401k at 35

May 31 558 Comments

How much should be in my 401k at 35? Anyone have a good baseline to share?

comments

Want to comment? LOG IN or SIGN UP
TOP 558 Comments
  • Facebook ⭕w⭕
    May 31 26
    • Atlassian / Ops YeIi10
      (yes, the contribution limit is $19k this year, and that doesn't include employer match or returns or the extra "catch up" money older people can contribute)
      Jun 1
    • Reddit 18526sf$$$
      I always felt good about my 401k and retirement savings until I saw this
      Jun 1
    • Pinger / Eng create💻
      Just one comment about having less risk near retirement. You want less risk when you are about to spend the money. But if you have investments / cash outside of the 401k, you might retire at age 60 and not plan to spend any 401k money until age 70.
      Jun 1
    • Meetup oFkV17
      Don’t feel too bad, the average American has $1000 saved total
      Jun 1
    • Groupon / Mktg
      c_thaddish

      Groupon Mktg

      BIO
      Groupon y'all!
      c_thaddishmore
      Is this today's dollars or future dollars? That 55 to 60 jump strains credulity.
      Jun 1
    • ADP / Mgmt
      Runner131

      ADP Mgmt

      BIO
      I call myself "Damage Control" as I turnaround poor performance of others and get results.
      Runner131more
      There is a company called Financial Engines that kept telling me on on track for $2-2.5M by 65 that they make assumptions like income growth and contributions slightly going up.

      I'm a midwesterner FWIW and think that is not inclusive in a chart like this.
      Jun 1
    • Facebook / Eng instandidl
      How do they get to 300k at 30 given there’s a contribution limit?
      Jun 1
    • Facebook / Eng instandidl
      @Mktg it is future dollars. They have assumptions on nominal returns which aren’t adjusted for inflation.
      Jun 1
    • $19K in 401k + $9K employer match + $28K after-tax Mega backdoor Roth allow for $56K in annual 401k-related contributions
      Jun 1
    • Adobe tazP84
      FYI, the screenshot is from financial samurai if you want to read more into the chart.
      Jun 4
  • Nvidia ethercoin
    Put in just as much as your employer will match, or more, then find some other more interesting investments
    May 31 8
    • Zillow Group zite
      ...if you want to retire broke or not at all
      May 31
    • Nvidia ethercoin
      "Because 401k is the only investment plan you can do and you should only do it" says the emails you get every at from [401k broker who stands to profit]

      Free money is free money, take it but don't think 401k isn't the only way you can retire.
      May 31
    • Adobe mercury10
      It's a good tax shelter, and legally protected if you get sued or something.
      May 31
    • Nvidia ethercoin
      Govt scam bro watch 60 minutes
      May 31
    • Cruise Automation slwpquxle
      ethercoin please stop posting in literally any thread
      Jun 1
    • Nvidia litecoinn
      Cruise focus on shipping an autonomous car like Tesla
      Jun 1
    • Nutanix maxpayne.
      How much would you put if employer does not match 401k?
      Jun 2
    • Nvidia flybu
      3 cans of Nutmix

      Kidding, I would switch employers to one that actually has benefits
      Jun 2
  • Intuit CowsRfuzzy
    120k tc but 500k on 401k due to aggressive investment habits since 18
    May 31 2
    • Apple / Other
      stevejerbs

      Apple Other

      BIO
      Previous CEO @ 🍎
      stevejerbsmore
      👏
      Jun 1
    • Facebook LaXn61
      At what age?
      Jun 1
  • Barclays PLC finra
    40 yrs old. Only 300k in 401k but wife has 400k in her 401k so technically I have 700k right? 😂
    Jun 1 2
    • Oracle oraguy
      No she has 550k 😆
      Jun 1
    • Microsoft / Product
      Brazuka

      Microsoft Product

      PRE
      Bain & Company
      Brazukamore
      Hahahahahha
      Jun 1
  • Google / Eng
    sqrt(-1)

    Google Eng

    BIO
    Top Contributor or GTFO
    sqrt(-1)more
    I moved to the US about 4 years ago. Now I'm 40 and I have ~$200k on 401k.

    I'm pumping $55k there every year to catch up.
    May 31 22
    • Salesforce / Eng aSff46
      Yea, I called fidelity and they did everything on their end. All you have to do afterwards is add a percentage to after-tax contributions. Took all of 10 minutes.
      Jun 1
    • Microsoft cqWK35
      It’s even easier using the website. Takes less than 2 minutes.
      Jun 1
    • Walmart.com / QA nostradams
      What’s this mega back door that I never heard about?
      Jun 1
    • Salesforce / Eng aSff46
      It's a vehicle to save the maximum allowed amount of retirement funds, so 55k or 56k...can't recall.
      Jun 1
    • Intel / Eng mr_pleb
      If it's after tax money, why mega backdoor mumbo jumbo instead of an investment account ?
      Jun 1
    • Facebook / Eng
      wWdCG13

      Facebook Eng

      PRE
      Apple
      wWdCG13more
      I thought mega backdoor caps out at 25k? Regular 401k at 18.5. Does this your company match is 6.5k?
      Jun 1
    • Google / Eng
      sqrt(-1)

      Google Eng

      BIO
      Top Contributor or GTFO
      sqrt(-1)more
      19k pre-tax + 9.5k match + 27.5k after-tax.

      The advantage of Roth 401k is that it grows tax-free.
      Jun 1
    • New udSE01
      Does Yelp support mega backdoor roth?
      Jun 1
    • Facebook / Eng
      wWdCG13

      Facebook Eng

      PRE
      Apple
      wWdCG13more
      Ok, so 27.5k is the max for this year?
      Jun 1
    • Facebook / Eng
      wWdCG13

      Facebook Eng

      PRE
      Apple
      wWdCG13more
      Does google does 50% match on full contrib or is your salary do high that 6% of your salary = 19k?
      Jun 2
  • SAP / Sales dogpile
    in my opinion, a 401k is a bad investment even with a company match. Not only is your money tied up until 59 1/2 but after you pay taxes on your withdraw you will have <1/3 of your total amount. A 401k is the best annuity the government ever invented for themselves. Ever heard of anyone getting wealthy with a 401? Nope! The wealthiest people on the planet don’t have one. Take the money you would put in a 401k and invest it in cash flowing assets that you control not someone else. If done right, you will lower your taxes and put more money in your family pocket.
    Jun 1 12
    • Microsoft / Eng
      R'hllor

      Microsoft Eng

      PRE
      Microsoft
      R'hllormore
      What terribly uninformed advice this is. 401k is generally a better investing vehicle whether you go Traditional or Roth route, because you don't pay any capital gains. If you invest on your own, you're doing it with money you already paid income tax on, AND you'll get to pay capital gains taxes once you sell.

      There are certainly other factors to consider, like the fees and investing options in your company 401k, and your ability to weather financial storms without dipping into your 401k, but for most people the advantages outweigh the drawbacks.
      Jun 1
    • Snapchat boohpo
      Also when you take money out of 401k, you will most probably be at a tax bracket lower than your highest bracket at the moment.
      Jun 1
    • Bank of America / Eng jkQk45
      You *can* take money out of your 401k before you are 59.5. Your 401k withdrawals are taxed as ordinary income. Therefore, the amount you pay in taxes is 100% based on how much you are pulling out & your tax bracket. Keep it low enough & you won’t be taxed.
      Jun 1
    • Infosys UBlG52
      Very low odds that we will be in a low tax bracket unless I'm not working ... although that's a good point to slip out some 401k money out if there are a couple of years after 60 when you are not working
      Jun 1
    • Facebook unpossible
      No way. Everyone knows that if you put money in 401k and VTSAX you will become a billionaire. Because the former is tax free and the later NEVER goes down.
      Jun 1
    • Microsoft Harambe’
      Pre taxed 401k with company match is money served on a platter.
      Jun 1
    • Facebook ishygddt
      Why in the world would everyone try to take our their 401k at the same time? The markets must already be crashing if that happens
      Jun 1
    • Reddit u7hj55
      This is stupid advice, with company match you could withdraw and pay the penalty and still come out way ahead because you 2x’d your savings with company match.
      Jun 1
    • Microsoft / Eng bebK16
      This is why you need pretax and posttax (Roth) buckets of retirement money. That allows you to control your tax brackets by limiting how much you pull from pretax vs Roth.
      Jun 1
    • New JrBu46
      Very stupid advice and clearly doesn't know what they're talking about.
      Jun 1
  • Qualcomm
    c0dedead

    Qualcomm

    PRE
    Qualcomm
    BIO
    Embedded software engineer
    c0dedeadmore
    It's a scam. Invest your money somewhere else...
    Jun 1 11
    • Qualcomm
      c0dedead

      Qualcomm

      PRE
      Qualcomm
      BIO
      Embedded software engineer
      c0dedeadmore
      What if after you retire you're still in the same tax bracket? Only the people "managing" your money truly benefit from it.
      Jun 1
    • ViaSat okeb30
      I guess in that case 30 years of tax free growth means nothing... what do you recommend, gold?
      Jun 1
    • Snapchat boohpo
      But you are ignoring the fact that you will get pre-tax money to invest in 401k, compounding interest and tax savings up front will make a huge difference in the long run.
      Jun 1
    • Qualcomm
      c0dedead

      Qualcomm

      PRE
      Qualcomm
      BIO
      Embedded software engineer
      c0dedeadmore
      What if you invest the same in REITs? My point is your money is no good to you if you don't have access to it. You invest it somewhere else it is there when you need it, depending on your investment.
      It's tax free today but you'll pay the tax tomorrow with no penalty free access today.
      Jun 1
    • Snapchat boohpo
      You are missing the point of a 401k. It's not supposed to be there for emergencies. The purpose is different, it's for retirement. Your savings should not be limited to 401k. I think you are also missing how compounding of the tax savings upfront can make a massive difference. Try putting some numbers in based on last 20years REITs and SP500 pre-tax, and let us know if you feel the same. Maybe I am missing your point
      Jun 1
    • Qualcomm
      c0dedead

      Qualcomm

      PRE
      Qualcomm
      BIO
      Embedded software engineer
      c0dedeadmore
      I suppose I am coming from the standpoint that you don't know when you'll die. So I rather have lesser today but at least have it on me. Yes that extra 25-36% sure does make a difference but the tax man will come and it's still a percentage. And your 50k turned in to 2 million but your currency has lost value over the last 50 years. Is 2 million the same buying power at age 65 that it did when you were 25? What if at 35 you bought a rental property.
      Thinking along those lines... I came to the conclusion that I get my employers match but then after 5-7 years make a withdrawal invest it elsewhere, perhaps, commercial real estate.
      Jun 1
    • Snapchat boohpo
      If you don't know when you will die, you also don't know how fast you should spend your money as well. So I don't think that will end up working, coz you will never be able to spend your savings in time. Either you will over spend and have no money left, or under spend and have money left. Buying power changes, but you are not keeping cash, you are investing your 401k money in index funds or something else. Your tax argument doesn't hold as well, since if you don't invest in 401k, you pay tax upfront and lose on the compounding of your tax savings. If you want, give a concrete example with numbers and we can walk through this 🙂
      Jun 1
    • Amazon TRuc81
      To be fair the savings come from no capital gains, not that it is deferred taxation.

      Roth IRA and 401k you will end up with the same amount of money whether you pay taxes now or later
      Jun 1
    • Microsoft undefined
      If you think you will be in the same or higher tax bracket when you’re retired, then make Roth contributions. But most of us are in higher brackets now, and won’t have nearly as much income when taking out retirement funds, so pre-tax is a win. You also have more money to invest now, and if you have any confidence in your investment plan, this can make a big difference.

      I do both. For a long then I did only pre-tax, so that’s the bulk of my retirement savings, but nowadays I max that and then do the mega backdoor Roth. This lets me contribute more, and have a good balance of tax advantages and the added flexibility of Roth (eg not being forced to withdraw as early).

      Calling a 401k a “scam” is a pretty severe level of ignorance. You must just not understand the basic concepts involved. And if your employer offers matching contributions and you aren’t making them, you’re just leaving money on the table.
      Jun 1
    • Facebook / Eng
      wWdCG13

      Facebook Eng

      PRE
      Apple
      wWdCG13more
      Plus if you live in California, you can always move to a low tax state in retirement and pretty much guarantee a lower tax rate. Thus plus employee match + access to mutual funds that you can’t get outside unless you have crazy net worth makes it a no brainer
      Jun 2
  • New VFcO68
    I think that as always, ppl in blind exaggerates a lot. Somebody 34 with 500k in 401k? Let’s do math. Assuming you started at 20, assuming That you maximize 401k saving 20k per year. 14x20k=280k. So this person saved 280k, good. Money has been invested in average 7 years because half of money been more than 7 years but half less than 7 years. If you have 280k for 7 years earning 7% a year, no wAy you can reach 500k, not even using compound interest. As I always say, blind is ok but people exaggerates numbers for some reason.

    Edit: I was so generous when I said you can save 20k a year. Before 2010 limit was like 15k, until last year limit was 18.5k and not 20k as I put above. Also, I assumed that the person max out the 401k at 20 of age which often is not true. Also I assumed 7% returns but often company 401k do not give those returns, those thieves will erode the savings. Anyway if you say 350 or 400 I may believe you but 500?
    Jun 2 25
    • New / Eng ggg1
      The current limit is $56k per year. $100k should only take you 2 years if you're maxing out your contributions with 0 gains.
      Jun 3
    • Microsoft undefined
      If someone is 28 and has been at a high paying job since 22, they could’ve been maxing their contributions which would get them as high as 300K or so without factoring in gains. Just throwing it into any decent index fund would’ve more than doubled their investment from the first year or two. So this seems doable given the right timing, job, and discipline.
      Jun 3
    • Evernote huhuhuh
      56k? I thought the contribution limit was 18k..? I know for 2019 it should be 19k now? Maybe I’m missing something

      EDIT oh got it 56k is including employer match. I didn’t have that in my early career sigh... only recently got matching.
      Jun 3
    • New / Eng ggg1
      56k includes the 19k, employer contributions, and finally after-tax contributions.
      Jun 3
    • Microsoft undefined
      Yeah, it’s the max if you do the full 19k normal pre-tax or Roth, plus a 50% employer match, plus max out the Mega Backdoor Roth (or regular after tax contributions, but can’t imagine why anyone would do that).
      Jun 3
    • New / Eng ggg1
      After tax contributions are after tax contributions. Obviously, doing a roth conversion after that is beneficial from a tax perspective, but it still starts as an after tax contribution.
      Jun 6
    • Microsoft undefined
      Right. Nobody said otherwise.
      Jun 6
    • Thank you. Tons of poor folks pretending to be wealthy here. It’s absurd. I felt poor on here but go to Status Money which uses real information and in top 10% for LA and top 2% nationally. How pathetic these fake posts are
      Jun 7
    • Amazon / Eng 1ronyman
      Never heard of status money before but it sounds pretty cool. How does it compare to mint?
      Jun 8
    • Status money is similar to mint but it loses some functionality and the ease of the interface in order to give you comparisons based on various criterion: age, income, location, etc. The comparisons are helpful ... the takeaway is that either people on Blind are phonies and liars or Blind just attracts the 25% of the 1%. The truth is likely a bit of both
      Jun 8
  • Microsoft XyYh51
    40 and have net worth of $980k. That includes equity in multiple houses, mutual fund accts, 401k and rainy day cash. Started very late in life... started making serious money at the age of 33. I now invest about $4500 into my 401k and other high growth mutual funds every month. Tracking to hit around 4.5m by 60... I also should own many many more properties by then. I don’t believe we will have social security, so passive income from properties should cover that piece.
    Jun 1 13
    • Amazon 💩4brains
      @XyYh51 Amazon when they relocate you from Seattle they do not adjust your salary down. So yeah would be cool if I could move to TX with my Seattle salary. That maybe a possibility for me soon :-) will see.

      Amazon will only increase your salary if you go from Seattle to NYC or SFO.
      Jun 1
    • Procore RQJi2
      Do You follow any specific financial advice or wealth management? Got any preferred blogs or books? Would love to get into real estate but don’t know much about it. Contributing 4500 to your 401k; I assume you max out 401k quickly and just do post tax savings? Back door IRAs at all?
      Jun 1
    • Google WVXD02
      @Microsoft what company and where in Texas?
      Jun 1
    • Amazon gDVc56
      Oh I didn't know that's what they would do... Would consider moving to Texas also... Bigger savings for sure if you can keep the Seattle salary
      Jun 1
    • Amazon 💩4brains
      Yeah Texas is not a bad option especially if you get to keep your Seattle salary. Also Amazon does have offices in Arizona which does not seem like a bad low cost of living option either. In Arizona property taxes are less then what you'll find in Texas.
      Jun 1
    • Microsoft XyYh51
      4brains- I migrated to a competitor, and they moved me and increased my salary.

      Rq- my financial advise has always been my own. 30% real estate, and the rest in high growth mutual funds. I guess that would be the Dave Ramsey method. I also have no debt except my homes which are all mortgaged and being rented. No back door iras. Honestly didn’t even know these existed. Max 401 and then homes, and mutual funds.

      Wv- I live in Austin and work for a large Msft partner.

      Also- property taxes do suck here, but I’m in suburbia Austin, so cost of living is much better than Austin proper.
      Jun 1
    • Microsoft XyYh51
      I’ve just had a very strong mindset to stop spending on useless stuff and pocket as much as I can. I still enjoy the finer things in life but am cautious about my spend. I also keep a sharp eye on my budget. That’s the toughest part, but it is amazing how much you can have when you make your money work for you not the opposite.
      Jun 1
    • Amazon 💩4brains
      In Texas I believe when you retire don't they give you an exemption on property taxes? I thought I recall there was some reduction for property tax if you're retired in Texas.
      Jun 1
    • Microsoft XyYh51
      They do. My parents are both retired and get a fairly nice break on property taxes. I believe it is only for your homestead and not other investment properties
      Jun 2
    • Amazon 💩4brains
      That is what I thought. That is a really nice benefit.

      The property tax and the sales tax holiday are nice benefits. The sales tax holiday is something that I think other states should consider doing.
      Jun 2
  • LinkedIn NotShroff
    Wow 1M at 40, anyone actually have that much $$ in their 401K at 40? I have 350K at 37.
    May 31 8
    • New osMS13
      Yes.
      May 31
    • Amazon BeachRat
      I have 300k at 30, and I started taking retirement savings seriously late.
      Jun 1
    • Microsoft cqWK35
      I’m 32 with $530k in my 401k and my wife who is 33 has $130k (she didn’t start maxing it out until we got married).
      Jun 1
    • New osMS13
      Following on my first comment - most folks who hit 1M by 40 actively invest within that 401k. I have 2 colleagues/friends who did that. One did our company stock and the other did Amazon (though he doesn't work there.) Those of us old farts who went through the stock crash can tell horror stories. My 401k tanked 25% but colleague 1 was very aggressive and ranked more than 40%
      Jun 1
    • Salesforce Zed12
      I only have $140k and I'm in my early 30's, but my house is almost paid off. I live in a LCOL area.
      Jun 1
    • Oracle
      uNTN08

      Oracle

      BIO
      Life, Liberty, and the Pursuit of Happiness
      uNTN08more
      Maximize 401k all the time. Contribute to Roth IRA for yourself if income permits. If spouse is not working, contribute to traditional IRA, again if income permits. Also maximize HSA while you are young (and by extension hopefully healthier and thus very few doctor visits so that you can have a HDHP). Dont forget 529 for kids especially if state allows tax breaks. After you do all that, THEN look into brokerage accounts.
      Jun 1
    • Leanplum ballsacks
      I'm unsure about 529.. will our kids, in 20 years time, still spend ~$50k/yr for an institutional degree? Or will we have moved on to cheaper yet still rigorous education paths?
      It's a reason why I don't max out 529.. my kid can get a top-tier education by ingesting free information online
      Jun 1
    • Google Mr. Glass
      You can break your 529 later if you don’t need it for only a 10% penalty I think
      Jun 2
  • Salesforce / Eng aSff46
    36 here and I'm way behind according to the above spreadsheet(40k in 401k). This year, I've started maxing out my roth 401k and opened a roth IRA with max contributions. With that said though, I'm aggressively catching up my 401k position but also have a healthy savings, own property, about $100k in various stocks, and my wife is also contributing to her roth 401k with the goal to max it over the next few years. I also live in the Midwest so cost of living is really low. I'm very confident that my retirement will be comfortable and I'll be able to gtfo at 60 if I want.

    TC ~150k
    May 31 9
    • New kxAd17
      You are probably over the salary limit for Roth IRA so just be careful...look at doing a backdoor Roth contribution if necessary
      May 31
    • Salesforce / Eng aSff46
      Yeah, it'll be close. After taxes, I think I'll be alright. I'll only be able to contribute to it for a couple of years max though :(
      May 31
    • Reddit / Eng OaxX74
      There’s no downside to doing a backdoor Roth contribution, besides very slightly more complicated tax returns. It’s a good idea to strongly consider it even if you plan on being under the income limit since you’ll be pretty close.

      Also, is a Roth 401k your only option? At our income levels, a Traditional 401k might be a better option depending on what you expect your tax rate to be in retirement.
      May 31
    • Salesforce / Eng aSff46
      No it isn't my only option. Figured paying taxes now would be better than doing it in retirement. I've been thinking about splitting my contribution 50/50 but not sure. How are you doing it?
      May 31
    • Reddit / Eng OaxX74
      I only contribute to a Traditional 401k, then backdoor Roth IRA, and finally regular brokerage accounts (see if you’re able to do a mega backdoor roth contribution).

      Your tax rate is likely to be SIGNIFICANTLY lower in retirement and the Roth IRA account is enough tax diversification for me. Consider doing the math on your potential tax savings now with being able to deduct 19k in Traditional 401k contributions vs the expected taxes on your expected income in retirement.
      May 31
    • Glassdoor nyb123
      I'm doing 50/50. I am expecting / hoping (I'm a progressive, I should already have to pay more than I do) that these historically low tax rates increase as America becomes a more responsible country with a real social safety net :-D
      Jun 1
    • New kxAd17
      Since the contribution limits are the same for both traditional and Roth 401k ($19,000) if you can afford to max out the Roth then you should absolutely do that and stop trying to figure out if you'll be in a higher or lower tax bracket in retirement since 19k growing tax free for 30 years in a Roth account will be wayy more valuable than that same money in a traditional account
      Jun 1
    • Reddit / Eng OaxX74
      Don’t listen to anyone advising you to not do the math yourself. The fact is, if you assume that your tax rate remains the same indefinitely, then there is no difference whatsoever between Roth and Traditional accounts. The misconception from the comment above arises when you ignore the fact that you’re contributing after tax money to a Roth account.

      For example, if you contribute $19k to a Roth account, and you assume a 25% tax rate, then it’d be equivalent to contributing $25.3k to a pretax account. You come out way ahead if your tax rate in retirement is lower than it is now with a Traditional account, and the opposite is true with a Roth account.
      Jun 1
  • You’re better off just taking the amount of 401K that you would be depositing automatically out of your check, then investing that money into your own investment choices.
    Jun 1 13
    • Hell, buy Uber stock
      Jun 1
    • Sleeping giant if you ask me.
      Jun 1
    • Snapchat boohpo
      401k should not be your only savings. Also, with company match it's a no brainier to max that out, since the early withdrawal penalty is only 10% IIRC
      Jun 1
    • Microsoft / Eng vXXu41
      Boohpo has it correct, 401k is only part of saving for retirement. Take advantage of ESPP plans (Employee stock) also if available, take 10-25% out of the paycheck after all that for short term liquid savings. I usually invest this in a money market or index fund depending on how I feel about the market.
      Jun 1
    • No, 401(k) early withdrawal is not just 10% it is taxed at 35% now by default a 20% federal tax is imposed and then the IRS takes an additional 10%, so you’re better off just making money off your own investments and deal with capital gains tax.
      Jun 1
    • 401k is a bullshit investment. If you wanna make money then just dump x% of your money into a stock every check, preferably dividend stocks, then just reinvest the dividends into those same stocks or have it pay you income if you want. Then just wait.
      Jun 1
    • Snapchat boohpo
      401k is not bullshit when your company matches. When the company matches, if you think it's bullshit, I don't know how I can help you
      Jun 1
    • How is dump money into stock better off than 401k, given the tax disadvantages that you do so
      Jun 1
    • Palo Alto Networks arrr
      So much stupidity in this thread. 401k should be a small part of your portfolio that you don’t even conceive of touching until you are well beyond 60. Yes invest in a brokerage account as well, but 401k with its tax free compounding over decades is a formidable vehicle. Do both, and absolutely take the 401k match. Only an imbecile leaves that on the table.
      Jun 1
    • LinkedIn LOLmanCOW
      MZ is beyond helping lol...
      Jun 1
  • New / Eng
    griesrt1

    New Eng

    PRE
    Flipboard
    griesrt1more
    I’m 34 and have 100k in it. 401 is a shitty investment anyways. Better to start a business
    Jun 1 5
    • Palo Alto Networks arrr
      Saying 401k is a shitty investment is like saying a brokerage account is a shitty investment. This is nonsensical. It’s just a vehicle to invest in the assets you choose. Saying the vehicle is a shitty investment makes literally zero sense.
      Jun 1
    • Tableau / Eng Hanrahan
      Yeah, this ^. Incredible that some people think investing pre-tax money that can grow tax-free for 30+ years is a bad way of investing. Makes me sad.
      Jun 2
    • New / Mgmt
      FourHrWkWk

      New Mgmt

      PRE
      EY, IBM, Financial Times, Google
      BIO
      Founder with Interests in investing, energy, crypto, cannabis, tech. Multiple startups, I enjoy mentoring entrepreneurs.
      FourHrWkWkmore
      Starting a business is great. But assume that you might wind up draining savings before getting the business to pay you back. My savings went stagnant after I launched my company, so I’m behind where I would have been. However I have several million in company equity that will get me back to where I expect to be.
      Jun 2
    • New / Eng
      griesrt1

      New Eng

      PRE
      Flipboard
      griesrt1more
      401k is taxed as income and you also pay capital gains on it. You’re thinking of a Roth IRA. Income is taxed more heavily than any other form of income. Businesses and RE have tax benefits. They also can potentially have a much higher yield.
      Jun 3
    • New / Eng
      griesrt1

      New Eng

      PRE
      Flipboard
      griesrt1more
      Nice job starting your company. I need to get on that
      Jun 3
  • Symantec / Eng cardi_B
    401k is just making someone else money. I was doing 10% and then came the realization that I could actually invest it in something else with better returns in the short term. I think that if you are smart, you can use that money in better ways. My 2 pennies.
    Jun 1 13
    • It’s not 10%, by default employer sponsored 401k is required to hold 20% and then the IRS will impose 10% penalty on the money from your 401k before you retire. So it’s literally like capital gains tax. I mean what’s a 5% difference, plus at least if your money isn’t tied up inside of a 401k you can move it or do whatever you want with it.
      Jun 1
    • And like cardi_B says: if the market crashes you’re technically fucked.
      Jun 1
    • Microsoft / Eng vXXu41
      Depends on your 401k, some (like ours) let's you choose from selected funds or if you like you can choose whatever you like. If you are worried about liquidity, don't put as much in your 401k. I see 401k as gravy after expected retirement age and if my company is going to throw some money in for that, all the better I'll take it gladly. P.S. healthcare costs at 60+ are a muther, I like to have a war chest built up for that.
      Jun 1
    • Palo Alto Networks arrr
      “401k is just making someone else money” complete nonsense. Do not take financial advice from blind 🤦🏻‍♂️
      Jun 1
    • Microsoft undefined
      Yeah that’s utterly absurd.

      401Ks provide substantial advantages and it almost always makes sense to max your contributions if you can. Definitely max anything that your employer matches.

      Some employers do offer better 401Ks than others. Ours offers a bunch of great super low fee funds, or the Fidelity BrokerageLink option so you can invest it in whatever you want. We also get automatic daily Roth “mega backdoor” rollovers.

      You also have opportunities to roll your 401K into an IRA. Usually you’d do this when leaving your company, but some let you do it while still working there. Then you can do whatever you want with it, regardless of employer.
      Jun 1
    • Google 3/2=1
      Cardi_b; you are talking out of your ass. 401k contribution makes 50% return (employer match) on the money you would be paying 45% tax on otherwise. So a $1 towards 401k is $1.5 pre tax vs $0.55 after tax in hand. You can apply whatever rate of return or tax rate at retirement but it will be tough to do one better than 401k route
      Jun 3
    • Amazon / Eng 1099-B
      I guess cardi_b invested in something that skyrocketed, and now he thinks that he's smart, not lucky. And anyone not getting 100% annual returns isn't smart.
      Jun 3
    • Google EndGam3
      Funny thing is you can roll over 401k into IRA or open SDBA and invest wherever you want so his suggestion is total bogus.
      Jun 3
    • Chewy / Eng
      jeasy1080

      Chewy Eng

      PRE
      Fitbit
      jeasy1080more
      Personally, I am over 35 and have not put $$$ aside into a 401K program. It was either I had some financial hardships I was dealing with or the company did not match at all, therefore, I felt at the time it was a waste. Now things are different and am thinking of putting away in a 401K and/or IRA. But, I do pretty well financially and have been extremely diligent at saving very aggressively into money market accounts and CDs. So for me continuing that momentum makes sense as if I absolutely NEED to take $$ out I won’t be penalized. But, that is my personal preference and experience.
      Jun 4
    • Google EndGam3
      You can always put in Roth IRA instead in that case. Withdrawal of what you put in has no penalties in Roth IRA unlike 401k
      Jun 4
  • EA Mk55hd
    Wow of all the threads that made me depressed in Blind this is the worst 😥 - I am in my mid 30s and only have 120k on my 401k. I do have 35k on Roth IRA and another 100k on a taxable account. I started super late because I am an immigrant and only opened my 401k when I was 29 but still it looks like I am way behind
    Jun 2 10
    • Microsoft undefined
      You may feel that way compared to people posting here, but compared to the average American you’re way ahead.
      Jun 2
    • Whole Foods
      UfSv82

      Whole Foods

      PRE
      Whole Foods
      UfSv82more
      You are way ahead compared to most Americans. I am an immigrant and started working 3 years ago and saved up 60 k plus my other investments are 40 k and I am 32
      Jun 2
    • Amazon / Eng patchit
      What the other guys said - you're doing fine.
      Jun 2
    • EA Mk55hd
      Thanks for the comments guys/gals I'm going to keep maxing out every year. I wish my employer plan allowed after tax contributions so I could catch up
      Jun 2
    • Amazon moved2ms
      You’re doing great. I am 32 and have 150k total. A huge chunk of that was from the last few years.

      At 155k of retirement savings and 100k of regular savings you can go years without work if needed and if not then that savings will grow to a comfortable level when you need to retire. Keep up the awesome work! And don’t believe everything on blind. Lots of people here talk a big game but have nothing to back it up.
      Jun 2
    • EA / Eng ONse48
      I’m 36, 24k in 401k....yeah, fuck
      Jun 3
    • DXC Technology Dvjdq7d
      I’m 45,H1B, 27k in 401k, 29k in Roth....WTF
      Jun 4
    • Facebook Sffffft
      If it makes you feel better you’re doing way better than me. 😂🤷‍♂️ 34, 39K in 401K, 10K in a rollover IRA.
      Jun 5
    • Tableau haruka
      It's ok, you're doing amazing for just having a couple years in 🤗
      Jun 5
    • Oracle unmp46
      I’m 30, 26k in 401k, 1k in Roth. I was happy until I saw this stupid thread! What is wrong with everyone? You all have way more than required. Stop
      Complaining.
      Jun 6
  • Amazon lamardavis
    From
    https://turbo.intuit.com/blog/real-money-talk/how-much-should-i-have-in-my-401k-719/

    they said:

    A good rule of thumb is to add on one year of salary saved for every five years of age — for example, at age 30 you’d want to have saved one year of salary, at age 35, two years, at age 40, three years, and so on. Use these guidelines along with your post-retirement budget to gauge if you are on track for a comfortable retirement.

    By Age 30
    By the time you are 30, it’s ideal to have a 401k equal to about one year’s salary — so if you make $50,000 a year, you’d want to have $50,000 saved in your 401k account.

    By Age 40
    Most people have more stable jobs and have seen an increase in their annual income compared to their 20s. By age 40, three years worth of salary saved in your 401k is a good place to sit, so someone who makes $70,000 a year, should have approximately $210,000 saved in their 401k account.

    By Age 50
    This is a good checkpoint for your financial future. By age 50, it’s recommended to have roughly five years worth of salary put away. Assuming your annual income has increased to $80,000, this would mean that you’d want to have saved $400,000 in your 401k account.
    Jun 1 12
    • Amazon 💩4brains
      @temp_ yeah I think the Intuit guide for 401k may not be applicable for tech works with high TC. Also, I think it is dependent on what type of life style you choose to live. Do you need lots of fancy cars and homes? Or do you want to live a simpler life with little possessions? My thoughts are I want to dump my big ass house and get something much smaller in a low cost of living location.
      Jun 1
    • Facebook QIXQ16
      Use years of spending instead of years of salary. You really shouldn't inflate your lifestyle proportionate to your income. That's a good way to end up poor again in a crisis.
      Jun 1
    • Microsoft
      temp_

      Microsoft

      PRE
      Amazon
      temp_more
      Completely agree with you too.
      Jun 1
    • Facebook udaJ27
      If you plan to move out of bay area after retirement, your current spending may not be a good representation of your future spending either.
      Jun 1
    • Microsoft mazz
      @temp_ Wow that's a high TC. Any tips on getting to that point? I'm 23 and also tech with 150k TC
      Jun 1
    • Google Blindeeeee
      Re: the formula, is it base salary or TC? After tax, or before tax?
      Jun 1
    • Microsoft
      temp_

      Microsoft

      PRE
      Amazon
      temp_more
      @mazz just keep working and getting promoted and leetcode when it's time to switch. I guess that's it?

      @Blindeeeee that's TC. I wish that was my base.
      Jun 1
    • Facebook udaJ27
      What level at msft pays 550k? Are you a partner?
      Jun 1
    • Microsoft
      temp_

      Microsoft

      PRE
      Amazon
      temp_more
      I'm not at Microsoft anymore. I'm at Airbnb L5.

      Haven't updated my blind yet.
      Jun 1
    • Cruise Automation klooz
      Airbnb pays really handsomely for L5! 👍
      Jun 2
  • Splunk
    zapzapzap

    Splunk

    BIO
    Engineering
    zapzapzapmore
    They increased the age limit to 72. I won’t be surprised if the communists in congress ask you to share it with a homeless after you could finally make withdraws.
    Jun 1 5
    • Intel McComic
      Are you serious? 72 😱
      Jun 1
    • Palo Alto Networks arrr
      Serious and to be taken seriously are two very different things
      Jun 1
    • Apple purifier
      @Splunk you can withdraw at 59 1/2. What you refer to is the required withdraw for traditional IRA starting at 70 1/2. This means today you are forced to withdraw starting that age even if you don’t want to. The proposal is to raise that age to 72 or even 75. That’s my understanding
      Jun 1
    • Pegasystems happyjalap
      Figures that a Trump supporter will say something completely ignorant and untrue. Maybe check facts before you spout nonsense.
      Jun 1
  • Microsoft VOTy02
    40. Started at 27 really.

    401K. - $500K
    Stock/Inv- $1.1M
    Cash/STI - $700K

    Not sure when when to think about retiring.

    Any thoughts?
    Jun 1 9
    • Cerner / Eng RxHQ47
      Adopt me and retire today
      Jun 1
    • Nvidia zVEC05
      4% rule. When 4% of your investments will meet your needs that’s when. So is $92k enough for you or do you need more?
      Jun 1
    • Microsoft Vbsm66
      What's STI?
      Jun 2
    • Microsoft VOTy02
      $92K is more than enough. I still live like I did when I made $40K/year.
      Jun 2
    • Microsoft VOTy02
      STI - Short term investments
      Jun 2
    • New / Mgmt
      FourHrWkWk

      New Mgmt

      PRE
      EY, IBM, Financial Times, Google
      BIO
      Founder with Interests in investing, energy, crypto, cannabis, tech. Multiple startups, I enjoy mentoring entrepreneurs.
      FourHrWkWkmore
      Some advice - Start living like you have money. Otherwise there could come a day when your investments go sideways and you’ll wonder why you didn’t get/do the things you wanted when you could. Advice from someone who spent her nest egg on a startup. I could have done more traveling, bought nicer things before I did the entrepreneur thing. I’ll get back there again soon- but don’t miss an opportunity while you have it.
      Jun 2
    • Google 3/2=1
      At 38 with 1.8M net worth. I'm wondering about retirement too but how the hell do you pay for insurance. For a couple that itself is 30k+/year plus the deductibles
      Jun 3
    • Bloomberg / Eng iVX372
      @Google - it's simple, but not necessarily easy. Just leave the US
      Jun 3
    • Google 3/2=1
      Yeah that's not easy. I'm a non US born (from India) but want to retire in US. This country is just much easier to deal with. When you retire you want a place that is reliable and stress free. India isn't a friendly place to retire if you still want to be independent. Also quality of healthcare in India still has to catch up overall besides the Uber expensive hospitals.
      Jun 3
  • Microsoft bKFl33
    I'm 36 and I have $40k in 401k. I moved to US 5 years ago. TC 200k. My plan is to work till I die.
    Jun 1 2
    • Apple EdenFruit
      You can work till you die or save up enough and move out of US. Many Americans retire overseas.
      Jun 1
    • Microsoft / Product
      Brazuka

      Microsoft Product

      PRE
      Bain & Company
      Brazukamore
      Damn, 40k is super low for 5 years. At Microsoft you should be putting 30k a year to max the benefit
      Jun 1
  • Apple purifier
    Just retire in a country where they have free or almost free healthcare and low cost of living. You can live a very good life with $40k a year (including traveling).

    Clearly brokers want your money and ask you to put as much as possible
    Jun 1 9
    • Google tUlh65
      Sounds like the best option. I plan to retire to south Europe either Greece or Bulgaria.
      Jun 1
    • Apple purifier
      Or Portugal where they don’t tax you for 10 years if you retire there
      Jun 1
    • Google tUlh65
      But US will tax your 401k anyway
      Jun 1
    • New
      TeeSeeGTFO

      New

      PRE
      Uber, Google
      BIO
      TC || GTFO
      TeeSeeGTFOmore
      This is why free healthcare isn’t sustainable. People who don’t contribute want to immigrate and receive the benefits.
      Jun 1
    • Google xmsa
      Don't you need a resident visa to live in EU?
      Jun 1
    • Amazon never.more
      US will tax your income for the year which is whatever you draw out of your 401k. If it's low enough you don't get taxed due to tax brackets, or are taxed very lowly. That's the beauty of retirement.
      Jun 1
    • Deloitte IjKI62
      If you buy a place in Portugal for €500k you'll get permanent residency as an FYI
      Jun 1
    • Google xmsa
      Is that the case for every EU country?
      Jun 1
    • Apple purifier
      Yes US taxes you. But as retiree you get higher deductibles and since you withdraw smaller amounts your tax bracket is lower.
      Jun 1
  • Microsoft ufhudv
    500k in 401k at 36yrs old. Been maxing my 401k since 30 but been investing at least 12% since I graduated. Maxing your 401k regardless of what your company matches is the first best move of investment.
    May 31 3
    • Microsoft cqWK35
      It also doesn’t hurt that Microsoft matches 50% of our 401k contributions with no limit. It’s a free $9k each year.

      I also recommend taking advantage of the Mega Backdoor Roth that Microsoft offers. It allows us to contribute another $27k/year in post-tax dollars to a tax-free-growth account after maxing out your 401k.
      Jun 1
    • Deloitte PUdL73
      Wow 50% employer match on 401k that unheard of. Good for you
      Jun 1
    • Facebook mRn6nf
      What’s your portfolio breakdown to have 12%+ return? Do you lean more bonds, international, large cap, medium cap? Do you adjust it often? Avg return is 6-8% so you must be doing something really right?
      Jun 1
  • Uber / Eng
    sight

    Uber Eng

    PRE
    Facebook, Cisco, Dell
    sightmore
    There is no one right answer. No two people are the same. The target amount depends on many factors, including your goals, life expectancy, etc. Most people in the United States don’t have the money to handle a $400 unexpected expense. Most of us on Blind are very blessed.

    If you can, you should be doing 401k at a minimum of your employer match. It’s free money. Otherwise I’d try to max it out (~18k/year).

    If you leave an employer you may want to consider rolling over your 401k to an IRA that would provide a wider range of investment choices. I’ve done this a couple of times.

    For peer reference, I’m 35 and have 550k in retirement accounts, another 500k in other stock, and 480k in property equity.
    Jun 1 0
  • I cashed out the 100k I had in my 401k 😂 28 years old and currently have a portfolio of 18 single/multifamily properties
    Jun 6 19
    • Accenture sqzlahdgeo
      how much did you get from 100K after penalties and taxes?
      5d
    • Accenture sqzlahdgeo
      and how did you get started and grow to 18 homes? i'm kind of skeptical on this. the numbers don't add up
      5d
    • LinkedIn / Other busyops
      Could be homes in other states. Doable!
      5d
    • New / Eng
      griesrt1

      New Eng

      PRE
      Flipboard
      griesrt1more
      Nice portfolio 💼
      5d
    • New / Eng
      griesrt1

      New Eng

      PRE
      Flipboard
      griesrt1more
      What states do you have the homes in and how did you get started?
      5d
    • AIG / Product
      Raging

      AIG Product

      PRE
      Deloitte Digital
      BIO
      Counseling CxOs for AI-first strategy !
      Ragingmore
      Doable
      4d
    • Homes are scattered across mid west, primarily Indianapolis. Strategy is similar to BRRRR from BiggerPockets.
      3d
    • New / Eng ggg1
      Warren Buffett hates him! At 28 years old, he went from 100K in his 401k to 18 houses AND paid for the penalties using this ONE SIMPLE TRICK.
      2d
    • Lol anything else constructive you’d like to add ggg?
      Yesterday
    • New / Eng
      griesrt1

      New Eng

      PRE
      Flipboard
      griesrt1more
      Seems to me that you should be generating enough cash flow to not have to work anymore. Also capital appreciation for these properties is great.
      Yesterday
  • Microsoft devopsas
    “Households in the final retirement stretch headed by a 60-64 year old averaged $229,101.05 with a median of $16,000.”

    My 401k had a temporary negative accumulated return after the market drop last December. It made me doubt all the bullshit that you can get 5%~10% return every year from your 401k plan. Then I found the above number.

    Do yourself a favor, stop believing all the financial advisors’ bullshit. You are 1% of your generation, they are probably 30% at most.
    Jun 1 2
  • Salesforce / Eng Boza
    27 with ~186K TC

    ~$110K in Roth IRA/401K, ~$10K in HSA. ~$5.5K in investments, and $50K savings for a house.
    Jun 1 6
    • Amazon IPA!
      Do you know what K means?
      Jun 1
    • Comcast / Eng WonyTerner
      K
      Jun 1
    • Salesforce / Eng Boza
      I guess I messed up. My bad.
      Jun 1
    • Oracle waddafcuk
      thats pretty much what i have at 37...sounds like im screwed.
      Jun 1
    • Salesforce / Eng Boza
      Not really. I started at 20, and started fully maxing it I think at 23. I just started super early.
      Jun 2
    • Oracle waddafcuk
      ok yeah i started 5 yrs ago :(
      Jun 2
  • Oracle Jose Katz
    This is the most useful post I've seen in months. This is great topic.
    Jun 1 0
  • PayPal jckamfig
    I am 29. Will be 30 in few months.
    401K $58,000. Contributing for 3 years now.

    Maxing out Roth IRA for myself and wifee.

    $10,000 taxable account.

    Around $20,000 send to home country for additional investment.

    Chinese proverb. The best time to plant a tree was 20 years ago. The second best time is now.
    Jun 1 0
  • OP
    I am way behind with like 80k at 33..
    May 31 0
  • ViaSat okeb30
    Max out 401k as every chance possible. Find a way to back door money into Roth as much as possible. Roths are better for long term wealth since you are never forced to withdraw that money, unlike IRAs and 401ks. Unless they change the rules.

    Depending on your state, 401ks and money rolled into IRAs from 401ks are protected from creditors and legal claims. Which to me is a huge bonus given so few assets are protected this way without a great deal of effort being made to hide your money.

    If you max out all of those, then you can start a post tax investment account and just do general long term investment.

    If you think you may be saving too much, then get a financial adviser and make a long term plan.
    Jun 1 2
    • New / Eng DEV_ENV
      401K is not protected from your spouse in case of divorce or in case of bankruptcy. Crypto with your own private key is the only asset that cannot be taken from you.
      Jun 2
    • ViaSat okeb30
      Sure, well divorce isn't exactly getting sued. That is a known risk. It's hard to hide money from a spouse. I am sure there are more ways than crypto.

      Many trusts are insulated from spouses.

      If you are a high earner you should always be looking at prenups if you aren't on even footing with your spouse.
      Jun 2
  • Amazon Handsolo
    According to FIRE, it's all about expenses and 4% rule. I think it makes sense to build the emergency fund first, then dump everything into tax advantaged retirement savings like 401k and Roth IRA/401k. That being said, cash truly is king and provides the most options in downturns. Property is great but not everyone wants to manage it or manage the manager. I'm pushing 50, have -$1.5m combined savings (401k/IRAs/investments) but don't plan to retire - I like what I do. My strategy has been to move around internationally and experience life as I would *if* I was retired. Don't wait until your older to do anything since you may never get that chance, live it now.
    Jun 1 0
  • Facebook / Eng instandidl
    Just max out 401k contributions.
    Jun 1 0
  • Google B612
    Hahah, the only problem is that before we retire there is high likelihood of the government enacting "All your 401k are belong to us". I still contribute to my 401k but I am not completely depending on it to come through
    Jun 1 7
    • Apple procto
      CA already tried and failed. The 401k protection has precedent.
      Jun 1
    • Amazon 💩4brains
      Really?!?! California tried to take people's 401ks? What was the reasoning they had behind that?
      Jun 1
    • Google B612
      I am not as confident as your are in these protection mechanisms. Past failures are not a predictor of future failures.
      Jun 1
    • Apple procto
      The claim was that money earned in CA should be subject to tax in CA even if it’s deferred. It’s a money grab to fund Socialism. Fortunately the Congress passed a law explicitly prohibiting the practice.
      Jun 1
    • Uber / Eng
      sight

      Uber Eng

      PRE
      Facebook, Cisco, Dell
      sightmore
      The money is not invested with the government. It’s invested in private institutions just like any other private fund. The only difference is the taxation policy.
      Jun 1
    • Apple procto
      Finally found it: pension source tax act 1996 prohibits states from collecting after you leave the state. PL 104-94.
      Jun 1
    • Palo Alto Networks arrr
      “Fund socialism” lol
      Jun 1
  • New / Eng ggg1
    I'm 34 and at $500k. This is also after some disasters in my life that probably cost me about $100k. Been aggressively saving since I graduated, but I also paid my own way through BS and MS. And I didn't join FANG until recently.
    Jun 1 6
    • Snapchat boohpo
      How did you manage to build up 500k in your 401k by 34? Which funds are you invested in and how much do you contribute per year (assume it's the max).
      Jun 1
    • ViaSat okeb30
      Shouldn't have been that hard. The last 10 years have seen spectualr growth. Probably started working and investing right around the crash. Max out every year for 10+ years.
      Jun 1
    • New / Eng ggg1
      That's exactly right, started working at the crash. Invested aggressively, lived like a pauper. Still drive the same beat up car I did in college.

      Seriously, the biggest thing is that almost every single person I meet lives extravagantly compared to me. Money can either be used to consume goods/services or make more money.
      Jun 1
    • Snapchat boohpo
      Nice! But you don't need to live like a pauper, enjoy life. But remember that everything is relative, so don't be extravagant, coz then the extravagant lifestyle becomes the norm. That's where a lot of people get it wrong IMO.
      Jun 1
    • Microsoft XyYh51
      Boohpo- extravagant lifestyle becomes the norm.... that is so true!! I’ve Seena people that historically were very financial smart, then stared making some serious money and now.... they have tons or crap and nothing for the future.
      Jun 1
    • Pegasystems happyjalap
      You don't need to live like a pauper (what's the point of making good money?) but also don't need to live a luxury lifestyle. As usual, the correct way is somewhere in the middle. My DTI is around 14% now and I definitely don't live like a pauper. I just don't buy cars over $50K, etc.
      Jun 2
  • New / Mgmt
    BpeD00

    New Mgmt

    PRE
    VMware
    BpeD00more
    Wife and I both 40. ~$3M net worth.

    $600k individual accounts. $1.1M in retirement - 401ks and wife pension). $500k in investment real estate (condo) and $750k home equity. If I invested in stocks over the last decade I would be well over $4M - but I was chickenshit and stayed in cash and real estate. Real estate did very well thankfully. Cash didn’t do well!! Invest early and invest aggressively until you are at least 50. My two cents.
    Jun 2 3
    • New / Eng ggg1
      Was the real estate a better decision than going stock?
      Jun 2
    • New / Mgmt
      BpeD00

      New Mgmt

      PRE
      VMware
      BpeD00more
      About equal, actually. I like real estate because 1) it’s a physical asset 2) tax benefits 3) raise rent with inflation annually against a fixed mortgage 4) depending on location, much safer. But you need to have the tolerance to manage a property just like a stock portfolio.

      Problem I had was I didn’t find another property with my “dry powder” for years and i sat in cash waiting. In hindsight I should have been less picky/conservative. Investing is a long game.
      Jun 2
    • New / Mgmt
      FourHrWkWk

      New Mgmt

      PRE
      EY, IBM, Financial Times, Google
      BIO
      Founder with Interests in investing, energy, crypto, cannabis, tech. Multiple startups, I enjoy mentoring entrepreneurs.
      FourHrWkWkmore
      In hindsight I should have done more real estate. I had gut feelings about undervalued small places near downtowns of mid sized cities - could have bought a bungalow in 5 points near downtown Huntsville for $40k in the ‘90’s, loft west of Denver for $100k in the 00’s, downtown Las Vegas after the 08 recession for $100k, San Fran 1 bedroom for 300k in 2003. Every time I had some excuse for not doing it. Any of those investments would have paid off.
      Jun 2
  • Snapchat boohpo
    Try to save a much as you can. Also remember that everything is relative. If you spend every dime you have and have a lavish lifestyle, you will need the same amount of money or more to be happy in retirement. Try to live frugally and not lavishly, take a lavish holiday once an year maybe. Then when you retire, your expectations will be manageable. As humans we always want the same or more than what we have now, so it's hard to cutdown on lifestyle.
    Jun 1 0
  • Adobe rm $0
    28. Started 3years back.

    50K in 401K
    550K in Stocks

    No house yet
    Jun 2 8
    • Amazon 💩4brains
      Wow what is a 501k 😄
      Jun 2
    • Adobe rm $0
      Haha my bad! Updated it. Thanks!
      Jun 2
    • Amazon 💩4brains
      Oh come on man 501k is way ahead of everybody else 😋😂 I don't know what the hell it is but I want one!
      Jun 2
    • Microsoft
      DjenNow

      Microsoft

      PRE
      Google, Amazon, Facebook
      DjenNow more
      How did you get to 550k in stocks. What’s ur total comp?
      Jun 3
    • Microsoft bnsixjoans
      3 years and 550k stock is kind of crazy high. Mind sharing what's the deal there?
      Jun 3
    • Adobe rm $0
      Adobe’s stock grew y.o.y and got RSU refreshers every year
      Jun 3
    • Evernote huhuhuh
      What was your stock deal? Over 3 years thats still insane
      Jun 3
    • Whole Foods
      UfSv82

      Whole Foods

      PRE
      Whole Foods
      UfSv82more
      That's insane stock deal
      Jun 3
  • 35. I got zero, and don't really care.
    Jun 1 4
    • Pegasystems happyjalap
      You'll care when you live at a homeless shelter when you're old.
      Jun 2
    • Google Mr. Glass
      Nope, he’s probably saving money separately you never know. Maybe he’s bought a ranch with a farm to live off of. When the government goes broke and takes away half your 401k and social security, he’ll be the one laughing 😉
      Jun 2
    • Pegasystems happyjalap
      Oh, you're one of those conservative conspiracy theorists that gets his news and opinion from Infowars.

      On the first point maybe but I strongly doubt it based on how his post is worded.
      Jun 4
    • Google Mr. Glass
      ^ there’s no conspiracy, just diversification of retirement strategy. Make assumptions much, turd? Why would you want ALL your eggs in one basket controlled by one entity’s legislative mood of the day?
      Jun 5
  • Expedia Lark71
    40..700k
    Jun 2 3
    • Whole Foods
      UfSv82

      Whole Foods

      PRE
      Whole Foods
      UfSv82more
      Where did you invest? That's crazy number. Good job 👍
      Jun 2
    • Expedia Lark71
      Thanks. Maxed 401k plus employer. Roth max, then 10% post 401k converted to Roth via mega door.
      Jun 2
    • Whole Foods
      UfSv82

      Whole Foods

      PRE
      Whole Foods
      UfSv82more
      Thanks for sharing, I max out 401k but don't take advantage of Roth bia mega door
      Jun 3
  • New dUNp73
    Shit i am fucked.. only 180k at 32...
    May 31 2
  • Sephora ByFeliCa
    You should have double your salary but again max out every year if you can. I also max out my health savings account and don’t spend it, more money for retirement because most expenses when you get old are medical related.
    Jun 2 6
    • LinkedIn / Other ZerotoIPO
      Can you explain more about the HSA? Thanks!
      Jun 2
    • Whole Foods
      UfSv82

      Whole Foods

      PRE
      Whole Foods
      UfSv82more
      Yes I thought you can't roll over hsa account
      Jun 2
    • Sephora ByFeliCa
      If your company offers a high deduct health plan you have access to put pretax money into a HSA account, it rolls over year to year, once you have a minimum balance you can invest it and you can use it on qualified medical expenses. If you leave your company it goes with you too. Since it’s high deductible I wouldn’t suggest it if you have high medical costs now but it’s great when your young and healthy and some companies match your contributions or seed this account to encourage enrollment. Think of it as a 401k for medical expenses.
      Jun 2
    • Amazon / Eng 1ronyman
      Even better, if you spend it on healthcare, you don't pay income taxes on it so it is 100% tax free. If you retire at 65 and still have money in it, then you can spend it on whatever and it gets taxed like regular 401k
      Jun 2
    • LinkedIn / Ops Spin_Move
      This is not true for all HSA's. It depends on what your company benefits are. In my case, there is a "use it by March 15th of following year or lose it" policy. FSA's are more flexible and roll over usually.
      Jun 7
    • Qualtrics QFPu20
      You're mixing hsa with fsa. Fsa don't roll over while hsa is your money forever
      Jun 7
  • Nvidia litecoinn
    Unsubscribe
    Jun 1 0
  • Cerner / Eng RxHQ47
    U sure you will live by then, I am not sure about tomorrow lol
    Jun 1 0
    • Amazon 💩4brains
      That's why you have to have a little fun :-) I do save a lot of money and put most of it towards retirement as you can see by scrolling up and reading one of my previous posts. However I do splurge occasionally. You could die tomorrow and not enjoy your money that you worked hard to get. Also if you get too old you won't be able to enjoy your money. I know older people that have money but they can't go on nice trips because physically they can't do it.
      Jun 1
    • LinkedIn boringdude
      What do you splurge on?
      Just curious because i feel I don’t
      Need to splurge to enjoy, and that splurging just wastes money for not much increase in enjoyment. Either that or I’m
      Not enjoying it right!
      Jun 1
    • Amazon 💩4brains
      Splurge on vacations. I took myself to Hawaii a couple times. However I kind of cheated on that splurging. I use airline miles to take me to Hawaii three times already. I also used points for some of my hotel visits. Last time I went I used airline miles to get there but then I paid for a really nice hotel.

      Also when on vacation I do tend to spend a little bit more a nice dinners especially if I'm using points for hotels flights. Also if I'm using points I'll spend money on experiences. Like helicopter rides or shows.
      Jun 1
    • LinkedIn boringdude
      Pretty decent things to splurge. I mean I wouldn’t call flight tickets to a Hawaii splurge unless it’s multiple times a year.
      Jun 1
    • Amazon 💩4brains
      Really I would have thought a flight to Hawaii is splurging. But I guess that's open up for interpretation.

      There was a year that I took my kids to Disneyland and then 9 months later I took them to Disney World.
      Jun 1
    • Whole Foods
      UfSv82

      Whole Foods

      PRE
      Whole Foods
      UfSv82more
      Live a little,go on vacations 3 times a year
      Jun 2
  • Amazon Waze
    Is it a bad idea to not do 401k an manage your own money? Why?
    Jun 1 4
    • Reddit / Eng pzqf14
      Yea
      Jun 1
    • Uber / Eng
      sight

      Uber Eng

      PRE
      Facebook, Cisco, Dell
      sightmore
      401k has 2 main advantages:

      1. It is pre-tax and therefore reduces your taxable wages.
      2. It often comes with an employer match, which is a 100% return on your money up until their limit.

      After those two things are accomplished, a ROTH IRA or a traditional IRA make sense over a 401k.
      Jun 1
    • Microsoft / Eng
      R'hllor

      Microsoft Eng

      PRE
      Microsoft
      R'hllormore
      If you invest on your own, you'll pay income taxes on your money, and then you'll pay additional capital gains taxes on the growth. With 401k (whether Traditional or Roth) you effectively only pay the income taxes.

      If your 401k has excorbinently high fees, it's possible to eat up that difference in taxes, but if your cost ratios are in the <0.1% range you're definitely better off investing in 401k first
      Jun 1
    • Western Digital vballs
      Most 401ks have self directed brokerage accounts. So if your hell bent on making your own investments, you still can don that with the tax benefits mentioned above.
      Jun 1
  • Amazon gdxi4nd
    28. $200k combined in 401k/457/503b. Worked for the state for a couple of years so I put nearly $40k a year I to pre tax accounts. Also got lucky with 401k matching. Company matched with company stock, and the stock went up nearly 10x in 4 years or so.
    Jun 2 3
    • Amazon rajjj
      I doubt AMZN will grow like crazy in the next few years
      Jun 2
    • Amazon rajjj
      Okay. 10x in 4 years. I guess you’re not talking about AMZN
      Jun 2
    • Amazon gdxi4nd
      Talking about amazon. Was about $200 when I joined.

      "Went up 9x" doesn't sound as exciting.
      Jun 2
  • Facebook mpk456789
    Feels like this a rat race thread
    Jun 4 2
    • New / Eng
      griesrt1

      New Eng

      PRE
      Flipboard
      griesrt1more
      Tc or stfu
      Jun 4
    • New / Eng ggg1
      Feels like rat race life.
      Jun 4
  • Evernote huhuhuh
    Reading some of these comments I can finally understand when people say not everyone actually invests in retirement lol
    Jun 2 0
  • New fAAj64
    32 with a PhD. 100k in combined retirement savings. Only got my first 401k at age 30.
    Jun 5 8
    • TuneIn WsvF24
      How would you be able to 100k in only 2 years?
      Jun 5
    • Google / Eng Feeunvr
      Good call out TuneIn.
      Jun 5
    • Salesforce / Eng aSff46
      Mega backdoor roth, you can put up to 56k in.
      Jun 5
    • Is this Roth called Roth 401(k)?, When you contribute after tax and withdraw everything tax free?
      Jun 5
    • Salesforce / Eng aSff46
      Yup, contribute to after tax account and then transfer to roth 401k.
      Jun 5
    • So there are two accounts? What is the other account? Roth 401k seems to be limited by 401k contribution limits.
      Jun 5
    • Salesforce / Eng aSff46
      Your employer/provider has to support it. But yeah, 2 accounts. Just search for it, someone else can explain it better than I can. It's legit, I just started thanks to this thread.
      Jun 5
    • Salesforce cbnlk
      Right. Salesforce now lets you contribute to Roth 401k with additional after tax money letting you exceed the 18.5k annual limit using daily in-plan conversion. It’s an amazing benefit.
      Jun 5
  • Amazon selena
    Zero at 30, have 4 houses totally paid off at different locations. They are earning me money now to invest more. Should I still think of putting into 401k?
    Jun 2 6
    • Yahoo Saymyname
      Where are the locations
      Jun 2
    • EA Mk55hd
      maybe, but maybe not. The thing is your properties are generating taxable income while you are on (I assume) a very high tax bracket. I imagine you can write off some of your capital depreciation but not sure since I don't own properties other than my house.
      Jun 2
    • LinkedIn / Other ZerotoIPO
      I say yes, especially if your company matches. Diversify your assets.

      I max out my 401K, do backdoor and own some real estate. Feeling much better with my risk/reward investing
      Jun 2
    • Whole Foods
      UfSv82

      Whole Foods

      PRE
      Whole Foods
      UfSv82more
      Yes, invest in 401k
      Jun 2
    • Amazon selena
      Pre tax savings makes sense for 401k, should start thinking that angle..
      Jun 2
    • AIG / Product
      Raging

      AIG Product

      PRE
      Deloitte Digital
      BIO
      Counseling CxOs for AI-first strategy !
      Ragingmore
      Use traditional 401k only until match. Later, use backdoor Roth for rest.

      Big Roth party!
      4d
  • LinkedIn / Other ZerotoIPO
    35 and 500K in 401K
    Jun 2 4
    • Yahoo Saymyname
      When do you start 401k and how much you invest yoy ?
      Jun 2
    • LinkedIn / Other ZerotoIPO
      Started in 2008 and Maxed out every year.
      Jun 2
    • PayPal ?$&@“
      So in 10 years you made $300k by investing $208k. Thats an amazing growth. More than double in 10 years.
      Jun 2
    • LinkedIn / Other ZerotoIPO
      Yup. Helps when companies match (companies I worked always matched about half of what I put in). Then it compounds - with about 8% returns per year in broad index, should have doubled in 9 years.
      Jun 5

Join verified employees in our anonymous social network! Download the app!

close