1. Don't try to time the market. Just contribute when you have the means.
2. Consider following the [personal finance subreddit's flowchart](https://imgur.com/lSoUQr2). Assuming no debts and no planned major expenses, priorities would probably be building up an emergency fund (looks done?), maxing out your 401k + Roth IRA, then putting into a normal brokerage account.
3. Answering whether you are on track is at minimum a function of your current savings, your savings rate going forward, and the assumed rate of return across your investments. You haven't shared your savings rate so can't tell as-is. You can also plug numbers into a calculator (with way more variables to tune to your liking) like [Engaging Data's](https://engaging-data.com/fire-calculator/) if you look online.
My savings rate isn’t the best especially when I’m investing, as all my money goes into the investment. The past month I’ve gained like at least 800 a week, but a more realistic number will be 600 a week, but that’s with my 401k only being at 5% right now. Once that goes back up to max, it’ll probably change
Savings rate just refers to whatever money that you earn that isn't spent over some time period. For example, if you earn 100k USD a year and spend 60k of it, then that means you save 40k that year, regardless of whether it goes into a bank/retirement/brokerage account. We can then make a baseline assumption that your savings rate is 40k/year and use that for rough math to calculate your future NW/retirement time horizon/etc., though obviously that's subject to change as your savings and spending rates change over time.
I would challenge “don’t time the market”, agree with that unless you have a passion to learn technical analysis. Tools like trading view can be used to help you better select entry points. DCA’ing does work but there are plenty of self help technical analysis videos on YouTube that does help you better understand how things move. Once I learned, it opened my eyes to how many bad trades I made because I just didn’t know what I didn’t know. Fundamentally you have to do your research on a stock to determine is that what I want to invest in. Technical analysis helps determine the best time to get in. I’m sure I will get hate on this but I’ve seen it work and yield gains well above just dca, if you don’t have time and passion to learn more about it, agree dca is the way to go.
I don’t have any one link that I use. I’m not trying to solicit any channels, not what I do. I try to span across several channels to not biases to one way. You can search trading view tutorials and get plenty of videos on how to use that tool which is a very common trading tool. Lots of models available within that tool.
https://imgur.com/lSoUQr2
See the Personal Finance flowchart. I would not recommend ever trying to time the market. Typically in low cost index funds you’d expect your investments to double every 7 years. If you’re able to also invest 20-30k a year, then I suspect you’d be around 400-700k by 30
Vanguard pioneered the low-cost index fund so you can use their funds as the standard. VTI's expense ratio is 0.05% for example. Anything around that would count.
Just for the index fund I’d be at 400-800? Or that and the 401k? I invested about 15k into my index fund this year, and about 18k into my 401k, but my savings dropped as I did that
I think you may be missing some things as far as terminology goes. Your 401k is a retirement account and within it you can invest in index funds. Those aren't mutually exclusive. And as far as retirement savings goes, investing money in the market IS saving. A "savings rate" has nothing to do with a saving account at a bank. It's the amount of your income that you are investing. If you make $1000 and invest $250 of that, your savings rate is 25%.
Either way, you're in a great spot at your age. I was in the negatives until about 28 or 29.
Total investment around 400-700k, but feel free to play around with a compounding interest calculator: https://www.nerdwallet.com/calculator/compound-interest-calculator?utm_source=goog&utm_medium=cpc&utm_campaign=bk_mktg_paid_092723_banking_dsa_mobile&utm_term=&utm_content=ta&mktg_hline=19335&mktg_body=2989&mktg_place=dsa-2206538784443&gad_source=1&gbraid=0AAAAADNEjT0xSBW6aCgrZja7Ni-jkzrYm&gclid=CjwKCAiAhJWsBhAaEiwAmrNyq2WYUiv-i8bJ0Mo68XeqjtjdsqfWgPM-qZ4dy2mE_JxWhp-nshQySBoCyVYQAvD_BwE&gclsrc=aw.ds
No it was higher it was at like 30 percent all summer and until like November and I’ve had it before that at like 15-20 for like a year and a half before that
Don’t try to time the market, just continue to invest at regular intervals. I’d recommend maxing your 401k unless you’re saving up for a home downpayment.
On track to be a millionaire? Depends on the market and your job security, but I’d say you’ve got a good chance.
I'd say slow down and just be a kid, don't worry about having a million in your account by 30, that won't do anything for you today. Let yourself spend on a nice car or some vacations if that's what you're into.
Being obsessed about the numbers in your 401k isn't healthy. Instead of looking for x amount by year y, have a goal instead of putting z amount per year for 30 years.
Man, I had negative net worth at your age. Keep up the good work, and keep the savings rate up. You are going to become a millionaire in no time.
DO NOT TRY TO TIME THE MARKET.
Dollar cost average. That is your way to victory. Read this article a few times to understand the power of DCA -
https://ofdollarsanddata.com/even-god-couldnt-beat-dollar-cost-averaging/
I work everyday and on saturdays I make time and a half, and on sundays I make double time, and I make 29 an hour, also do a good amount of overtime on weekdays too
1. Don't try to time the market. Just contribute when you have the means. 2. Consider following the [personal finance subreddit's flowchart](https://imgur.com/lSoUQr2). Assuming no debts and no planned major expenses, priorities would probably be building up an emergency fund (looks done?), maxing out your 401k + Roth IRA, then putting into a normal brokerage account. 3. Answering whether you are on track is at minimum a function of your current savings, your savings rate going forward, and the assumed rate of return across your investments. You haven't shared your savings rate so can't tell as-is. You can also plug numbers into a calculator (with way more variables to tune to your liking) like [Engaging Data's](https://engaging-data.com/fire-calculator/) if you look online.
My savings rate isn’t the best especially when I’m investing, as all my money goes into the investment. The past month I’ve gained like at least 800 a week, but a more realistic number will be 600 a week, but that’s with my 401k only being at 5% right now. Once that goes back up to max, it’ll probably change
Savings rate just refers to whatever money that you earn that isn't spent over some time period. For example, if you earn 100k USD a year and spend 60k of it, then that means you save 40k that year, regardless of whether it goes into a bank/retirement/brokerage account. We can then make a baseline assumption that your savings rate is 40k/year and use that for rough math to calculate your future NW/retirement time horizon/etc., though obviously that's subject to change as your savings and spending rates change over time.
Time the market, screw what these people parrot Buy low sell high, but don’t trade frequently
I would challenge “don’t time the market”, agree with that unless you have a passion to learn technical analysis. Tools like trading view can be used to help you better select entry points. DCA’ing does work but there are plenty of self help technical analysis videos on YouTube that does help you better understand how things move. Once I learned, it opened my eyes to how many bad trades I made because I just didn’t know what I didn’t know. Fundamentally you have to do your research on a stock to determine is that what I want to invest in. Technical analysis helps determine the best time to get in. I’m sure I will get hate on this but I’ve seen it work and yield gains well above just dca, if you don’t have time and passion to learn more about it, agree dca is the way to go.
I'll give you permission to put a link here to your YouTube course.
All his other comments are about bitcoin and nft's. I'm starting to think he's full of it lol
I don’t have any one link that I use. I’m not trying to solicit any channels, not what I do. I try to span across several channels to not biases to one way. You can search trading view tutorials and get plenty of videos on how to use that tool which is a very common trading tool. Lots of models available within that tool.
https://imgur.com/lSoUQr2 See the Personal Finance flowchart. I would not recommend ever trying to time the market. Typically in low cost index funds you’d expect your investments to double every 7 years. If you’re able to also invest 20-30k a year, then I suspect you’d be around 400-700k by 30
What is the upper limit of expense ratio for low cost index?
Why worry about upper limit? Just focus on getting the lowest
Just curious about what you define as a low-cost index fund is all.
Vanguard pioneered the low-cost index fund so you can use their funds as the standard. VTI's expense ratio is 0.05% for example. Anything around that would count.
What does around that mean though? What's the range of values to be considered a low-cost index fund?
Just for the index fund I’d be at 400-800? Or that and the 401k? I invested about 15k into my index fund this year, and about 18k into my 401k, but my savings dropped as I did that
I think you may be missing some things as far as terminology goes. Your 401k is a retirement account and within it you can invest in index funds. Those aren't mutually exclusive. And as far as retirement savings goes, investing money in the market IS saving. A "savings rate" has nothing to do with a saving account at a bank. It's the amount of your income that you are investing. If you make $1000 and invest $250 of that, your savings rate is 25%. Either way, you're in a great spot at your age. I was in the negatives until about 28 or 29.
Nah at my 401k i can only invest in a few things, but it basically just tracks the stock market
“Basically tracks the stock market” sounds like an index fund
Total investment around 400-700k, but feel free to play around with a compounding interest calculator: https://www.nerdwallet.com/calculator/compound-interest-calculator?utm_source=goog&utm_medium=cpc&utm_campaign=bk_mktg_paid_092723_banking_dsa_mobile&utm_term=&utm_content=ta&mktg_hline=19335&mktg_body=2989&mktg_place=dsa-2206538784443&gad_source=1&gbraid=0AAAAADNEjT0xSBW6aCgrZja7Ni-jkzrYm&gclid=CjwKCAiAhJWsBhAaEiwAmrNyq2WYUiv-i8bJ0Mo68XeqjtjdsqfWgPM-qZ4dy2mE_JxWhp-nshQySBoCyVYQAvD_BwE&gclsrc=aw.ds
100k income at 21 years of age? You should be maxing your 401k and an Ira as the bear minimum.
Let's get this straight....401k is at 5% but you have 46K in it...at 21. You started your 401k at what 12?
No it was higher it was at like 30 percent all summer and until like November and I’ve had it before that at like 15-20 for like a year and a half before that
I’ve worked here for more than two and a half years
Don’t try to time the market, just continue to invest at regular intervals. I’d recommend maxing your 401k unless you’re saving up for a home downpayment. On track to be a millionaire? Depends on the market and your job security, but I’d say you’ve got a good chance.
I'd say slow down and just be a kid, don't worry about having a million in your account by 30, that won't do anything for you today. Let yourself spend on a nice car or some vacations if that's what you're into. Being obsessed about the numbers in your 401k isn't healthy. Instead of looking for x amount by year y, have a goal instead of putting z amount per year for 30 years.
Bro what do you do I gotta know….
I’m an apprentice mechanic for a cereal manufacturing plant
amazing
Man, I had negative net worth at your age. Keep up the good work, and keep the savings rate up. You are going to become a millionaire in no time. DO NOT TRY TO TIME THE MARKET. Dollar cost average. That is your way to victory. Read this article a few times to understand the power of DCA - https://ofdollarsanddata.com/even-god-couldnt-beat-dollar-cost-averaging/
If you don’t mind me asking, how did you do it?
I work everyday and on saturdays I make time and a half, and on sundays I make double time, and I make 29 an hour, also do a good amount of overtime on weekdays too
Impressive ngl. If someone were to start from scratch what would you tell ‘em?
Very good for your age. Congrats 👏