How Much Should Be in Your 401(k) or other savings by 30?

[mathjak107]

and this is why we dont buy annuties except whats called immeadiate annuities....

[stan4]

Depends on how much you make, how you want to live on during retirement, etc, etc.

[jghorton]

"Should" is a relative term --- as compared to other 30-year-olds? --- in order to retire at age ## with $$ income? --- or to meet some other undefined standard?

Remember, you must also pay taxes on whatever deferred tax funds you take out of your 401K (add ##% tadxes to your 'should' number). Also, if you withdraw funds prior to 59-1/2, you will also pay a hefty penalty - so add that to your 'should' number. Also, if your 401K is not growing at a rate comparable to the funds you need, you are actually losing money -so add that to your 'should' calculations. All in all, if you are not maxing-out your 401K investment in your 20's, you 'should'.

[Cali BassMan]

[quote=jghorton;15517449]" Also, if you withdraw funds prior to 59-1/2, you will also pay a hefty penalty - QUOTE]

you can withdraw a set amount every month without penalty at age 55, however you must be fully retired,

[MadManofBethesda]

Originally Posted by jghorton

Also, if you withdraw funds prior to 59-1/2, you will also pay a hefty penalty - so add that to your 'should' number.

Originally Posted by Cali BassMan

you can withdraw a set amount every month without penalty at age 55, however you must be fully retired,

Cali: The "Rule of 55" that you seem to cite does not limit the amount of money that can be withdrawn from a 401(k) without penalty. If an individual retires during or after the year he or she reaches 55, then any amount can be withdrawn from the 401(k). You are not restricted to a set amount every month.

You may be confusing that distribution with distributions allowed under 72(t) with are restricted to a set amount based on life expectancy. However 72(t) distributions are not age-restricted. You can use 72(t) to withdraw funds from an IRA at any age without incurring the 10% penalty - and you don't even need to be retired to do so.

[mathjak107]

and the money must be held in a company 401k to start to pull it a 55..it cant be in a rollover account under your control..