How Much Money You Should Save by Age 20, 30, 40, 50, & 60

[@OptimizedPortfolio]

Are you meeting your savings goals? How do you save more money?

[@Hctans]

19 with 32k in a high yield savings and my car paid off

[@OptimizedPortfolio]

Great job!

[@nickcorcoran7638]

im 20 and have about 35k in stocks and about 3k in cash. Definitely didnt expect to have this much money at this age but things just kinda worked out that way.

[@OptimizedPortfolio]

Awesome, Nick!

[@nickythao3434]

If they are in a taxable account get them to a Roth IRA ASAP.

[@nickcorcoran7638]

@@nickythao3434 about half is in a tax sheltered and the other half isnt. im Canadian so our tax accounts are slightly different and I maxed out mine in the first few years but still had money I wanted to invested so I had to do so in a taxable account.

[@dustinjones8887]

I appreciate you saying "unless you place significant psychological value on paying off your house early". I know one can get much higher long term returns, but I cannot stand being in debt, so I paid of my house as 1st priority. Granted, I calculated I only paid $2100 in total mortgage interest in the 3 years I had a mortgage. Some people end up paying more than their house is worth in mortgage interest over 20-30 years. So I add that amount I saved in mortgage interest vs the compounded gains I could've made.

[@OptimizedPortfolio]

Thanks for sharing!

[@TryABaconSlice]

Did your house cost $6000?

[@dustinjones8887]

@@TryABaconSlice - I saved $83K up until I was 44 yrs old, when I bought the house, then put 68% down payment on it.

[@TryABaconSlice]

@dustinjones8887 gotcha, I think we live in very very different markets 😅

[@fadisalem2710]

So question for you my guy, now considering that VUG and VYM basically equals VOO, then is it right that I wouldn't need to have VOO in my portfolio while I already have VUG and VYM?

[@OptimizedPortfolio]

Technically yes, but I'd look at the other way - you only need VOO and you arguably don't need VUG or VYM. Though of course VOO is still only US large cap stocks.

[@TJ-Stackin]

Agree with everything minus the 4% rule 👍

[@OptimizedPortfolio]

Not really an endorsement of it. Just pointing out that's when SWR or Monte Carlo would come into play.

[@doronis4718]

Is it gross or net ?!

[@OptimizedPortfolio]

Is what gross or net?

[@doronis4718]

​@@OptimizedPortfolioyearly salary

[@OptimizedPortfolio]

Gross

[@JoeFromSomewhere2303]

The part that i find very annoying about the general: "If youre this age, you should have A(x) your salary saved", is that its a really easy goal if you have low wage growrh and really really hard if you have high wage growth... but we should all feel better about retirement if our wage growth is high? Little counterintuitive

[@OptimizedPortfolio]

Good point, Joe! Indeed, always a trade-off between simplicity and optimality.