Vanguard average and median 401(k) balances...I mean, wow.
Average: $148,153
Median: $38,176
Amazingly, people actually turn down 401(k) matching contributions from their employers. Free money. WTF?
Thank goodness for social security, right? That will always be there.....
Link: MarketWatch: Does your 401(k) balance stack up against the new national average?
Replies to: Vanguard average and median 401(k) balances...I mean, wow.
Unless the law changes, if you are 50+, catch-up contributions have to be Roth in 26
If your base income is at least $145k.
For paycheck to paycheck people a 401k is a luxury.
The loan and hardship rates are 20% combined. Worst thing you can do with a 401k.
We are not a nation of savers
Fat too many retirees think Social Security is going to handle it for them and are mad at the world for not helping them out more.
At even the highest payment rate, if you get individual SS at 62, it is around $2800.month.
I think it goes up by around $200 per month for each year you wait. But, after paying taxes, that doesn't leave a tremendous amount of money.
I understand why companies did it, and a defined benefit pension plan makes no sense if you change jobs every two years, but the 401k route doesn't work for most.
You need 401K plus maxxing out Roth in your 20s to have a decent retirement in your 60s.
Sadly, most people do neither.
Not smart taking it at 62..it goes up 8% each year you wait.
Realizing or course some people have to take it at 62 to survive
Yes and no.
The monthly amount does go up if you hold off on taking it, but in the end, you're likely to receive the same total dollar amount from the time you start until the day you die.
That said, it can be worth holding off a bit in some circumstances, such as if you expect your spouse to live significantly longer than you.
If I was 62 I'd take it and invest it in crypto.
Whether it is even available to me in 17 years (I'm 45) is highly questionable.
Agree. Waiting is the way to go.
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At age 63, Social Security and home equity is all my wife and I have
We'll probably have to work until we're 75 but that's okay.
Sorry to hear that
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If you ever do a reverse mortgage, try to do it when interest rates are low. Higher rate means
smaller lump sum payment.
I'm not advocating that approach, but it's a reality for many.
Anyway, best of luck, Mark.
Thanks for posting this…kids in H.S., and certainly in college need to understand that basic concept
I.e. Capital growth vs Wage growth…and Time Value of Money.