Quote:
Originally Posted by Sassy Squatch
Thankfully I learned from my dad completely ****ing his retirement so I've been relatively responsible and have a pretty decent amount in my 401k. For those of you much smarter than I, am I on track to be in a decent place come retirement age if I just let it be in a passive fund or should I be more aggressive and invest myself?
32 years old.
Current balance in 401k bit over 100k.
Current contributions are roughly 9%, matched by employer, averages out to about 250 per week.
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I ran the numbers in a simple manner, assuming a $250 per week contribution that increases by the long-term inflation rate of 2.9 percent each year. Then I took your starting balance and assumed a 9 percent return, which is the long-term average if you're 100 percent into stocks.
With those assumptions, you'd end up with about 14 times your salary at the age of 65, which is good but less than optimum. To get it up to 20 times your salary, you'd need to up your contribution to $405 per week. I'm using a ratio of 20 because you'll also probably get Social Security, which will help.
A 9 percent return seems a bit aggressive to me if you're always keeping a little cash or other things, so you might need to go a little higher on the contributions.
Oh, and you're contributing 9 percent, but do you get any matching? That would make a big difference.
Edit: I see now that you already mentioned matching. Is that a 100% match? So you're contributing about $125 per week? Hang on. Let me rerun.
If the $250 per week is a 100% match, that would put you at 28 times your salary at Age 65, which would be great.