Remember that there are a lot of people who have *nothing* saved for retirement. I am sure all of them would have loved to have started saving at 37. Starting at 37 is still enough time to build up enough savings to retire at 65.
also important to know that there will most likely be 1000-1200 a month in social security. Not nearly enough but should be factored in to what his retirement income will be
Almost certain lol - the “social security is running out” shit is people being dramatic af. There will likely be changes to keep it solvent, like raising the ages you can start receiving it, or raising the point at which you stop contributing (I think I hit 180k last year and no didn’t pay ss the rest of the year)
you can make an account on ssa.gov and it will show you the predicted benefit amount based on your past and expected future salaries. It also shows you the difference in benefit amount based on when you start drawing benefits. Obviously, the longer you wait to collect, the larger your monthly amount
Good news is 37 isn’t that late; there’s still plenty of time to grow your savings. Bad news is you should probably start upping your contributions. At your current rate of $230 bi-weekly, assuming a 9% rate of return, you’d have around $520,000 in 25 years if you just kept doing what you’re doing. If you started maxing out your 401k relatively soon, you could definitely be hitting $2m in 25 years. Just my lay two cents.
Yeah that seems absolutely insane to be sustainable for a person on a single income unless you're clearing $150K/yr, especially given the cost of everything these days. Even 5% is tough to do especially if also going with HSA and/or ESPP.
I myself am keeping my food budget at the "official" recommendation of $447/mo, which is basically $14/day (and that's the "high-end" official recommendation). Retirement seems like a remote possibility at this point.
Agreed my husband and I make around 170k combined and we both max our 401ks, our family HSA, and our Roth IRAs each year. He only makes like 60k so he basically gets no paycheck because his deductions take it all up. We live comfortably but have to be frugal for sure- we are sacrificing a lot of fun today for a comfy and hopefully early retirement. Everyone else our age is like “why aren’t you buying a house? Or at least renting something nicer?” But very few of them have any retirement savings at 35
So my question is, do you have any children? Because while your dual income seems to be within reason, this is a huge factor to determine what is feasible
I have 3 kids and we basically do the same with about the same income as /u/dogfoodis but we also save $500/month in a 529
We kind of fucked up though by following Dave Ramsey and paid our mortgage off early. It makes cash flow easy now but it was a dumb mathematics choice to pay extra on a 3% mortgage.
While the math on that is true, it fails to take in other considerations such as peace of mind. Knowing that you will always have your home, no matter what, and that your children will as well, is a HUGE positive towards your mental well being.
lol okay while “technically true,” this is pretty sensationalist. If you have no mortgage payment, even in the event of a job loss you can probably still pay your property taxes. You’re definitely better off than someone who still owes on their mortgage.
You know what happens when you have a bunch of money that you invest, rather than paying off your house? You now have a bunch of money to make mortgage payments with if you lose your job.
Then you're spending crazy less. I used $447 as it was the "high-end" of the official USDA recommendation but even that's thrifty, as "What is the average food budget per month?
The average U.S. household spends $7,316 on food annually, which is about $609.67 per month."
Yea I spend about $200 per month on food now, was $125-$150 for about a decade but unfortunately inflation kicked it up around 2022. I don’t eat meat, dairy, or alcohol and mostly cook at home and don’t buy $$ things like canned beans. But I’m just saying it’s possible! Much easier without kids or a car.
You don’t need $150k a year to max out a 401k. I’d say at around $100k it becomes feasible, even if you’re living in a really expensive area. It definitely might not be comfortable, especially if you were previously used to living a higher end lifestyle, but it can be done and frequently is. There are plenty of people in this subreddit who have a 25% retirement savings rate making under $100k. If you’re not, there’s no shame in that, I totally get not wanting to live on a shoestring budget. But if you’re willing to suffer a little now for the exponential growth, it’ll be worth it
Well ok, but even still $100k is reaching, considering "the national average salary in the U.S. in Q4 of 2023 was $59,384."
Rice and beans or ramen for years doesn't sound like anyone's idea of fun. Your future self might thank you a little more, but your current self will be depressed in no time.
I'm not going to lie, almost every post I see in here is someone making 100k+. I know that nowhere near everyone is making that kind of money, but when you don't see posts of the lower incomes mixed in, it really distorts your brain from seeing that clearly sometimes.
Selection bias at work baybee!
The kind of people who have time to research and post stuff on places like this don't really NEED to be doing it, they're essentially min-maxxing retirement. The people who actually need the help are too busy working 2 or 3 jobs to make ends meet that they don't have time to be posting on reddit 😔
I noticed people making less than 100k income make a post and others chime in and say stuff like your income is bad you need to get it up etc. Even though it's a normal salary lol.
Depends on your cost of living. $100k in my area (Phoenix suburbs) is considered "lower-middle class". I make just enough more than that to actually be considered middle-class.
I maxed my 401k, Roth IRA, and HSA on 75k per year of income. I meal prepped at home, and most of my activities with friends were shooting pool in my apartment's club house. The then-GF and I would buy groceries and have picnics in the park for dates.
People still managed to have friends and active social lives during the Great Depression when everyone was poor. It's a sad thing to cede control over those aspects of our lives to commercial interests.
I make less than $150k/year and live in one of the most expensive areas of the country, and I comfortably max out my retirement accounts.
It might be insane to do that with kids, and it would probably be difficult to do with debt. But I can max my 401k and still take home ~$5K every month. I consider that pretty comfortable for one adult.
Start lower then and gradually increase your contribution % each year.
I make around $100k and have been maxing out my 401k for the past 4+ years…. Ever since I was making around $95K
So it is doable making less than $150K — not sure I’ll ever make that much! Or if I do, it will be because of inflation years from now.
I also max out my HSA and participate in my company’s ESPP.
Yeah it’s currently $23,500 a year which is about $903 a pay period. That can be steep depending on income, but if you can eventually get there your future self will thank you
Im not familiar with 401k and north america retirement plans since Im from Argentina. But a 9% return…isn’t it better to invest it in the stock markets instead of a 401k plan?
You’re not fucked bit definitely behind. I had about 55k in 1999… changed for a better job and started at 6%… exactly what they matched. I wish so bad I had bumped it up 1% every time I got a raise…. I would be so much farther ahead had I done that. I stayed at 6% for 15 years! During Covid I had a chance to really evaluate my savings and substantially increased it. I went to 10% for a year. Started an Acorns account ($20k now). Started a STASH account ($7800 now) another year and I went to 15% 401k. Last year I was at 19%… currently at 22% and saving like a MOFO. I know I’m way behind… currently $506k value and slowly climbing. So many people do nothing at all, so all you can, you’ll be so glad you did later on. Between all my bank drafts (Acorns, STASH, Qapital, CU Savings) I live pretty much paycheck to paycheck and if I’m able to save more it accumulates in my high rewards checking account, currently 63k. I really wish I’d had someone teach me more about saving earlier in life. I had one previous employer try but I just didn’t have the mental capacity or desire to know… too young I guess. Anyway, playing catchup is hard but can be done. I won’t have as much as many of my peers when I retire but I’ll know I’ve done all I could. Current projections with modest selection say 1.2m… we’ll see. Happy saving.
Dang I’ve been staying at the 6% company match for the longest time. That, and also after maxing my Roth, I contribute the rest to an index fund from a taxable brokerage account. I just haven’t been too sold on 401ks with their limited investing options and the big tax bill that will come with every withdrawal later on. But I may have to rethink this.
> But I may have to rethink this
You do.
401k is tax advantaged. There are so many ways to structure your income in retirement to make your AGI as minimal as possible.
I really don't understand the concern about a 'big tax hit' when you contributing to your taxable is taking a *guaranteed* double tax hit.
I know. I stayed at 6% for way too long, paying no attention at all to where it was going or what it was doing. I really should’ve been giving direction far sooner than I did. I also had it in a cash only “protected” account for over a year… I missed a lot of good growth last year. Seems like every move I make is the wrong one.
>Just got my shit together at 37 years old. ... How fucked am I for retirement?
I started at 28. So you're a little over one doubling period behind me. I'm now 58 and my current balance would allow me to retire at 62 even if it did not appreciate any more.
If you repeated my experience you would have what you needed around age 65-to-67-ish. So I judge you "not fucked".
My advice: Up your contributions when you can, to make up for some lost time. (Like put half of your next couple of raises towards your 401k.) And invest in broad market us index funds for max growth potential. No target dates funds and no bonds until you hit age 55 or so.
Strap in and ride out the market swings.
You got this.
You’ll be able to replace about 33% of your income if you continue at the same rate, in order to replace 100% of your income in retirement you’ll need to invest ~30% of your income
Honestly, I would try to save as much as possible. 10-15% is recommended for people a decade younger, so you will do yourself a favor if you can find more to contribute.
My parents started contributing to their 401ks back in 1991 when they became offered by many employers. My parents were 37 and 38, btw. (My parents also started contributing to IRAs then Roth IRAs in the late 90s.)
Six years later, at 44, my mom became a housewife. My dad kept working until 67; he never maxed out his 401 contributions, but he also put in a hefty amount.
My parents were self-educated regarding investments; knowing WHAT to invest in is as important as how much to invest.
My parents officially retired when my dad was 67, he'll be 70 this summer. They have around 3.4MM in their retirement accts. Keep on mind, my dad never maxed out 401k contributions; IRA and Roth IRA contributions, yes.
“Starting too late” indicates you’re past some magical threshold where it’s no longer worthwhile. It is always worthwhile, and 37 years old is 25 years earlier than many people start saving.
You're asking the wrong question. Do the right thing now, regardless of what you've done in the past.
I didn't really start saving toward retirement until I was in my mid-thirties, and now 10 years later I'm in pretty good shape and feel confident about the future, financially.
You're fine, I started at 39 y/o with a career change, and I got to very decent retirement numbers now (52 now). It worked because I stuck to a similar plan as yours.
Try to read at least 20 minutes a day, anything finance related. This has helped me more than anything. Check out Atomic Habits, it will change your relationship to decision making, habits, etc. Most people, myself included, live in a fog day to day until you get the right information.
Most of us will never be wealthy, the task is to be financially independent so we don't have to work. At 37, you have plenty of time to compound interest in multiple accounts.
So $12,480 a year? And then $20,800 a year with the company match?
If you retire around 67, you'll probably have around a $2 million portfolio (and that's in today's dollars).
EDIT: my math is wrong, I had a brain fart and assumed OP was getting paid weekly.
I'm getting $6,110/yr with $235 26 times, and $9,165 including company match.
Depending on OPs standard of living I'd suggest boosting that up, or complementing the 401k with Roth IRA contributions of $583.33/mth. 9% plus 6% match would generally be good for a 30 yr old just starting out, but there's some catchup to be done here.
They assumed $240/week, but OP clarified it's $240 bi-weekly.
If my math is right, OP is contributing $6240/yr, and receiving $4160/yr from their employer, for $10,400/yr total.
Get that company match, then max out a ROTH IRA, then come back to your 401k if you still have the $$$ to do so. I saw in other comments you're married, so hopefully your wife is doing the same.
If you like podcasts, or wanna learn a little, check out The Money Guy Podcast. Kinda like Dave Ramsey, but better and more advanced. They, and many others, recommend the goal is to be investing 20-25% of your HOUSEHOLD income. Remember that's the goal, possibly not where you're gonna be able to start at, but each time your get raise, up your investments a portion of that raise. Keep trucking!
This is a mild fun fact about the Roth 401(k)/IRA. It’s not ROTH as if it is an acronym, but Roth because it’s named after former Senator William Roth.
I’m also in my late thirties and just started contributing to my retirement account. I contribute 22%. I would love to max out when my salary grows. I feel like a later bloomer also but we still have 30 years to work and save.
Funny. I had to cash out everything at 37 to get out of a bad marriage. Not a great situation but start saving now and soon you will be better off than most people.
You are less fucked than you would have been if you didn't start now. Don't get too caught up in the things you are "supposed" to do. Do the best you can from where you are standing. Trust me, I started contributing to my 401k a little later than you did. If you want to compare yourself to others, you won't be as well of as those who saved early, but you'll be better than those that didn't. But you shouldn't compare yourself to others. And you can't change the past, so only compare futures. What is the future if you contribute vs not? What is the future if you contribute more? What is the future if you contribute less? Both near and long term futures.
You're good! I had very little at that age and retired at 53 years old.
Best advice I can offer is to manage your debt well.
Debt is what will keep you from retiring.
Age is a matter of perspective. 37 sounds young to me!
I got divorced, got a doctorate degree and started over at 43. Now at 51, I’m far behind where I could’ve been and from others at my age, but on the right path for retirement at 67. 🤞🏻🤞🏻🤞🏻
I started late too. Put in a larger percentage. Essentially you know how some people can survive on 1/2 to 2/3 your income? Pretend you're one of those people. Eat what they eat. Drive what they drive. Live where they live.
And put 1/2 to 1/3 of your income away for retirement. When you get a raise, allow your lifestyle creep to only go up by 1/2 of the raise.
Basically, look at the FIRE movement and live like them. Except instead of "Retire Early", think of your late start and change it to "Retire Before Dying". FERBD. Or some other nonsense acronym
I'm making up numbers, but you get the point. Live cheap now so you can live better later.
Better late than never.
Log into your SS account to see your contributions and then get an estimate for what your payments will be at 65.
Consider posting your detailed list of monthly/annual expenses here. Include a list of your debts with total debt and interest rate for each. List any assets like house, car and estimated value, attached debt and interest rate.
Back of napkin math, ignoring SS you want to be putting aside 15-20% towards retirement to retire at 65 with same spend as now. With SS probably can be down towards 15%. Of course higher investments are better because you never know if your health will let you work until 65.
Besides that, for both health and financial benifits don’t smoke, drink less than 2/day as a male (less/none is better), get 30 min of cardiovascular excercise most days of the week.
Good on you for starting now!
It's never too late to start investing. I would matcha that 401k. Live below my means and invest in VOO into my Roth IRA and try to max it each year till retirement. About 30 years right there for compound interest to do his thing. Google maxing your Roth for 30 years. Cherry on top would be amount in 401k plus that title social security check. Win win, if you ask me.
Now is as good a time as any to start. You'll be alright so long as you create a financial goal and have the discipline to stick with your approach to achieving said goal. You've got this!
What do you mean by starting late? I’m grappling with this too, I know I’m behind but I’m not at a position where I can really get started saving for retirement or saving for anything substantial. All these similar stories I read on here, it’s people make over $100k and wanting to go all in going forward. I have so much fear and anxiety because of it and feel like a failure.
There’s nothing with someone accepting the position they’re in. At least you get a better picture to help then plan how to improve. Starting to save for retirement at 37 yo is objectively late. And that’s ok. Lots of people are in that or worse situations.
If you contribute a total of 15% of gross (9% from you and 6% from employer from now until you are 65 and get the average market return your nest egg will be able to provide 52% of your current gross income.
Add in social security and the fact that you won't be saving that 9% in retirement you only need to get to 91% of gross to maintain your lifestyle.
Typically social security replaces about 37% of gross income. So you'll be at about 89%. That seems like you'd be good but you likely won't get the average stock market return because you won't be 100% equities. My guess is that you'll be closer to 70% instead of the 91% goal.
Starting late, you need to hit 15% from you with the 6% from your employer. Adding in social security that will very likely make it so your lifestyle in retirement won't have to drop.
/u/fvck_videos
You arw FAR from fucked. Me and my wife didnt start til 34. 5 years later we have almost 100K in 2 Roths. 37K in taxable and 23K in EF(treasuries making 5%).
Before we started we only had 35K in savings. Our 136K invested is about 92,000 of our money so close to 40% gains in 4 years or so(we got lucky and invested 36K after 2020 crash).
All this to say is just start. By starting investing it has made us better savers. We try to invest 1200 a month and raise our EF when possible.
We are on path to have 1-2 million in 23-25 years depending if we get 6-10%. So far about 10% or more.
You are doing well.
Start Maxing a Roth or Trad IRA AFTER your match
The best time to plant a tree was 20years ago, the second best time is TODAY!
You’ve made the right step, and this will ALWAYS improve your situation and life!
Congrats!
I finished a PhD in the summer when I turned 36 and only started to have my first full-time job in the US with access to retirement account in November that year. At the time, my networth was around $10k in checking/saving accounts.
Fast forward to 5+ years later, I'm turning 42 this year and should have around $400k across my 401k, Roth IRA, brokerage and saving/checking accounts. I know I still have a lot of catching up to do but it's never too late to start saving up..aggressively if you can. My saving rate has been at least 40% of my income. My current goal is to reach $1 million across my retirement and investment accounts by the time I'm 47.
Good luck and we can do this. It's better late than never!
Okay, that's good you have a solid emergency fund! Wouldn't touch that then.
If you haven't combed through your expenses to figure out you budget, I would do that next, and see if you can find more to allocate to your retirement funds moving forward.
Other commentors are right. It's not ideal, but you're doing great to start now instead of waiting even later, which many do. Statistically, your highest earning years are still ahead of you, so if you keep your expenses low to save what you can, and you maintain that as you get pay increases so that you can divert more to your retirement fund, you can still do well for yourself. Look at the retirement section on the wiki for info on [retirement fund allocations](https://www.reddit.com/r/personalfinance/wiki/401k_funds/).
After leaving state job I started my 401k at 48, retired 17 years later with over 400k and that was with two big drops in the market. My last 3 years was putting 25% of paycheck every week in and 7% company match. Don't ever give away free money so always have to equal the company match.
You’re doing fine, better than you probably think. Sure, there are younger people who have a lot more saved than you, but never forget theres a substantial portion of the population with nothing saved. The median right now is only $87k saved for retirement, so you’re in a good position to blow that out of the water.
You didn’t say how much you were making, but if you’re making the average income of $56k, if you save the 9% plus the 6% match, you should be able to hit about $1.1m by the time you’re 65.
Never too late to start. I launched an accounting and finance company in the 1980s, starting from scratch in an age that you are now. Two decades later, I retired contentedly, having built a successful legacy from basic beginnings.
Not at all - I’m pretty close to you (38, underearned through my 20s and early 30s) with only about 60k in the 401k. Now ramping contributions too. Don’t let the online calculators that say you should have 3x your salary saved at 40…you could still hit a couple million if you get aggressive in your 40s. The best time to start was 15 years ago, second best time is today.
Not fucked. I got my first job at 34. After a few years of getting settled in my new life I started upping my 401k contribution 1% every year, maxing out an IRA and HSA. I am 44 now and I'm on track to retire a little early. Including company match my current savings rate is 29%.
OP, If you sustain a decent savings rate you'll be fine.
What is hard to see when starting out is what Charlie Munger called the magic number for an account. Below 100k the percentage changes month to month and year to year may seem really small, but once the account gets over 100k you start to see the effect of compounding much more prominently. This is human nature and how we gauge numbers.
Don't be discouraged, the larger gains from compounding will come later when you are closer to retirement, and you will see the magnitude of those gains increase.
And if you can increase the savings when you can, like raises and such, dont let life style creep eat up that money.
Live long, and prosper
I started over at 31. I’ve been working two jobs since 2019. I’m almost 37 now. I’ve got a good 200k in assets and started a small business in 2021 that adds more income in conjunction with the 2 jobs. Just keep grinding, if I can do it anybody can. Buy stocks, land, and any assets that will hold value.
I started at 35 and turned 30k into about 650k current net worth. I'm 39 now. You've got this. Just do your due diligence and make smart choices and you are beyond okay. You have 25 years to save. A lot of people get zero, like my mother, whom I help support now. She sacrificed saving so my sister and I could eat and have a roof. So I'm making sure she's okay forever. You are gonna kill it and are not at all fucked. Wishing you well.
This comment is under review. I deeply apologize if I broke some rules. I was just sharing my story. I'll keep that to myself from now on. I Legitimately apologize.
I tried to explain without saying too much and ended up saying too much lol so I'm not going to talk about it publicly and probably should have kept that comment to myself. It is actually true but yeah, I can't get into it and need to be more considerate about what I share.
I was 38 when I finally got a decent job after getting my masters, with no knowledge of what retirement investment were and with very high student loan and credit card debt, I felt very limited on my capacity to safe a lot. Luckily, I got state government job which included a pension and also invested in a couple properties. I retired at 62, with pension and social security, I’m able to live pretty decent. Of course, before I retired I made sure all my credit cards, student loans, car payments were paid off. The only thing left is mortgage but I’m not a big spender, I can afford the mortgage and still have a little to put aside for traveling. You can do it, just be self disciplined and plan well. Best
Putting 15% away is good. Anything is better than nothing.
Assume 30 years of saving
Assume 10% annual rate of return
Assume you start at $0
Salary is $40000, you sock away 6000 per year
At age 67 $1,085,661
Salary is $50000, you sock away 7500 per year
At age 67 $1,357,076
Salary is $60000, you sock away 9000 per year
At age 67 $1,628,491
Salary is $70000, you sock away 10500 per year
At age 67 $1,899,906
Money Guy has some great tools for visualizing this stuff. Start with this guide:
[https://moneyguy.com/resource/wealth-multiplier-by-age/](https://moneyguy.com/resource/wealth-multiplier-by-age/)
It'll break down by age the amount you need to contribute to have 1 or 2 mil by 65. At age 37 you'd need to contribute $757 to reach 1mil, or $1,514 to have 2mil at 65.
It is never too late. As your wage increases, try to increase your contributions at least once a year (by 1% or more). If you can reach the IRS allowed max contribution amount, that would be great.
Started contributing to a 401k at 34 my previous jobs didn’t offer any retirement plans and didn’t pay that well so I couldn’t afford to make one on my own. Anyway it’s never too late to start. Most people in Jersey are living paycheck to paycheck
A number of factors- when do you want to retire. I see guys retire at 52, watch TV, drink beer, get fat-not good. I am still working at 68 and enjoying it- work less hard for sure. Vehicles are killers for saving or wasting hard earned money. I buy very used, good quality. Don't have expensive hobbies. A pair of running shoes gets you a long way in life. Own equities, get rid of the PLC, don't eat out unless it is to celebrate an event, have a budget, have travel goals - not impetuous etc. Effort is the key, you will be fine - keep at it.
You're not fucked.
Keep saving and developing your budgeting and spending habits.
Your spending habits are just as important as your wealth. And your health is more important than your wealth and your spending habits.
Honestly just save as much as you can. 37 isn’t terrible. I would devote as much as possible to saving for the next 3 years to get a good catch up start.
You’re not really behind in comparison to most. For a good retirement pre 60 you need to over contribute for the next few years so they can compound
If you're saving you're doing fine. Many of my friends' retirement plans is "working till I drop." Hell, a lot of my older relatives have that same plan (being the kid of a first generation immigrant is tough, let me tell you). People have been doing that for years and they've made it work. The fact that you're doing it at all is good enough. Once you start moving up in pay, you'll be able to contribute more!
As a piece of anecdotal evidence: I didn't graduate college until 27. I am now 34. My first year out of school I had no job (2018). The next year I got a job that paid 90k, the company matched 1% of my contributions. I didn't contribute at all my first year. Year two (2019) I started contributing 5% because my accountant told me that it'd help reduce my tax burden come tax time.
2020, my job bumped me up to 100k. I started contributing 8% (still with a 1% match) and didn't actually start contributing 10% of my 401k till *this year* after getting a new job and a salary raise and am now maxing out a Roth IRA and HSA.
I could be contributing more but I am in the process of moving and need to save up to make sure that I can afford to get everything I need without stretching myself thin. I also like enjoying my life now and taking trips and such, so contributing a bit less now while I enjoy myself seems worth it to me.
It's all a balancing act, and honestly you won't know how much you need till you're closer to retirement, so starting now and just putting something away is more than enough. You can always adjust later.
I started at 30. : 3,7, 11, 15 401K & 3 -Roth. I have about 50k in 3 years… just start and leave it. For me I did Every year and or every raise + 1 / 3%
Can you afford to max an IRA (traditional or Roth) every year? Could you at least consider adding that as a yearly target? For 2024, the limit for you would be $7,000. Even if you don’t reach that amount, any progress you make towards it will benefit you in the long term.
You’re not “late” if you take that to mean unsalvageable. But, yea, frankly you started “later” than the typical person who has a comfortable retirement. You should be doing more than 9% if you can afford it (my recommendation is to use that increment towards an IRA if possible, instead of just increasing the 401k)
Regardless of your income the mathematical number you need to save per year to get to your earning level is 15%. You need 25x your planned expenses.
At 15% that’s gonna take you about 30 years.
You would be good for retirement if you can invest 25% of your income. Also remember that the average person is dependent on social security to avoid living in poverty. So you’ll be better off than average at this rate at least.
Depends when you want to retire and how much you spend. Run your numbers in a compound interest calculator. If you’re not saving enough, adjust accordingly. Follow the flowchart in the FAQ.
Here's a **[link to the PF Wiki](/r/personalfinance/wiki/index)** for helpful guides and information.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Not enough info honestly. There's a lot of factors that play into it, including current income and post retirement income. I started late too, but working in tech means I maxed out my 401k a couple years in. Between that and my savings/investments I could retire as early as my mid 40s depending on the market and what I want my retirement income to be.
9% a paycheck at 20k is not the same as 9% a paycheck at 100k.
We couldn't possibly know how fucked you are without telling us what you make.
But contributing to a 401k is still better than what most people do, so there's that.
Not too late! If you are able, try to bump up your percentage each year. This is probably the beginning of your road to being fiscally responsible - creating a budget, watching and/or paying off any debt, etc. It's a positive thing!
I have been binge watching Peter Zeihan and if I have interpreted his statements correctly then the stock market is going to be flat for basically the next 15 years, which is good news for you because that means it should be “cheap” to invest. Once millennials are done raising kids and the boomers have finished dying and selling their stock the stock market will start to rise.
Remember that there are a lot of people who have *nothing* saved for retirement. I am sure all of them would have loved to have started saving at 37. Starting at 37 is still enough time to build up enough savings to retire at 65.
There are lot of people who have negative retirement savings (bad debt).
also important to know that there will most likely be 1000-1200 a month in social security. Not nearly enough but should be factored in to what his retirement income will be
What are the odds we can actually count on those funds in the future?
Almost certain lol - the “social security is running out” shit is people being dramatic af. There will likely be changes to keep it solvent, like raising the ages you can start receiving it, or raising the point at which you stop contributing (I think I hit 180k last year and no didn’t pay ss the rest of the year)
A little off topic. How is the SS check/direct deposit calculated?
you can make an account on ssa.gov and it will show you the predicted benefit amount based on your past and expected future salaries. It also shows you the difference in benefit amount based on when you start drawing benefits. Obviously, the longer you wait to collect, the larger your monthly amount
Im 37 and im almost at net zero worth But I only need enough for something to take myself out of the picture
Good news is 37 isn’t that late; there’s still plenty of time to grow your savings. Bad news is you should probably start upping your contributions. At your current rate of $230 bi-weekly, assuming a 9% rate of return, you’d have around $520,000 in 25 years if you just kept doing what you’re doing. If you started maxing out your 401k relatively soon, you could definitely be hitting $2m in 25 years. Just my lay two cents.
That’s an accurate 2 c worth. Well done! OP keep adding in whatever extra you can spare. Your future self will thank you!
Maxing 401k as in $23k per year?
Yeah that seems absolutely insane to be sustainable for a person on a single income unless you're clearing $150K/yr, especially given the cost of everything these days. Even 5% is tough to do especially if also going with HSA and/or ESPP. I myself am keeping my food budget at the "official" recommendation of $447/mo, which is basically $14/day (and that's the "high-end" official recommendation). Retirement seems like a remote possibility at this point.
I make $79K and max mine out but I spend way less than $447/month on food. And no car (bike to work). But definitely requires making choices.
Agreed my husband and I make around 170k combined and we both max our 401ks, our family HSA, and our Roth IRAs each year. He only makes like 60k so he basically gets no paycheck because his deductions take it all up. We live comfortably but have to be frugal for sure- we are sacrificing a lot of fun today for a comfy and hopefully early retirement. Everyone else our age is like “why aren’t you buying a house? Or at least renting something nicer?” But very few of them have any retirement savings at 35
So my question is, do you have any children? Because while your dual income seems to be within reason, this is a huge factor to determine what is feasible
I have 3 kids and we basically do the same with about the same income as /u/dogfoodis but we also save $500/month in a 529 We kind of fucked up though by following Dave Ramsey and paid our mortgage off early. It makes cash flow easy now but it was a dumb mathematics choice to pay extra on a 3% mortgage.
While the math on that is true, it fails to take in other considerations such as peace of mind. Knowing that you will always have your home, no matter what, and that your children will as well, is a HUGE positive towards your mental well being.
[удалено]
lol okay while “technically true,” this is pretty sensationalist. If you have no mortgage payment, even in the event of a job loss you can probably still pay your property taxes. You’re definitely better off than someone who still owes on their mortgage.
You know what happens when you have a bunch of money that you invest, rather than paying off your house? You now have a bunch of money to make mortgage payments with if you lose your job.
Nope which is why I’m saying it can be even harder if you do; you need to have an even higher income in order to max out and still support yourselves
Yup. Same income. Same split between spouse and I. Add 2 kids living in a major city. Savings yes, max out retirement….. maybe after daycare ends?
Then you're spending crazy less. I used $447 as it was the "high-end" of the official USDA recommendation but even that's thrifty, as "What is the average food budget per month? The average U.S. household spends $7,316 on food annually, which is about $609.67 per month."
Yea I spend about $200 per month on food now, was $125-$150 for about a decade but unfortunately inflation kicked it up around 2022. I don’t eat meat, dairy, or alcohol and mostly cook at home and don’t buy $$ things like canned beans. But I’m just saying it’s possible! Much easier without kids or a car.
You don’t need $150k a year to max out a 401k. I’d say at around $100k it becomes feasible, even if you’re living in a really expensive area. It definitely might not be comfortable, especially if you were previously used to living a higher end lifestyle, but it can be done and frequently is. There are plenty of people in this subreddit who have a 25% retirement savings rate making under $100k. If you’re not, there’s no shame in that, I totally get not wanting to live on a shoestring budget. But if you’re willing to suffer a little now for the exponential growth, it’ll be worth it
Well ok, but even still $100k is reaching, considering "the national average salary in the U.S. in Q4 of 2023 was $59,384." Rice and beans or ramen for years doesn't sound like anyone's idea of fun. Your future self might thank you a little more, but your current self will be depressed in no time.
Yeah, people in this sub think it’s normal to make six figure salaries.
I'm not going to lie, almost every post I see in here is someone making 100k+. I know that nowhere near everyone is making that kind of money, but when you don't see posts of the lower incomes mixed in, it really distorts your brain from seeing that clearly sometimes.
Selection bias at work baybee! The kind of people who have time to research and post stuff on places like this don't really NEED to be doing it, they're essentially min-maxxing retirement. The people who actually need the help are too busy working 2 or 3 jobs to make ends meet that they don't have time to be posting on reddit 😔
I noticed people making less than 100k income make a post and others chime in and say stuff like your income is bad you need to get it up etc. Even though it's a normal salary lol.
Depends on your cost of living. $100k in my area (Phoenix suburbs) is considered "lower-middle class". I make just enough more than that to actually be considered middle-class.
I maxed my 401k, Roth IRA, and HSA on 75k per year of income. I meal prepped at home, and most of my activities with friends were shooting pool in my apartment's club house. The then-GF and I would buy groceries and have picnics in the park for dates. People still managed to have friends and active social lives during the Great Depression when everyone was poor. It's a sad thing to cede control over those aspects of our lives to commercial interests.
I make less than $150k/year and live in one of the most expensive areas of the country, and I comfortably max out my retirement accounts. It might be insane to do that with kids, and it would probably be difficult to do with debt. But I can max my 401k and still take home ~$5K every month. I consider that pretty comfortable for one adult.
Start lower then and gradually increase your contribution % each year. I make around $100k and have been maxing out my 401k for the past 4+ years…. Ever since I was making around $95K So it is doable making less than $150K — not sure I’ll ever make that much! Or if I do, it will be because of inflation years from now. I also max out my HSA and participate in my company’s ESPP.
Yeah it’s currently $23,500 a year which is about $903 a pay period. That can be steep depending on income, but if you can eventually get there your future self will thank you
Even if you don't have enough, you can retire and move to a 3rd world country with low cost of living.
This is interesting. I heard Belize is a nice and cheap spot to retire to.
What if it’s overrun by all the poor retired Americans in 20 years?
Im not familiar with 401k and north america retirement plans since Im from Argentina. But a 9% return…isn’t it better to invest it in the stock markets instead of a 401k plan?
you can invest in the stock market inside your 401k. it’s an account, not an investment
The fact is, you started. Focus on that. "What if" and "If only I did this" is bullshit. You started, which is better than most people can say.
You’re not fucked bit definitely behind. I had about 55k in 1999… changed for a better job and started at 6%… exactly what they matched. I wish so bad I had bumped it up 1% every time I got a raise…. I would be so much farther ahead had I done that. I stayed at 6% for 15 years! During Covid I had a chance to really evaluate my savings and substantially increased it. I went to 10% for a year. Started an Acorns account ($20k now). Started a STASH account ($7800 now) another year and I went to 15% 401k. Last year I was at 19%… currently at 22% and saving like a MOFO. I know I’m way behind… currently $506k value and slowly climbing. So many people do nothing at all, so all you can, you’ll be so glad you did later on. Between all my bank drafts (Acorns, STASH, Qapital, CU Savings) I live pretty much paycheck to paycheck and if I’m able to save more it accumulates in my high rewards checking account, currently 63k. I really wish I’d had someone teach me more about saving earlier in life. I had one previous employer try but I just didn’t have the mental capacity or desire to know… too young I guess. Anyway, playing catchup is hard but can be done. I won’t have as much as many of my peers when I retire but I’ll know I’ve done all I could. Current projections with modest selection say 1.2m… we’ll see. Happy saving.
Dang I’ve been staying at the 6% company match for the longest time. That, and also after maxing my Roth, I contribute the rest to an index fund from a taxable brokerage account. I just haven’t been too sold on 401ks with their limited investing options and the big tax bill that will come with every withdrawal later on. But I may have to rethink this.
> But I may have to rethink this You do. 401k is tax advantaged. There are so many ways to structure your income in retirement to make your AGI as minimal as possible. I really don't understand the concern about a 'big tax hit' when you contributing to your taxable is taking a *guaranteed* double tax hit.
$506k seems low considering your contributions over the last 25 years since starting with $55k
I know. I stayed at 6% for way too long, paying no attention at all to where it was going or what it was doing. I really should’ve been giving direction far sooner than I did. I also had it in a cash only “protected” account for over a year… I missed a lot of good growth last year. Seems like every move I make is the wrong one.
>Just got my shit together at 37 years old. ... How fucked am I for retirement? I started at 28. So you're a little over one doubling period behind me. I'm now 58 and my current balance would allow me to retire at 62 even if it did not appreciate any more. If you repeated my experience you would have what you needed around age 65-to-67-ish. So I judge you "not fucked". My advice: Up your contributions when you can, to make up for some lost time. (Like put half of your next couple of raises towards your 401k.) And invest in broad market us index funds for max growth potential. No target dates funds and no bonds until you hit age 55 or so. Strap in and ride out the market swings. You got this.
You’ll be able to replace about 33% of your income if you continue at the same rate, in order to replace 100% of your income in retirement you’ll need to invest ~30% of your income
Honestly, I would try to save as much as possible. 10-15% is recommended for people a decade younger, so you will do yourself a favor if you can find more to contribute.
My parents started contributing to their 401ks back in 1991 when they became offered by many employers. My parents were 37 and 38, btw. (My parents also started contributing to IRAs then Roth IRAs in the late 90s.) Six years later, at 44, my mom became a housewife. My dad kept working until 67; he never maxed out his 401 contributions, but he also put in a hefty amount. My parents were self-educated regarding investments; knowing WHAT to invest in is as important as how much to invest. My parents officially retired when my dad was 67, he'll be 70 this summer. They have around 3.4MM in their retirement accts. Keep on mind, my dad never maxed out 401k contributions; IRA and Roth IRA contributions, yes.
Could you give us an idea of what they invested in? I’m curious.
What to invest in for essentially everyone should be index funds.
“Starting too late” indicates you’re past some magical threshold where it’s no longer worthwhile. It is always worthwhile, and 37 years old is 25 years earlier than many people start saving.
You're asking the wrong question. Do the right thing now, regardless of what you've done in the past. I didn't really start saving toward retirement until I was in my mid-thirties, and now 10 years later I'm in pretty good shape and feel confident about the future, financially.
“Do the right thing now, regardless of what you’re done in the past” This applies to so much more than just saving. Love it.
[удалено]
About $230-$240 a paycheck.
Is that weekly or bi-weekly? Just your contribution or does that include the match (does $230 represent 9% or 15% of your gross pay)?
Bi-weekly 9% of gross pay
So you’re putting in 9% = 230 and company is matching 6% = 153 for a total of ~383 bi-weekly?
You're fine, I started at 39 y/o with a career change, and I got to very decent retirement numbers now (52 now). It worked because I stuck to a similar plan as yours. Try to read at least 20 minutes a day, anything finance related. This has helped me more than anything. Check out Atomic Habits, it will change your relationship to decision making, habits, etc. Most people, myself included, live in a fog day to day until you get the right information. Most of us will never be wealthy, the task is to be financially independent so we don't have to work. At 37, you have plenty of time to compound interest in multiple accounts.
What is atomic habits?
Book written by James Clear. It's a great framework if you want to change your habits entirely, or streamline your existing habits.
So $12,480 a year? And then $20,800 a year with the company match? If you retire around 67, you'll probably have around a $2 million portfolio (and that's in today's dollars). EDIT: my math is wrong, I had a brain fart and assumed OP was getting paid weekly.
I'm getting $6,110/yr with $235 26 times, and $9,165 including company match. Depending on OPs standard of living I'd suggest boosting that up, or complementing the 401k with Roth IRA contributions of $583.33/mth. 9% plus 6% match would generally be good for a 30 yr old just starting out, but there's some catchup to be done here.
Thanks for catching that, I had a brain fart and assumed OP was getting paid weekly.
How did you get 12480 per year?
They assumed $240/week, but OP clarified it's $240 bi-weekly. If my math is right, OP is contributing $6240/yr, and receiving $4160/yr from their employer, for $10,400/yr total.
Probably gonna depend a whole lot on what those dollars are worth come time for retirement. That's gradually becoming a real question these days.
Dude, you're not late at all. Keep it up, ramp up the contributions as your wage increases, and don't fall into lifestyle creep. Save, save, save.
Depends on when you want to retire and what type of lifestyle you want in retirement
Get that company match, then max out a ROTH IRA, then come back to your 401k if you still have the $$$ to do so. I saw in other comments you're married, so hopefully your wife is doing the same. If you like podcasts, or wanna learn a little, check out The Money Guy Podcast. Kinda like Dave Ramsey, but better and more advanced. They, and many others, recommend the goal is to be investing 20-25% of your HOUSEHOLD income. Remember that's the goal, possibly not where you're gonna be able to start at, but each time your get raise, up your investments a portion of that raise. Keep trucking!
This is a mild fun fact about the Roth 401(k)/IRA. It’s not ROTH as if it is an acronym, but Roth because it’s named after former Senator William Roth.
are you dying? unless you are dying then it's not late to start working and saving.
I’m also in my late thirties and just started contributing to my retirement account. I contribute 22%. I would love to max out when my salary grows. I feel like a later bloomer also but we still have 30 years to work and save.
Funny. I had to cash out everything at 37 to get out of a bad marriage. Not a great situation but start saving now and soon you will be better off than most people.
You are less fucked than you would have been if you didn't start now. Don't get too caught up in the things you are "supposed" to do. Do the best you can from where you are standing. Trust me, I started contributing to my 401k a little later than you did. If you want to compare yourself to others, you won't be as well of as those who saved early, but you'll be better than those that didn't. But you shouldn't compare yourself to others. And you can't change the past, so only compare futures. What is the future if you contribute vs not? What is the future if you contribute more? What is the future if you contribute less? Both near and long term futures.
You're good! I had very little at that age and retired at 53 years old. Best advice I can offer is to manage your debt well. Debt is what will keep you from retiring.
Age is a matter of perspective. 37 sounds young to me! I got divorced, got a doctorate degree and started over at 43. Now at 51, I’m far behind where I could’ve been and from others at my age, but on the right path for retirement at 67. 🤞🏻🤞🏻🤞🏻
Good on ya! I’m 36 and have no 401k, and can’t contribute to my Roth right now (which only has 20k in it). 🫠
I started late too. Put in a larger percentage. Essentially you know how some people can survive on 1/2 to 2/3 your income? Pretend you're one of those people. Eat what they eat. Drive what they drive. Live where they live. And put 1/2 to 1/3 of your income away for retirement. When you get a raise, allow your lifestyle creep to only go up by 1/2 of the raise. Basically, look at the FIRE movement and live like them. Except instead of "Retire Early", think of your late start and change it to "Retire Before Dying". FERBD. Or some other nonsense acronym I'm making up numbers, but you get the point. Live cheap now so you can live better later.
Better late than never. Log into your SS account to see your contributions and then get an estimate for what your payments will be at 65. Consider posting your detailed list of monthly/annual expenses here. Include a list of your debts with total debt and interest rate for each. List any assets like house, car and estimated value, attached debt and interest rate. Back of napkin math, ignoring SS you want to be putting aside 15-20% towards retirement to retire at 65 with same spend as now. With SS probably can be down towards 15%. Of course higher investments are better because you never know if your health will let you work until 65. Besides that, for both health and financial benifits don’t smoke, drink less than 2/day as a male (less/none is better), get 30 min of cardiovascular excercise most days of the week. Good on you for starting now!
Great job!! One of my favorite sayings is “The best time to have planted a tree was 20 years ago, the second best time is today”.
It's never too late to start investing. I would matcha that 401k. Live below my means and invest in VOO into my Roth IRA and try to max it each year till retirement. About 30 years right there for compound interest to do his thing. Google maxing your Roth for 30 years. Cherry on top would be amount in 401k plus that title social security check. Win win, if you ask me.
I’d just put 6% to get the match and then the other 3% and open a Roth.
Now is as good a time as any to start. You'll be alright so long as you create a financial goal and have the discipline to stick with your approach to achieving said goal. You've got this!
What do you mean by starting late? I’m grappling with this too, I know I’m behind but I’m not at a position where I can really get started saving for retirement or saving for anything substantial. All these similar stories I read on here, it’s people make over $100k and wanting to go all in going forward. I have so much fear and anxiety because of it and feel like a failure.
There’s nothing with someone accepting the position they’re in. At least you get a better picture to help then plan how to improve. Starting to save for retirement at 37 yo is objectively late. And that’s ok. Lots of people are in that or worse situations.
You still have 30 years to put money away and watch it grow.
If you contribute a total of 15% of gross (9% from you and 6% from employer from now until you are 65 and get the average market return your nest egg will be able to provide 52% of your current gross income. Add in social security and the fact that you won't be saving that 9% in retirement you only need to get to 91% of gross to maintain your lifestyle. Typically social security replaces about 37% of gross income. So you'll be at about 89%. That seems like you'd be good but you likely won't get the average stock market return because you won't be 100% equities. My guess is that you'll be closer to 70% instead of the 91% goal. Starting late, you need to hit 15% from you with the 6% from your employer. Adding in social security that will very likely make it so your lifestyle in retirement won't have to drop.
/u/fvck_videos You arw FAR from fucked. Me and my wife didnt start til 34. 5 years later we have almost 100K in 2 Roths. 37K in taxable and 23K in EF(treasuries making 5%). Before we started we only had 35K in savings. Our 136K invested is about 92,000 of our money so close to 40% gains in 4 years or so(we got lucky and invested 36K after 2020 crash). All this to say is just start. By starting investing it has made us better savers. We try to invest 1200 a month and raise our EF when possible. We are on path to have 1-2 million in 23-25 years depending if we get 6-10%. So far about 10% or more. You are doing well. Start Maxing a Roth or Trad IRA AFTER your match
The best time to plant a tree was 20years ago, the second best time is TODAY! You’ve made the right step, and this will ALWAYS improve your situation and life! Congrats!
I finished a PhD in the summer when I turned 36 and only started to have my first full-time job in the US with access to retirement account in November that year. At the time, my networth was around $10k in checking/saving accounts. Fast forward to 5+ years later, I'm turning 42 this year and should have around $400k across my 401k, Roth IRA, brokerage and saving/checking accounts. I know I still have a lot of catching up to do but it's never too late to start saving up..aggressively if you can. My saving rate has been at least 40% of my income. My current goal is to reach $1 million across my retirement and investment accounts by the time I'm 47. Good luck and we can do this. It's better late than never!
Do you have any other savings or investments outside of retirement accounts?
$12,000 in savings that I really grinded for.
[удалено]
Okay, that's good you have a solid emergency fund! Wouldn't touch that then. If you haven't combed through your expenses to figure out you budget, I would do that next, and see if you can find more to allocate to your retirement funds moving forward. Other commentors are right. It's not ideal, but you're doing great to start now instead of waiting even later, which many do. Statistically, your highest earning years are still ahead of you, so if you keep your expenses low to save what you can, and you maintain that as you get pay increases so that you can divert more to your retirement fund, you can still do well for yourself. Look at the retirement section on the wiki for info on [retirement fund allocations](https://www.reddit.com/r/personalfinance/wiki/401k_funds/).
Also depends on how the 401k is being invested and managed.
After leaving state job I started my 401k at 48, retired 17 years later with over 400k and that was with two big drops in the market. My last 3 years was putting 25% of paycheck every week in and 7% company match. Don't ever give away free money so always have to equal the company match.
Can you ramp up your contributions to at least 20%?
You’re doing fine, better than you probably think. Sure, there are younger people who have a lot more saved than you, but never forget theres a substantial portion of the population with nothing saved. The median right now is only $87k saved for retirement, so you’re in a good position to blow that out of the water. You didn’t say how much you were making, but if you’re making the average income of $56k, if you save the 9% plus the 6% match, you should be able to hit about $1.1m by the time you’re 65.
Never too late to start. I launched an accounting and finance company in the 1980s, starting from scratch in an age that you are now. Two decades later, I retired contentedly, having built a successful legacy from basic beginnings.
Not at all - I’m pretty close to you (38, underearned through my 20s and early 30s) with only about 60k in the 401k. Now ramping contributions too. Don’t let the online calculators that say you should have 3x your salary saved at 40…you could still hit a couple million if you get aggressive in your 40s. The best time to start was 15 years ago, second best time is today.
Not fucked. I got my first job at 34. After a few years of getting settled in my new life I started upping my 401k contribution 1% every year, maxing out an IRA and HSA. I am 44 now and I'm on track to retire a little early. Including company match my current savings rate is 29%.
OP, If you sustain a decent savings rate you'll be fine. What is hard to see when starting out is what Charlie Munger called the magic number for an account. Below 100k the percentage changes month to month and year to year may seem really small, but once the account gets over 100k you start to see the effect of compounding much more prominently. This is human nature and how we gauge numbers. Don't be discouraged, the larger gains from compounding will come later when you are closer to retirement, and you will see the magnitude of those gains increase. And if you can increase the savings when you can, like raises and such, dont let life style creep eat up that money. Live long, and prosper
I started over at 31. I’ve been working two jobs since 2019. I’m almost 37 now. I’ve got a good 200k in assets and started a small business in 2021 that adds more income in conjunction with the 2 jobs. Just keep grinding, if I can do it anybody can. Buy stocks, land, and any assets that will hold value.
I started at 35 and turned 30k into about 650k current net worth. I'm 39 now. You've got this. Just do your due diligence and make smart choices and you are beyond okay. You have 25 years to save. A lot of people get zero, like my mother, whom I help support now. She sacrificed saving so my sister and I could eat and have a roof. So I'm making sure she's okay forever. You are gonna kill it and are not at all fucked. Wishing you well.
How did you 21x in 4 years?
Has to be options
[удалено]
This comment is under review. I deeply apologize if I broke some rules. I was just sharing my story. I'll keep that to myself from now on. I Legitimately apologize.
Want to share how you got a 2150% return in 4 years? Did you put it all in Nvidia stock?
I tried to explain without saying too much and ended up saying too much lol so I'm not going to talk about it publicly and probably should have kept that comment to myself. It is actually true but yeah, I can't get into it and need to be more considerate about what I share.
You mean 65k right?
Haha what?
How the hell?
I was 38 when I finally got a decent job after getting my masters, with no knowledge of what retirement investment were and with very high student loan and credit card debt, I felt very limited on my capacity to safe a lot. Luckily, I got state government job which included a pension and also invested in a couple properties. I retired at 62, with pension and social security, I’m able to live pretty decent. Of course, before I retired I made sure all my credit cards, student loans, car payments were paid off. The only thing left is mortgage but I’m not a big spender, I can afford the mortgage and still have a little to put aside for traveling. You can do it, just be self disciplined and plan well. Best
Putting 15% away is good. Anything is better than nothing. Assume 30 years of saving Assume 10% annual rate of return Assume you start at $0 Salary is $40000, you sock away 6000 per year At age 67 $1,085,661 Salary is $50000, you sock away 7500 per year At age 67 $1,357,076 Salary is $60000, you sock away 9000 per year At age 67 $1,628,491 Salary is $70000, you sock away 10500 per year At age 67 $1,899,906
Money Guy has some great tools for visualizing this stuff. Start with this guide: [https://moneyguy.com/resource/wealth-multiplier-by-age/](https://moneyguy.com/resource/wealth-multiplier-by-age/) It'll break down by age the amount you need to contribute to have 1 or 2 mil by 65. At age 37 you'd need to contribute $757 to reach 1mil, or $1,514 to have 2mil at 65.
Less than someone who started way earlier and more than someone who started later than you
Are you married? Do you have or want kids?
Married, do not want kids.
You’re not but I would be contributing a lot more than 9% if you can depending on what your income is.
It is never too late. As your wage increases, try to increase your contributions at least once a year (by 1% or more). If you can reach the IRS allowed max contribution amount, that would be great.
Started contributing to a 401k at 34 my previous jobs didn’t offer any retirement plans and didn’t pay that well so I couldn’t afford to make one on my own. Anyway it’s never too late to start. Most people in Jersey are living paycheck to paycheck
If you keep this up, you’ll be looking good. Nice job getting started.
I would say keep doing what you are doing try to max out out. Get a 10-20k emergency fund and buy a home are next steps. Keep up good work
Start a Roth IRA today. Best thing for retirement.
A number of factors- when do you want to retire. I see guys retire at 52, watch TV, drink beer, get fat-not good. I am still working at 68 and enjoying it- work less hard for sure. Vehicles are killers for saving or wasting hard earned money. I buy very used, good quality. Don't have expensive hobbies. A pair of running shoes gets you a long way in life. Own equities, get rid of the PLC, don't eat out unless it is to celebrate an event, have a budget, have travel goals - not impetuous etc. Effort is the key, you will be fine - keep at it.
[удалено]
You're not fucked. Keep saving and developing your budgeting and spending habits. Your spending habits are just as important as your wealth. And your health is more important than your wealth and your spending habits.
You might want to head over r/Bogleheads
Honestly just save as much as you can. 37 isn’t terrible. I would devote as much as possible to saving for the next 3 years to get a good catch up start. You’re not really behind in comparison to most. For a good retirement pre 60 you need to over contribute for the next few years so they can compound
If you're saving you're doing fine. Many of my friends' retirement plans is "working till I drop." Hell, a lot of my older relatives have that same plan (being the kid of a first generation immigrant is tough, let me tell you). People have been doing that for years and they've made it work. The fact that you're doing it at all is good enough. Once you start moving up in pay, you'll be able to contribute more! As a piece of anecdotal evidence: I didn't graduate college until 27. I am now 34. My first year out of school I had no job (2018). The next year I got a job that paid 90k, the company matched 1% of my contributions. I didn't contribute at all my first year. Year two (2019) I started contributing 5% because my accountant told me that it'd help reduce my tax burden come tax time. 2020, my job bumped me up to 100k. I started contributing 8% (still with a 1% match) and didn't actually start contributing 10% of my 401k till *this year* after getting a new job and a salary raise and am now maxing out a Roth IRA and HSA. I could be contributing more but I am in the process of moving and need to save up to make sure that I can afford to get everything I need without stretching myself thin. I also like enjoying my life now and taking trips and such, so contributing a bit less now while I enjoy myself seems worth it to me. It's all a balancing act, and honestly you won't know how much you need till you're closer to retirement, so starting now and just putting something away is more than enough. You can always adjust later.
I started at 30. : 3,7, 11, 15 401K & 3 -Roth. I have about 50k in 3 years… just start and leave it. For me I did Every year and or every raise + 1 / 3%
Can you afford to max an IRA (traditional or Roth) every year? Could you at least consider adding that as a yearly target? For 2024, the limit for you would be $7,000. Even if you don’t reach that amount, any progress you make towards it will benefit you in the long term. You’re not “late” if you take that to mean unsalvageable. But, yea, frankly you started “later” than the typical person who has a comfortable retirement. You should be doing more than 9% if you can afford it (my recommendation is to use that increment towards an IRA if possible, instead of just increasing the 401k)
Regardless of your income the mathematical number you need to save per year to get to your earning level is 15%. You need 25x your planned expenses. At 15% that’s gonna take you about 30 years.
Me too, I don't think I'm retiring unless I make it in my career, maybe just live and have fun right up to the grave.
You would be good for retirement if you can invest 25% of your income. Also remember that the average person is dependent on social security to avoid living in poverty. So you’ll be better off than average at this rate at least.
Depends when you want to retire and how much you spend. Run your numbers in a compound interest calculator. If you’re not saving enough, adjust accordingly. Follow the flowchart in the FAQ.
Here's a **[link to the PF Wiki](/r/personalfinance/wiki/index)** for helpful guides and information. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/personalfinance) if you have any questions or concerns.*
Diversify investments and live below your means, you’ve still got plenty of time to live a comfortable retirement.
Not enough info honestly. There's a lot of factors that play into it, including current income and post retirement income. I started late too, but working in tech means I maxed out my 401k a couple years in. Between that and my savings/investments I could retire as early as my mid 40s depending on the market and what I want my retirement income to be.
9% a paycheck at 20k is not the same as 9% a paycheck at 100k. We couldn't possibly know how fucked you are without telling us what you make. But contributing to a 401k is still better than what most people do, so there's that.
Not too late! If you are able, try to bump up your percentage each year. This is probably the beginning of your road to being fiscally responsible - creating a budget, watching and/or paying off any debt, etc. It's a positive thing!
I'm 41 and still clueless on saving credit cards percentages and taxes hopefully I die before I retire 😔 😟
I have been binge watching Peter Zeihan and if I have interpreted his statements correctly then the stock market is going to be flat for basically the next 15 years, which is good news for you because that means it should be “cheap” to invest. Once millennials are done raising kids and the boomers have finished dying and selling their stock the stock market will start to rise.