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You are probably better off asking in regards to net worth. Having a high 401k balance doesn't mean anything if you have credit card debt off setting it.
You are probably better off asking in regards to net worth. Having a high 401k balance doesn't mean anything if you have credit card debt off setting it.
Agreed. Your net worth is what should matter in the end.
you might want to post this in the personal finance forum.
This is the best answer thus far. This forum is notorious for not reading the question then answering whatever they feel you should of asked as in the examples of the net work response. Based on your question, I'm assuming this is you at 35 with a $200k balance. We would also assume if you were able to save $200k exclusively in a 401k, odds are your net worth planning is fine also and you have not amassed credit card debt. Not a for gone conclusion, but a good assumption.
Fact- At 35, a $200k balance would put you in the the 90th percentile in terms of saving withing your peer group.
We obviously do not know what your life goals are, but this amount in it of it self is excellent.
the answer is the growth rate is going to be different for all of us.
there really is no balance vs age.
those busy paying off homes or putting kids through school may have slow growth rates in the early years. they generally will have lower housing costs down the road when the mortgage is paid and can save more than most renters can later in life .
the renters may have higher growth early on if they have the income and invest elsewhere in faster growing assets.
it took me 50 plus years to hit 1 million and only 12 years to triple it..
the answer is the growth rate is going to be different for all of us.
there really is no balance vs age.
those busy paying off homes or putting kids through school may have slow growth rates in the early years. they generally will have lower housing costs down the road when the mortgage is paid and can save more than most renters can later in life .
the renters may have higher growth early on if they have the income and invest elsewhere in faster growing assets.
it took me 50 plus years to hit 1 million and only 12 years to triple it..
Agreed again, however there are actual figures displaying age vs balance based on respondent surveys and at 35 is in the 90th percentile.
you really can not draw any conclusion from 401k balances . with so many people having switched jobs either by choice or layoffs odds are if they are smart they rolled that money over into their own ira's when they left..
looking at 401k balances today may be only part of someones net worth.
i had 6 figures in my 401k before i switched jobs. today i have only 5 figures in my new 401k. the rest is in my ira now. what would asking me about my 401k balance today mean?
good planning also requires the right assets in the right vehicle. buying equities in a 401k is not the best place to buy them.
401k's and tax deferred ira's should contain only income generating assets. those do not get special reduced long term capital gains rates they are taxed at full income levels. equites can be taxed at half that rate if held in a taxable account . at least there you can write off losses , pass tax free to heirs and enjoy special capital gains rates.
the difference between getting the right assets in the right type of vehicle can make a 20% difference in your balance.
reits, collectables, bonds, bond funds ,cd's ,money markets annuities are all good candidates for a 401k or ira since they are taxed at regular rates regardless.
so anyone with a clue would have less of a balance in their 401k but more in other accounts. they wouldn't max out the 401k but rather divide it up among taxable accounts ,roths and ira's
overall the question is really a poor one , at least net worth would take in all aspects.
to many reasons why the 401k balance is not the real deal.
more important is to make up a list of your own goals for future needs and see if you personally are on track.
comparing to others is silly and means little.
we have very involved discussions on this stuff over in the city data personal finance ,retirement and investing forums where i am a frequent contributor on retirement planning .
Last edited by mathjak107; 12-03-2013 at 03:28 PM..
the website you send someone to has no bearing on the info and what it represents or does not represent.
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