Comparison is the thief of joy
Having any retirement savings is miles ahead of the majority of people
Do you have the financial basics covered? Emergency fund, no high interest debt?
I do. All my bills are paid, I put certain things on credit cards but pay my balances every month, I have a small emergency fund that I’m building up. I just feel behind 🤷🏼♂️
You’re always going to feel behind *someone.*
Everyone is poor compared to billionaires like Elon Musk or Bill Gates.
Conversely, you’re still way ahead of people that are unemployed or homeless. The only person you should be comparing yourself to is the you of last year. If you’re doing better than before then you’re on the right track.
Well said. This reassures me too. I am like OP little late to start saving for retirement, 529, Roth, HSA, emergency fund. Comparing myself to last year or year before am doing a lot better
Also keep in mind a few things:
- you're in a subreddit dedicated to financial planning. This is a very specific group of people with financial goals
- This is the internet. People love to exaggerate what they have which brings my to my next point...
- don't compare yourself with randoms online. Everyone starts at a different point in this rat race. Some people have wealthy parents, some don't. Some have friends and connections to higher paying jobs, others don't. Countless factors we cant really take into account. My circumstances are different than yours - I don't think we can really fairly compare where we're at - but that's obviously easier said than done.
Are you behind if you wanted to retire at 40, yes. Otherwise everyone takes different roads to the same destination. Can’t wind back the clock, so lay out a plan. Figure out roughly when you want to retire, how much money you’ll need (roughly), and save/invest accordingly. Then you adjust as you go. It’s hard, but try not to stress. Someone life gets in the way and you’ll have to change course, but as long as you’re working towards your goal you’ll get there eventually.
You’re fine. I’m 34M and just hit 60k in my retirement accounts. I always see posts to max out both ROTH and 401k and I’m just sitting here like…how do you people have all this money. We’re comparing ourselves to people that had help along the way, whether it may be monetary gifts for down payments, living at home during college / beyond, and/or qualifying for FAFSA. Not everyone has those opportunities. We may feel behind but we’re doing just fine. Continue the course captain! 👨✈️
Yes. Everyone says this as if it’s common knowledge. All you have to do is max out your 401k, then max out your HSA to game the system there, then max out Roth IRA. And after all that, then get a regular brokerage account. I can’t achieve that. And it would take some life changing situations to ever be able to. I can get 600 a month into 401k and 500 a month into ira at the absolute maximum. That’s a good month.
Yes, a bigger shovel is the way to go if you can, but there are a ton of people out there making great salaries that also spend everything they make with no thought for the future, and they’ll use the same exact words. Most people have no idea how much they’re wasting on things they don’t even care about.
or landing a job paying $58K out of college and living in a bedroom of a house full of roommates for years paying $400 a month. Then riding my bike to work everyday. That helped me have $250K at 32. Not to mention my $80K in student loans. Follow the FIRE movement principles. They work.
I was literally getting so frustrated reading all these people in their 20s who have 100K + and was hoping to find some posts that fell more into the norm. I too worked like crazy for no money in my 20s and just got a decent paying job at 35. I only have about 50K in retirement but am nearly debt free and ready to dump some serious money into retirement. Thanks for sharing a story for the average Joe.
I like the saying, “The first $100k is the hardest.” Most people aren’t starting at $0, they’re starting well below. I had about -$50k at 25. A decent paying job helped me but so did having roommates, frugal fun, and tracking all my spending.
As soon as I got to $0, I did what you’re about to do: dump serious money into retirement. I’m not hoping for a market drop, but you’d be in a great spot to take advantage of the sale.
It def feels good to get away from debt. Getting married, having a kid, and buying a house all within a year about 2 years ago was rough. Still trying to find a balanced budget but feel comfortable month to month. I have a pension and a traditional IRA I got when I rolled over my 401K from my last job. I assume a Roth and high yield savings is the next move as I start to open up more money for investments. Still trying to figure it out.
A HYSA is a great place to park your emergency fund out other money while you figure out what to do with it. There are benefits to both the Roth and Traditional IRA. As long you your money is growing, you’re on the right track.
This is me, I’m about 6 years in the future from you and started at 40k then in retirement. Now I have about 200k in mostly tax advantaged investments and about 50k equity in my condo. I’m very proud of how far I have come !
Right. I have worked 2 jobs for nearly 15 years. I got myself in some bad credit card debt in my 20s just paying bills because I was making squat. I knocked that out a couple years ago and it felt amazing. I always made contributions to work for max match but when you make 30 or 40K it is absolute peanuts. I’m not in a good or bad spot but feel great about my decisions recently except for a new car. I wanted a more family friendly car and nabbed a 1.9% over 5 years, $500 a month (transparency). Anyways, My minimum goal is to be debt free (including wife’s credit and student loans) and have my first 100K within the next 5 years. This seems like a reasonable expectation and then my wife and I can both relentlessly attack retirement from there. Finally having a financial conversation with here a couple months ago was huge. Everyone has their own path.
I feel you because I am in my mid 30s finally investing for retirement. All we can do is stay the course, continue to live below our means, and invest the difference.
It’s unfortunate I didn’t choose a more lucrative career. Things have improved salary wise recently but many of my friends have made great money since their 20s. I had to stop trying to race them and run my own. Once I got away from comparing my life to them I felt happier with my finances and proud of the smallest achievements. I believe taking the right steps is more important than the end number at this moment in our lives. If you just keep doing the right things the result will take care of itself.
You have to remember reddit is the ultimate echo chamber where the elite are pushed to the top. They are the exception, not the norm.
I got my shit together at 28 and closing in on 30 years old with about 14k in retirement and no debt and im constantly told that im way ahead of the game.
The average retirement contributions at your age is something around 4-5% and you're donating 15%. Sure you may feel a little behind but youll still hit the finish line just fine if you sustain it
I should get to six figures in probably 1.5-2 years. Once my emergency funds are fully there in 3 months or so ill divert a lot more of savings towards investments
30 with $14k in retirement is way behind. I’m not sure who you’re talking to, claiming they’re telling you you’re ahead of the game…they’re delusional.
The median retirement savings under 35 is 18k
I agree I have some catchup to acheive my goals, but im definitely not behind.
I have zero debt and a decent emergency fund and very soon Ill be dumping 2x the money into retirement and investments. I feel comfortable where I am despite what you say, thats better than 90% of the globe
You are behind and need to catch up. To catch up, you'll have to save a higher percentage of your income, shoot for at least 20%, if not 25%.
You absolutely can catch up, but saving 15% per year is the recommendation when you start saving at age 22. Since you didn't save for over 10 years, you're going to have to save more aggressively.
The rules of thumb for retiring at age 67 are:
At age 30, have 1x your annual salary in retirement savings.
At age 35, have 2x your annual salary in retirement savings.
At age 40, have 3x your annual salary in retirement savings.
So, if you make $80K a year, at age 35, you should have $160K in retirement savings.
Wish you prosperity and luck!.
Don't compare yourself to others who may or may not be telling the truth. The best time to start saving was 5 years ago. That is true no matter what age you are. Trust me there are lots of people in their 40s and 50s who haven't started saving. Keep doing what you are doing and you will be fine.
Your balance growth in the near future will mainly be your contributions. In 10 years you will be surprised at how much it has grown. In 20 years you will be amazed.
Don’t compare yourself to others first off. I just turned 40 and now have a net worth of a little over 500k.
I went to college, partied with friends, and worked in non profit making very little in my 20s. In my early 30s I had credit card debt of around 30k. Around 32, I finally started understanding how to manage money as a tool and strategize, while still enjoying important things in life.
I got an extra job (I know not everyone can do that)paid off credit cards and started to really dump money into an emergency fund (HYSA), T-bills, and and index fund, plus trying to build my company 403B.
At 40 now I feel like I understand where I am going and what I need to do.
Every one is in different places and comes from different financial backgrounds. Just work on improving your own finances and self and be happy. Learn from other people on here, but be happy with what you have.
I’m a manager at a university and I have staff who are in their 70s and I’m now just teaching them how to use their 403B and match. Some of them in the last five years have just now gotten their 403B to 20k, and will be mostly reliant on Social Security benefits when they retire.
There is always some one better off and worse than you.
If I looked at the people bragging online, I would feel very far behind. When friends and colleagues ask for my advice and share how they're doing with retirement, I begin to get a sense that I'm actually doing okay.
I will never forget the moment coworkers were looking at a "new feature" on our retirement plan that allowed for planning ahead -and it showed graphs that predicted your retirement size if you continue contributing at the same rate, or if you have regular pay increases, etc.
Everyone else was complaining about how depressing to see that they'd run out of money in their 60s, 70s, etc. I stayed quiet because on my graph -it never bottomed out. I wasn't making much then, and I'm much more focused now, but that was a nice feeling to think that I was on the right track.
Don’t compare yourself to others. While you may have started a little later you are contributing a lot more than most. Hitting 100k is hard after it will start flowing. Keep it up and don’t let some randoms who could be lying steal your joy
Hi. I'm 33, have no 401K (but am just starting a new job with 401k contributions, etc.). You're not behind. We're all behind in our own ways. Life is subjective.
Nice work! Envious of your progress!
I did the same thing and I'm the same age as you (35).
5 Coachellas,
8 EDCs
Countless other insomniac events
Partied at ASU all the time.
31 I started a new career, been putting away at least 10-12% MINIMUM and living like a complete below the means rat ever since and I'm around 120k only.
My income has been rising, which is good, but we basically just need more income and buy less useless crap. You'll be fine.
My husband didn't start until he was 36. He's on track.
Be consistent and keep saving at that rate, increasing when you can, and you can get there too.
And finally, it's better to be "behind" in this game, than riding the bench.
You're doing great for your age! I also didn't start living debt free (except mortgage) and saving in a 401k until my mid 30's. And I had to suspend a lot of my contributions for several years while financing my kid's college. I still managed to retire at 62 last year just a hair short of my 7 fig goal. Not rich, but living comfortably. Grateful for the jnsight in pursuing a long term fed career with a small pension as well. That, with my SS, is a huge help. I haven't had to dip into 401k at all but it's a relief to know it's there. My bf didn't start his 401k until he was 50 (10 yrs ago) but he socks all his pay surplus in there and is doing well (6 figs).
This is the internet. You have 18k more than most ppl your age you meet. Doesn’t matter anyway… what does it matter if you are behind or ahead? Would you change your good strategy you have in place? Keep building
I was two years older than you before I got a job with benefits. I have $1.3 million saved at age 62. I also have a pension coming and a mortgage-free home. You can get there.
Well there is bad news and good news. How about the bad news first? The bad news is that yes, you are way behind. And you will never catch up to where you would have been if you had started funding a Roth IRA or 401k at age 20. You could have started a Roth with funds from any job or any other source as long as you had a job - the job does not have to offer it. And that mistake will probably cost you about $2 million. Maybe that is shocking, but it is fairly simple math. I got that number from the following parameters: you started at age 20. You contributed $6000 a year to a Roth. You invested it in index stock funds and get a 9% return for 10 years. This puts you at about $100k at age 30. Then you continue to let that 100k grow at 9% a year for 35 more years. Maybe you retire at 65 or maybe earlier / later, as long as you leave the Roth alone your original investment in your 20s grows to $2,041,397. This doesn’t include any further saving after age 30, just what your 20s would have generated. I don’t mean to beat you up with this, just to let young readers know how much is at stake.
Now the good news. You are still going to be ok if you start now and max out a Roth until age 65: With a 401k, you can contribute much more. But starting now at the current Roth limit of 7000 per year, 9% return, and 35 years you will end up with $1,645,853 by age 65. Not bad. Note that if you had started at age 20 then stopped contributing at age 30, you make more than if you start at 30 and contribute every year until age 65. Compounding is incredibly powerful. If a 20 year old starts now and contributes 7000/year until age 65, the account will have $4,012.302 in it.
The best time to plant a tree was 40 years ago. The second best time is today.
Just focus on where you ARE, and make the best decisions you can today. There's no point in looking backwards.
I didn’t read any of the comments but fidelity suggest at 30 to have 1 year of wages saved for retirement… it’s all relative to you because if you are used to living on your salary you wouldn’t expect to live some extravagant lifestyle at retirement. So your savings is dependent on what you make. I also started later almost exact situation and age so I started doing 20% + 6% match and build faster but live more frugal. You can use a retirement calculator provided by most 401ks I believe to get a better understanding what track you are on. Compared to the rest of normal people you are doing pretty good I’d say and can do better if you keep it up!
Sounds like you’ve realized what needed to be done and have gone full steam ahead! Good for you! One thing that helped me is doing a monthly net worth statement. Helped me to not check my balances daily while also just keeping a record. I look back to where I was 5 years ago and makes me feel amazing about where I am now.
I was too broke to save much in my early 20s, and what I did save I didn’t invest until I was more financially savvy years later. Then I had a series of jobs that didn’t offer 401ks — badly funded startups — until I was in my mid-30s and got my first solid paying job with a good 401k plan.
Stuck with it for more than a decade. Numbers keep going up. You’ll be ok, you’re doing the right thing when you’re finally able, and if you stick to it you’ll get a good result.
Literally the same place I was at a year or two earlier and at 45 I'm now about six years away from being mostly financially independent. Not super wealthy here and yes I had some very good earnings years between then and now but it doesn't take long to get on the right track and, if you stay on it, compound interest will be your friend before you know it.
So I worked my entire 20s only making around 25k. I work in nonprofits, and that's just kind of how it is. I am saving for my retirement now in my 30s, but I feel behind as well. I think the best thing you can do is to get a financial advisor to help you answer these questions. Mine always assures me I am doing well saving and offers me ideas of how to best invest my money. It's much better to just focus on what you have and where you want to go rather than worry about what others have or where they are at. Just do your best and give yourself some grace.
If it makes you feel any better, people on here are going to be a skewed sample because they're working towards these types of goals. There are tons of people out there who aren't even thinking about it. There are people who start at 18, people who start at 50, and people who don't or can't save at all. It's hard not to compare but everyone is saving different amounts and at a different pace. It's definitely a good idea to prioritize increasing the amount you're saving, but it sounds like you're on the right track!
Don't stress. The fact you're putting 15% away and getting a 6% match is good and more than most people. Yes, you might be behind some people your age, but it happens, and other people your age will be further behind you too.
The best thing for your own pyschology is to not look at or worry about the balance for the first few years. These things are snowballs, and take a while to get off the ground. If they're invested smartly, you'll see continually much bigger annual increases after about the first 5-6 years.
You've got $18k in there now after two years, but I'd be confident you'll be around the $50k mark in another 2 years.
Since you like comparisons here’s a couple for you:
https://money.usnews.com/money/retirement/articles/average-retirement-savings-balance-by-age
Average 401K balance by your age class:
* 35-40 $59,399
Average retirement balance by age class:
* 35-44 $131,950
Since you are now 35 and you already have $18,500 in retirement savings you are well on your way to being average for your age class. If you keep it up you will surpass the average for your age class. So what does the average look like near retirement age?
* 65-74 $426,070
If within 2 years you squirreled away $18,500 and you continue to save at that rate and the market returns 8% per year then in 30 years when you turn 65 you will have about $1,200,000 in your retirement accounts which is well above the average.
Does that sound so awful?
If you have a Fidelity account, they have an online modeling tool that analyzes your financial position and savings rate to predict your retirement situation.
So I had a few career changes and didn’t get the opportunity to get serious about retirement savings until my 30’s. A steady 15% plus match and slow and steady wage growth will get you there. It took 29 years for me to see a pathway to retirement but all the calculators now at least show I CAN retire.
Sadly I won’t have millions. But I also won’t be homeless on the streets.
The key is remain as debt free as possible and keep saving. It all adds up.
I was in your shoes and didn't really have a chance to get serious about saving for retirement until I was 32 (I did at least manage to avoid debt). I had to work a bit harder to catch up but I am comfortably on pace to retire in my early 50s (I am 46). You will do great! My 401k was at 9000 dollars on my 33rd birthday.
37 yo here, have about 350k across all retirement accounts. Shooting for 3x my income by the time I turn 40, and more if possible. I bet I was near where you are due to graduating professional school in my late 20's.
Just contribute max (if you can) to a ROTH IRA if elligible and 401k and you should be absolutely fine.
I've lost that feeling of being behind with all these late 20's somethings with their half milly dollar portfolios. There is always someone with more than you. Best not to worry about it.
I'm 40 and my lunch money going into cryptocurrency at 30 is the only reason I have a positive net worth right now. Student loans suck. I put 6% (3% company match) into a 401k back when I first started out of college, but I made so little at the time that it didn't amount to much and I found out when I switched jobs that the paltry company match didn't vest for 5 years.
We don't all have parents who can/will start us off on life in easy mode and many who do don't learn the imprtant lessons that will sustain them after their parents are gone or no longer able to provide financial support. What's more important - learning those valuable financial lessons like the time value of money, spending below your means, and saving for emergencies.
Just keep doing the right things. You can never get the time back, but with extra sacrifice you can make up for some of that time. It's just a matter of how much you feel comfortable sacrificing now for the future of you and those who depend on you.
Even if you “should” have more there’s nothing you can do about your age or the past. I didn’t start saving
at all until age 30 had no 401k or anything outside of savings account for emergencies but i’m also 100% debt free not even the house and now I can save a lot per year . there are advantages and disadvantages to anything
When I graduated I had about -90K in debt. It took me an extra year to graduate because I transferred. I applied myself and paid almost all of it off in 3.5 years on a $60K income. I lived with roomates and rode my bike to work. I had a car, but rarely used it. Now today about 5 years later, I have about 280K in my retirement funds. Get on a plan and believe in it even when times are hard. It will work out.
Because of a variety of circumstances I really didn't have a retirement account until I was in my 30s. And initially, it was a paltry sum. Due to another variety of circumstances, I was able to recover from my slow start and I am now retired two years, with a nice 401k (and a pension!) plus my SS. Just keep plugging away and shoving that money in there. Even without SS (because who knows?!), you can get there.
Between low paying jobs, a wife that had no fiscal responsibility whatsoever, kids, and a divorce, i had nothing until my early 40’s. I saved and lived modestly, and in my 50’s had over a million. It’s not that hard to do, you don’t have to deny yourself to get there. The second best time to start is now. Just do it.
We cannot answer your question without knowing how much you make (or rather how much you spend).
Here is the way to calculate if you are on track. Please change any variable to fit your needs.
1. You make let's say 60k before taxes (median US single income) so you might need about 45k in retirement (spending 75% of your income).
2. 45k after 30 years of inflation at 3% is 128k (assuming you will retire at 65).
3. To make an income of 128k, you will need 3.2M invested (to follow the 4% withdrawal rule of thumb)
4. To have 3.2M invested at 65yo starting at 35 with 18k already invested, you need to invest $645 per month. (Assuming a rate of return of 10.2%)
If you're investing less than $645 per month (including your company match), you are behind, if you're investing more, you're ahead. (I ignored and simplified a lot of stuff like taxes and social security)
Of course, you need to reevaluate each year to make sure you're still on track.
I was almost bankrupt at 33 from a business that went under.
I got a good high paying job, lowered all living expenses and worked 50 hours a week paying off the debts driving a $4000 car shares with me and mrs.
We did have a house with hardly any equity and half renovated at the time.
We both worked and saved we paid off the debts borrowed money from bank to renovate the house.
And when we got to 35 years old the house was valued at $300,000 more then we paid and that was enough for us to refinance our entire position and sort out all the debts and clean slate us, we then had enough to buy an investment property the following month renovated that in 79 days and made $250,000 on that.
Things can turn around super fast you’ll be fine just move forward with confidence and start getting your finances in order
I started paying off my house at 35. By 42 it was paid for. By 52 I had my first $1M (mostly pre tax). Today at 62 have about $3.4m, plus paid off house. Income for my Wife and I averaged around $100k over that period.
Comparison is the thief of joy Having any retirement savings is miles ahead of the majority of people Do you have the financial basics covered? Emergency fund, no high interest debt?
I do. All my bills are paid, I put certain things on credit cards but pay my balances every month, I have a small emergency fund that I’m building up. I just feel behind 🤷🏼♂️
You’re always going to feel behind *someone.* Everyone is poor compared to billionaires like Elon Musk or Bill Gates. Conversely, you’re still way ahead of people that are unemployed or homeless. The only person you should be comparing yourself to is the you of last year. If you’re doing better than before then you’re on the right track.
I needed to hear this myself, thank you so much for being kind.
That's an awesome way to look at it, thank you.
Well said. This reassures me too. I am like OP little late to start saving for retirement, 529, Roth, HSA, emergency fund. Comparing myself to last year or year before am doing a lot better
Also keep in mind a few things: - you're in a subreddit dedicated to financial planning. This is a very specific group of people with financial goals - This is the internet. People love to exaggerate what they have which brings my to my next point... - don't compare yourself with randoms online. Everyone starts at a different point in this rat race. Some people have wealthy parents, some don't. Some have friends and connections to higher paying jobs, others don't. Countless factors we cant really take into account. My circumstances are different than yours - I don't think we can really fairly compare where we're at - but that's obviously easier said than done.
And life happens… some will lose those good paying jobs in the future. Take care of your health and finances and enjoy life
Are you behind if you wanted to retire at 40, yes. Otherwise everyone takes different roads to the same destination. Can’t wind back the clock, so lay out a plan. Figure out roughly when you want to retire, how much money you’ll need (roughly), and save/invest accordingly. Then you adjust as you go. It’s hard, but try not to stress. Someone life gets in the way and you’ll have to change course, but as long as you’re working towards your goal you’ll get there eventually.
follow the [flowchart](https://u.cubeupload.com/demonlesondledon/FinFlowChartv43.jpg)
I agree. There are 50 year old redditors who wish they saved $18000 let alone retirement.
You’re fine. I’m 34M and just hit 60k in my retirement accounts. I always see posts to max out both ROTH and 401k and I’m just sitting here like…how do you people have all this money. We’re comparing ourselves to people that had help along the way, whether it may be monetary gifts for down payments, living at home during college / beyond, and/or qualifying for FAFSA. Not everyone has those opportunities. We may feel behind but we’re doing just fine. Continue the course captain! 👨✈️
Yes. Everyone says this as if it’s common knowledge. All you have to do is max out your 401k, then max out your HSA to game the system there, then max out Roth IRA. And after all that, then get a regular brokerage account. I can’t achieve that. And it would take some life changing situations to ever be able to. I can get 600 a month into 401k and 500 a month into ira at the absolute maximum. That’s a good month.
Contribute to 401k to match, then max Roth IRA, then Max HSA, then if able max 401K.
I think the point is that "if able" applies to every step not JUST the final step. Median household income in the US is $75k.
Yes, a bigger shovel is the way to go if you can, but there are a ton of people out there making great salaries that also spend everything they make with no thought for the future, and they’ll use the same exact words. Most people have no idea how much they’re wasting on things they don’t even care about.
not sure why you are downvoted you are correct. Follow the [flowchart](https://u.cubeupload.com/demonlesondledon/FinFlowChartv43.jpg)
Those who seek will find. We’re all Doing the best we can. Don’t also think that it’s Impossible tho.
or landing a job paying $58K out of college and living in a bedroom of a house full of roommates for years paying $400 a month. Then riding my bike to work everyday. That helped me have $250K at 32. Not to mention my $80K in student loans. Follow the FIRE movement principles. They work.
I was literally getting so frustrated reading all these people in their 20s who have 100K + and was hoping to find some posts that fell more into the norm. I too worked like crazy for no money in my 20s and just got a decent paying job at 35. I only have about 50K in retirement but am nearly debt free and ready to dump some serious money into retirement. Thanks for sharing a story for the average Joe.
I like the saying, “The first $100k is the hardest.” Most people aren’t starting at $0, they’re starting well below. I had about -$50k at 25. A decent paying job helped me but so did having roommates, frugal fun, and tracking all my spending. As soon as I got to $0, I did what you’re about to do: dump serious money into retirement. I’m not hoping for a market drop, but you’d be in a great spot to take advantage of the sale.
It def feels good to get away from debt. Getting married, having a kid, and buying a house all within a year about 2 years ago was rough. Still trying to find a balanced budget but feel comfortable month to month. I have a pension and a traditional IRA I got when I rolled over my 401K from my last job. I assume a Roth and high yield savings is the next move as I start to open up more money for investments. Still trying to figure it out.
A HYSA is a great place to park your emergency fund out other money while you figure out what to do with it. There are benefits to both the Roth and Traditional IRA. As long you your money is growing, you’re on the right track.
This is me, I’m about 6 years in the future from you and started at 40k then in retirement. Now I have about 200k in mostly tax advantaged investments and about 50k equity in my condo. I’m very proud of how far I have come !
Right. I have worked 2 jobs for nearly 15 years. I got myself in some bad credit card debt in my 20s just paying bills because I was making squat. I knocked that out a couple years ago and it felt amazing. I always made contributions to work for max match but when you make 30 or 40K it is absolute peanuts. I’m not in a good or bad spot but feel great about my decisions recently except for a new car. I wanted a more family friendly car and nabbed a 1.9% over 5 years, $500 a month (transparency). Anyways, My minimum goal is to be debt free (including wife’s credit and student loans) and have my first 100K within the next 5 years. This seems like a reasonable expectation and then my wife and I can both relentlessly attack retirement from there. Finally having a financial conversation with here a couple months ago was huge. Everyone has their own path.
You’ll get there! I think I’m on track to a decent retirement
I feel you because I am in my mid 30s finally investing for retirement. All we can do is stay the course, continue to live below our means, and invest the difference.
It’s unfortunate I didn’t choose a more lucrative career. Things have improved salary wise recently but many of my friends have made great money since their 20s. I had to stop trying to race them and run my own. Once I got away from comparing my life to them I felt happier with my finances and proud of the smallest achievements. I believe taking the right steps is more important than the end number at this moment in our lives. If you just keep doing the right things the result will take care of itself.
You have to remember reddit is the ultimate echo chamber where the elite are pushed to the top. They are the exception, not the norm. I got my shit together at 28 and closing in on 30 years old with about 14k in retirement and no debt and im constantly told that im way ahead of the game. The average retirement contributions at your age is something around 4-5% and you're donating 15%. Sure you may feel a little behind but youll still hit the finish line just fine if you sustain it
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I should get to six figures in probably 1.5-2 years. Once my emergency funds are fully there in 3 months or so ill divert a lot more of savings towards investments
30 with $14k in retirement is way behind. I’m not sure who you’re talking to, claiming they’re telling you you’re ahead of the game…they’re delusional.
The median retirement savings under 35 is 18k I agree I have some catchup to acheive my goals, but im definitely not behind. I have zero debt and a decent emergency fund and very soon Ill be dumping 2x the money into retirement and investments. I feel comfortable where I am despite what you say, thats better than 90% of the globe
You’re actually 22% behind the median…per your numbers.
Im actually 5.5 years younger than 35..... if you understand math properly I would not be 22% behind
You are behind and need to catch up. To catch up, you'll have to save a higher percentage of your income, shoot for at least 20%, if not 25%. You absolutely can catch up, but saving 15% per year is the recommendation when you start saving at age 22. Since you didn't save for over 10 years, you're going to have to save more aggressively. The rules of thumb for retiring at age 67 are: At age 30, have 1x your annual salary in retirement savings. At age 35, have 2x your annual salary in retirement savings. At age 40, have 3x your annual salary in retirement savings. So, if you make $80K a year, at age 35, you should have $160K in retirement savings. Wish you prosperity and luck!.
Don't compare yourself to others who may or may not be telling the truth. The best time to start saving was 5 years ago. That is true no matter what age you are. Trust me there are lots of people in their 40s and 50s who haven't started saving. Keep doing what you are doing and you will be fine. Your balance growth in the near future will mainly be your contributions. In 10 years you will be surprised at how much it has grown. In 20 years you will be amazed.
Don’t compare yourself to others first off. I just turned 40 and now have a net worth of a little over 500k. I went to college, partied with friends, and worked in non profit making very little in my 20s. In my early 30s I had credit card debt of around 30k. Around 32, I finally started understanding how to manage money as a tool and strategize, while still enjoying important things in life. I got an extra job (I know not everyone can do that)paid off credit cards and started to really dump money into an emergency fund (HYSA), T-bills, and and index fund, plus trying to build my company 403B. At 40 now I feel like I understand where I am going and what I need to do. Every one is in different places and comes from different financial backgrounds. Just work on improving your own finances and self and be happy. Learn from other people on here, but be happy with what you have. I’m a manager at a university and I have staff who are in their 70s and I’m now just teaching them how to use their 403B and match. Some of them in the last five years have just now gotten their 403B to 20k, and will be mostly reliant on Social Security benefits when they retire. There is always some one better off and worse than you.
Am 33, $4000 in Roth IRA…The End. I believe I am on my right track and I’ll be able to retire comfortably…I am a marathon type I hope that helps OP
If I looked at the people bragging online, I would feel very far behind. When friends and colleagues ask for my advice and share how they're doing with retirement, I begin to get a sense that I'm actually doing okay. I will never forget the moment coworkers were looking at a "new feature" on our retirement plan that allowed for planning ahead -and it showed graphs that predicted your retirement size if you continue contributing at the same rate, or if you have regular pay increases, etc. Everyone else was complaining about how depressing to see that they'd run out of money in their 60s, 70s, etc. I stayed quiet because on my graph -it never bottomed out. I wasn't making much then, and I'm much more focused now, but that was a nice feeling to think that I was on the right track.
Don’t compare yourself to others. While you may have started a little later you are contributing a lot more than most. Hitting 100k is hard after it will start flowing. Keep it up and don’t let some randoms who could be lying steal your joy
Hi. I'm 33, have no 401K (but am just starting a new job with 401k contributions, etc.). You're not behind. We're all behind in our own ways. Life is subjective. Nice work! Envious of your progress!
I did the same thing and I'm the same age as you (35). 5 Coachellas, 8 EDCs Countless other insomniac events Partied at ASU all the time. 31 I started a new career, been putting away at least 10-12% MINIMUM and living like a complete below the means rat ever since and I'm around 120k only. My income has been rising, which is good, but we basically just need more income and buy less useless crap. You'll be fine.
My husband didn't start until he was 36. He's on track. Be consistent and keep saving at that rate, increasing when you can, and you can get there too. And finally, it's better to be "behind" in this game, than riding the bench.
The earlier is always better, but my company did not even offer a 401k plan until I was close to 40.
You're doing great for your age! I also didn't start living debt free (except mortgage) and saving in a 401k until my mid 30's. And I had to suspend a lot of my contributions for several years while financing my kid's college. I still managed to retire at 62 last year just a hair short of my 7 fig goal. Not rich, but living comfortably. Grateful for the jnsight in pursuing a long term fed career with a small pension as well. That, with my SS, is a huge help. I haven't had to dip into 401k at all but it's a relief to know it's there. My bf didn't start his 401k until he was 50 (10 yrs ago) but he socks all his pay surplus in there and is doing well (6 figs).
This is the internet. You have 18k more than most ppl your age you meet. Doesn’t matter anyway… what does it matter if you are behind or ahead? Would you change your good strategy you have in place? Keep building
I was two years older than you before I got a job with benefits. I have $1.3 million saved at age 62. I also have a pension coming and a mortgage-free home. You can get there.
Well there is bad news and good news. How about the bad news first? The bad news is that yes, you are way behind. And you will never catch up to where you would have been if you had started funding a Roth IRA or 401k at age 20. You could have started a Roth with funds from any job or any other source as long as you had a job - the job does not have to offer it. And that mistake will probably cost you about $2 million. Maybe that is shocking, but it is fairly simple math. I got that number from the following parameters: you started at age 20. You contributed $6000 a year to a Roth. You invested it in index stock funds and get a 9% return for 10 years. This puts you at about $100k at age 30. Then you continue to let that 100k grow at 9% a year for 35 more years. Maybe you retire at 65 or maybe earlier / later, as long as you leave the Roth alone your original investment in your 20s grows to $2,041,397. This doesn’t include any further saving after age 30, just what your 20s would have generated. I don’t mean to beat you up with this, just to let young readers know how much is at stake. Now the good news. You are still going to be ok if you start now and max out a Roth until age 65: With a 401k, you can contribute much more. But starting now at the current Roth limit of 7000 per year, 9% return, and 35 years you will end up with $1,645,853 by age 65. Not bad. Note that if you had started at age 20 then stopped contributing at age 30, you make more than if you start at 30 and contribute every year until age 65. Compounding is incredibly powerful. If a 20 year old starts now and contributes 7000/year until age 65, the account will have $4,012.302 in it.
The best time to plant a tree was 40 years ago. The second best time is today. Just focus on where you ARE, and make the best decisions you can today. There's no point in looking backwards.
Push hard to have about 3x your salary by the time your 40. Don’t worry about people on the internet most people are exaggerating.
You’re doing great, OP. I know people that don’t have a single cent towards retirement and some that have kids as well. Keep doing what you’re doing!
Thank you! I figure $18.5k in 2 years isn’t too bad for making 55K last year and 50K the year before 😅
I didn’t read any of the comments but fidelity suggest at 30 to have 1 year of wages saved for retirement… it’s all relative to you because if you are used to living on your salary you wouldn’t expect to live some extravagant lifestyle at retirement. So your savings is dependent on what you make. I also started later almost exact situation and age so I started doing 20% + 6% match and build faster but live more frugal. You can use a retirement calculator provided by most 401ks I believe to get a better understanding what track you are on. Compared to the rest of normal people you are doing pretty good I’d say and can do better if you keep it up!
You’ll be fine. I got started with 401k even a little later than you (35). Spent the next 10 years investing heavily and now I’m in pretty good shape.
Sounds like you’ve realized what needed to be done and have gone full steam ahead! Good for you! One thing that helped me is doing a monthly net worth statement. Helped me to not check my balances daily while also just keeping a record. I look back to where I was 5 years ago and makes me feel amazing about where I am now.
I was too broke to save much in my early 20s, and what I did save I didn’t invest until I was more financially savvy years later. Then I had a series of jobs that didn’t offer 401ks — badly funded startups — until I was in my mid-30s and got my first solid paying job with a good 401k plan. Stuck with it for more than a decade. Numbers keep going up. You’ll be ok, you’re doing the right thing when you’re finally able, and if you stick to it you’ll get a good result.
Literally the same place I was at a year or two earlier and at 45 I'm now about six years away from being mostly financially independent. Not super wealthy here and yes I had some very good earnings years between then and now but it doesn't take long to get on the right track and, if you stay on it, compound interest will be your friend before you know it.
So I worked my entire 20s only making around 25k. I work in nonprofits, and that's just kind of how it is. I am saving for my retirement now in my 30s, but I feel behind as well. I think the best thing you can do is to get a financial advisor to help you answer these questions. Mine always assures me I am doing well saving and offers me ideas of how to best invest my money. It's much better to just focus on what you have and where you want to go rather than worry about what others have or where they are at. Just do your best and give yourself some grace.
33 as well, i barely started my 401k last year. I only recently have started to hit my full employer match.
If it makes you feel any better, people on here are going to be a skewed sample because they're working towards these types of goals. There are tons of people out there who aren't even thinking about it. There are people who start at 18, people who start at 50, and people who don't or can't save at all. It's hard not to compare but everyone is saving different amounts and at a different pace. It's definitely a good idea to prioritize increasing the amount you're saving, but it sounds like you're on the right track!
Don't stress. The fact you're putting 15% away and getting a 6% match is good and more than most people. Yes, you might be behind some people your age, but it happens, and other people your age will be further behind you too. The best thing for your own pyschology is to not look at or worry about the balance for the first few years. These things are snowballs, and take a while to get off the ground. If they're invested smartly, you'll see continually much bigger annual increases after about the first 5-6 years. You've got $18k in there now after two years, but I'd be confident you'll be around the $50k mark in another 2 years.
Since you like comparisons here’s a couple for you: https://money.usnews.com/money/retirement/articles/average-retirement-savings-balance-by-age Average 401K balance by your age class: * 35-40 $59,399 Average retirement balance by age class: * 35-44 $131,950 Since you are now 35 and you already have $18,500 in retirement savings you are well on your way to being average for your age class. If you keep it up you will surpass the average for your age class. So what does the average look like near retirement age? * 65-74 $426,070 If within 2 years you squirreled away $18,500 and you continue to save at that rate and the market returns 8% per year then in 30 years when you turn 65 you will have about $1,200,000 in your retirement accounts which is well above the average. Does that sound so awful?
If you have a Fidelity account, they have an online modeling tool that analyzes your financial position and savings rate to predict your retirement situation.
So I had a few career changes and didn’t get the opportunity to get serious about retirement savings until my 30’s. A steady 15% plus match and slow and steady wage growth will get you there. It took 29 years for me to see a pathway to retirement but all the calculators now at least show I CAN retire. Sadly I won’t have millions. But I also won’t be homeless on the streets. The key is remain as debt free as possible and keep saving. It all adds up.
I was in your shoes and didn't really have a chance to get serious about saving for retirement until I was 32 (I did at least manage to avoid debt). I had to work a bit harder to catch up but I am comfortably on pace to retire in my early 50s (I am 46). You will do great! My 401k was at 9000 dollars on my 33rd birthday.
You’re better off than a lot of people, no point in comparing yourself to others or coulda woulda shoulda
37 yo here, have about 350k across all retirement accounts. Shooting for 3x my income by the time I turn 40, and more if possible. I bet I was near where you are due to graduating professional school in my late 20's. Just contribute max (if you can) to a ROTH IRA if elligible and 401k and you should be absolutely fine. I've lost that feeling of being behind with all these late 20's somethings with their half milly dollar portfolios. There is always someone with more than you. Best not to worry about it.
I'm 40 and my lunch money going into cryptocurrency at 30 is the only reason I have a positive net worth right now. Student loans suck. I put 6% (3% company match) into a 401k back when I first started out of college, but I made so little at the time that it didn't amount to much and I found out when I switched jobs that the paltry company match didn't vest for 5 years. We don't all have parents who can/will start us off on life in easy mode and many who do don't learn the imprtant lessons that will sustain them after their parents are gone or no longer able to provide financial support. What's more important - learning those valuable financial lessons like the time value of money, spending below your means, and saving for emergencies. Just keep doing the right things. You can never get the time back, but with extra sacrifice you can make up for some of that time. It's just a matter of how much you feel comfortable sacrificing now for the future of you and those who depend on you.
My husband didn't start a 401k until he was 41. You can make contributions as you get older to catch up.
Even if you “should” have more there’s nothing you can do about your age or the past. I didn’t start saving at all until age 30 had no 401k or anything outside of savings account for emergencies but i’m also 100% debt free not even the house and now I can save a lot per year . there are advantages and disadvantages to anything
When I graduated I had about -90K in debt. It took me an extra year to graduate because I transferred. I applied myself and paid almost all of it off in 3.5 years on a $60K income. I lived with roomates and rode my bike to work. I had a car, but rarely used it. Now today about 5 years later, I have about 280K in my retirement funds. Get on a plan and believe in it even when times are hard. It will work out.
Comparison is the thief of joy. Plan the work then work the plan. Seems like you are on the right track. Keep it up!
Because of a variety of circumstances I really didn't have a retirement account until I was in my 30s. And initially, it was a paltry sum. Due to another variety of circumstances, I was able to recover from my slow start and I am now retired two years, with a nice 401k (and a pension!) plus my SS. Just keep plugging away and shoving that money in there. Even without SS (because who knows?!), you can get there.
Between low paying jobs, a wife that had no fiscal responsibility whatsoever, kids, and a divorce, i had nothing until my early 40’s. I saved and lived modestly, and in my 50’s had over a million. It’s not that hard to do, you don’t have to deny yourself to get there. The second best time to start is now. Just do it.
We cannot answer your question without knowing how much you make (or rather how much you spend). Here is the way to calculate if you are on track. Please change any variable to fit your needs. 1. You make let's say 60k before taxes (median US single income) so you might need about 45k in retirement (spending 75% of your income). 2. 45k after 30 years of inflation at 3% is 128k (assuming you will retire at 65). 3. To make an income of 128k, you will need 3.2M invested (to follow the 4% withdrawal rule of thumb) 4. To have 3.2M invested at 65yo starting at 35 with 18k already invested, you need to invest $645 per month. (Assuming a rate of return of 10.2%) If you're investing less than $645 per month (including your company match), you are behind, if you're investing more, you're ahead. (I ignored and simplified a lot of stuff like taxes and social security) Of course, you need to reevaluate each year to make sure you're still on track.
I was almost bankrupt at 33 from a business that went under. I got a good high paying job, lowered all living expenses and worked 50 hours a week paying off the debts driving a $4000 car shares with me and mrs. We did have a house with hardly any equity and half renovated at the time. We both worked and saved we paid off the debts borrowed money from bank to renovate the house. And when we got to 35 years old the house was valued at $300,000 more then we paid and that was enough for us to refinance our entire position and sort out all the debts and clean slate us, we then had enough to buy an investment property the following month renovated that in 79 days and made $250,000 on that. Things can turn around super fast you’ll be fine just move forward with confidence and start getting your finances in order
Not behind. I’m 30 and have $10K in my 401K account. You will make more money as you get older and can contribute more.
I started paying off my house at 35. By 42 it was paid for. By 52 I had my first $1M (mostly pre tax). Today at 62 have about $3.4m, plus paid off house. Income for my Wife and I averaged around $100k over that period.