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According to the article you linked, based on your age (I'm in the same cohort), the average 401k is worth $91,000. Are you not contributing at all to your 401k
by dsnuh 8y ago
According to the article you linked, based on your age (I'm in the same cohort), the average 401k is worth $91,000. Are you not contributing at all to your 401k? Did you get a late start, or have some hardship that required you to break into the 401k (divorce in my case)?
I've never heard the 3x annual salary in savings, but that also seems super extreme. Assume a salary of $100K per year... No one I know has ~ $300K in their savings. Maybe they have equity in their house, or other equity assets that get them to that sort of number on paper, but I've never heard of someone in our age group (40-50) just having $300K liquid in a bank account.
- dgacmu 8y agoThe 3x the article states means total retirement savings. 401k included. I really hope you know more than a few people with 300k in 401k if they earn 100k/year.
- dsnuh 8y agoAh, I was confused by the parent post, I thought we were discussing 401k and "savings" as separate things. I'm not sure what others have saved in theirs, but in my case, it was more like $200,000 in my 401k when I got divorced at age 40. I didn't always earn the same income as I do now, and also had times where I have needed to decrease my contributions, etc.
- russellbeattie 8y agoYes, I was talking about total savings. I honestly think that if you know 'more than a few people' with 300k in their 401k then you are living in a upper class bubble, or maybe you are 60 years old... (Or I'm in total denial. That's a real possibility as well).
- russellbeattie 8y agoYep, I had some financial missteps, including divorce, a year with an income, etc. That said, I do have the "average" 401k by now, but Vanguard is still telling me I need to save a lot more...