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I've been an engineer all my post college employed life, and employed as one in 5 different companies and know many more engineers in still more companies. Every one of them had a 401k with various degrees of employer matching, many better then mine, which is a typical 50 cents on the dollar for the first 6% of base salary. Many do 75 cents or even dollar for dollar. But I also have a considerable pension, so the 401k is just an added incentive. We have decent funds, most very low cost, as well as a money market to park your cash while you decide what to do. We do not have a Roth 401k, but we do have after an after tax savings option that can be rolled over in to a Roth IRA once a year. My company match and earnings on the match have been just over $150k after 16 years at the current one. Not peanuts by any point of view, IMHO.
In nearly 40 years of working in the Architectural/Engineering profession, I have not encountered job durations of less than one year. Unless the person was highly unqualified, possibly with a fraudulent degree(s) and job history on their Resume.
I have had contract employees working for me whose placement firms offered 401(k) plans for the employees. This extends back 20 years and is not a recent development. I do not know if there was an employer match of any kind as it wasn't my business to know such details. The life blood of placement firms is high quality employees who can be placed in lucrative paying positions making money for the firm. Not offering any employee savings plan to retain such employees is counter-intuitive to their business model.
Typically a company will staff up for a big project, then layoff most by the end of the project. Department heads are retained. Frequently the duration of employment is under a year, so the 1-year elimination period is a big disservice to the engineers who don't get to stay. Staffing firms are another problem. Some don't offer 401k at all, others have the one-year barrier. You are quite lucky if all your assignments lasted over a year. Nature of the beast.
Not really a very meaningful statistic. A more meaningful statistic would be how much the typical 55+ couple have saved. My family had practically zero saved when I was 30. At 58.5 I can probably go to leisurely self-employment in a year depending on how healthcare insurance shakes out.
Not really a very meaningful statistic. A more meaningful statistic would be how much the typical 55+ couple have saved. My family had practically zero saved when I was 30. At 58.5 I can probably go to leisurely self-employment in a year depending on how healthcare insurance shakes out.
So maybe this makes more meaning. just a bit less than 40% in their 50's have any savings of their own.
Even those on the cusp of retirement — the median couple in their late 50s or early 60s — has saved only $17,000 in a retirement savings account, such as a defined-contribution 401(k), individual retirement account, Keogh or similar savings account.
Quote:
Among those who are five to 10 years away from retirement, 39% have no retirement savings of their own.
So if you are done trying to tear apart my posts. Maybe you might actually understand the real scope of the problem.
So if you are done trying to tear apart my posts. Maybe you might actually understand the real scope of the problem.
Your link is stupid, from Investopedia:
Fiftysomethings
You don’t feel old, and you’re not, but you’re only about 15 years away from the classic age at which you need your retirement money to live on. However, real life goes on. You might be paying kids’ college tuition, helping with car payments, gas, and any number of other expenses. The house is getting older and needs more fixing up, and maybe medical bills are rising. The estimated median savings of the average fiftysomething is about $117,000 – far shy of the desirable four -to-five times your annual salary. If you made $60,000, you should have $240,000 saved – at least.
Sixtysomethings
Unfortunately, the average sixtysomething has an estimated median of $172,000 in the bank. Not nearly enough. At this point it’s hard to save enough to make up for the shortfall. Instead, look at your assets. What can be monetized at some point to help sustain you?
And don’t forget Social Security. Most seniors find this to be a significant source of monthly income. The 2016 estimated average monthly benefit for a retired worker is of $1,341 per month; yours could be more or less. And also consider these Top Tips for Maximizing Social Security payouts.
You don’t feel old, and you’re not, but you’re only about 15 years away from the classic age at which you need your retirement money to live on. However, real life goes on. You might be paying kids’ college tuition, helping with car payments, gas, and any number of other expenses. The house is getting older and needs more fixing up, and maybe medical bills are rising. The estimated median savings of the average fiftysomething is about $117,000 – far shy of the desirable four -to-five times your annual salary. If you made $60,000, you should have $240,000 saved – at least.
Sixtysomethings
Unfortunately, the average sixtysomething has an estimated median of $172,000 in the bank. Not nearly enough. At this point it’s hard to save enough to make up for the shortfall. Instead, look at your assets. What can be monetized at some point to help sustain you?
And don’t forget Social Security. Most seniors find this to be a significant source of monthly income. The 2016 estimated average monthly benefit for a retired worker is of $1,341 per month; yours could be more or less. And also consider these Top Tips for Maximizing Social Security payouts.
My wife worked from 1986 till the end of 1999. Her average salary was $40,000 and she put 5% into the 401K.
So she deposited $32,000. Her company did a 100% match on first 5% so they gave her a free $32,000.
She did 100% equities everything auto reinvest in more equities. Her 401K balance is around $385,000. Staying all equities and reinvesting dividends is way to go. Even after she quit we had stock market correction from Spring 2000 to Spring 2003 and Summer 2008 to Spring 2009.
While working she had stock market crash of 1987 huge recession of 1991/1992. She also had flash crashes, taper tanturns, Brexit, Russian Bond Crisis, Long Term Capital Management, Enron etc. You name. Guess what they were all opportunities to reinvest at lows.
The chart says she should be at one million by retirement all from a $32,000 investment. Considering she is a stay at home wife and only had the one job. Amazing she has more then most folks do in their 60s who have worked their whole life.
A good 401K match, investing early, staying all stocks and never taking a loan or cashing out is key.
Bada bing. There you go. Bob's your uncle. Put it there, leave it there, let time do the heavy lifting. Nice! Just wish you mentioned her age in 1986.
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