Comments on: The average 401(k) balance by age

By: J. Money

J. Money — Mon, 22 Apr 2019 10:56:34 +0000

In reply to Raf. Rock on!!

By: Raf

Raf — Sat, 20 Apr 2019 05:58:52 +0000

I feel great on a personal level with these numbers. At 38 I am blessed with 6 figure + salary on pace to be a 401K “Everyday Millionaire” (Chris Hogan) in my mid forties by following the 70/10/10/10 Rohn principle. I am very blessed and possessions isn’t be the best of it either.

By: J. Money

J. Money — Tue, 26 Mar 2019 10:10:10 +0000

In reply to SL.

Damn!! Never knew that about you – that’s wild! If you ever want to get it all off your chest and/or share all your tips/tricks/emotions through it all I’d love to hear more and maybe turn it into some sort of guest post? :)

By: SL

SL — Tue, 26 Mar 2019 02:30:30 +0000

Interestingly at 39 I was below my peak — a couple of years before I dropped in salary 40% from my previous job becuase I had been unemployed for a year and my savings (and 401k OUCH!) were empty. Bankruptcy had been filed just three years before because I was unable to sell my house in my old state and due to certain circumstances was unable to rent it either — so, 60% of salary and two homes to pay mortgage and rent on AFTER 12+ months of unemployment. I had received a coupe of pay hikes but was still below my previous peak. While my net worth does not match yours, my current salary is now higher than my previous peak, my net worth is mostly on track for a possible retirement before 65 and my bankruptcy is a blip in the far past with a credit score of which I am proud.

Yeah I may be bragging, but that low – with all moneys gone and a bankruptcy looming (oh and student debts that did not disappear with the bankruptcy) I thought I would never dig my way out. It can be done; it just takes time. small goals that pile on each other. If this person messed up that badly and could pull out of it, slowly, painfully, I believe others can too.

By: J. Money

J. Money — Mon, 25 Mar 2019 17:54:41 +0000

In reply to Mark.

Thanks for chiming in!

That RV plan sounds exciting!! Why would you need the house to be paid off fully though for that to happen? Couldn’t you still pull the trigger regardless or just trying to avoid as much interest payments as possible? (We’re strongly considering a 15 year mortgage in our up and coming home purchase too – you save a ton!)

By: Mark

Mark — Mon, 25 Mar 2019 09:00:03 +0000

Average balances matter if you live a average life financially(buy buy buy) which is why the balances are so low. If you live below your means during your working career chances are you will need much less in retirement. We are a couple in early 50’s and have combined savings of 800k. Only debt is a 15 year mortgage that we are paying down substantially creating equity that will plan to sell to buy a RV in approx 5 years. Best advice for young people is to live in a Tax friendly state and think longterm.

By: J. Money

J. Money — Fri, 01 Mar 2019 15:08:48 +0000

In reply to Lewis. Not sure if you mean *repeat by me* or *repeat by others* here, but in either case it makes for a good challenge to take on and prove wrong ;)

By: J. Money

J. Money — Fri, 01 Mar 2019 15:07:26 +0000

In reply to Marco. Yup, very true... But still good fodder to get some conversations going :)

By: J. Money

J. Money — Fri, 01 Mar 2019 15:06:36 +0000

In reply to OhTeach. Very interesting insight!! I don't know what the overall % is of teachers vs total professions covered in these stats, but it would certainly help explain it in your field for sure!

By: J. Money

J. Money — Fri, 01 Mar 2019 15:04:33 +0000

In reply to Stephan Russo. Hey, no shame in working whether you've hit financial freedom or not! Lots of benefits to it outside of $$$ :)