@NFLPlayerProps said:

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SF2004 said:

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@NFLPlayerProps said:

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Absolutely not impossible to have 3x $300k saved by 40 with that kind of income.

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I would assume he hasn't had that kind of income since entering the workforce.

Outside of TexAgs B&I instant millionaires at 22, most people have to work up to that over the course of 20 years.

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Yeah I'm not saying he'd need to make $300k every single year of his career to save 3x that. I understand that incomes increase as your career progresses. What I'm saying is that if you've worked your way up to $300k by the time you're 40 it is definitely possible to have socked away 3x that amount.

I believe this is what the poster who first brought it up was referring to (from Fidelity):

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Fidelity is incentivized to get you to put the most into an account that you can touch until you are 59 1/2.

They are full of *****

Roth Ladder

SF2004 said:

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EliteZags said:

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4x but started relatively low

I'd guess most on here have been investing >20/30% for a while, those that didn't throw away money into bonds/international/target date funds got serous compounded gains past decade and a half

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20-30%... yeah maybe if mommy and daddy paid for A&M.

Or is it going to be you paid for a $100,000 education (if you are 40 that is what it cost) while working at dairy queen part time, making a 4.0, and being a hit with the ladies all at the same time in college.

Or is it you got a $100k a year offer in 2006 when you graduated and had nil negative effects of the '08 crisis.

It is simple math and real life. Saying you should have 3x your current salary at 40 is not realistic for most people. It is just fear mongering and pushed by the financial firms to get more money locked up in their 401k accounts so they can charge fees.

Saving 20-30% of your income at 23 is very difficult in most major cities.

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A&M isn't MIT, not trying to make this about me but I got out with mid five figures in fed loans which I stupidly aggressively paid off in the first couple years with nearly all my savings, absolutely should have drawn out the low interest rate and invested heavily which would be worth an extra couple years salary now
rent in CS was under $500, covered that with easy part time jobs playing with kids

again I think type of people like in this thread that are financially savvy have easily been investing 20%+ since making six figures
retiring early has been my goal for a while so I've been close to 50% for a while living in a HCOL beach city

just looking at 'simple math' only investing $1K/month (barely half of 401K max) compounding for 18 years at 8%(market has been much better for 40 year olds) gets you close to half a mil

SF2004 said:

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EliteZags said:

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4x but started relatively low

I'd guess most on here have been investing >20/30% for a while, those that didn't throw away money into bonds/international/target date funds got serous compounded gains past decade and a half

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.

It is simple math and real life. Saying you should have 3x your current salary at 40 is not realistic for most people.

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It's very realistic with a few assumptions. However, it's not common, because most people simply don't save.

Assumptions being a married couple, both have decent paying careers, kids maybe a little later and no divorce.

We have saved about 5x our current hh income in our mid 40s, And we didn't have hardly a dime saved at age 30. So it's all been in the last 13-14 years.
In our 20s we were paying off her school loans.

For the last 10 years our only real savings is my profit sharing which is 15%. We've done Ira a few years.

I'm just over 40 and at 20x annual income in net worth. It's def possible but not easy as you said. The markets have been very favorable for most the last 20 years (although that's ironically not how I made any of my money).

This thread has taken quite the turn.

Invest in the market what you can and as early as you can. Compounding is absolute MAGIC later on. (especially if you can get together 2 million invested).

The retirement savings are pretty low, relative to current income, I'd cram as much as I could into retirement accounts over the next couple years and cram whatever is left into college savings.