Average 401(k) Balance by Age (2023 Edition)

Average 401(k) Balance by Age (2023 Edition)

Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

[juno]

🎯 Key Takeaways for quick navigation:

00:00 📊 401(k) Introduction and Importance
01:00 💰 401(k) Statistics
03:08 💼 401(k) Funding Limits and Provisions
05:25 🤝 Employer Contributions and Vesting
07:57 🌟 Types of 401(k) Contributions
19:31 💰 The Importance of Considering Tax Rates in 401(k) Contributions
21:49 🦈 After-Tax 401(k) Contributions: The Apex Predator
24:37 💳 Unique 401(k) Provisions: Loans and Hardship Withdrawals
29:27 🕒 Rule of 55: Early Retirement Bridge
34:15 🌟 Why We Love 401(k)s: Millionaires, Tax Benefits, and ABB Opportunities
39:10 💰 Saving in Your 20s
40:47 📈 Saving in Your 30s
43:29 💼 Saving in Your 40s
48:24 🚀 Saving in Your 50s and 60s

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[tonysilke]

I'm hoping to retire next year at 55. My goal next year is to be more serious and consistent with my investments I've been investing since I was 22. 2024 is going to be more serous for me investing consistently for the long term. starting to save for a house down payment. I want to invest more than $105k, but I'm not sure on how to mitigate risk.

[tahirisaid]

HELOAN, HELOCs and cash-out refis should ONLY be used as leverage for investing in rental real estate. If you have sufficient equity in your primary residence and you’ve done your due diligence and the numbers work out on a great deal, a HELOC is preferable as you can pay it off when your ARV (After Rehab Value) on the new acquisition is enough to refinance the total debt. Service that debt from the rental revenue and enjoy the residual net cash flow. Then use it again on future acquisitions. This is what I’m doing.

[athias]

"Average" 401k value is a bad metric. The average for a 40yr old may be 108k, but the median is probably closer to 30k. Extremely high earners are actually making it seem better than things really are for the majority.

[AaronTheImposter]

You guys should start breaking this up into a few income ranges per age group

[Ogden]

it's recommended to save at least 15% 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 15% 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. don't think I could retire with less than $3m in income generating investments and i'm not talking 401k, maybe $2m at the very minimum. I plan to work until I'm at least 45.

[richardspenard]

My strategy is to put half my income into the stock market at the start of every month, regardless of what is happening.
The second part of the strategy is not to sell for at least 15 - 20 years. Time in the market beats timing the market.

[liamjefferson]

I am from Spain, my friend in Texas referred me to this channel you make a lot of sense but I do not understand anything until she referred me to a financial consultant in USA that help me to craft my portfolio and over a year we have been working together making consistent profit enough to get me a new apartment and care for family.

[elimcjones]

I just hit 40 and I've always tried to save 20%, but I prioritized buying a house and have a big family. I am just now finding my income is high enough to start really saving after all the fixed costs. I wouldn't say as people get older, they are starting to realize they need to save more for Retirment. I think the real reason is just people can afford to save more as they get older

[esther.]

I'd be retiring or working less in 5 years, and I'm curious how others split their pay, how much goes into savings, shopping, or investing; I earn roughly $250K per year but have nothing to show for it.

[charles]

I'm so happy I made productive decisions about my finances that changed my life forever, hoping to retire next year... Investment should always be on any creative man's heart for success in life.

[jackieking]

Love the show! I first started contributing to a 401k at age 31 five years beyond when I could have. My co-workers encouraged me and I am so thankful I eventually listened. My account hit 7 figures in 2020 and I also have a pension. I wish there was information like this available 30 years ago when I was doing “stupid.” Doing okay but could be further ahead.

[OriginalPhil]

Thanks, money guys, for always making me depressed. I needed my daily dose of anxiety and dread.

[annemoore]

It is gone, we lived through the zenith of our time.
These bourgeoisie individuals in tandem with the corrupt govt. will take down this country like what happened to Rome. My condolences to anyone approaching retirement, you may have concerns over whether your pension pot will stretch to cover the rising cost of living, bad regulatory policies, bad energy policies and insane fiscal policies

[ogkqyyr]

Great content - I wish there were chapters.

[PotBellyPete]

A Friend told me Saving at least 15% of your income in a 401(k) can help ensure that you have enough money to retire comfortably. is this a good way to potentially grow my retirement savings to about $3M over time?

[TheJeanean]

I wish they’d do a segment/episode on starting from scratch in your 40s or 50s and the recommend strategies.

[GrowingPIGs]

My retirement strategy can be written on a post-it note: 10% goal (advice from Carter Admin years) contributed into a low-fee sp500 index mutual fund (Buffett advice?), and often I failed to meet my own goals. Still, I am ahead of many of my friends/family. Great video, but it reminds us how many people didn't understand the importance of using TIME.

[MarthaDavis-fhcw]

Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $260K for sometime now, my major challenge is not knowing the best entry and exit strategies... I would greatly appreciate any suggestions.

[kortyEdna]

With Roth IRA, the money you are contributing has already been taxed. At any time for any reason, you can withdraw your contributions tax-free and penalty-free. Additionally, any earnings on investments can also be withdrawn tax-free and penalty-free, Not sure how much to contribute, I'm still at a crossroads deciding if to liquidate my $338k stock portfolio.