Now it’s 3.1% of folks between 1 million and 5 million and 0.1% of Americans over $5 million.
We all should know our goal
We all should know our goal
Average 401(k) balance for 65 and older is $272,588. median $88,488.
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These are some scary numbers. I recently hit my 50’s, wife 40’s and between our Canadian RRSP and TFSA (similar to 401(k) and Roth IRA) we are low 7 figures and feel we are way behind and saving like mad.
A Roth is fine. However I have this feeling they will come looking to tax those some day when tax revenues are short. Maybe my tinfoil hat is too tight. A Roth 401K is subjected to the same limits as a deferred one. I was responding to someone that wanted $80K to be the 401K limit. I suppose $80K to a Roth would be OK, tinfoil hat not withstanding. However at that point it truly would be a loophole for the rich.
My point was that if you have gobs of cash your not going to spend, you probably want to talk to an estate planner because a tax deferred account like a 401K may not be the best way to move as much as possible to your heirs.
Is that $5M liquid or 401K or total assets?
Asking for a friend...
Here's some numbers I just picked up off the 'net. Dunno if they are accurate. I just thing the top level numbers do not tell the story.
Net Worth = Assets - Liabilities.
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Do you mean low 6 figures? Low 7 and saving like mad sounds fine to me.
I can't imagine ever rolling SS back. For starters there is only $2.7T in the trust fund, and they paid out $1.3T last year. Its the definition of a ponzi - current workers pay for retired workers, just like they did when they were working. So take the younger workers out and it implodes. Also, how to you tell someone that is 49 you paid in for 30 years, but as of now you won't get anything.
Not that any attempt to reform would survive an election or a supreme court ruling anyway.
They will means test or increase FICA or some other can kicking mechanism until the end.
Exactly what I said, low 7. Still not enough to retire on. Have my “number” to retire, just gotta get there. Luckily, in Canada, health care costs after retirement are less of an issue. Still makes me nervous.
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Liquidatable relatively rapidly ie not real property not total assets. Cash. Stocks. Bonds. Funds.
I was agreeing with you. My point was currently, the law allows contributions over the 401k limit up $69k in 2024 (combined employee and employer contributions) and was using my plan's setup as an example of the loophole it creates, because of after tax dollars being used after the 401k contribution limit is hit automatically being swept as a backdoor roth contribution (in my plans case). Not sure I can see a justification to funnel that much tax advantaged dollars...
FWIW I have your same tin foil hat thought/concern. Wondering if one day everything over $X in a roth will be subject to something extra.
Weird number... Does it include liabilities?
I guess I'm saying it doesn't tell me too much.
Not a big deal, but without context it is difficult to assign meaning.
No. Not liabilities.
Why do you need to assign meaning in a thread about how much someone has in a 401K? It's just a number and probably tells you very little as well.
I mean you know how much I have in a 401K? $0.00
In fact every retired person I know in this state has rolled their 401K's into SD IRA's. Zero point to keep $ in a 401K.
Same here. I finally jumped on several years ago, but I held off on Roth's because I have a sneaking suspicion that when it comes time for me to get the benefit of getting my money back, tax-free, there will be some "golly, we hate to do this but we're going to have to change the rules going forward" rational to squeeze more money out of us.
I have NEVER considered my paid off house part of my net worth.
4WD
$50 site donor 2025
C’mon man - I mean comrade - you act like it’s your money …IRS will have some kind of distribution ’fee’ for Roth IRAs in the future….
I know some folks with rentals here in Florida and did very well, but their 401K had very small balances when they retired.
I know a guy working IT Dept at hospital and most of their life savings went into buying rental properties near university / college. Him and his wife were immigrants from Jordan.
The student’s parents paid the rent on time.
For me, clicking a mouse for brokerage account was easier and I decided against buying any rentals.
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You are 100% correct about not moving the money around too much.
S&P index with DRIP for 35 years.
If they change jobs simply roll the balance over, do NOT touch a penny of it.
I have the exact same amount as you in a 401K, $0.00. I guess we're both screwed...........
I have a doctor friend who drives Hondas and Hyundai’s. He won’t drive luxury cars here because salt does not discriminate between Honda and Mercedes. He lives in a nice, but modest home as well. He does have some nice kayaks and a canoe.
I hadn’t thought that way before meeting him.
There is a big lesson to learn in all of this and I was on the short end of it !!
Never trust a pension or a company that offers one . There is no guarantee what so ever . I won’t make a long story but I worked for a company that offered a good pension and my statements kept saying I would have this much money when I retired. When I added the pension and Social Security together I’m like I can make that go .
As a precursor that company offered no match in there 401k at all so I skipped giving them my money and held on to the belief that the pension would see me through….
Wrong , they came in one day and said we are dissolving it . Nothing we could do . The payout I got was a complete joke for my 28 years of service.
I have bounced back by taking my skills and moving to a different job with better retirement plans . And I got a Financial guy .
Moral of the story, especially in this day and age. Teach your children to get a quality financial fiduciary adviser early in life and set up a plan . Never believe the company you work for even if it’s a good one !
Never trust a pension or a company that offers one . There is no guarantee what so ever . I won’t make a long story but I worked for a company that offered a good pension and my statements kept saying I would have this much money when I retired. When I added the pension and Social Security together I’m like I can make that go .
As a precursor that company offered no match in there 401k at all so I skipped giving them my money and held on to the belief that the pension would see me through….
Wrong , they came in one day and said we are dissolving it . Nothing we could do . The payout I got was a complete joke for my 28 years of service.
I have bounced back by taking my skills and moving to a different job with better retirement plans . And I got a Financial guy .
Moral of the story, especially in this day and age. Teach your children to get a quality financial fiduciary adviser early in life and set up a plan . Never believe the company you work for even if it’s a good one !
