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Kosta_Konfucius

Sales Rep

Politicker
Acclaimed Answer
Catalyst
+9

Planning for Retirement in Mid-20s

Especially with the market down, looking at my 401k and personal stocks it gets pretty depressing for how much its fallen. And really has me feeling I am not doing enough saving/investing. I assume a lot of people are thinking the same with how many side gig posts there are as of late. I am always thinking the solution will be to sell more, but I have to assume there are better ways.


I do 8% (company matches an additional 4%) to 401k and 3% for ESPP, own a condo, and don't do much additional investing with my personal Robinhood.


Since retirement is so far away, how do you benchmark if I am doing enough. The number websites say for your 20s changes all the time, somewhere I am way above and some I am no where close. I get pinged from Northwestern Mutual reps all the time and I have not done it. Is that something people recommend.


Any resources people use to know if they have enough? Any recommendations to invest/save more in your 20s when buying/investing in additional real estate has a pretty high barrier to entry

🐱 Off-Topic
💵 Finance
🌎 Economy
11

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Sunbunny31
Politicker
4
Sr Sales Executive 🐰
I think you are more than good. Just keep doing what you are doing for now. Maybe when you get a bit older, you can add to your portfolio, but honestly, you own your own condo already? You’re doing great.
CuriousFox
WR Officer
3
🦊
That impressed me too!
TennisandSales
Politicker
3
Head Of Sales
ok so there are a few things that you have to understand about saving for retirement.

1. there is no "perfect number" you need to get too. and there is not perfect benchmark to be at for each decade of your life. there is a really good chance that people around our age will not just stop working and live off our assets like our parents/grandparents. and its not because we wont have enough, its because what we do in "retirement" will be different.
2. the financial services industry makes money by making you feel like you A. dont know what you are doing, B. are not doing enough. as someone that was IN that industry I know how it works.

i think if you talk to any financial advisor and tell them you are saving 15% of your income for retirement and you are in your 20's......your doing great.

dont make it complicated. index funds, target date funds, other mutual funds, are all NOT sexy but will give you results over the long term.

try to fight the urge to do MORE and allow your portfolio more TIME to grow. if your in your twenties and are putting that amount away.....you are good homie.
wonk
Politicker
2
Business Development Manager
What do you consider enough?
Depends what you want from retirement.
When do you want to retire? How much do you want to live on?
It doesn’t really matter what you save if you plan to die at 60.

https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/
You can use this as a resource to judge yourself if you’re saving enough.

Quick estimate, you’re saving 15%, assuming no COL increase & no salary increase you’ll need 43 working/saving years to reach that.
If you can save 50% of your take home- only 17 years until you can retire.
antiASKHOLE
Tycoon
2
Bravado's Resident Asshole
I am glad that I realized this when I was in my mid 20s and have since then been able to set aside certain time and money towards other things. I hope you find what you are looking for with all of this.
MeowMeow
Politicker
2
Senior Enterprise Account Executive
I had fuckall in my 20’s… I’m on the verge of my 40th and my house and cars are paid in full, 401k is stacked, and bank account has cushion. If you have the mindset you do already, you are WORLDS ahead my friend.

Your 401k will bounce back. The housing market will turn eventually too where the opportunity for an investment property could present itself. Keep contributing to your 401k open an IRA, and be patient. You are doing great things for your age! Be proud!
Kronechs843
2
Account Executive
Try and save 15-20% of every check! It’ll compound.
SaaSyBee
Politicker
1
Founder
Totally depends on your goals. Personally, I'd invest as much as possible as early as possible. What I do is keep 6 months of emergency expenses in a high-yield savings account, then keep enough in checking to cover a month of expenses. Everything else goes into my investment account.
jefe
Arsonist
1
🍁
Sounds like you got this. When markets are down, if you can, put more into indexed funds as they'll come back and your dollars will be worth more.

When I first read the title I was thinking you wanted to retire in your mid-20s...
saaskicker
Celebrated Contributor
1
Enterprise AE
*not financial advice* - look into a backdoor roth IRA. can help you save more if you're past the income limits of a standard roth, plus you pull the money out tax free which is helpful for forecasting retirement.

the fact that you even have the hunch that it's possible to retire soon and you're in your mid-20s means you are lightyears ahead of the average person, nice work.

keep in mind most people retire around 60 you're not even halfway there in the general timeline. as for markets and looking at your portfolio now, close your eyes and keep dumping money in, view the stock market as "on sale" right now as the memes have said.

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