Typical "all-in" savings - early 40's

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anyone in their 40’s not have a million?

I’m not 40 but my husband is and all we have is 401k and home equity. We have about 200k

Not sure if it makes a difference that I’m in my early 30’s. I feel significantly behind, reading this.

A lot of these posts are probably fake, just keep that in mind.

Nah you have to remember with company matches most people are putting away around 25k 18k + 7k match and that's 50k for 2 people working minimum some people are putting away much more

in 20 years very easy to have that much. 50k*20 years = 1 million bucks just in principal

of course 20 years ago you weren't saving that much but we aren't taking any investment growth into account

You have a distorted view of what most people do. Most households are unable to have two people put away the IRS max. Lots of jobs have no match. Even fewer people could put away that much through their 20s which covers about half the window here.

Not everyone here has two people in Biglaw who can easily each put away $18k, and most of those Biglaw jobs actually don't have a match.

Neither of us is in Biglaw and I put away $18K / year and maxed IRAs. We were frugal and earned normal incomes.

What's most important, though, is not how much you put away but what percentage of your income you save. For every dollar you save, you are not spending a dollar. That reduces your lifestyle expenses, and *that* means you need less for retirement.

This is a numbers game.

What do you consider a normal income? A family with an HHI of $80k, for example, almost certainly can't put $36k awaypre-match and lots of employers don't provide much if any match.

I agree people can and should save a higher % of their income, but you have shifted the goal pasts considerably from most people have two people who max out. Saving 10% is considered pretty good, but a family saving $8,000 will have a very hard time getting anywhere near the numbers quoted here. Moreover, a family making $80k at 40 probably made a good bit less in their 20s and early 30s, further eroding the raw amount that can be built up even with diligent savings.

[Anonymous]

For a post such as this what $ amount should be considered when counting pensions? The amount I have contributed? Total contributions? Payout would have to be a guesstimate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anyone in their 40’s not have a million?

I’m not 40 but my husband is and all we have is 401k and home equity. We have about 200k

Not sure if it makes a difference that I’m in my early 30’s. I feel significantly behind, reading this.

A lot of these posts are probably fake, just keep that in mind.

Nah you have to remember with company matches most people are putting away around 25k 18k + 7k match and that's 50k for 2 people working minimum some people are putting away much more

in 20 years very easy to have that much. 50k*20 years = 1 million bucks just in principal

of course 20 years ago you weren't saving that much but we aren't taking any investment growth into account

You have a distorted view of what most people do. Most households are unable to have two people put away the IRS max. Lots of jobs have no match. Even fewer people could put away that much through their 20s which covers about half the window here.

Not everyone here has two people in Biglaw who can easily each put away $18k, and most of those Biglaw jobs actually don't have a match.

Neither of us is in Biglaw and I put away $18K / year and maxed IRAs. We were frugal and earned normal incomes.

What's most important, though, is not how much you put away but what percentage of your income you save. For every dollar you save, you are not spending a dollar. That reduces your lifestyle expenses, and *that* means you need less for retirement.

This is a numbers game.

What do you consider a normal income? A family with an HHI of $80k, for example, almost certainly can't put $36k awaypre-match and lots of employers don't provide much if any match.

I agree people can and should save a higher % of their income, but you have shifted the goal pasts considerably from most people have two people who max out. Saving 10% is considered pretty good, but a family saving $8,000 will have a very hard time getting anywhere near the numbers quoted here. Moreover, a family making $80k at 40 probably made a good bit less in their 20s and early 30s, further eroding the raw amount that can be built up even with diligent savings.

This is DCUM average income is north of 250k. I was just showing how people could have 1 million saved by their 40s easily

[Anonymous]

Anonymous wrote:With home equity:

Home equity - 500K on a 2M house
529 - 18K in one 529 (3 year old); 5k in one 529 (8 month old) - we contribute $750 a month to each
Retirement - 700K
Brokerage/Savings - 115K

We are 39 and 34. Probably should have built up more savings before taking on such a big house but such is life.

Why is it so hard for people to read a post and determine if it is relevant to them before responding?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anyone in their 40’s not have a million?

I’m not 40 but my husband is and all we have is 401k and home equity. We have about 200k

Not sure if it makes a difference that I’m in my early 30’s. I feel significantly behind, reading this.

A lot of these posts are probably fake, just keep that in mind.

Nah you have to remember with company matches most people are putting away around 25k 18k + 7k match and that's 50k for 2 people working minimum some people are putting away much more

in 20 years very easy to have that much. 50k*20 years = 1 million bucks just in principal

of course 20 years ago you weren't saving that much but we aren't taking any investment growth into account

1) Most people are not doing that. Only about 10 percent of all workers max out their 401(k).
2) Even for people who are, most employers are not providing $7,000 on an $18,000 contribution. The median among Vanguard-administered 401(k) plans is 4 percent, and only the top 16 percent offer a match of more than 6 percent. To get a $7,000 match at 4 percent, you'd have to be making $175,000, which "most people" aren't.
3) Even if you are doing that now, odds are you weren't also making $175,000, maxing out your 401(k) and getting a generous match 20 years ago.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anyone in their 40’s not have a million?

I’m not 40 but my husband is and all we have is 401k and home equity. We have about 200k

Not sure if it makes a difference that I’m in my early 30’s. I feel significantly behind, reading this.

A lot of these posts are probably fake, just keep that in mind.

Nah you have to remember with company matches most people are putting away around 25k 18k + 7k match and that's 50k for 2 people working minimum some people are putting away much more

in 20 years very easy to have that much. 50k*20 years = 1 million bucks just in principal

of course 20 years ago you weren't saving that much but we aren't taking any investment growth into account

1) Most people are not doing that. Only about 10 percent of all workers max out their 401(k).
2) Even for people who are, most employers are not providing $7,000 on an $18,000 contribution. The median among Vanguard-administered 401(k) plans is 4 percent, and only the top 16 percent offer a match of more than 6 percent. To get a $7,000 match at 4 percent, you'd have to be making $175,000, which "most people" aren't.
3) Even if you are doing that now, odds are you weren't also making $175,000, maxing out your 401(k) and getting a generous match 20 years ago.

Try reading comprehension try this is DCUM top 5% of people in the country try getting a brain thanks

[Anonymous]

I thought we were doing well, but now I feel so poor after reading your numbers.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anyone in their 40’s not have a million?

I’m not 40 but my husband is and all we have is 401k and home equity. We have about 200k

Not sure if it makes a difference that I’m in my early 30’s. I feel significantly behind, reading this.

A lot of these posts are probably fake, just keep that in mind.

Nah you have to remember with company matches most people are putting away around 25k 18k + 7k match and that's 50k for 2 people working minimum some people are putting away much more

in 20 years very easy to have that much. 50k*20 years = 1 million bucks just in principal

of course 20 years ago you weren't saving that much but we aren't taking any investment growth into account

1) Most people are not doing that. Only about 10 percent of all workers max out their 401(k).
2) Even for people who are, most employers are not providing $7,000 on an $18,000 contribution. The median among Vanguard-administered 401(k) plans is 4 percent, and only the top 16 percent offer a match of more than 6 percent. To get a $7,000 match at 4 percent, you'd have to be making $175,000, which "most people" aren't.
3) Even if you are doing that now, odds are you weren't also making $175,000, maxing out your 401(k) and getting a generous match 20 years ago.

Try reading comprehension try this is DCUM top 5% of people in the country try getting a brain thanks

How did PP's response show a lack of reading comprehension? Nothing in your prior post specified your comment was limited to the 'DCUM crowd,' which anyway has more people outside the top 5% than you acknowledge.

Two different posters have raised similar reasoned responses to your misguided post. That your response or "get a brain" shows your inato respond on the merits.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anyone in their 40’s not have a million?

I’m not 40 but my husband is and all we have is 401k and home equity. We have about 200k

Not sure if it makes a difference that I’m in my early 30’s. I feel significantly behind, reading this.

A lot of these posts are probably fake, just keep that in mind.

Nah you have to remember with company matches most people are putting away around 25k 18k + 7k match and that's 50k for 2 people working minimum some people are putting away much more

in 20 years very easy to have that much. 50k*20 years = 1 million bucks just in principal

of course 20 years ago you weren't saving that much but we aren't taking any investment growth into account

1) Most people are not doing that. Only about 10 percent of all workers max out their 401(k).
2) Even for people who are, most employers are not providing $7,000 on an $18,000 contribution. The median among Vanguard-administered 401(k) plans is 4 percent, and only the top 16 percent offer a match of more than 6 percent. To get a $7,000 match at 4 percent, you'd have to be making $175,000, which "most people" aren't.
3) Even if you are doing that now, odds are you weren't also making $175,000, maxing out your 401(k) and getting a generous match 20 years ago.

PP here with $1m in 401(k)s. How we did it: 2 workers who maxed out contributions. One employer gave no match. One employer gave an incredible contribution. The max amount allowable, which was something like $30k last year. And some good years in the stock market.

The match my spouse received is really unusual and I wouldn’t expect most people to have $1m in 401(k)s at 40 just by their own savings and a normal 3-4% match.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anyone in their 40’s not have a million?

I’m not 40 but my husband is and all we have is 401k and home equity. We have about 200k

Not sure if it makes a difference that I’m in my early 30’s. I feel significantly behind, reading this.

A lot of these posts are probably fake, just keep that in mind.

Nah you have to remember with company matches most people are putting away around 25k 18k + 7k match and that's 50k for 2 people working minimum some people are putting away much more

in 20 years very easy to have that much. 50k*20 years = 1 million bucks just in principal

of course 20 years ago you weren't saving that much but we aren't taking any investment growth into account

1) Most people are not doing that. Only about 10 percent of all workers max out their 401(k).
2) Even for people who are, most employers are not providing $7,000 on an $18,000 contribution. The median among Vanguard-administered 401(k) plans is 4 percent, and only the top 16 percent offer a match of more than 6 percent. To get a $7,000 match at 4 percent, you'd have to be making $175,000, which "most people" aren't.
3) Even if you are doing that now, odds are you weren't also making $175,000, maxing out your 401(k) and getting a generous match 20 years ago.

Try reading comprehension try this is DCUM top 5% of people in the country try getting a brain thanks

How did PP's response show a lack of reading comprehension? Nothing in your prior post specified your comment was limited to the 'DCUM crowd,' which anyway has more people outside the top 5% than you acknowledge.

Two different posters have raised similar reasoned responses to your misguided post. That your response or "get a brain" shows your inato respond on the merits.

can you do math idiot

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anyone in their 40’s not have a million?

I’m not 40 but my husband is and all we have is 401k and home equity. We have about 200k

Not sure if it makes a difference that I’m in my early 30’s. I feel significantly behind, reading this.

A lot of these posts are probably fake, just keep that in mind.

Nah you have to remember with company matches most people are putting away around 25k 18k + 7k match and that's 50k for 2 people working minimum some people are putting away much more

in 20 years very easy to have that much. 50k*20 years = 1 million bucks just in principal

of course 20 years ago you weren't saving that much but we aren't taking any investment growth into account

You have a distorted view of what most people do. Most households are unable to have two people put away the IRS max. Lots of jobs have no match. Even fewer people could put away that much through their 20s which covers about half the window here.

Not everyone here has two people in Biglaw who can easily each put away $18k, and most of those Biglaw jobs actually don't have a match.

Neither of us is in Biglaw and I put away $18K / year and maxed IRAs. We were frugal and earned normal incomes.

What's most important, though, is not how much you put away but what percentage of your income you save. For every dollar you save, you are not spending a dollar. That reduces your lifestyle expenses, and *that* means you need less for retirement.

This is a numbers game.

What do you consider a normal income? A family with an HHI of $80k, for example, almost certainly can't put $36k awaypre-match and lots of employers don't provide much if any match.

I agree people can and should save a higher % of their income, but you have shifted the goal pasts considerably from most people have two people who max out. Saving 10% is considered pretty good, but a family saving $8,000 will have a very hard time getting anywhere near the numbers quoted here. Moreover, a family making $80k at 40 probably made a good bit less in their 20s and early 30s, further eroding the raw amount that can be built up even with diligent savings.

I've been maxing out 401k since I got my first professional job at age 23 and made a gross income of 52k/yr. It boils down to your ability to plan for the future and make sacrifices. Americans are culturally repulsed by the concept of financial sacrifice. This is simple the byproduct of a consumer economy.

I've worked 4 different jobs. All have matched. At varying levels and 20 years into my work career u have North of 1M.

I will bet you though that my house and car are not nearly as nice as many others who have smaller retirement funds. Everyone prioritized and makes difference choices.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anyone in their 40’s not have a million?

I’m not 40 but my husband is and all we have is 401k and home equity. We have about 200k

Not sure if it makes a difference that I’m in my early 30’s. I feel significantly behind, reading this.

A lot of these posts are probably fake, just keep that in mind.

Nah you have to remember with company matches most people are putting away around 25k 18k + 7k match and that's 50k for 2 people working minimum some people are putting away much more

in 20 years very easy to have that much. 50k*20 years = 1 million bucks just in principal

of course 20 years ago you weren't saving that much but we aren't taking any investment growth into account

You have a distorted view of what most people do. Most households are unable to have two people put away the IRS max. Lots of jobs have no match. Even fewer people could put away that much through their 20s which covers about half the window here.

Not everyone here has two people in Biglaw who can easily each put away $18k, and most of those Biglaw jobs actually don't have a match.

Neither of us is in Biglaw and I put away $18K / year and maxed IRAs. We were frugal and earned normal incomes.

What's most important, though, is not how much you put away but what percentage of your income you save. For every dollar you save, you are not spending a dollar. That reduces your lifestyle expenses, and *that* means you need less for retirement.

This is a numbers game.

What do you consider a normal income? A family with an HHI of $80k, for example, almost certainly can't put $36k awaypre-match and lots of employers don't provide much if any match.

I agree people can and should save a higher % of their income, but you have shifted the goal pasts considerably from most people have two people who max out. Saving 10% is considered pretty good, but a family saving $8,000 will have a very hard time getting anywhere near the numbers quoted here. Moreover, a family making $80k at 40 probably made a good bit less in their 20s and early 30s, further eroding the raw amount that can be built up even with diligent savings.

I've been maxing out 401k since I got my first professional job at age 23 and made a gross income of 52k/yr. It boils down to your ability to plan for the future and make sacrifices. Americans are culturally repulsed by the concept of financial sacrifice. This is simple the byproduct of a consumer economy.

I've worked 4 different jobs. All have matched. At varying levels and 20 years into my work career u have North of 1M.

I will bet you though that my house and car are not nearly as nice as many others who have smaller retirement funds. Everyone prioritized and makes difference choices.

Same here. I am 42 and I maxed out my 401K and IRA since my first job making 32K a year. These two account combined is 1M. It's starting early in saving, continue the course and compound interest.

[Anonymous]

Anonymous wrote:About 1.1M without home equity. 45 and 43, kids 11 and 13.

this is about us too, but kids are younger.

[Anonymous]

Chiming in to counteract all these rich people: We are in our 40s with middle school age kids. $170k HHI (dual), live in DC, and have about 500k in retirement savings, 20k in 529s, $3000 in our savings account. And I'm actually proud of us! Saving is hard.

We do have 400k in home equity but that's not really helpful since we plan to stay in DC for the rest of our careers.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Anyone in their 40’s not have a million?

I’m not 40 but my husband is and all we have is 401k and home equity. We have about 200k

Not sure if it makes a difference that I’m in my early 30’s. I feel significantly behind, reading this.

A lot of these posts are probably fake, just keep that in mind.

Nah you have to remember with company matches most people are putting away around 25k 18k + 7k match and that's 50k for 2 people working minimum some people are putting away much more

in 20 years very easy to have that much. 50k*20 years = 1 million bucks just in principal

of course 20 years ago you weren't saving that much but we aren't taking any investment growth into account

You have a distorted view of what most people do. Most households are unable to have two people put away the IRS max. Lots of jobs have no match. Even fewer people could put away that much through their 20s which covers about half the window here.

Not everyone here has two people in Biglaw who can easily each put away $18k, and most of those Biglaw jobs actually don't have a match.

My Biglaw matches and does profit-sharing for associates and staff. It's only partners that have to handle all their own benefits.