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 compound interest and potentially grow your retirement savings over time.
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 financial outcomes, who can provide specialized advice and methods to decrease expenses and maximize income.
I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor, 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 my advisor for over 2years+ and I've netted over 2.8million.
I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
I definitely share your sentiment about these firms. Finding financial advisors like Marisa Breton Dollard who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.
Marisa has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
I’m 55 from Southeastern Ohio but worked overseas all my life. I have savings of $1,000,000 and I'm ready for retirement, only concerned about the soaring inflation. Is this enough to retire comfortably, or do I need some sort of money management.
I would consider getting money management just in case. You're only 55, and while the average life expectancy in the US is 77.5 years, many people live well into their 80s. So, that $1 million has to last you through all of that and the unforeseen. $1 million is a great start though. Good for you!
I’m quite lucky exposed to personal finance at early age, started job 19, purchased first home 28. Going forward, got laid-off at 36 just after covid-outbreak, and at once hired an advisor with grit to help stay afloat. As of today, my portfolio has yielded over 300%, summing up $836k. Stay motivated friends
I retired last year age 56. Net worth 1.4 million: 30% home value, 60% equities & 401K, 10% cars, etc. 68K pension (not included in net worth). No debt. No mortgage. What is so strange was how easy this was to do off an OK income, wife only worked part time and did not work for ten years to raise the kids, vacationed, had nice things. We were just consistent with smart purchases and avoiding credit card debt and stupid coffee shop money suckers, made our lunches every day and avoided name brand clothing as reasonable, etc. Also tried to pay cash for large purchases. Also always maintained at least six months of emergency funds. Now that is up to three years spread out in high yield savings and money market accounts
Great job! And congratulations! Definitely ahead of the game according the Feds survey. Sounds like you were diligent & strategic in your planning. Thanks for adding your input!
Also, you never really run out of money because you always get SS and you expenses decline as you age so financial people like yourself should do a full disclosure on this topic.
I am 61 1/2, single, no kids and NO debt, with $975,000 so far in retirement savings and plan to work 2 more years till retirement and I am projected my monthly expenses in retirement to be right around $3500-$3600. My current salary is $76K and I am savings 32% of my salary toward retirement. I seem to be in MUCH better shape than the average.
Why are you working for 2 more years. Retired at 55 with $375,000 in my retirement funds, have 5 children, divorced twice and at 70 plus have approximately 1 million in my retirement account now. Applied for SS at 70 and it takes care of my financial needs so my Roth can really grow now. Being able to make money in any market condition is the key to a wonderful retirement.
Thank you for the information. I'm below the mean for my age group, but considering I had a negative net worth and no saving about 7 years ago. I'm on the right track and improving.
Throw the surveys in the trash. Except the one required by law. Something about how many people in household. Sometimes even throw that one away by mistake. They already know how much I have. Thanks for the info
Really enjoy your videos - thanks for keeping me on top of what we need to do and where we are at as we approach retirement. Looking at my wife and I individually, my retirement (401K / ROTH IRA) is in line with the average but not sure how to categorize my wife. Most of her retirement will be a pension(defined benefit), and her current balance if withdrawn today would be just a little above the median amount but projecting ahead a couple years, when she is eligible to retire, her monthly benefit amount once retired will be significantly higher (roughly 5-6 times) than what her current balance would produced in retirement income if it was in a regular 401k. I regularly watch your videos as well as some others as my wife and are closing in on retirement (hopefully early) and sometimes it is tough to quantify the pension in terms of "how much we have saved for retirement"
I'm below where I should be, about 1/2. But I'm not in a 1 size fits all category either. I'm 50 and haven't been serious about savings until my father's death 2 years ago. Since then I've been doing much better. 15% in a 401k, $14,500 in a Roth IRA. My employer provides a 401E (not sure what the "E" is) into which they deposit $2 for each hour worked (not bad eh?). We also have a pension.....for now, it's been diminishing for years. But my kicker is that I'm a disabled vet and have money coming in for that. Also i should be out of debt by the end of the year, no house/car/loan payment of any kind. So I think I'll be ok.
I just turned 47 and had never contributed to retirement myself until last year… thankfully my employer puts in 6% for me and it has a balance of just under $500k. My biggest focus is paying off the $420k i have left on my mortgage and maxing out my 457b (and maxing ROTH IRA via backdoor). I am also “fortunate” that i inherited 6.25% of a commercial building 10 years ago and my share of rental income is about $2.5k/mo and increases with lease renewals.
I'm 48, based on those numbers mentioned in the video, my number is below average but above median and I'm one of your clients. Guess I should talk to Dustin about my numbers then 🤨
It always surprises me that people seem to think "average" and "(arithmetic) mean" are the same thing. Mean, median, and mode are all forms of averages. If we're going to get into distinguishing the forms of "average," we should use the technical correct terms and refer to mean and median.
There must many that are retired on less than average retirement savings, it would be nice to survery them. If they have adjusted their spending to the income they get it should be possible. The retirement savings being used for unplanned expenses. With retirement savings, I don't think its a normal bell curve distribution of assets.
What if do not have a house? A lot of us simply cannot afford a house! Out here in California. A falling down shack near the ocean in pacific grove cost 1.1 million dollars!
I consider myself a very average/median sort of person - in most things. But I did work hard to get into a good paying career and we have lived below our means this past 30 years. We're doing pretty good. We're in our very early 60's and we've got a bit over 4x the average, not median, retirement investments. Net worth, not counting our house we're around double the average. Was it worth all the hard work? Probably. There are things we haven't done that some of our friends did spend money on. For us they weren't worth the cost, other people will value those experiences differently.
Sounds like you made some tough decisions to get where you are now. Nobody said it would be easy, but it sounds like you were diligent with your work! Nicely done and congratulations on the success :)
@@Jazzwealth Yeah, but making tough decisions in life is like investing. Make some good decisions early and they'll pay benefits all through life. I went into a challenging profession and school was hard. And those first few years of work were harder. But you figure things out and it gets easier as you go. That set me up for a career where living below our means wasn't nearly as painful as it could have been. Getting an earlier start also would have helped but I wouldn't trade that 10 years I worked with Mom & Dad in the family business for anything, even though money was pretty tight and I had to call it quits and go back to university.
My wife and I are 45. We have no debt, and are planning on retiring next year. 3 daughters, 21,19,17. I will also have a 70k annual pension. Net worth 2.7m Savings 1.9m
I'm taking care of retirement of 2 parents, 1 brother and his 2 kids, and 1 sister. So retirement of 1 person is $300K but I have 6 dependents so x 6, I need $1.8M.
I'd be retiring or working less in 8 years, and considering this financial recession, Im deciding to begin taking up skilled trades. I'm curious to know best how people split their pay, how much of it goes into savings, spendings or investments, l earn around $120K per year but nothing to show for it yet.
Let me ask this question; if you were to get $4,700.00 a month pension for the rest of your life, no debt, own a house and paid off, you are 50 years of age…would you retire? Doing a survey and hoping to get 100 people to answer this question. Thank you.
I'm 48 years old and because of a $325,000 inheritance my net worth is above the median of Americans at all ages. What I have in retirement accounts is below the median for my age bracket. I'm a renter don't own a car since I work remotely from home. Only about 15% of my net worth is in a Roth IRA and Roth 401k. I want to be able to touch money if I need to before 59 1/2 in my taxable brokerage account.
simple the total coming in must be more then the total going out ( factor in inflation), fortunately I and wife have no debt, great federal pensions with health insurance at the employee premium + medicare, not taking SS until FRA + Va disability payments, wife took SS at 63 10 months. Not touching IRA/TSP other then Roth conversions
most people who are concerned about retirement are nearer the median than the average due the high wealth people having such large numbers pushing the average up. So if you middle class, never use the average numbers. If you are middle class with a good employment record, maybe two earners, your social security is likely much better than 1907/mo. Look at your statements available online, do not use averages for this, and do not take it at 62, wait till least 65.
Well the stock market being up will only help if it doesn't crash. Assume most everyone knows that if the market has a hard crash (as it will by the end of this year) you will find yourself with half or less of what you had in your savings.
It's kinda good to know the general numbers, but each person needs to go full ancient Greek and 'Gnōthi sauton', or 'know thyself'. For me, that was knowing not to incur more debt where I don't need to (like buying a new car, for a new car sake), and to time having the house completely paid off when I am ready to retire. I actually already qualify for a decent pension with almost 30 years in education, but I still have some personal financial work to do. We have been luck enough to be above average in most cases, but we also detoured ourselves a bit taking in a few young men who needed a place to build from. So we will see where it all ends up, but I still stick to something my Dad taught me as a kid, and that is to "always pay yourself first". Then live on what's left over. At 55 now, I wish I had actually done more when younger. /ramblings 🙃 Now if they actually do the right thing on social security, that can change a lot for those who haven't had the mentoring and advice some of us were lucky to have.
In 2024,don't set new year financial goals without consulting a financial adviser.there expertise ensure a solid plan for success.Building wealth involves developing good habits like regular putting money away in intervals for solid investments.
I have no idea where YOUR Federal Reserve numbers are coming from, but they are not even close to being accurate. The Total Median Retirement savings at the age of 62 is just $10,400. Thats it, and that for an entire household! The average is $325,000 which is totally meaningless in a society with such income and wealth inequality that is in the US, which has one of the highest wealth inequality in the entire First World. These number comes from the 2022 Federal Reserve SCF Survey.
You know, the fact that you say you "run out of money" is disingenuous. Still have SS coming in! Also, you don't fail - you adjust... like all the millions who retire with this kind of scenario. STOP FREAKING PEOPLE OUT!
Certainly not my intention to freak people out. I was simply showing the averages and tried to build a plan around that to see how it would play out. The plan almost worked and with a few adjustments I'm sure it could work! Thanks for watching and for your input! :)
We NEED people to freak out. We have way too many seniors complacently walking into poverty with nothing in their retirement accounts (a full 25% of new retirees). Having only SS in retirement is not something you should find acceptable user-yq8
I don't understand why men RU-vidrs have to talk fast or like they are shoving information down our throats. Would be such a better listening experience for all if they were conscious of how they sound to the listening audience.
If you're saying that I talk fast, then you are the very first person to say that I do so. I apologize for that. It's important to know that you can speed up/slow down any youtube video by clicking the settings icon and selecting the playback speed to be faster/slower! :)
@@Jazzwealth I'm aware of changing the speed on the computer, but then it is like listen to someone in slow motion. Just talk as if you are have a two way conversation with someone. Allow your audience to digest what you are saying. So many male RU-vidrs vomit word salad to the listening audience, and it's annoying. As if they think they are smarter, because they can talk fast. Try and be better than that. Other wise it's like being around a hyped up child who needs Ritalin.
