How Much You Should Save In Your 401K By Age 

How many magic tricks did you spot? There's a few!

I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals?

I always have a huge problem with the X times your annual salary. Say for instance your scraping by with a nice salary of 100K a year. You've saved up 9x by the time your 60. Then you get a huge promotion or change jobs and now your salary is 200K. Instantly now according to the X time matrix your in trouble because you only have 4.5x your salary at Age 60. Are you really in trouble though and that answer is no and not even close UNLESS you changed your spending habits. It "should" be a multiple of not your earnings but your expenses. Same thing goes if you make 100K a year but only have 300K saved. You lose your job and start working at a fast food store making 30K a year. WOW you've saved 10X amount of money you can retire in comfort. Um no... However if you make 100K a year which is about 60K after taxes but your expenses re 30K. You saving 2x your take home pay. Your expenses at the end of the year aren't 80% of the 100K but 80 to 90% of your expenses. That multiplier should be a multiple of your spending habits not your earnings.

I like that this channel is going back to its root of focusing on investing for regular people

Can you do a video explaining how you live off your 401k in retirement? Dividends, selling shares ect. Id love to hear your explanation. Great content! Liked and followed.

Best advice: start EARLY. The second you start working set aside some of your wage for retirement and continue the habit no matter what. Increase the percentage you save every time you can (you likely get a raise each year). Even someone with a low working wage can have $1million in retirement with diligence and diversification.

Glad you are supporting your parents. I love people that don't forget to give back to their parents that worked hard to raise you

My last day of employment was this past Thursday. No mortgage or a car payment. I have a chunk in savings but I don’t see myself dipping into it because my burn rate is below my streams of income from rentals, 401k, interest from savings and pensions. My only advice is to payoff everything before you retire and carry no obligations.

"I already have dependents even though I've got no kids" I related to this line on a whole nother level!

Really enjoyed this video. I'm considering your advice, because thousands of dollars have been disappearing from my 401k due to soaring inflation, and my concern is where to safeguard and grow remaining cash about $500k+ for the next 2-3 years at no risk. I'd love to retire early and afford a life after retirement.

Thank you. Now I don't feel so bad about the 28k in my 401k, but I really do need to kick it in to gear. I've been stressed and feeling behind because I didn't start my first real job till I was 27 years old (I've had an odd life path) ... so I've only been contributing for 10 years. 🍀Great video - it makes it all seem much less - dire, lol. Also nice magic tricks.

Worth noting that according to Investopedia, Roth 401k contributions from employee are post-tax dollars but the matched dollars are pre-tax dollars and are put in a traditional 401k.

We choose Roth over 401k because taxes will be higher in the future, not because we plan on making more during retirement.

My problem with the 401(k) is that I don’t want to wait until I’m 65 or whatever to retire.

Most people put 13.8% of their salary into 401k? Well guess who just increased their contribution from 10% to 14%? Checkmate, Andrei.

3:36 I see you with the final fantasy music sneakily in a 401k video, you absolute hero

Sound advice, Andrei. Big fan of your content. With respect to the snippet you had of Tom Hegna at the top… I often say that if people truly understood that much-maligned product, which shall remain nameless here… that they would line up around the block to purchase it. First get your company match, then max your Roth, and then contribute to that other product. Otherwise you’re making a bet that the tax code won’t go up in the future when we’re at historical lows today with massive debt and budgeting issues. Not a wager I want to bet my retirement quality of life on.

It was a very bad decision to remove the Glass-Steagall Act in the late 1990s, which led to the spectacular failure of huge banks during the financial crisis of 2007-2008. To prevent another disaster, Dodd-Frank and this statute both need to be reestablished right away. What happened with SVB is only the beginning of what will happen if nothing is done to address the current situation.

Over 300k at 32. I've maxed that thing every year since I started working and I've been doing backdoor Roth the past few years. He's hoping the government doesn't steal it in the next 30 years 😁

This has got to be the best video from Andrei yet. Very entertaining and educational. Killer

I was lucky enough to start contributing at pretty much the bottom of the market (in recent memory anyway) in 08 so my returns have been pretty great. That COVID hit has been pretty sobering though. I would also recommend the zero fee Fidelity index funds for a side investment account.

Man, based on the numbers in this video, I am doing very well with my 401k...and I'm still terrified that I won't have nearly enough when I retire at 82.

4:56 - I would amend this part slightly. Not every company does a 1:1 match. My current company matches only 50% of my contributions, so it's only a 50% "guaranteed" return on my initial investment. I have also heard that some companies match higher than 1:1, but I've never personally experienced that.

Very good video. Lots of excellent information and still entertaining. Illustrating the difference between the average amount saved and the median isn't easy to do, but your explanation was spot on. It should also be truly eye-opening. There were two things you got wrong. The first one is, you pay off all debt except your mortgage before investing beyond the employer match for your 401k. The second thing you got wrong, and I mean REALLY wrong, is choosing between traditional or Roth, for any investments after what your employer will match. The question of whether or not you will spend more or less in retirement is often regurgitated by the well-meaning, so you're forgiven. The reality is, almost everyone spends less during retirement than they did during their working years, which would suggest you should stick to traditional 401k, but that's horrible advice! The better question is, do you want to pay taxes on the money you put into investments throughout your lifetime, or do you want to pay taxes on the interest earned on those investments, PLUS the money you invested, during retirement? The answer is very clear, or should be, for anyone with basic math skills. The Roth 401k is the better option, for anyone who can sustain the tax hit while working. Also, all of those "X" times by a certain age range is complete garbage, due to the rule of 72. If you earn 7.2% on your investments, they will double every 10 years. So, if you have 6X your salary by age 50 (and your salary doesn't increase exponentially!) you'll have 12X your salary by age 60, with just a modest 7.2% return. Those numbers are completely unrealistic and ignore the parabolic growth that virtually all investment accounts demonstrate in the last 3-5 years before retirement. Complete nonsense and you should know better! ;)

Loved the humor and the card tricks in this video!! 😂 Because I do watch your videos for the magic because it is better than realizing I am really behind on saving for my retirement!!

The trick they dont want you to know. Have more money! 🤯 I just found this channel and was cracking up. Great video and great info.

Make an HSA vider please!

Unfortunately, a lot of that information doesn't apply to many of us. I don't think the majority of people will have a home that is paid for by the time they retire. A lot of people can't even afford to buy a home period so many of us will be lifetime renters.

Roth is better than traditional. Gains not taxed.

I love this video. I’m obsessed with cards and I have a degree in economics, so money and card tricks are two of my favorite things! It’s a good thing I’ve committed to never gambling!

59 yo $250,000 in my 401k. Not sure if that’s enough, but that’s where I stand.

I knew the information in this video, but I'm incredibly happy you put this together. It's very easy to understand what you're explaining. It breaks the content into small digestible chunks for the average American.

millennials rn without a house 👁️👄👁️

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.

My base pay is 101k and I max out my 401, I maxed out 10 years ago when I made 80k, it's doable, I bought my house in 2010 too. Obviously everyones finances are different, but it's possible. You just have to commit.

The tax rate upon withdrawal is known for today but unknown for the cohort that will be making the tax code when we are withdrawal from the 401k account . The tax implications on retirement funds , such as capital gains and 401k can somehow be subject to voiding ss based on a need assessment. This will be judged by those that follow .

Remember, as you get older, your friends start to die off. You can save money by not socializing with them after they die. Or taking them out to dinner. Or buying them birthday and Xmas presents.

I signed up for the company 401K, but I don't think I can run that far.

Hey man, you earned a subscriber. I am glad you are focused on helping your parents out, something that is rare nowadays. I hope your youtube career skyrockets even more.

In the scenario where you make $75k a year, if you had that 3x by 40 and assuming the rule of 72 you’ll be at 3.6 million by 67. Contribution rate and time in the market will always be the biggest factors for growing wealth.

Many people do 401(k) and a Roth conversions because they realize you actually end up with more money in the end. No forced disbursements. Many retirees regret having a 401(k) and wish they would’ve used a Roth

A lot of the working class are retiring with only $100k, because the wages are so low. They really can't contribute much to a 401k. I know so many in their 70s/80s still working, because they can't afford to retire.

I am a first gen immigrant so I felt when you said your parents are your 'dependents'. I am 30 now, I just graduated and starting maxing out my 403b, 457 so I feel like I am late in the game but I guess better late than never.

I turn 40 next week and I have roughly 2x my income saved, but I am currently prioritizing traveling and having fun while I’m still young. I’ve heard way too many stories of people delaying things for retirement and them dying before they get to even enjoy their golden years. So I’m trying to have a balanced approach.

So I'm supposed to have 100k in my 401k. But minus taxes that's only 70k. That's not enough.

Get rich slowly!

Solid data, like button smashed!! Interesting subject to cover, I now need to go into the weekend and find the Canada data equivalent for if I don’t. DAS not good 😂

Actually the order to invest if you have limited funds is Roth first. not 401k with match. That would be secondary to Roth.

It’s criminal that these basic financial lessons aren’t taught in school. I only had teachers stressing that we should all contribute to our 401ks when I started college, and even that probably wasn’t a typical experience for most since I majored in accounting.

I'm 30 and I have 13k in my 401k the numbers were accurate

I'm an electrician in the Midwest. I make $150k a year plus my employer contributes $50k a year. Don't understand contribution trades

This is the first video I’ve ever seen that actually quantifies goes like you did. Really helps break it down to a reality check. First time seeing a video of yours but will definitely check more out Let alone addressing the issue of parents lack of retirement planning as I’m in a similar situation in that regard

36 and $320k in my 401k, think I'm okay.

Always do Roth. Rather pay taxes on the 100k I put in with a higher tax bracket then the $1 million+ it grows to at a lower tax bracket when I retire

Thank you for the reminder to switch to a Roth IRA, will be doing so this weekend lol

we need a whole series or 2nd channel on 401k's 💪🏽💖

I would love to hear about the HSA. Can you roll that over to an IRA eventually? Thank you for this video :)

And if the US defaults on its debt : “ Here’s how many hours you need to work to buy Taco Bell this week”

If all else fails call the Dave Ramsey radio show.

401k means you put in $4 and when you retire you only get $1 because of the taxes 😂

Some of those median numbers are shocking. I don't have a high paying paying job but I have more than the average of my age group. And that's not including my Roth IRA.

Very interesting topic you have discussed. I am retired. I had simple IRA but it was good investment. I invested more in real estate so I am ahead of game. I will pass this information to others.

I don't feel so bad now. I'm 35 with 240k in my 401K. Sad to know the average for my age is 36k.

Hey Andrei, keep putting up great content. Those card tricks were subtly impeccable. Quick question - how do you create those animations in your video?

I guess I’m doing good 53 @700k in 401?

Why do people compare them selfs to other. Do you best and BLOW those numbers out

The best way to build wealth is to start investing at a young age. A Teenager’s Guide on how to Invest Like Warren Buffett and Charlie Munger is a great book for new investors.

54 and just started my 401k 🤣🤦‍♂️ have zero savings and nothing else for retirement. No home, but also no kids or wife. So, regardless I’m retiring at 62. I’ll just figure it out 🤷🏻‍♂️

Can you do a video explaining after tax contributions? I work for an aerospace company and they offer the after tax contributions 401k

Basically you're telling us we're f'd.

The whole "you should have X times salary saved up by X age" makes no sense at all. We don't make a static salary throughout our entire career. Possibly a more thorough calculation if possible would be to calculate total lifetime gross earnings as an adult divided by years and go off of that.

I contribute to a Roth 401k, not because of the taxes will be higher or lower now, but because the way I see it, putting money in a Roth 401k is actually contributing more money. If you have 1 million in the account, it comes out tax free you keep it all. If you have 1million in the account on a traditional, and you get taxed at 20%, then it's like only having 800k in the account. So by contributing to Roth, I just see it as contributing more money, rather than play the tax number game.

sad backwards is DAS and DAS NOT GOOD LMAOO 😂😂 nothing like learning to become financially prepared and laughter. Thank you Andrei!!

Maybe I am the exception, but I roll my 401k over into my IRA every time I switch employers (about every 2-4 years as this is how you get raises in IT). So if you just looked at my 401k balance it paints an incomplete picture. Also, I have more than one IRA... so really you'd need to combine four different retirement accounts to see where I really am. Plus there is my wife's 401k & IRA accounts. Plus we have three regular brokerage accounts. This type of investing will screw up anyone trying to calculate averages and lead to lower numbers.

The median is not the “real” average, it’s a simply a different measure of central tendency. The “real” average is the average. The median is not the “real” average.

Know a lady retiring this month that has Roth accounts. She is retiring fairly early, but says she will be eligible for ‘Obama Care’ because Roth accounts aren’t reportable income. No worries about health insurance, which is why a lot of people do not retire, for that benefit.

Good vid.Please do a vid on an HSA account next, thanks

I am 67 so I wanted to subscribe since I found this information very interesting. The other thing to think about is to continue working while getting your social security. Once you reach your full retirement age you can work part time and my employer still contributes to my 401K and pays full benefits, so no Medicare.

Your content is magical

you got a good voice for voice overs

I’m 30 and have 65k in 401k

I feel bad for everyone with a 401k when the dollar collapses

How's no one talking about the ff7 cosmo canyon them in the background lol

One important reason to save in a Roth is you can get Market Place health insurance at no cost if you have minimal income and a Roth doesn't count as income. That is only if you retire before 65, which will be Medicare.

Had a 401k. in 2008 i lost 90% of my money and i got a check for 325, dollars from my 401k 👍👍

I’m 43 and started my 401k at age 39. I have 170k in it now.

Aujomatically

The anticipated amounts per age make no sense after 40. Age 30, probably working 7-8 years in a full time job, less if yoy have grad school. Very hard to hit 1x salary but possible if you invest all 7-8 years. Age 40: 3x salary. Still very tough but presumably achievable if you stay aggressive. Age 50: 6x salary. Why is this so low? When getting little compounding we need to triple our portfolio but now that we have a big pile of money now we only need to double it in the time we just tripled it? Age 60: 8x salary. What in the world??? This will happen at like age 53 if you dont add anymore money. Age 67: 10x. So from age 30-40 we had to triple our money. From age 50-67, our best compounding years we dont even need to double our money in twice as long? Anyone who hits the goal for 40, will absolutely obliterate the other goals. Unless im missing something

I think overall a good advice and something that all of us need to hear when we're young.

The money that you earn right now won’t mean anything in the future when inflation decreases the value of it. Saving for retirement is a scam. That’s why many older people are running out of money today because the 5$ an hr they got back in ‘78 doesn’t mean anything today.

my advice is don’t rely on ur retirement account to retire. learn a high paying skill and scale. why do people just wanna work a 9-5 until they’re 65??

Prioritizing your Investments graph is also golden.. simply golden.

There are so many economically ignorant people out there, especially in the under 40 demographic. The sad thing is they don’t even care to learn about it, they just go along maxing out credit cards on stupid things.

Inflation keep going the way it’s going it won’t matter

401k by age is meaningless. It’s all about what area you are living in and the cost of living.

Just stumbled upon your channel today and I have got to say, this was a great video. Everything was simple and straightforward. You got a new sub!

SO thankful I have TriCare! when I hit 65, it becomes a supplemental to Medicare and is free. It covers the remainder of Allowable Costs not covered by Medicare. And that is a LOT. Plus, I can go to VA (ugh)

Lol the cash value life insurance switch up feels like the old “friend” reaching out and finding out it’s for a pyramid scheme 😂

That’s a nice AP watch!

Half that ppl save up this money for retirement then can't even spend the money