.31M divided by four; or would I be reported as having $1.31M in my 401k ?

[@patrickodonnell9388]

I'm 55 and will be lucky to have anything in 401k because this market is going to crash and banks are going to crash too. They don't want anyone to have anything when this great rest is done.

[@recabitejehonadab2654]

Yup the stock market is killing everyone’s 401ks . Even the most conservative mutual funds are tanking.

[@christinawarren9909]

I would like to hear more about the Roth, please. Great video by the way!

[@kennethhunter9130]

At age 59 1/2 what % they take out when you withdraw

[@Good-Enuff-Garage]

a little outline / summary 20-29 years olds - have saved $15,000 in their 401K 30-39 years olds - $50,000 40-49 years olds - $120,000 50-59 years olds - $200,000 60-69 years olds - ? the question I have is by percentage how many 20 year olds in the US actually have a 401K, 30 year olds, 40 year olds, etc?

[@OmaticFever]

Anecdotal, but my 3 kids still in the 20's all contribute to Roth 401k's.

[@AmyK007]

I may not have a lot in my superannuation but I’ve got a lot of equity in our house.

[@rezafranciscus8904]

you have mentioned that putting more in Roth is better than traditional if I was following you correctly. Currently I am putting 28% towards my traditional and 5% towards my Roth, do you think I need to reverse that? Please let me know.

[@kortyEdna825]

We experienced the peak of our era, and now it is gone. Recession is tanking everything including 401K. My retirement equities portfolio of $750K is in the reds. I keep losing because of inflation. This world will fall to the corrupt rulers in the same way that Rome did. I'm sorry if you're thinking about retiring and you're worried that your pension won't be enough to meet the rising cost of living. Horrible foreign policies everywhere, bad regulatory policy, bad fiscal policy, and bad energy policy.

[@Justinmeyer1000]

It really isn’t about how much you save, it’s about how you manage your money. Whether you work to earn income or invest, it still boils down to income vs expenses, so yeah you may look into financial advisors for a strategy that suits your timing.

[@carssimplified2195]

@Brilliantrans mind sharing info on the adviser that assisted you? been saving for pension since age 18 - company scheme. along the way I hit higher tax, so I added to my company pension with a SIPP (tax benefits) I'm 46 now and would love to grow my finance more aggressively, there are a few cars I still wish to drive, a few mega holidays, etc.

[@carssimplified2195]

@Brilliantrans Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.

[@growsinhouseherbiculturali1100]

Thanks, trumper!

[@glasshalffull2930]

@@growsinhouseherbiculturali1100 Thank Joe Biden

[@termita358]

You don't use 100% of your income even before retirement. By the time they take taxes, deductions, etc and you discount the money you are saving for retirement, you are living with 40-50% of your income. In retirement your expenses will be dramatically lower. Your taxes will be much lower, you will not be saving for retirement (which is a huge "expense" when you are working) and most probably your house will be paid for. I'm with Fidelity I don't believe anything that comes from them. By their own numbers people in their 401ks are 80% short and I don't see people dying on the streets 🤦‍♂️🤦‍♂️🤦‍♂️. Don't forget Fidelity wanted to get into Crypto before the crash 🤣🤣🤣

[@jimstoops]

Well said

[@jonathanfoster2263]

I'm glad I am paying around 100 per month for transportation, bought used and paid off quick.

[@ronspi]

6:45 If my current annual income is $100K, and I put the max allowed money into my 401k plan, I don't pay tax on that money now. When I decide to retire, I can live on only $50K a year: If I use the 401k money, then wouldn't I pay the tax based on that tax bracket and not my today's bracket? Paying the current tax for having the next of the ROTH IRA (or 401k ROTH) makes me pay today's income taxes. Why would I pay the extra tax today if I intend to live on less than half of what I make today?

[@bernie9728]

Everybody's situation is different and it's not a race. The single most important thing to know is that it's not about the money. It's never about the money. Once you have more money than you can possibly spend, does it really matter what number that is?

[@bernie9728]

I just wanted to add this: Retirement is the reward for a life well lived. Just like it didn't matter how much money you were born with, it also won't matter how much money you die with. While it is true you don't want to run out, it's also true you get to control that by the choices that you make, so make good choices. SS offers an incentive that if you wait to start drawing your Social Security that they will pay you more money. Just always remember more per month does no mean more total money. If you start early your checks will be smaller, but you are going to get more of them. Would you have have a hundred dollar bill, or 20 five dollar bills? Math is just math so focus on creating a good life for yourself. The math will take care of itself. When it comes to retirement the best gift you can give yourself is to be debt free. It's not a good idea going into retirement with huge debt.

[@julianavillanueva7385]

Great advice. I had a brother that passed away ,had a 401k , his previous employer won’t give us the company they had administering the program. Do you have any advice.

[@ihaveadreamformykids4400]

Talk to a lawyer

[@goodbooks5134]

I am retired and have monthly income of $5,000 (after tax). I still have mortgage payment, but I live comfortably with my wife. It's not how much you make but how you spend it.

[@jeretso]

Ten times my income is not gonna happen. Most people are behind from buying too much stuff. Phones, TVs and vehicles are getting bigger too. I'm gonna sell all that stuff and retiring in Thailand.

[@AzulWells]

Hi Jeretso. I was just in Thailand a few months ago. GREAT great place. I hope you enjoy it there. Azul

[@Raymondjohn2]

High prices for everything have severely affected my plan. I'm concerned if people who went through the 2008 financial crisis had an easier time than I am having now. The stock market is worrying me as my income has decreased, and I fear I won't have enough savings for retirement since I can't contribute as much as before.

[@martingiavarini]

It's recommended to save at least 20% of your income in a 401k. You can use online calculators to estimate how much you should save based on your age and income. Saving at least 20% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. By saving this much, you can take advantage of investing in the stock market and potentially grow your retirement savings over time.

[@bob.weaver72]

Considering the increased complexity since the 2008 crash and COVID, I suggest diversifying your financial portfolio. I hired an advisor and successfully grew my portfolio by over $150K during this turbulent market using defensive strategies that protect and profit from market fluctuations.

[@Will.iam6693]

I agree, that's the more reason I prefer my day to day invt decisions being guided by a init-coach, seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using a init-coach for over 2years+ and I've netted over 2.8million.

[@bob.weaver72]

Mind if I ask you to recommend this particular coach you using their service?

[@Will.iam6693]

'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.

[@fernandomartinez8932]

Why would you need 80% of your income after retirement if you have already paid for your house and your kids education?

[@johnhamlett8414]

401k loans - So, here's something I did. I always had 401k loans outstanding, we could have 3 at a time. I would use the loans to invest outside of my 401k. Why? The 401k had somewhat limited choices, it was a way to fund a brokerage account right away, it forced me to invest more (my normal contribution plus what was going back into the 401k via the loan payments), as well I was on my own raising 5 kids so it was an added security blanket, that in the event I had an emergency need for money I had it "on hand". I also bought physical gold/silver as insurance, this was back when you could buy very close to, and sometimes at spot price. I would use the loans to fully fund my IRA (Roth IRA when those came about) each year and HSA. The rest was put into a brokerage account. IF I ever needed to pay back the 401k loans because I lost my job, I'd have just sold it out of my brokerage account. I also timed it so that all my 401k loans would be paid back in 2021 when I retired. Not suggesting it, just saying it worked out for me and the only risk was losing my job and needing to pay it back to avoid the 10%. Also, the loan initiation fee was only $10, and there was no maintenance fee - many 401k(403b) have that so if that had been the case I'd have factored that in - my company covered most of the admin costs for the 401k. I did btw also work for a 401k/403b management company in college so I did kind of know the ins and outs of it all.

[@checkthelogic]

Shouldn’t you use TSP? They are the largest defined contribution plan in the world.

[@jw4172]

Borrowing from your 401k: it’s mandatory to pay it back via payroll deduction, if you do it as a loan and you pay yourself the interest. There is a cap, and if you lose your job it’s due in full immediately. I wouldn’t recommend early withdrawal unless your desperate though.

[@CynthiaIvers]

Looking at the mean balance is misleading as it's totally skewed by those with incredibly high balances. Best to look as MEDIAN. The median is $71,000 for those over 60. Very depressing.

[@krjohnson29]

Just turned 37 and I have $170,000 in my 401k and $80,0000 in my Roth IRA, with a current salary of $120,000. My balance goes up, but I keep missing these benchmarks because my salary goes up too! Can't complain about that though I suppose. 😁 Im only personally contributing 6% to my 401k (just switched to doing Roth contributions this year), and nearly max out my Roth IRA each year. I think all in (including employer) I'm at about a 15% savings rate, and when I retire about 50% of my money should be Roth.