What Percent of Your Income Should You Invest? (With Data)

According to a recent study by Vanguard, the data show us that we as Americans are not investing enough. They looked at 5 million participants who had defined contribution plans, so these are just retirement plans in which the employer and employee contribute together. In this video we dive into what percent of your income you should be investing in order to retire.

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WHO AM I?
Hello 👋 I’m Humphrey, I used to be a financial advisor, worked in gaming/tech, and started my own eCommerce business. I make practical, rational content on investing, personal finance, the news, and much more with a data-backed approach. My goal is to help you with financial literacy and creating wealth.

PS: I am no longer a current Financial Advisor, any investment commentary are my opinions only. Some of the links in this description are affiliate links that I do receive a commission for & they help support the channel!

⏱️ Timestamps:
0:00 - Start Here
1:13 - Current State of Americans
4:53 - What % Should You Invest?
6:50 - Your Retirement Number
9:03 - Investing Strategy

[humphrey]

Make sure you are subscribed to the channel! For the next month we'll be dropping 2x videos per week.

[nicolasbenson]

I was advised to diversify my portfolio among several assets such as stocks and bonds since this can protect my inherited portfolio of about $2.5m. I’m used to just buying and holding assets which doesn’t seem applicable to the current rollercoaster market plus inflation is catching up with my portfolio. I’m really worried about survival after retirement.

[PhilipMurray]

Net worth snowballs after $1M. Keep investing regularly and you'll be blown away how much it can change in a few short years. Here's to $1 million and to FIRE!

[ErikaBailey-xg]

I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying it’s ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.

[Wjkreamer-]

My portfolio for the past 30 years has always been self managed and I own 3 shares of Berkshire Hathaway Class A stock (BRK:A) which I bought in at about $17, 000 during the mid 90s, I’m currently liquidating some of these positions to incoporate new Gen. Stocks, but am I better off re-investing into Gold as it seems stocks are a little too unstable right now.

[RickMckee-nqni]

AI stocks will dominate 2024 and beyond. Why I prefer NVIDIA is that they are better placed to maintain long term growth potential, and provide a platform for other AI companies. I know someone who has made more than 200% from NVIDIA. I'll also take these other recommendations you made.

[RaymondcrawRaymondCrawley]

I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?

[austinbar]

It's recommended to save at least 20% 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 20% 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.

[GeorgestraitStriat]

Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274, 800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit just bought my second home 2 weeks ago and care for my family.

[EthanBrown_]

The absence of stock investments has left me with a sense of remorse, albeit I'm appreciative of my decision to maintain funds in the money market. With roughly $200k nearing maturity, I'm gearing up to step into the stock market. Could you advise me on suitable stocks for a beginner looking to steadily increase their capital?

[Olea-id]

After investing from my salary of 350k for 4 years, I've only made about 8% total, or 2% per year, which my friends say is very low. My employer 401k of $220K returns about 4%. What would you advice to do with my portfolio for improved returns?

[Suntz_u]

I started stacking to SAVE wealth. I've always been the type of person to spend my entire paycheck. I hate having money just sit in the bank. I am under pressure to grow my reserve of $950k. before I turn 60, I would appreciate any advice on potential investments.

[ncolon]

I'm only 23 and have been watching your videos for a close to a year now.. I just used a retirement calculator and discovered that I already have my 401(k) on track to retire with over a million dollar by investing just 9-10% of my income! Along with other recurring investments I have in single stocks and ETFs set up plus automated transfers to my savings each paycheck. I really feel that, with your help, I've been able to set myself up for financial success long-term even when coming into adulthood during a difficult economic time! Keep making great videos please!!

[Axalalavaara-yskp]

Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 17k in last month 2024.

[dianarabbanii]

I agree that many people are considering NVDA as the "Stock of the year." However, I'm curious about which stocks could potentially become the next META in terms of growth over the next decade. I've allocated $200k for investment, aiming to retire comfortably.

[matturner]

I plan to get into the fin market putting a portion of my income monthly, I believe consistent and steady growth would have me rewarded in some time, I wonder though if there’re smart ways to go about investing, picking and selecting stocks? I’ve recently tried but have been met with red on my portfolio, I’m open to options

[cur]

Automated makes it so much easier. It's rough at first, but after a while you adjust. It's nice knowing that you're saving and can't spend it.

[greekbarrios]

My strategy is to put half my income into the stock market at the start of every month under the careful supervision of my CFP, regardless of what is happening. The second part of my strategy is not to sell for at least 15-20 years. Time in the market beats timing the market. Speaking with a $1.1million worth of portfolio and counting.

[BirchFinance]

Great commentary, Humphrey. Personally, I deliberately create fiscal scarcity for myself by auto-depositing pay check money into my IRAs first before it hits my bank account. Then I have less cash for non-essentials and have to stick to my budget. Saving for retirement is so un-sexy, but just like going to dentist isn’t fun - later, you’re glad you did it!

[OroborusFMA]

What you want is to have as many income streams as you can manage. I have my "9 to 5" job, teach two online courses, run a home business (business partner handles the details), a Fidelity dividend account, a couple of I-Bonds and a number of CDs and an online savings account. Because of this I put 20% of my base salary into a tiaa-cref account and my employer tosses in another 10%. So I'm saving over thirty percent at all times and don't even miss that money.