"Every individual and household is different both in their income trajectory (driven by their career choices and modes of income) as well as their spending and investing habits. For some, investing is a nice-to-do, but not something that's a necessity. For others, investing is more like a religious obligation that must be taken seriously. The reality is that living one's life, and putting some capital away for a big and beautiful tomorrow, can work simultaneously."
"For the 45-54 age group, the median 401(k) balance comes in at a midpoint of around $67,796. That's a far cry from the average, which is $188,643. But that makes sense, when investors consider the reality that the top percentiles of savers hold the vast majority of overall retirement savings and equity exposure as well, so that's to be expected."
Individual income trajectories, spending, and investing habits vary widely, affecting retirement readiness. Consistent saving and patient compounding matter more than timing for many investors. Personal capacity to save depends on income size and the diligence with which capital is set aside. Benchmarks can help determine whether savings are on track relative to the median American at age 50. For ages 45–54, the median 401(k) is roughly $67,796, while the average is much higher due to concentration among top savers. A mid-$60k 401(k) produces only a modest annual withdrawal under a 4% rule.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]