Anonymous
Post 08/23/2025 07:10     Subject: 401k question
Anonymous wrote:
Here's how to figure out where you stand:

Take your age and multiple it by your household income then divide by 10.

So: [Your age] x [pre-tax annual household income from all sources, except inheritances] / 10 = your "expected" net worth

From there, you're categorized in one of three ways:

1. Under accumulators of wealth (UAWs) are those whose real net worth is less than one-half of their expected net worth.

2. Average accumulators of wealth (AAW) are on par with their expected net worth.

3. Prodigious accumulators of wealth (PAWs) have a net worth twice their expected level.


If you are yonger, don't worry if you haven't reached 1 yet. If you are older(45 and up) and not in 2 or 3, you need to make adjustments to save more and invest more aggressively.




That seems low for older ages
Anonymous
Post 08/22/2025 23:02     Subject: Re:401k question
Anonymous wrote:I'm early 30's and I have about 40K in mine but I got a late start and took a hit from the market (like everybody else). I also only contribute 6% but I hope to start saving more once my DS starts public school.


You don’t have to justify this. Just getting started is tough when you’re in your early 30s. You’re doing a good job. Kids are expensive, parents who were able to start under 30 or so are ahead of the game.
Anonymous
Post 08/22/2025 22:44     Subject: 401k question
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:This thread is 13 years old!


Omg!! That explains it. Wow


I wish OP would check back in!


OP probably doesn’t even remember this thread.
Anonymous
Post 08/22/2025 20:18     Subject: 401k question

Here's how to figure out where you stand:

Take your age and multiple it by your household income then divide by 10.

So: [Your age] x [pre-tax annual household income from all sources, except inheritances] / 10 = your "expected" net worth

From there, you're categorized in one of three ways:

1. Under accumulators of wealth (UAWs) are those whose real net worth is less than one-half of their expected net worth.

2. Average accumulators of wealth (AAW) are on par with their expected net worth.

3. Prodigious accumulators of wealth (PAWs) have a net worth twice their expected level.


If you are yonger, don't worry if you haven't reached 1 yet. If you are older(45 and up) and not in 2 or 3, you need to make adjustments to save more and invest more aggressively.


Anonymous
Post 08/22/2025 20:12     Subject: 401k question
Anonymous wrote:OP is probably dead by now. This thread started in 2012


The others can learn from the question.
Anonymous
Post 08/22/2025 20:11     Subject: 401k question
Anonymous wrote:I'm in my mid-30s and will likely have just my 401k + SS to live off of when I retire one day. How much is a good amount to have in there at this stage? How much do other people have in a 401k by their mid-30s? Thanks!


First, I had a separate "rainy day" fund which was in cash equivalents and had 4+ months of (after-tax) income set aside. This was to cover unexpected financial events.

My 401(k) was 100% in a low cost S&P500 Index Fund, because those were (and are) my retirement funds.
Anonymous
Post 08/22/2025 17:54     Subject: 401k question
OP is probably dead by now. This thread started in 2012
Anonymous
Post 08/22/2025 17:52     Subject: 401k question
I may be in the minority here but I don't think the number is important. The most important thing is consistency. Get used to saving a set amount ideally maximizing your contribution. And avoid debt. The only debt you should have should be your mortgage and it should be a reasonable amount.

Being consistent is more important than have a specific amount.