In this episode, Troy Sharpe, CFP® discusses the average 401K balance by age and talks about how much you should be saving for retirement. This gives you the chance to see how you compare to the national averages and also this video will give you the opportunity to think about how much you should be saving towards retirement.
Many financial planners, advisors, and investment managers specialize in distinct segments of the market. Some invest only in domestic stocks, bonds, or real estate. Other managers get more granular in managing only US large-cap growth stocks, energy MLPs, or maybe apartment or industrial real estate. When their narrow investment strategy falls out of favor, some managers do not adjust to the new market dynamics.
Think back to the go-go “internet bubble” of 1997-2000. What happened to all those technology heavy mutual funds and portfolios after the bubble burst? We believe that at best they under-performed their peers and benchmarks, and at worst, they went out of business or were merged with other funds. Additionally, consider the China-led commodity bubble from 2002-07. How many of those energy or commodity laden funds have performed well since the economy turned up since the end of the Great Recession in 2009?
Many investment strategies can be broken further broken down into sub-categories, such as:
– Asset Class Based Strategies: equities, fixed income, commodities, real estate, or cash
– Economic Style: growth investing versus value investing
– Market Size: large, mid, and small sized companies
– Geography: USA/domestic, International/developed, and emerging markets
The top investment performers cycle in and out of leadership over time. Given that no single strategy is superior each year, our collective experience of seeing investors chase prior performance and investment leadership led to our development of the OHFG Core4.
The Core4 approach allows our advisors and investment management team to develop a comprehensive and flexible approach to designing either or both your retirement plan and your investment portfolio. Using the Core4, we can allocate your portfolio across various asset classes, each carrying a different level of potential risk and reward. Allocating across diverse asset categories may help mitigate the emotional response to changes in market dynamics.
Our investment process is rigorous yet flexible. We tale advantage pf opportunities provided by market volatility, and invest client money for the long-term.
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Mutual Funds and ETFs: Mutual Funds and ETFs are our vehicles for providing clients with broad market exposures at a relatively low implementation cost. We’ve chosen to partner with providers whose solutions give our clients broader and more tailored exposure to the three Dimensions of expected equity market outperformance over time: profitability, valuation, and size.
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Should talk about median
50% minimum
I always wonder why people talk about average 401k balance when people move around a lot? It's like talking about pensions…soooo old school! Change to average retirement account balances. Also, why don't you respond to people's comments?
We uploaded a closed caption transcript for this video. Are the captions helpful? Distracting? What do you think?
I feel good about my balance after over 25 years of investing in my 401(k) and sacrificing. Hoping to retire in four years.
This video is very misleading. 40% of people in their late 50s have nothing saved for retirement. So when you include people who have 0 in the averages the meN amount. Is $2000. Yeah, many people only have Social Security.
Thank you for the info. These data were from Fidelity database, so these people are "savers". To my reading, I understand that most of Americans have less then several thousand dollars saved for retirement. Could you also take into account the non-savers. This could provide better understanding of the US population (not just savers who have accounts in Fidelity).
Just knowing average may not represent the full picture, because less than a few percent of savers with more than millions of dollars saved for retirement will significantly skew the average. Therefore, also knowing the median may provide better representation of the population.
Watching a bunch of retirement 401K since I only have 20 years left for full retirement. This one makes more since and the average numbers kind of felt it was a little low compare to other video's. What about calculating in average of "Annual Rate of Return" what's a good percentage number to factor this in?
Why no comments?
I assume these are mean averages? The medians will be significantly lower!
FIRST! Man, I don't even have a 401K :(…it's all been rolled over into my IRA and I'm slowly and under taxable limits converting ALL of it to my Roth IRA over the next 17 years or so 😉 Forget that 15% nonsense, try 50% and an enjoyable lifestyle that's less than what social security will be in retirement in today's dollars. Best part, simply by planning WAAYYY ahead, no taxes now or in retirement, including no "tax torpedo" or "widow's tax trap". Now if I can just figure out a way to get out of this whole "death thing" I'll be all set.
Hi, very informative video. What about if I am going to start the 491k plan? Thank you.
Lol, 3 star Best Western. We stay at ma and pa motel, air bnb, or tent. 10-15X what you show as average. Who cares what is average. What amount can you live on?
Average??? meaning Warren Buffet and Bill Gates are averaged in the same data set as I am???? How about median and mode. I can use those comparisons.
Is that 15% including the employer match or just our own contributions?
THIS DUDE TALKS ALOTAND SAYS NOTHING…
I retired at 62, worked for the same company for 36 years. I have a company pension, 401K , 900k, and social security. Unfortunately my retirement start date was 01/01/2016, the day that Obama Care, or the affordable Care act started. We got the bronze plan, 70/30 coverage and it costed my wife and I $2157.57 a month. It's ok if you never enter the hospital. I had outpatient surgery on my arm and was on the operating table for 30 minutes and my wife drove me home. It cost us $8860.00 out of my pocket plus the $2157.57 premium payment for that month. Be careful what you wish for you just might get it!!!!!
What would a person in their 60’s do with only $195,000? Could they retire on that small amount?
$195,000 in your 60s. Wow, That’s pretty low. Our education system not spending anytime on teaching us personal finance.
Thank you for the video
There is no letter O is 401(k) so why are you saying "Oh"? It is a four zero one k. Secondly, if you are pulling these numbers only from Fidelity accounts then they are not accurate. What about the people that don't have Fidelity accounts? Also, you cannot say how much a person "should" have in their retirement account(s) unless you also know what other assets they have, their lifestyle, their bills/debt…. For example, what about someone that is due to receive $2000 a month social security retirement benefits? That person might not need ANY retirement money if their bills are say $1000 a month. They would be saving $1000 a month just from SS money. This information presented here by you is highly misleading so I gave you your first downvote.