We won't name any names, but someone goofed on the Median and Average savings for the 20s, 30s, and 40s (50s is correct). The numbers are right, but the labels are wrong; the top number is Median 401(k) Balance and the bottom number is Average 401(k) Balance. So sorry for the confusion!
The one thing i think you should address is that a lot of people do exactly what your saying and end up retiring at 67 with a great retirement, but end up dying young and never getting to enjoy their retirement !!! The age of 55 should be the age we all retire !!! Great show !!!
Median is a type of average, so that's not really a correction. Average can refer to either mean, median, or mode. Don't use the word average in graphs, period :P Just say what the numbers actually represent.
25:34 in your 20s, 35:25 in your 30s, 44:28 in your 40s, 50:30 in your 50s, 51:45 in your 60s, and if you watched this whole video you are probably in your 70s now
Got my 19 year old son to start a Roth last year with just $100/month. Told him I would match until he graduates college. I didn’t start retirement savings until my 30s, and wanted him to be more proactive than I was.
I am doing the same with my 19yr old daughter since she was 17. She put 100A$ I put 200A$ for her own ER until my semi ER in 4 and half yr on her 24 birthday and I am 50. Her dad put 1000A$ into her Aus Super and the Government match it with 500A$.
I’m 36, been maxing out my 401k, ira and hsa since I started working in 2008. This month I will crack the $1M mark. I’m 100% in various stock ETFs from Vanguard. My secret to saving money is, I always use a condom, no matter what she says.
I didn’t start saving until I was 22 (25 right now). I ended up meeting a friend at work that was 19 and she already had 5k saved. Meanwhile I had no savings and one I time i even had to ask her to borrow $20 so I wouldn’t get hit with the overdraft fee on my checkings account... I just remember feeling like such a loser because we both had the same job (Walmart greeters) and both came from middle class families and hadn’t had any major setbacks or hardships so I had no excuse for being broke. When it came down to it I was only broke because of my own mistakes and lack of knowledge. I’ve been saving aggressively since then and so far I’m up to 21k between my 401k, emergency fund, high interest savings accounts, and a few index funds.
Brian, I love your high school teacher story. In my early 20’s a coworker told me something similar. I listened. I’m looking forward to my full retirement at 55. From 50-55 I can even scale back a bit and step back and smell the roses...God willing. Stay well and Merry Christmas.
@@gdobie1west988 So: Your employer includes that when calculating your total compensation package. If you make 100k per year, but you spend 10% in overall federal taxes, receive a 4% retirement match , and state taxes + 15% in employment tax (7.5% each when using an external company) : Total compensation = 100k after tax (21% overall tax rate) + 79k..
Love the show! I turn 40 next month and I've got a little over 3x my salary invested. My husband is 37 and he's also got 3x his salary invested. It does bring peace of mind to know we're on track!
I appreciate what you guys are doing, as a Financial Advisor myself you two make it easy to understand through great graphics and content. I would love to see you guys talk about being a millionaire (inflation adjusted). I think it’s important to let the 20 and 30 year olds understand that being a millionaire at 65 isn’t going to feel the same as having a million today as a 65 year old. Keep up the good work, you’re doing a great service!
There are many ways to do it. Let's pull from the spreadsheet: 30 - 3% of salary 35 - 14% of salary 40 - 94% of salary 45 - 202% of salary 50 - 285% of salary 55 - 431% of salary 60 586% of salary 65 - retired, but 790% of last salary By the time I reach 72 and have to make withdrawals, maybe 1000% of final salary? So it is possible to catch up in your 40s and 50s, but I did it mostly through more savings and not aggressive investing. I am definitely risk-off now - why take chances once you've made it.
You need enough risk to get the necessary return. The goal is to live off earnings/interest. Given 4% withdrawal rate & 1-2% inflation, you’ll need a 5-6% return. That’s a modest balanced fund that still includes some stock. If you just have cash accounts, the principal & purchasing power will dwindle with time. That’s why you still need a level of risk.
@@chemquests - I am about 50% stock right now. I live off SS and the dividends from my taxable account, which pays 4.4% in dividends. My first RMD is in five years....at which point I will be paying more in tax than most retirees have in income.
Saving? that does nothing. You meant invest. Roth accounts has a contribution limit, so if your saving 60% (even on living wage) is above the limit. After Maxing out your retirement account, the rest should be on Dividend Stocks, or Real Estate. 20-30 year old Do not need to Max out their Roth Accounts. You be a millionaire thru compounding with $100-200 a month. Better use some of those money on other investment to improve your lifestyle. Better lifestyle would increase your capital.
@@mvpmikey Dividend stocks and real estate is entirely subjective. Investing it is definitely the right decision but how is subjective based on growth/risk etc
I’m doing the same as IAmJacques, but I am in my late 50s.I didn’t have enough income in my 30s to invest that much. (I AM retired, but working for gravy investing)
I would love to see you guys do the calculation for monthly investments with built-in acceleration as pay increases start happening. For example, somebody in their 20s who starts investing that $100 each month, then steps it up as they get older and get more disposable income. For example, somebody who starts with $100 / month in their 20s, then accelerates to $250 / month in their 30s, etc.
Exactly. All of this stuff is based on being lucky and having good health, and being able to work every year of your life, with your income increasing more than the cost of living. It is realistic for some people, but not all. We can all spend less than we make, but we can't all be lucky healthwise.
The problem with you guys is ------- you take toooooooo long tooooo say anything worth while. Just get to your point and make it. Takes an hour to get anything.
There is a big difference between saying something smart and getting people to understand it. You could do these calculations in a very small amount of time or find a retirement savings calculator online. This is education entertainment, it isn't strictly about strictly delivering a point.
Some viewers (me) watch their content more to stay financially focused as opposed to the learning aspect. I consider myself very financially literate and 95% of this video is material that I already know, and know well. But listening keeps me focused on my goals....personal finance is simple, it's the behavior that's hard Maybe they should release condensed videos with just the gist ~5 minutes
Henry I did the same thing, I took a loan from my 401k in 2018 to buy my first rental property, took a second loan in 2019 to buy another rental, now I have 5 rental properties and over $1M rental portfolio.
@@LashusJourney I *reluctantly* pulled 20K from my ROTH in 2016 to renovate the kitchen of a modest 1954 bungalow we had bought 2 years before. The house sold a year later @ 70K over what we paid for it. I KNOW the kitchen upgrade made all the difference in what was a very competitive market at the time. Sometimes we come out O.K.
I think one of the most valuable things to consider is: How did you feel when your stocks/ (passively managed indexed ETFs) dropped in value? If you felt scared, add more bonds/ liquidity assets. If you felt fine, change nothing. If you felt super confident, possibly consider investing in growth assets during this troubling time / adding more stocks. Your time horizon is super important and if you aren't planning on relying on the income in the short-term. Also: When it comes to your 401k assets, respect the FOO. Roth IRA, then 401k will give you the best returns. Max out that 6k Roth IRA deduction first, and then the 19.5k annual W-2 deduction (much larger for Solo 401k) and then invest in a taxable brokerage account/ physical RE.
32. $500 in savings covid tanked my business had to use it all and still in a little debt. I'll find a way to end up wealthy regardless life isn't linear.
I like your shows. I've been using this statement as my signature line in my personal email: "~~Mastering deferred gratification is trading a little bit of today in order to have a lot more for tomorrow! " Keep up the good eductional work. We all need to be better personal money managers to have more for tomorrow.
Exactly! Age 20, I was still in university; age 25, mismanaging money via partying; now age 30 for a few days, maxing out Roth 401 + IRA this year and thereafter.
I'm 31 and only have about .80 of my annual income. Half of it is in 401k and the other half is in an etrade Roth. My wife has her own portfolio. My goal for 2021 is to be able to add an additional 300 per month to my roth stocks. My company just stopped the 401k match for 2020 because of the economy. I hope they bring it back 2021.
Show idea! Tools and strategies to estimate expenses in retirement. A great opportunity for another "by age" series, but I think many of us would find that very helpful and interesting.
I'm 36, I got 30k in my 401k Roth and 12k in my Roth IRA. I plan to max out both for the next 10 years and from there just let it grow until I'm in my 60's. I currently have 200k in index funds and ETF's (VOO, VGT, and VYMI) and I plan to add 50k a year to that until I have enough saved to retire early and live off it long enough until my IRA and 401k mature enough to Live off.
My fiancé and I are redoing our budget will the goal of living off her income and saving mine which will be a savings rate of about 60%. Excited to see how fast we can get to a million!
My husband and I do our budgeting very similar. We lived on one income and the other one is use for our financial goals. One thing that has helped us is to have our incomes going to separate accounts. So the financial goals one go to savings and we don’t touch that until being allocated to their respective function, and same with the living expenses. Good luck 👍
Step in the right direction, but you are better off treating both your incomes as if you are one person and budgeting that way. In a way you are rationalizing spending more money you dont need to by doing it your way.
Really super content. Just stumbled on to you guys. Love it! One critique would be not to use the word “save” when you mean “invest”. “Save” is putting it your piggy bank or under your mattress. “Invest” is putting your army of dollar bills to work for you. 😃
Listen, i learned most of what i know about finance from listening to dave ramsey, the money guys, and a bunch of day traders on youtube and twitter for 7 months straight. People need to get their financial lives in order. Money is part of the world we ALL live in, so you better have a good understanding of how it works.
One catch to the 401k investing from I would say from your teens up through your 20s is to be careful of how much your actually making. The idea of the 401k is that your putting off a higher tax bracket now for a lower tax bracket in the future. However if you are only making between 10,000 to 20,000 because your going to college or just started at the very bottom rung of some company, but still want to invest the truth is your already in the bottom rung of the tax bracket, on top of that if you are already thinking about investing for your future, your probably going to have more money coming in just from dividends / investments/retail/ etc. Anyone who is already having this investing mindset is going to have a healthy investment income in the future. So what does that mean when you are deferring the already lowest tax bracket? it means you might actually be hurting yourself tax wise. You should definitely look into a Roth IRA, where you would be putting money that has barely been taxed now into an account that will never be taxed in the future. I am not a tax professional, or financial professional, certainty don't take this as professional advice. Just some food for thought before you load up all your excess cash into a 401k, past the matching. TLDR; definitely put in enough to get the full match, but check out a Roth IRA if you want to invest more, but your already in a very low tax bracket.
What needs more attention is that the “nest egg” often continues to grow while in retirement. Larger nest egg means you can be more aggressive with a larger portion of your investments well into your retirement.
The largest issue of taking distributions in your 20s is not the 10% penalty. That's pocket change.....the 10% is big for someone in their 50s (prior to penalty free withdrawal age) with what is normally a much larger amount, much larger amount withdrawn, and so little time before actual retirement comes about..........THE LARGEST ISSUE OF TAKING DISTRIBUTIONS IN YOUR 20s is the LOSS of ability of compound interest...........that 10% is nothing compared to the loss of what that amount you take out just lost in another 40-50 years of potential compounding.
I started late at 35, but I kicked my ass and invested over 40% of my income for almost ten years. I'm caught up but I'm going to keep putting in heavy.
Would love to here an episode on retiring early. And putting the right amount of money into the right types of accounts so that you can retire and withdraw money without paying penalties. If you already have a video like this can you help me find it? Thanks for all you wisdom!
I've already commented on this but... My plan... Im almost 21 and I have 2,100 in retirement accounts between a Roth IRA and Roth 401k. And I also have 1,100 in an investment account that I manage. I plan on retiring at 45 with my investment account through dividends. And taking from my IRA and 401k when I'm 60 and using that to give me an even greater retirement! P.s the majority of my saving for investment will go into my investment portfolio and Im contributing less to my Roth and 401k and allow compound interest to take over and start withdrawing at 60.
Future show topic?: We are contributing to traditional 401(k)s even though there is a Roth option, and we are in the lower income bracket. We are shooting for using a Roth conversion ladder once we retire to methodically roll the traditional $ into our Roth IRAs each year and pay $0 tax on the conversion. I would LOVE to hear your take on this strategy (not only paying $0 tax on contributions, but also $0 on conversion to Roth, and then $0 upon withdrawal from Roth IRA.
When I was 20 years old, I was only getting paid minimum wage. My employer was only giving me 25 hrs a week. I was a full time student. I had rent and bills, and living expenses.
I came for the 20's and 30's numbers. Great graphs and math used in the examples, I really liked the fact you used 6% as an average rate of return as that us easily doable if you position yourself in the right funds. I prefer to calculate on 8% and when I want to shoot for the stars I look at the 12% average rate of return. Awesome content guys!
I think years into working career is better than age as a metric. I didn’t have my first real job until I was almost 28 because I got a Ph.D. I’m in pretty good shape at 35 :-). Not even remotely behind on anything actually.
I have some questions about the data you use for your charts. I understand that you are trying to drive certain (good) behavior but I think you're being a little deceptive (intentional or not): 1)Recovery chart: Why do you use the S&P 500? Is that a portfolio that you actually would recommend to clients? I would think total US market or total global stock indexes would be better (though not fully recovered) 2) Your savings required to be a millionaire charts don't take into account inflation, nor a portfolio getting more conservative over time. The 20s category shows a 10% rate of return every year, meaning, you're not assuming it gets more conservative near retirement and even excluding inflation 95$\mo with 10%ROR gets you just short of nominal millionaire $995,838. Over that same 45 years assuming a 3.22% inflation rate (historical average) the purchasing power in todays dollars is more like 240k in today's dollars. Maybe you could show inflation adjusted on the same graph?
For point 2, it actually is 10% the first year, decreasing by .1% every year after until it reaches 5.5%. This detail is included on the bottom of the graph.
I work in public sector and make 100k per year. I have 10% of my income taken out for my pension. I’ll collect 65% of my salary for my pension in retirement. I put away $7800 per year in a 457b. Is that enough? I would want to put in more but it hard at this time.
i took out a loan from my 401k, under advice from a financial advisor, to pay off all of my outstanding debt, mostly credit cards. the interest rate of 5% was obviously far less then the credit cards. self discipline to pay off the cards fast would have been the best route but i had proven through the years i didn't have that.
I would consider switching financial advisors. 401k are safe from debt I wouldn't highly doubt an advisors knowledge and experience if they suggest it as an option unless you had some other money coming down the pike (inheridence, etc...)
Great show but those Fidelity numbers are suspect or just being misinterpreted. 1) a rollover from a 401k to an IRA is a distribution. 2) every time you switch employer your 401k starts from zero again. 3) I can see anyone who’s been working for 20 years will have several different 401k’s, individually probably consistent with the Fidelity numbers but not representative of the state of their savings.
You guys really makes me happy everytime I watch the networth or your 401k talk its equivalent to Superannuation in OZ coz I can see that I’m ahead even I have the tendency to YOLO every now and then till I get scared and put a break to my spending again and again.
Maxed out my 401k in 1989 and kept it there. I'm now 59 and have $2.3M. With 6 years to work I should be close to $2.8M at retirement, given a moderate market. This stuff does work.
@Mark. It’s nice you saved but how do you plan to take all your monies out without being in such a high tax bracket. You should seriously consider retiring at 62. Pull low amount one year then higher next so at least you can take some monies out at lower tax bracket. Wait to take social security at 70. Not sure if you’re in the 22% or 24% bracket currently but you should consider putting monies into Roth.
We have about half million in retirement savings at 56 and think I will have over $2 million by the age of 65 staying aggressively invested. I do not think I will need it for retirement living since I now have grown my rental portfolio to 30 units and over a million in real estate net worth without any mortgages. I have been growing the portfolio by about 4 units a year. I think that pace may continue. I bought one last Friday and put in an offer for another last night. It is a ton of headaches to manage but I am surviving the challenges and I am good at it. The next couple years will tell if the retirement will be great or amazing. I have already broken the corporate shackles giving myself a $20,000 raise every year being my own boss in real estate. I can always take a six figure contract in IT if needed but for now I think concentrating on my investments makes more sense. Health is the most important and the wife and I both are getting into better shape because being a retired millionaire means little if you can't enjoy it.
If you can, why not just take a contract in IT and start a management company instead of what you have been doing, (all yourself? Or hiring a company?) Hire a good office manager and maintenance person or crew, and work IT on top of that, and then you can still invest in real estate, maybe even faster.
@@sinx2200 I have 3 guys working for me for cash. One is the full time maintenance guy and two are doing the rehabs. I mostly manage using my phone daily although I do get involved on occasion hands-on but not as much as I should perhaps. I got unemployment for 6 months of $507 a week and then the 13 weeks of unemployment paying $1107 a week so even if I were inclined it would only make sense now. I also got $20,000 from the Cares act with $2000 forgiven and the other with an $88 payment under 4%. I don't have real debt but this money seems just too cheap so I put it in the market as a cash account for now. I feel like I can make better than 4%. At this point it is really more of what I want to do. I am not totally opposed to getting an IT contract so I might if something really good comes along especially if I can do it remotely. I am in that place where I have the luxury to decide how I want to proceed. I am an old mainframe COBOL and assembler programmer with top notch skills but it is tough to be appreciated in a corporate job. It is really a love-hate position but if I could not care and just do it as a contractor then I guess it might makes sense. There is something freeing about working and creating something and not being judged by others significantly less talented. I have grown from 2 rentals to 30 rentals in about 4 years because I am totally in control. In the corporate world that is just NOT allowed to happen.
I wish you could coach me and my husband. I love the idea of real estate investments but he is happy working the daily grind in a factory. I feel desperate to try to make more money
Great video guys. One other thing to consider when deciding to count or not to count your employer match, is if you are actually vested. Most companies don't give you full vesting until 3 years. So if you don't make it or job hop a lot, then you may not actually get to keep that match.
Solid advice. It may seem like too steep of a mountain to climb, but you'll be surprised how fast it grows. Once you realize you are nearing the point where your money contributes more to your retirement than you do, that is exciting!
Im almost 21 and I have 2,100 in retirement accounts between a Roth IRA and Roth 401k. And I also have 1,100 in an investment account that I manage. I plan on retiring at 45 with my investment account through dividends. And taking from my IRA and 401k when I'm 60 and using that to give me an even greater retirement. Thanks for the great video. 20-25 year olds take notes!
I have about 55k at 29. But I'm also about to go full time in my business and leave my full time job which is where I started my 401k. Im thinking about investing it into the business. So far part time income on the business 249k. Just me but looking to hire and invest more into it. First 3 years I never took a check from it. Just reinvest and kept at my full time job
You can withdraw upto 100k on 401k due to covid, research requirements to do so and related taxes. But the fed has waived 10% penalty early withdraw. You will pay ordinary income tax though at federal level, state rules vary. However say you pay those taxes on 10,000 withdraw this year due to covid/loss of hours etc. If you can pay it all back in 3 years it seems you can get the money you paid in taxes back. Basically a 0% interest loan.
@@stephenchwalek Depends on what you're doing with your money, a home or rental is good use of the money. I'm choosing to use mine for energy efficiency, windows, geothermal. Want to pair with solar to run free. Then focus on 401k. In addition for my age 30s I'm not sure if I will see retirement or if our monetary system is going to stabilize, I plan to make the most of what money I have access to. They keep printing we may have a collapsing dollar.
@@stephenchwalek Unfortunately I'm leaning towards us working our way towards a situation like Venezuela. For consideration... 2 companies, apple & Microsoft valuation in the markets combined is over 3.5 trillion, more than all the taxes we citizens pay some years. When it doesn't stop there and keeps rising it is more disproportionate than people realize, such things are not sustainable. Although these aren't the only ones of concern it is an issue. Right now people without jobs or low wage can't afford a place to live on their own, some areas no jobs. Fortunately in my area places hiring everywhere. Without goods to sell stores will lose sales momentum. Money value goes away if you work minimum wage and live with people and it still doesn't make ends meet. Eventually people at the bottom won't be working if it doesn't pay bills, then a chain reaction happens where services we don't think about would go away, cashiers, stocking at stores, fast food...etc. Raising minimum wage only makes it worse as the average person can no longer afford to pay $15 an hr to hire people. With uncertainty and time to rebuild, can't think of a better time or opportunity in history to use it if needed or is beneficial for people. I agree with you, we must weigh our odds to figure out if it is worth it.
@BigRec Red Its crazy they enabled such massive withdrawal amount, but why not if it works? Otherwise don't see it til retirement. A lot has changed since the post, now a shortage of workers thanks to unemployment, renter moratorium on evictions, higher costs from fuel to everyday items. I can't tell if we're in a bubble or not, too much free money printed since then, people paying debts down but student loans, renters a bit behind & causing extra issues for landlords. As for myself since, just cleared all my debt but my mortgage. It is likely oil will go higher in price, we can't eliminate oil because of goods made with it. If anything they'll cut supply as demand drops & it less profitable because lack of volume needs. But being a necessity it will cause price hikes long term. I suspect it will rise with material costs for such equipment as well.
401K has rarely been offered to me during my career as I work for start ups. I've invested in rental properties, maxed out an IRA & HSA. You would be scared to see my 401K balance but happy to see my overall wealth.
According to this, not behind. Always made the amount of contributions they suggest, or more. Didn't even need to think about it. Only wish I would have started before my first "real" job out of college.
How do you determine these numbers if both your 401k and IRA are roth? For example, by the time you are 30, should you have 1.2x your gross income saved or 1.2x your after tax income saved?
Came here to see how to better educate my employees with retirement. The amount of financial ignorance in my workforce is too damn high. I shouldn't have employees of employees telling me they make more money than me while they peel out of the lot in their 10yo riced car with no savings to speak of. Finance needs to be required in high school and preferably sooner.
I just had my 16 year old watch relevant parts of this (stuff dealing with 20's vs 30's) and talked a little about the differences and benefits of traditional and Roth 401(k)s so he can start processing that information now and (hopefully) be ready to use it when he starts working.
I have a few comments on the 20 somethings distribution rate. Many people in the 20s who are NOT working in Fortune 500 companies are much more likely to change jobs, therefore they may be taking the distribution out of the former company 401 K plans that have questionable investment options and high fees and moving them to other plans or IRAs. They also may be taking that chunk of cash to purchase their first home which depending on their situation may be the smarter move.
I worked 2 1/2 years at the company I’m working for currently have little over $10,000 in my 401k I put in 8% company matches plus started putting a extra 1% if you put in 7%. I’m 25 years old
Only take distributions if you need to put food on the table or you have to pay rent costs to avoid eviction. You better be in the lowest tax bracket possible when you do it to account for that 10 percent penalty too.
Came here off of Graham and Dave... I've always taken a hybrid approach to all my financial advice and I'm stoked to add these guys to that list. Makes me feel good about where I am, but also reminds me I could be more aggressive. Getting married next year and definitely bringing my fiance into this financially saavy world lol
Would these recommended values apply to net worth as well? If I just consider my 401k, I am right at the 1.2x times gross income, but if I include all of my other assets like Roth IRA, crypto, brokerage account, it's way over 1.2x gross income
Great video, a lot of great information and very useful data presented. The one thing I will add, not financial advice (because I am by no means an expert) but free unwanted suggestion, is for ya’ll to live in the moment as well, and allow yourself to celebrate victories along the way. Yesterday is gone, tomorrow is not guaranteed, so try to enjoy the ride.
Pulled about $1M across 3 years to buy 2 duplexes and another house. Doubled my annual income, and having bought real estate on discount, my net worth is now 6x from 2009.
Sound advice but unrealistic if you go to professional school. My husband and I started late to the game (29) because of six figures in student loans. Thankfully, we refinanced our loans twice now for lower interest rates. I decided to return to school because three more years will more than double my income, expand my job prospects, and if I can teach at the college level my children may get reduced or free tuition. We are aggressively saving now in hopes of still reaching our goals by 60 y/o. Health is also wealth. Someone mentioned below, if you aren’t healthy enough to enjoy it... it’s almost a waste. I can’t think of a better way to squander your savings than not being selective in your care and having a sound advocate in the US health care system.
3.5% SWR is a lot safer than 4.5%. I never heard a financial advisor propose 4.5% before. I started saving at 35. I retired at 55, with net worth of $2m and no debt, and put 2 kids through college. I have been retired for 5 years. I have yet to touch my IRA or savings. I was lucky to have a well paid job, but you can make retirement comfortable if you start saving.
Do you have a video addressing the median US household which makes around $60k or less instead of those making $100k plus? Would be a good playlist of practical advice for the average Joe. I know I feel defeated hearing these numbers, investing 15%+ gross, when I'm focused on putting food on the table and keeping lights on.
The question should be how much do you need during retirement. That number will vary greatly from person to person. Someone who has zero debt and does not plan on traveling or spending a lot over Monthly expenses will need a fraction of what someone who still has a house payment and plans on traveling and maybe purchasing a new vehicle or two during retirement.
You know what huge mistake I made... At 22 (2008) I had a good paying job and putting money in my 401K. I was in the construction industry in Metro Detroit and as you can imagine, not much construction being done here in 2008. I got RIF'd along with 45% of the workforce at my company. Didn't know what to do so I went to my local bank and rolled my 401K into a traditional IRA. (that was terrible). I should've put it into my next 401K, because the compound interest would've been great. Instead, I had it in a bank IRA with low performance and high fee's and lost all of that buying power that my dollars would've had at 23 years old. It's grown, but minimally over the years whereas my 401K is kicking ass. Now I'm 35 and that $2800 is worth about $4500. I did the math and had I put it in a performing IRA or 401, there is a difference of about $85K about what it's worth vs what it will be worth taking the avenue I took. Only thing I was lacking is knowledge. Love your show. You guys have great chemistry and work awesome together. Keep up the great content! Tim
Ah, I'm 21 and just started a Roth IRA. Have about 4 months of $250 contributions right now. Now I just got to pay off my student loans and I'll be feeling a lot better.
