Yikes.

AgCPA95 said:

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62strat said:

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The median 401(k) balance is just $35,345.

That means half of account balances are lower than this amount and half are higher. And since averages can be skewed by a few outliers, the median account balance is considered to be more representative of what most people actually have saved in their 401(k) accounts.

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Like caliber said, when people leave a job, they generally roll the old 401(k) into an IRA.
I don't know that this stat really tells a true picture.

For reference, I have $1m net worth at 42, and my 401(k) balance is $0, because I don't have a current one. My wife is pension, and my current employer gives 15% profit sharing into self directed retirement account that isn't a 401(k).
My 401(k) from my 20s I had for about 5 years before leaving, I rolled it over into IRA. It was roughly $30k when I left, it's over $100k now.

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On rolling 401ks to IRAs when leaving jobs my money conversations with coworkers and others is that is seems like a lot of people cashed them out. Would be interesting to see % of cash outs.

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cash out with penalty and taxes???? That's about as dumb as it gets.

But either way, the idea is the same, whether you cash out or roll over, it leaves with $0 in a 401(k)

topher06 said:

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gindaloon said:

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At the end of Q2 2022 Fidelity had 35 million 401k, IRA, and 403b accounts. 578,900 had 1.0mil or more.

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A million would be pretty large in a single 401k, in my opinion. Doable when you're older, but have to imagine that would take 15-25 years at a single job in most situations.

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he said 401k, ira and 403b.

Most $1m+ are probably IRA accts, not 401ks.

294k were 401k

So just 1 out of 70 (1.4%) had over million in retirement? After one of the greatest bull markets in history?

So many people never contribute to their 401k. They lose the company match and all the compounding.

AgCPA95 said:

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62strat said:

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The median 401(k) balance is just $35,345.

That means half of account balances are lower than this amount and half are higher. And since averages can be skewed by a few outliers, the median account balance is considered to be more representative of what most people actually have saved in their 401(k) accounts.

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Like caliber said, when people leave a job, they generally roll the old 401(k) into an IRA.
I don't know that this stat really tells a true picture.

For reference, I have $1m net worth at 42, and my 401(k) balance is $0, because I don't have a current one. My wife is pension, and my current employer gives 15% profit sharing into self directed retirement account that isn't a 401(k).
My 401(k) from my 20s I had for about 5 years before leaving, I rolled it over into IRA. It was roughly $30k when I left, it's over $100k now.

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On rolling 401ks to IRAs when leaving jobs my money conversations with coworkers and others is that is seems like a lot of people cashed them out. Would be interesting to see % of cash outs.

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The only reason, and I mean only reason, I can see why they did this was for a downpayment on a home, because first time home buyers can do this penalty free up to a certain amount i thought. That might be for roths

At end of 2021 the number with $1.0mm+ was 818k

Wait a second, so "Dusty" was a man right? The married attorney got busted having a gay affair? Did I get that right?

You did not get that right. They guy wasn't having an affair. He was legally divorced but still lived with his ex-wife. Without telling her he married another woman with whom he does not live.

So Dusty was a woman and it was just a standard, run of the mill affair?

Meh.

chrisfield said:

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So just 1 out of 70 (1.4%) had over million in retirement? After one of the greatest bull markets in history?

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As mentioned above it just takes time given how relatively low the contribution limit is. When I started in the late 90s the max was around $10K and there were stricter limits on the amount you could contribute (I think it was 16% where as now it is 50% per paycheck); it has almost doubled since then but even with a relatively strong market the past 20 years it took me over 15 to reach $1MM while maxing out most years and getting matched with a pretty good salary.

I don't put a lot of stock in the doom and gloom of the "the average 401k balance is laughably low" due to how often people change jobs, or don't roll over a 401k or have 401k account balances with $0 balance showing .

My 401k.com page has 3 accounts for me. My current employer and 2 employers I haven't been with for more than a decade with $0.00 balances.

Charismatic Megafauna said:

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Dusty is a stripper. Almost always.

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Or, a guy involved with Nascar somehow.

As someone else highlighted the Fidelity numbers above include 401k, 403b, and IRA's. Plenty of articles out there saying median retirement balances for 55 to 64 is around $120k-$140k.

YouBet said:

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The bottom line is that regardless of the retirement numbers we post they are catastrophically low no matter what source you can find.

Those of us above median and above average will be footing the bill for everyone else, eventually.

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While I was in college, I waited tables at a decently middle high end chain. It was always meant to be a temporary job. The bartender and I didn't get along at all. No biggie. One day, while she was upset with me she said "I was here before you and I will be here after you." as if this was some sort of insult.

Point being is there are millions and millions of people who don't even think about the long term future and people like those on this thread will absolutely be footing thst bill, as you say. I may have been naive and thought most people wanted more, but thst simple line from her made me realized that they don't. I honestly felt sorry for her immediately and also made me realize how screwed we are as a country.

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And it's only going to get worse when almost 60% of the population pays nothing in taxes. Pretty frightening.

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Federal income tax. Still TONS of other taxes that *everyone* pays (payroll, property, state fees, fuel, etc). But I 100% agree with you that the federal income being carried by a minority of the population is really big issue.

Well this is coming to NYC

https://www.theguardian.com/us-news/2022/aug/11/manhattan-congestion-pricing-charge-transportation

gindaloon said:

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Well this is coming to NYC

https://www.theguardian.com/us-news/2022/aug/11/manhattan-congestion-pricing-charge-transportation

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Bloomberg tried that when he was mayor and was shot down because its basically a middle class tax hike. Well, I guess they solved that by adding some tax credits to certain residents

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Residents of the congestion area making less than $60,000 a year will be eligible for a tax credit to make up for the cost of the tolls

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tysker said:

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gindaloon said:

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Well this is coming to NYC

https://www.theguardian.com/us-news/2022/aug/11/manhattan-congestion-pricing-charge-transportation

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Bloomberg tried that when he was mayor and was shot down because its basically a middle class tax hike. Well, I guess they solved that by adding some tax credits to certain residents

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Residents of the congestion area making less than $60,000 a year will be eligible for a tax credit to make up for the cost of the tolls

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had to go up to NYC for business last week- about $50 in tolls each way from DC

The Guardian is nearly impossible to read with how ridiculously slanted it is.