401k Savings Rates Are Going Up (What's Going On?!)

401k Savings Rates Are Going Up (What's Going On?!)





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[The-Financial-Hooper]

‘If you think the market is high now, wait til you see it 10 years from now’ - essential investing advice for the common investor to avoid the trap of timing the market… focus on your savings rate instead!

[JCNY]

My kids (18 & 20) save 100% of their summer income in ROTH and invest in broad market index fund. Their spending money is the 20% match from me … I am so proud of them 😊

[michaelhenderson]

Great show guys, I am 54 and have already maxed out my 410k including the catch-up amount, and both mine and my wife's Roth IRA for 2024 as of july 1. My Hsa will max out by the end of the year. Now I am going to switch to funding my taxable brokage account with the amount I was putting into my 401k each paycheck.

[tisforthomasss]

I work for one of the top 401k record keepers in the nation and weve been SLAMMED for months. Literally can barely walk away from my desk.

[hulkslayer]

Thanks to shows like this and Calleb Hammer, i realized I have 36k in a 401k that I forfot my boss set up for me. Im 44, so I am far behind, but better than nothing and better late than never as far as trying to be financially responsible.

[rebeltheharem]

I'm a lucky person, who has both a 401K and 457B. And I max out both every year along with my ROTH IRA. But its crazy, cause its around 60% of my income every year.
But, I don't have kids, nor do I pay rent, and I still have enough to pay for all the things I enjoy in life, like traveling, hobbies, hanging out with friends. I would say I'm pretty lucky to be able to do that.

[johnboughner]

I keep telling my friends to watch the money guy show.

[TuBui]

High level, my read on this is, more 401k savings --> more money in market, stocks go up (yay for those who are in market now) --> less money in economy, inflation goes down (less yay?)

[elmateo]

Annuities are NOT magically guaranteed income. They aren't insured by the FDIC, and only last as long as the annuity provider doesn't go bankrupt. If the annuity provider is just taking your money and investing it in index funds then giving you a portion of the earnings, you'd always be better off investing the money in index funds yourself then taking the same % as income.

[pilot]

Thanks. Didn’t really think about dipping into emer savings if needed. Try not to touch it. But that makes sense and will undoubtedly help me maintain a higher avg savings rate in the end.

[jplebihan]

Wine is indeed a lot cheaper on average in Europe. A few key factors:
1) European countries generally have lower taxes on wine compared to the US. The US imposes various federal, state, and local taxes on alcoholic beverages, which can significantly increase the final price.
2) Distribution and Import Costs: In the US, the three-tier distribution system (producer, distributor, retailer) adds extra costs. Importing European wines involves additional shipping, customs duties, and distributor fees, all contributing to higher prices.
3) Subsidies and Support: The European Union provides subsidies and support to winemakers, helping to keep production costs low. This is less common in the US.
4) Cultural Factors: Wine is an integral part of European culture, leading to higher demand and consumption. This creates economies of scale, reducing per-unit costs. In the US, while wine consumption is growing, it hasn't reached the same level of cultural integration.
5) Market Competition: The wine market in Europe is highly competitive, with numerous local producers vying for consumers' attention. This competition helps to keep prices low. In the US, the market is more consolidated, often leading to higher prices.

[dkaik]

They mention the caveat that the vanguard % falls under their 25% goal. But to be fair, that vanguard figure doesn’t denote IRA/HSA savings I’d imagine and only denotes 401k savings. So actual savings rate could very well be better

[flamingjune]

Every one of Bo’s friends is wondering if they got a “Bless their heart” after a BBQ.

[darellhunter]

Firmly in the messy middle and local to the Nashville area, thank you to the money guy team for putting out quality financial content.

[SF-fblv]

I really like that 'dollar fer dollar match' of the child's savings to encourage savings.
Also, I GET the Socratic method, but the "walk me through it..." is really good - it forces them to examine every step of what they did thoroughly enough to actually explain it.

[sdguy]

Damn. I saw the title and thought it meant the max limits were going up and I got excited

[angieharris]

We have a lot of vineyards in California and they are all pricier than Europe, even though it's local.

[rusilver]

whatever is said, Bo is sure to 'love it'!

[Brucefulness]

The wine talk had me cringing. 😩 Hire me to be the in-house sommelier at Abound Wealth. 😊🙃

[cherylvargas]

My company matches up to 6%. Cha Ching $$$