Behind on retirement savings

[Anonymous]

I am in mid 40s and have less than $150K in 401K after working for 20 years. I was in contractual roles for a while and hence 401K wasn't an option from the employers. But even otherwise, I was not wise enough to evaluate alternatives for retirement savings. When 401K was an option, I tried to contribute as much as I could. More than half of my career life is over and I realize I was quite dumb. What are my options going forward? Currently I am making 10% contributions toward 401K and employer doesn't match.
Fwiw, spouse is better than me but not great. We have 2 elementary school level kids.
Thumb rule says by mid 40s, one should have thrice as much as their salary in retirement savings and I panicked when I got to know about it.

[Anonymous]

Just contribute the max in the future. For 2024, the maximum amount is $23k. Set it up, adjust your budget accordingly, and forget about the rest. It will add up over the next decade.

[Anonymous]

Stop beating yourself up, do your best starting now. Make sure you’re contributing at least the full match your employer offers.

[Anonymous]

You still have roughly 20 years left … Max now if you can and throughout your 50s until retirement. Start a Roth IRA. You’ll be fine

[Anonymous]

It’s great that you are paying attention to it now, OP! Keep at it. Try to save the max every year. And if your income goes up, save more in brokerage accounts. You got this!

[Anonymous]

Despite what you read here, you’re actually WAY ahead of most at your age. Just keep at it and recognize that we have no idea what things look like in 20 years.

[Anonymous]

What did you do with your money? Don’t you have other savings outside of 401k?

I have also been a contractor for 20+ years. I have even less than you have ($90K) in my retirement account (IRA). I didn’t know about the benefits of retirement accounts for most of my career. I was saving and investing my money in brokerage accounts. My portfolio has grown to $2.5M. A mix of individual stocks and index funds.

[Anonymous]

Max out going forward, and you will have $ 1.5 million in 20 years.

[Anonymous]

I moved overseas just after college and worked in various expat destinations and didn't come back to the US till I was 39 when I first opened up a 401k. Flash forward four years, I have 150k in the account. I will be maxing every year till I retire and don't plan on touching it until I'm 70, and all the calculators show sums well in excess of $1M. But we shall see.

You should also see what options you have for investing your 401k. I put mine entirely in a S&P linked fun. A few percentages difference in annual growth pays off handsomely in the long run.

Figure out how to max out the 401k every year going forward. That is what you need to do.

[Anonymous]

Anonymous wrote:Stop beating yourself up, do your best starting now. Make sure you’re contributing at least the full match your employer offers.

+1

You can't change the past so don't dwell on that. The good news is you've realized you need to prioritize this and can work on it going forward.

[Anonymous]

Gosh as another person way behind on retirement savings - I just want to say thanks to the people on this thread for being supportive, kind, and helpful. I actually feel better reading this.

[Anonymous]

Don't think 401k is some magical thing. Check for high fees and do you homework about what to buy inside of the account.
More important than that account is Roth IRA though I don't know your HHI.
I have never had 401k at any jobs. I started Roth in 2006 when I finally got the right to even work in the US. I emptied it soon after because the economic downturn.
In my early 40s I made personal finance my hobby. Six years later I work only part time and take several vacations a year. I have enough to retire now.
Don't leave it up to your job or the banks holding your money. They do what's best for them.
You can buy and sell stocks inside Roth IRA with no problem. This information is very hard to come by. Do it only once you know more about investing. Right now, open it and go for Voo and equivalent. NFA.
Your money should double every 7 years or so. Check the 401k for the amount you put in vs growth. 10% of your income doesn't say much. It is possible that the $150k is all yours that you put in and no growth minus fees.

[Anonymous]

Anonymous wrote:I am in mid 40s and have less than $150K in 401K after working for 20 years. I was in contractual roles for a while and hence 401K wasn't an option from the employers. But even otherwise, I was not wise enough to evaluate alternatives for retirement savings. When 401K was an option, I tried to contribute as much as I could. More than half of my career life is over and I realize I was quite dumb. What are my options going forward? Currently I am making 10% contributions toward 401K and employer doesn't match.
Fwiw, spouse is better than me but not great. We have 2 elementary school level kids.
Thumb rule says by mid 40s, one should have thrice as much as their salary in retirement savings and I panicked when I got to know about it.

Seriously? Save more.

[Anonymous]

I'm a little ahead of you but have the same feeling. I known I'm still about 20 years from retiring so plenty of 'time in the market' as folks say to let my money grow. Little by little it will add up and compound in growth. Good luck!

[Anonymous]

Ramp it up now. What else can you do?