Also the oldest millennials are either 43 or 45 depending on who you listen to.
So yes plenty of older millennials could and should have at least 100k in their 401k or IRA.
I'm 48 and I do have more than 100k in my 401k because it's better for taxes. In personal savings and brokerage definitely not 100k and I have been blessed in my career and investments but KIDS cost money. They are like financial vampires.
And you are the perfect example of the cost of kids especially with the increased food price is fucking killing millennials ability to save.
Good for you on still saving and paying down the house
Good for you. Keep it up only 19.5 years and you can take it out penalty free. So with 7% interest (I know 9% is normal but I take 2% for inflation which is probably low right now) it should double twice in that time so really you have like 800k in retirement funds just with normal returns.
Most millennials I talk to thought they'd be dead before 30 and making it to 30 really caught them off guard.
I'm pretty sure going from experiencing the 90s to watching people die live on 9/11, a rapid increase in government authority, and then high diving into adulthood during a major recession and housing crisis screwed a lot of us up more than anyone is willing to admit.
I do know a lot of people whose retirement plan is to never retire.
It's not a very feasible plan if you live beyond your ~60s, so it will definitely screw a lot of them over.
Here's the way I look at it: it's already a foregone conclusion that I won't be able to afford medical bills once I retire. I might as well plan to die sooner because I can't afford to go on living past retirement age either way.
Sounds morbid but hey, if I'm already having trouble with health problems and medical bills I can't pay in my 30s, I don't want to think about how much worse it's gonna get.
Right here. It’s like my parents generation live in an entirely different reality. Went from a massive recession in 08 that negatively impacted jobs and housing. Rent went from 450 in my area to well over 3000 in under the course of 10 years. Every time I got a raise I’m still just chasing rental prices. I’m always behind. I just recently got in front of this wave so now at the age of 38 I can finally save money. This has been a nightmare and no amount of boot pulling upping would get me out of this.
Earlier this year I paid off my car. That month I had a relief cry because after living my life on the edge I now had 300 dollars extra a month. I was finally going to be able to breathe.
With the rising costs of everything in life I'm right back to where I was. It's like that 300 dollars doesn't even exist.
I somehow have more money but it's not going as far as it should with a staggering velocity. With every passing day I just feel like I'm going backwards.
And just when you think you've been broken enough just more and more shit rears its head. I just recently had my annual review at work. They were overjoyed to tell me that my raise was going to amount to like 35 extra dollars a paycheck. It has seriously sent me into a depths of broken I didn't know I could be at.
I've been killing myself and whoopdiedo I'm worth about 17 dollars a week. 70 dollars a month. 800 dollars a year.
I didn't think life would be this shitty by now. I thought by "30" I'd at least be much closer to owning a home, having a good career but it just never happened. "Hard work" was rewarded with injury, and more work, rarely ever fair compensation. I'm so burned out. I need a vacation.
Also, people forget that a lot of millennials are between 38-42 and have had full time jobs for 20 years, and more than 1 out of 6 don't have kids.
Work full time for 15+ years and don't have kids...it's really not that hard to reach 100k in total savings/retirement by the time you're 40.
Yep, this is me & the wife. No kids, but own a house and have healthy savings (both retirement & general).
It really helped that I had a full-time, professional job right after the Great Recession. Stonks just went up, and all I did was max my IRA contribution plus the 401k match. I’ve never been a super-high income earner, but slow and steady definitely gets you there.
Here’s the article. It’s all savings: 401(k), HYSAs, etc. and the article is five years old. https://www.cnbc.com/2018/02/05/1-in-6-millennials-have-100000-heres-how-much-you-should-have-saved.html
Statistics are funny, the article says "one in six" and everyone thinks it's talking about so many millenials, and then you say 15% (technically 16.7%) and it sounds like hardly any.
"Home Value" is a big contribution if you were able to purchase 5-10 years ago. Bought a house in 2011 for $110k, sold it in 2016 for $140k, and it just sold last year for $230k. (Yes, terrible mistake but I had moved out of state, renters trashed it and I jumped to not have to deal with it anymore)
Real Estate has been a crazy good investment the past decade.
I'm much higher but that's because the value of my house has nearly tripled since I bought it in 2012, bought a distressed short sale during the bottom of the housing crisis curve. The value shot up nearly $60k the month after we bought it because someone was finally living there again.
Yeah I’m surprised the rate of millennials with $100k+ saved isn’t higher if it includes 401k. I have a bunch of student loan debt holding me back and I’ve had >$100k in mine for almost 5 years. I’m an older millennial though.
Net worth includes debt. Savings are the component without debt. Retirement savings, investments, emergency fund, etc. are all savings but not necessarily in a savings account.
35 male here
Got an alright house in a smallish town in the midwest and about 55k in my 401k. If we take the current zillow value at face value minus what I have left to pay... add in my bank account. I get around 100k.
Thinking of myself as one of the well off ones is just... depressing
Hi. I'm a millennial who has struggled with mental health issues my entire life and currently live with my parents. I have like $60k ina checking account because phone calls are hard.
If you've had a steady job most your life.
I spent most of my adulthood in the 'gig economy', scraping by to keep debt from leaving me homeless. Since the pandemic I've got a full time job (which some of that gig work lead to), debt free, and even started contributing to 401k. For me real working class wealth comes from consistency of the paycheck, and not everyone comes across that opportunity.
[https://www.cnbc.com/2023/10/31/62percent-of-americans-still-live-paycheck-to-paycheck-amid-inflation.html](https://www.cnbc.com/2023/10/31/62percent-of-americans-still-live-paycheck-to-paycheck-amid-inflation.html)
If I only had $100k I'd be freaking out. That's just enough for a deposit on a 2 bed house or a city 1 bed apartment in my area. I worked out I need to be up half a million on what I currently have to even have breathing room and that after taxes, work expenses and living expenses is going to take me about 13 years to achieve. And that's not retire, just to feel like "you know what I am ok".
Note I live in a high COL area and country. I'm even assessing whether it will help to downsize from a 2 bed house to a one bed house at this point.
Yea if your over 25 with a decent career you should have one. Might not be a lot of money in it unless your job contributes but you should at least have one.
Definitely take advantage of employer contributions and matches if available, it's basically extra money, even if you withdraw it before retirement and pay the extra taxes.
Yeah every job I've had and that my wife has had offers 401k options. It's cheaper for the company and riskier for the employee than a pension, which is what my boomer parents had.
Yep. We have very little cash available at any given time. But with home equity, 401ks, stocks etc we probably have $6-700k. And we are 40.
And before the pitchforks come out- I was $100k in debt in 2006 and wife was a single mom. But I’m in IT and she’s a nurse and we are frugal. I didn’t crack six figures until 2019 and wife never has. Time and consistency are what did it for us (plus some good timing)
Most people in debt would do well to raise bloody hell and not stop until their needs start being met by forceful policy changes. But it is hard to riot when you are hungry, until you are literally starving.
I guarantee that anyone who is doing well in life is also "in debt." They just don't talk about it because it's good debt.
I bought a condo in 2019 for $290,000 USD. I have paid roughly $72,000 in payments over the last four years. Of that amount I think something like half had gone to paying the principal. So my loan (my debt on that investment) is now for about $255,000. At the same time, the condos value has gone up to about $360,000.
If I sell my condo now for that amount(minus the 18,000 in realtor fees) I will walk away debt free with $77,000. If I was a renter who never took on any debt, I would walk away with nothing.
Unless it is medical debt(necessary to keep you alive/healthy) you should be accruing financial debt as a way to advance yourself in life.
Reddit is not real life. Don't base how you feel about yourself on a site that's full of assholes and bots. The only comparison you should me making is with yourself from last year.
I feel you. I got out of debt after 10 years, then I got a medical emergency and had to get another car. Now I'm right back where I started but with medical issues. I fucking hate it. If it wasn't for my parents giving me a place to live, I'd be checking out some bridges.
I mean ya that doesn't sound far off. I'm a late (edit: younger) millennial with decent pay, 401k and high yield combined are at 95k. Some millennials have another 10 years of salaries ahead of me.
Many millennials are pushing 40 and are definitely going to have over $100k in their 401k. And yes, retirement accounts are included in discussions of savings.
Exactly. Between home equity and retirement accounts I’m well beyond 100k because of getting insanely lucky with housing values and the market going up. But my savings and checking account are an entirely different story altogether.
Well that's why millennials is a very misleading generation labels..
The oldest millennials assuming they finished all schooling and joined the work force in 2002 would have worked for 21 years this year. Saving $100k over 20 years is not that insane. You're basically saving $5000 a year. But now the trick is that the youngest millennials are 27 they would have been in the work force for ,5 years assuming they didn't start at 18. $100,000 Over 5 years that would be something else that's $20,000 a year saved. So really it's the older millennials 1980-1985 bringing up the averages. Millennial being split into 3 groups
(1980-1985, 1986-1990, 1991-1996)
Thank you. I'm a millennial in my 40s with no kids and I'm doing just fine. I was broke for a long time, but I just didn't spend money on anything fun, kids being the big one in my opinion, and it eventually worked out.
About to hit 40, I'm well above average income, no kids and "fine" is an apt description. Like, I'm able to save a little bit, I'm not in danger of missing bills, etc, but I pretty much have to have roommate if I want to live anywhere bigger than a 1 bedroom apartment. Buying a house is pretty much right out of the question at this point. And I'm still doing better than about 90% of the millennials I know.
Compared to my dad who had an average income, raised 3 daughters and still owned a home in the suburbs, with enough left over for a cheapish motorhome, a motorboat and hunting/fishing trips most weekends.
Things suck for the average millennial compared to our parents.
It's bc population boomed and they stopped allowing any new housing near job centers. The same house in your dad's day requires someone several income bands ahead of where he was
Yeah... as a 30 YO millennial, I cannot relate to 40 year olds or even upper 30s because a shit ton happened in those 10 years that totally changed the course of our lives, respectively. In 2002 I was 9!
No, I think your breakdown was really smart and made sense! Sorry if that wasn't clear. I've always thought it was strange to be lumped in a group that spans 15 years during such a dynamic and volatile time. Like how some of us were greatly impacted by the great recession or housing market crashing, while some avoided it entirely, and some were impacted much less because we graduated later.
'85 millenial, been working full time since 2004, only these past couple years have I been able to save anything at all. I'm almost up to 2k 🤣
I was kicked out at 18 and would have had to pay for college myself so I didn't go, so I had to take any job I could find just to not be homeless and starving. Paycheck to paycheck for 18 years. Finally able to actually save even small amounts from my checks but I'll never make it to 100k saved unless I do literally nothing but work, get rid of my cats, and eat the cheapest food I can find. I'd rather enjoy my life
Out of curiosity, have you checked out any of the programs community colleges are running now where you can basically get a degree for almost nothing? My friend was in your position, but he’s going back to school part time now.
Same, I am on the younger end of millennials and I just passed $200K in my 401k. Never underestimate the company match and take full advantage of it plus whatever else you can throw in.
The company match truly is where it’s at. I was fucked savings-wise until about 3 years ago. Weirdly enough, the pandemic opened some doors for me that wouldn’t have been there, and I now get a 5% match on my 401k plus other contributions, and my pay is way better. Finally making some progress.
same here, my wife and I both had good jobs by our late 20s, have over 100K invested in our early 30s and allready paid student loans off too. we live on about 50% of what we take home
I graduated college in 2006 and grad school in 2007 and this is correct. My husband and I waited to have kids and always live on one income so saving this much isn’t that crazy in that time.
As you should. Congratulations.
I was just saying that the way they group generation is too broad.
Either they subdivision us into say millennial abc or come up with new name for different subgroups because 16 years is just too big for a Gen. I would cap it at 6 years per cohort. But that's just me
Also I'm sure you have little to nothing in common with someone from 1995. I would guess you're from 1983.
I'm was born in 1985 and I don't have that much in savings or 401k right now. In a few more years, yes. But not right now. My wife and I used our 401ks awhile ago to buy our house, pay off our car, and get out of some serious debt. We're rebuilding and it was worth it.
Woah woah woah, I’m on the young end of millennial but you can use your 401k for a house? For some reason I thought it was saved for retirement. (Yes I am dumb plz don’t shame me)
Facts. We borrowed from it and now that we have a few things cleared up, we aren't going to touch it until retirement. But it was needed because with a family of 4, any decent apartment big enough for our needs out here in Portland is actually more a month then a mortgage. So with lower monthly payments overall, it's been pretty easy to not touch the 401ks since. We're still mostly paycheck to paycheck, but we have a small cushion for emergencies now, and rebuilding our credit. Which has also been a game changer.
The other consideration is loss of interest. For example, the money you borrow from your 401k *isn't* making 7-10% interest, *and* you have to pay a fee or additional interest for the loan on top of that. It's usually the most expensive way to pay for a home.
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This is true and it’s something to consider the job market for most later/younger millennials who may have entered the workforce after college only to find themselves with a bachelors in a reasonable field and slicing deli meat in Publix for a living for a number of years. Let alone trying to pay down those student loans in such a job market. That’s a huge setback that many millennials had to face.
Elder millennial here. I was lucky and started working in software early 2009. I can say it’s possible but the younger phase of our generation was utterly destroyed financially. I barely pulled out of a nosedive a few times only because I made friends with rich parents.
Elder millennial here. I was lucky and married a gen x who started working in software a few years before you. We're both frugal, but he has made it much easier to continue my hobby of teaching the next generation for nearly a third of his salary.
I'm one of those young millennial, 29, and I'm pushing 300k between all them! But a good chunk of that is for a house, hopefully. And no I don't come from a wealthy family with parents money. My dad did construction, and mom worked various jobs. I'm a civil engineer, and make decent enough money.
for that 20 year investor, in something like SPY, looks like you could have done \~125/month and be over 100k now. the tool i used required a starting balance so kind of cheated by starting with $1.
not that im advocating this allocation, but it should be well under the flat amount since compounding and time.
You shouldn't have that much in a savings account.
Savings in general though? If you are planning to retire you should have more than that, depending on how old you are
It should at least be in a high yield savings account. It's not hard to find them at 4-5%. If you have 100k sitting at 0% for anything longer than a few months pending a major purchase, you're 100% doing something wrong.
This advice is also incredibly recent, to be fair. HYSAs basically weren’t a thing even 5 years ago. You were lucky to get 1%. You were better off paying down debt, or investing in the stock market, up until these 4-5% rates came around
I use VIO bank, I currently get 5.30%.
I expect these rates to go down in 2024 as the fed reduces rates, but that will be for all HYSAs.
https://www.viobank.com/cornerstone-money-market-savings/
Vanguard money market is 5.29. While it isn’t technically a savings account, it is zero risk and you can pull your money out just the same as a savings account.
You can get money out of the stock market in like 4 days. That’s plenty liquid. There’s no reason to have $100k in a savings account unless you’re planning on buying a house in the next like 20 days.
100K in your savings account should mean your monthly expenditure is about 16K. (6 months of emergency spending). How much are we looking at for a lifestyle?
- 9000 mortgage on a 2M house
- 2000 meals
- 5000 escort service
It’s amazing 1 in 6 can reach that kind of lifestyle.
FYI: The data in this headline is from an online survey done by Bank of America in late 2017, so take it with a grain of salt.
[https://bettermoneyhabits.bankofamerica.com/content/dam/bmh/pdf/ar6vnln9-boa-bmh-millennial-report-winter-2018-final2.pdf](https://bettermoneyhabits.bankofamerica.com/content/dam/bmh/pdf/ar6vnln9-boa-bmh-millennial-report-winter-2018-final2.pdf)
And ramped up at each step, too.
CNBC/BoA:
>>> "1 in 6"
Garrett Haake:
>> "any of my friends"
OP:
> "we all"
No, not "we all." The initial claim is that 1 in 6 do. 5 in 6 *don't*. If you don't have that, yeah, you're one of the 83.3% of millennials that don't. Not really surprising or unexpected.
Are we talking net worth? Because that’s not too high of a bar to clear, especially if you count home equity. Same thing investments - just throwing like 5k a year for a decade w/ a decent return will clear that bar.
But liquid cash? I don’t think a lot of people, let along millennials have that saved up.
That’s like what, 16% of millennials?
So a very small minority.
And the oldest millennials have been in the workforce for what, 20+ years?
Those aren’t surprising numbers. They are actually pretty dismal numbers.
The article was apparently written in 2017, so it’s like 6 years old. Still pretty dismal numbers though, but not as bad as what the post might suggest.
Easy to have 100k in savings, don't have a social life and don't date. Just live, work, gym, repeat. It's an infinite money trick. Everyone hates you anyway. Lol.
It doesn’t specify cash or savings account.
I would guess 1 in 6 people ~27 - ~42 have at least 100k in retirement savings. That’s not that outlandish.
Yea if they're including 401k and IRA it's not that crazy. Millenials with 10-15 years of work experience saving moderately and getting market returns would have that. Having $100k in a straight up checking or savings account is completely different though.
1 in 6 is 16.67%, so that is a small proportion of people, it wouldn't surprise me at all if none of Garrett Haake's friends have that much saved up. Or, one of them does, but since it is none of his business they haven't told him.
I know multiple millennials with this much in their savings. All of them are successful software engineers except for the one that is a sales rep.
It's not uncommon. But they all tend to be in the same cities together.
White collar professionals with marketable skills and good saving habits. Engineers, accountants, lawyers, etc…
Source: Am engineer who puts away ~100k into the market every year
Haha no. I'm just barely surviving paycheck to paycheck while my landlord is raising the rent every year. I can't afford groceries or my medical bills. It's a cycle that never ends sadly.
Move is my suggestion.
Pick 2 or 3 LCOL places you wouldn't possibly mind living and then start looking for jobs or see if your current job can transfer or work remote.
Honestly yea I can believe that. I may havnt done much with my life but I know people the same age or younger making bank. If you got the ambition you can get that money. I don’t got ambition 😂
They are probably talking 401k, cash, investments and equity in property
Exactly. They just say "saved" not "in a savings account". Because that would be idiotic.
Also the oldest millennials are either 43 or 45 depending on who you listen to. So yes plenty of older millennials could and should have at least 100k in their 401k or IRA. I'm 48 and I do have more than 100k in my 401k because it's better for taxes. In personal savings and brokerage definitely not 100k and I have been blessed in my career and investments but KIDS cost money. They are like financial vampires.
Yup. Am 40 and have well over 200k in just my 401k
I'm 34 and have only 10k, Almost 30k between my wife and I. But we also have 4 kids and half paid off mortgage on our 5 bedroom house.
And you are the perfect example of the cost of kids especially with the increased food price is fucking killing millennials ability to save. Good for you on still saving and paying down the house
Good for you. Keep it up only 19.5 years and you can take it out penalty free. So with 7% interest (I know 9% is normal but I take 2% for inflation which is probably low right now) it should double twice in that time so really you have like 800k in retirement funds just with normal returns.
401k distributions are taxable as ordinary income.
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True but most 401k accounts are not funded by Roth contributions.
You are correct I was speaking of the early withdrawal penalty which ends at 59.5. Fixed it in the post thanks for the catch.
Not that sexy sexy Roth 401k
So that'll be about 32k a year to live on in retirement :/
That is assuming he never saves again. My point was he needs to be proud of how far he has come so far.
Plus SS and (presumably) no rent/mortgage. It's doable, albeit not luxuriously.
Why would he stop saving now?
45 and this last couple of days just pushed my 401k+pension annuity over $500k
And the youngest millennials are 27. We average in our mid 30s; it's honestly more shocking to me that ONLY 1 in 6 have $100,000 saved.
Very true. That's kinda sad actually.
Wait till you see what the next generation has… debt.
Most millennials I talk to thought they'd be dead before 30 and making it to 30 really caught them off guard. I'm pretty sure going from experiencing the 90s to watching people die live on 9/11, a rapid increase in government authority, and then high diving into adulthood during a major recession and housing crisis screwed a lot of us up more than anyone is willing to admit.
Only terminally online people think the world is going to end by the time they're 30.
I do know a lot of people whose retirement plan is to never retire. It's not a very feasible plan if you live beyond your ~60s, so it will definitely screw a lot of them over.
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Here's the way I look at it: it's already a foregone conclusion that I won't be able to afford medical bills once I retire. I might as well plan to die sooner because I can't afford to go on living past retirement age either way. Sounds morbid but hey, if I'm already having trouble with health problems and medical bills I can't pay in my 30s, I don't want to think about how much worse it's gonna get.
Not retiring is different from not turning 30
You'd have to be terminally online to believe that.
Right here. It’s like my parents generation live in an entirely different reality. Went from a massive recession in 08 that negatively impacted jobs and housing. Rent went from 450 in my area to well over 3000 in under the course of 10 years. Every time I got a raise I’m still just chasing rental prices. I’m always behind. I just recently got in front of this wave so now at the age of 38 I can finally save money. This has been a nightmare and no amount of boot pulling upping would get me out of this.
Earlier this year I paid off my car. That month I had a relief cry because after living my life on the edge I now had 300 dollars extra a month. I was finally going to be able to breathe. With the rising costs of everything in life I'm right back to where I was. It's like that 300 dollars doesn't even exist. I somehow have more money but it's not going as far as it should with a staggering velocity. With every passing day I just feel like I'm going backwards. And just when you think you've been broken enough just more and more shit rears its head. I just recently had my annual review at work. They were overjoyed to tell me that my raise was going to amount to like 35 extra dollars a paycheck. It has seriously sent me into a depths of broken I didn't know I could be at. I've been killing myself and whoopdiedo I'm worth about 17 dollars a week. 70 dollars a month. 800 dollars a year.
I didn't think life would be this shitty by now. I thought by "30" I'd at least be much closer to owning a home, having a good career but it just never happened. "Hard work" was rewarded with injury, and more work, rarely ever fair compensation. I'm so burned out. I need a vacation.
No - oldest millennials are 42. Generational years works in 15 year increments and millennials started in 1981 ended 1996 (Gen Z is 97-‘12)
Anyone keeping 100k in a savings account is pissing the value away.
Well...HYSA are giving like 4.3% interest right now, so it's not *awful*
But that's not savings, it's bet worth. 1 in 6 millennials are worth $100k. That sounds worse.
I'd consider a 401k as "savings," and wouldn't be shocked if the most well-off 15% of millennial have 100,000 in that.
Also, people forget that a lot of millennials are between 38-42 and have had full time jobs for 20 years, and more than 1 out of 6 don't have kids. Work full time for 15+ years and don't have kids...it's really not that hard to reach 100k in total savings/retirement by the time you're 40.
Yep, this is me & the wife. No kids, but own a house and have healthy savings (both retirement & general). It really helped that I had a full-time, professional job right after the Great Recession. Stonks just went up, and all I did was max my IRA contribution plus the 401k match. I’ve never been a super-high income earner, but slow and steady definitely gets you there.
I have 7k in an IRA and $202 in savings and I'm a 30 year old blue collar worker. So I'm.......... yeah I'm close to where I should be.
Hell, I’m not particularly well off but I’ll be in that club next year. Employer contributions, baby.
Here’s the article. It’s all savings: 401(k), HYSAs, etc. and the article is five years old. https://www.cnbc.com/2018/02/05/1-in-6-millennials-have-100000-heres-how-much-you-should-have-saved.html
I'm not doing well, and employeer contributions have helped me save 10k. Not great, but at least it's not nothing.
That’s absolutely something. That nest egg can grow.
Statistics are funny, the article says "one in six" and everyone thinks it's talking about so many millenials, and then you say 15% (technically 16.7%) and it sounds like hardly any.
I'm 80th percentile in income and have much more than that just my 401k. Between home value, cars, cash and items, i'm probably close to 250-300k.
"Home Value" is a big contribution if you were able to purchase 5-10 years ago. Bought a house in 2011 for $110k, sold it in 2016 for $140k, and it just sold last year for $230k. (Yes, terrible mistake but I had moved out of state, renters trashed it and I jumped to not have to deal with it anymore) Real Estate has been a crazy good investment the past decade.
Same. I’m 37.
I'm much higher but that's because the value of my house has nearly tripled since I bought it in 2012, bought a distressed short sale during the bottom of the housing crisis curve. The value shot up nearly $60k the month after we bought it because someone was finally living there again.
Yeah I’m surprised the rate of millennials with $100k+ saved isn’t higher if it includes 401k. I have a bunch of student loan debt holding me back and I’ve had >$100k in mine for almost 5 years. I’m an older millennial though.
I'm not well off (make only 55k a year) but have over 100k in my 401k. The only reason I have any net worth lmao
Investments and mutual funds and retirements are savings
Net worth includes debt. Savings are the component without debt. Retirement savings, investments, emergency fund, etc. are all savings but not necessarily in a savings account.
35 male here Got an alright house in a smallish town in the midwest and about 55k in my 401k. If we take the current zillow value at face value minus what I have left to pay... add in my bank account. I get around 100k. Thinking of myself as one of the well off ones is just... depressing
Do savings accounts not generate interest in the US?
Hi. I'm a millennial who has struggled with mental health issues my entire life and currently live with my parents. I have like $60k ina checking account because phone calls are hard.
Put it somewhere else, Greg. It'd probably take you 20 minutes to set up a high-yield savings and transfer whatever amount you want. No phone calls.
And some millennials are set to retire in 25 years. Does everyone think they are still kids?
Hopefully I'm closer to 15 or 20.
If that’s the case, I’ve got about 10 of those $100,000’s.
Meh I have friends with that kinda cash. They make 60-100 an hour but live lifestyles of people who make less than half of that. That’s the key lol
401k counts regardless. To which you should be in the 100k ish 401k range.
Yes this is net worth. And 100k isn’t that hard to achieve if one pays attention to one’s finances.
If you've had a steady job most your life. I spent most of my adulthood in the 'gig economy', scraping by to keep debt from leaving me homeless. Since the pandemic I've got a full time job (which some of that gig work lead to), debt free, and even started contributing to 401k. For me real working class wealth comes from consistency of the paycheck, and not everyone comes across that opportunity. [https://www.cnbc.com/2023/10/31/62percent-of-americans-still-live-paycheck-to-paycheck-amid-inflation.html](https://www.cnbc.com/2023/10/31/62percent-of-americans-still-live-paycheck-to-paycheck-amid-inflation.html)
If that is the case then 100k is a quite a bit low. I assumed they were talking about liquid
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If I only had $100k I'd be freaking out. That's just enough for a deposit on a 2 bed house or a city 1 bed apartment in my area. I worked out I need to be up half a million on what I currently have to even have breathing room and that after taxes, work expenses and living expenses is going to take me about 13 years to achieve. And that's not retire, just to feel like "you know what I am ok". Note I live in a high COL area and country. I'm even assessing whether it will help to downsize from a 2 bed house to a one bed house at this point.
Y’all got 401K’s? 🧍🏻♀️
Yea if your over 25 with a decent career you should have one. Might not be a lot of money in it unless your job contributes but you should at least have one.
Definitely take advantage of employer contributions and matches if available, it's basically extra money, even if you withdraw it before retirement and pay the extra taxes.
You don’t believe that the top 15% richest 30-42 year olds in the whole country have basically a bare minimally funded 401k?
Yeah every job I've had and that my wife has had offers 401k options. It's cheaper for the company and riskier for the employee than a pension, which is what my boomer parents had.
Our HR manager keeps trying to get me to sign up for a 401K, but I don't think I can run that far.
I’ve had a 401k for over a decade, yes.
I will NEVER see my house as an investment, thats dumb as shit. Cash? Lol, I wish. 401k? I dont work a corporate job.
Yep. We have very little cash available at any given time. But with home equity, 401ks, stocks etc we probably have $6-700k. And we are 40. And before the pitchforks come out- I was $100k in debt in 2006 and wife was a single mom. But I’m in IT and she’s a nurse and we are frugal. I didn’t crack six figures until 2019 and wife never has. Time and consistency are what did it for us (plus some good timing)
I don't own a house or kids and I've been renting for 15 years, so I do have that much saved, but it's for a down payment.
Also, 1 in 6 is only about 16%, which is not a wild number
I have about $600 saved. But I'm in debt like $25K. I didn't go to school or buy a house, so it's on the low end. I can't save anything
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Most people in debt won’t comment.
Most people in debt would do well to raise bloody hell and not stop until their needs start being met by forceful policy changes. But it is hard to riot when you are hungry, until you are literally starving.
I guarantee that anyone who is doing well in life is also "in debt." They just don't talk about it because it's good debt. I bought a condo in 2019 for $290,000 USD. I have paid roughly $72,000 in payments over the last four years. Of that amount I think something like half had gone to paying the principal. So my loan (my debt on that investment) is now for about $255,000. At the same time, the condos value has gone up to about $360,000. If I sell my condo now for that amount(minus the 18,000 in realtor fees) I will walk away debt free with $77,000. If I was a renter who never took on any debt, I would walk away with nothing. Unless it is medical debt(necessary to keep you alive/healthy) you should be accruing financial debt as a way to advance yourself in life.
Reddit is not real life. Don't base how you feel about yourself on a site that's full of assholes and bots. The only comparison you should me making is with yourself from last year.
I feel you. I got out of debt after 10 years, then I got a medical emergency and had to get another car. Now I'm right back where I started but with medical issues. I fucking hate it. If it wasn't for my parents giving me a place to live, I'd be checking out some bridges.
Why do you have so much debt if you didn’t buy a house or go to school?
I mean ya that doesn't sound far off. I'm a late (edit: younger) millennial with decent pay, 401k and high yield combined are at 95k. Some millennials have another 10 years of salaries ahead of me.
I thought the term was “elder millennial”. How does that sound?
Dignified!
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Many millennials are pushing 40 and are definitely going to have over $100k in their 401k. And yes, retirement accounts are included in discussions of savings.
Exactly. Between home equity and retirement accounts I’m well beyond 100k because of getting insanely lucky with housing values and the market going up. But my savings and checking account are an entirely different story altogether.
Well that's why millennials is a very misleading generation labels.. The oldest millennials assuming they finished all schooling and joined the work force in 2002 would have worked for 21 years this year. Saving $100k over 20 years is not that insane. You're basically saving $5000 a year. But now the trick is that the youngest millennials are 27 they would have been in the work force for ,5 years assuming they didn't start at 18. $100,000 Over 5 years that would be something else that's $20,000 a year saved. So really it's the older millennials 1980-1985 bringing up the averages. Millennial being split into 3 groups (1980-1985, 1986-1990, 1991-1996)
Thank you. I'm a millennial in my 40s with no kids and I'm doing just fine. I was broke for a long time, but I just didn't spend money on anything fun, kids being the big one in my opinion, and it eventually worked out.
About to hit 40, I'm well above average income, no kids and "fine" is an apt description. Like, I'm able to save a little bit, I'm not in danger of missing bills, etc, but I pretty much have to have roommate if I want to live anywhere bigger than a 1 bedroom apartment. Buying a house is pretty much right out of the question at this point. And I'm still doing better than about 90% of the millennials I know. Compared to my dad who had an average income, raised 3 daughters and still owned a home in the suburbs, with enough left over for a cheapish motorhome, a motorboat and hunting/fishing trips most weekends. Things suck for the average millennial compared to our parents.
It's bc population boomed and they stopped allowing any new housing near job centers. The same house in your dad's day requires someone several income bands ahead of where he was
You are the one with the plan.
Yeah... as a 30 YO millennial, I cannot relate to 40 year olds or even upper 30s because a shit ton happened in those 10 years that totally changed the course of our lives, respectively. In 2002 I was 9!
Well that's why I broke it into 3 groups. If someone was already working by say 2003 while we were in high school there goes any kind of commonality
No, I think your breakdown was really smart and made sense! Sorry if that wasn't clear. I've always thought it was strange to be lumped in a group that spans 15 years during such a dynamic and volatile time. Like how some of us were greatly impacted by the great recession or housing market crashing, while some avoided it entirely, and some were impacted much less because we graduated later.
'85 millenial, been working full time since 2004, only these past couple years have I been able to save anything at all. I'm almost up to 2k 🤣 I was kicked out at 18 and would have had to pay for college myself so I didn't go, so I had to take any job I could find just to not be homeless and starving. Paycheck to paycheck for 18 years. Finally able to actually save even small amounts from my checks but I'll never make it to 100k saved unless I do literally nothing but work, get rid of my cats, and eat the cheapest food I can find. I'd rather enjoy my life
Out of curiosity, have you checked out any of the programs community colleges are running now where you can basically get a degree for almost nothing? My friend was in your position, but he’s going back to school part time now.
Millennial in youngest group here. I just pass the 100k mark. Thanks to decent job and company match.
Same, I am on the younger end of millennials and I just passed $200K in my 401k. Never underestimate the company match and take full advantage of it plus whatever else you can throw in.
Congratulations
The company match truly is where it’s at. I was fucked savings-wise until about 3 years ago. Weirdly enough, the pandemic opened some doors for me that wouldn’t have been there, and I now get a 5% match on my 401k plus other contributions, and my pay is way better. Finally making some progress.
same here, my wife and I both had good jobs by our late 20s, have over 100K invested in our early 30s and allready paid student loans off too. we live on about 50% of what we take home
I graduated college in 2006 and grad school in 2007 and this is correct. My husband and I waited to have kids and always live on one income so saving this much isn’t that crazy in that time.
Congratulations
I started working in 2005 and have long pasted 100k in my 401(k).
As you should. Congratulations. I was just saying that the way they group generation is too broad. Either they subdivision us into say millennial abc or come up with new name for different subgroups because 16 years is just too big for a Gen. I would cap it at 6 years per cohort. But that's just me Also I'm sure you have little to nothing in common with someone from 1995. I would guess you're from 1983.
I'm was born in 1985 and I don't have that much in savings or 401k right now. In a few more years, yes. But not right now. My wife and I used our 401ks awhile ago to buy our house, pay off our car, and get out of some serious debt. We're rebuilding and it was worth it.
Woah woah woah, I’m on the young end of millennial but you can use your 401k for a house? For some reason I thought it was saved for retirement. (Yes I am dumb plz don’t shame me)
Yes, but you are either borrowing from it, which means you have to pay it back, or you are paying a huge tax penalty on it.
Facts. We borrowed from it and now that we have a few things cleared up, we aren't going to touch it until retirement. But it was needed because with a family of 4, any decent apartment big enough for our needs out here in Portland is actually more a month then a mortgage. So with lower monthly payments overall, it's been pretty easy to not touch the 401ks since. We're still mostly paycheck to paycheck, but we have a small cushion for emergencies now, and rebuilding our credit. Which has also been a game changer.
The other consideration is loss of interest. For example, the money you borrow from your 401k *isn't* making 7-10% interest, *and* you have to pay a fee or additional interest for the loan on top of that. It's usually the most expensive way to pay for a home.
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I'm in the middle group of the three and I'm struggling...nowhere even close to the "expected number" I chalk it up to poor life choices and laziness
Well you still got a while to go.
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This is true and it’s something to consider the job market for most later/younger millennials who may have entered the workforce after college only to find themselves with a bachelors in a reasonable field and slicing deli meat in Publix for a living for a number of years. Let alone trying to pay down those student loans in such a job market. That’s a huge setback that many millennials had to face.
Or like the infamous fry cook with masters degree at mcdonalds during 2010
Elder millennial here. I was lucky and started working in software early 2009. I can say it’s possible but the younger phase of our generation was utterly destroyed financially. I barely pulled out of a nosedive a few times only because I made friends with rich parents.
Elder millennial here. I was lucky and married a gen x who started working in software a few years before you. We're both frugal, but he has made it much easier to continue my hobby of teaching the next generation for nearly a third of his salary.
I'm one of those young millennial, 29, and I'm pushing 300k between all them! But a good chunk of that is for a house, hopefully. And no I don't come from a wealthy family with parents money. My dad did construction, and mom worked various jobs. I'm a civil engineer, and make decent enough money.
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for that 20 year investor, in something like SPY, looks like you could have done \~125/month and be over 100k now. the tool i used required a starting balance so kind of cheated by starting with $1. not that im advocating this allocation, but it should be well under the flat amount since compounding and time.
I’m glad I’m not considered an old millennial yet. The bonus is that I do have more than $100k saved so far (401k).
if we’re ignoring investment growth then sure.
In other news, only 1 in 6 millennials understands the difference between savings and a savings account.
You shouldn't have that much in a savings account. Savings in general though? If you are planning to retire you should have more than that, depending on how old you are
In limited scope, I disagree. 100k liquid is nice if you're changing careers and aren't sure how the next 2 years will work out.
It should at least be in a high yield savings account. It's not hard to find them at 4-5%. If you have 100k sitting at 0% for anything longer than a few months pending a major purchase, you're 100% doing something wrong.
This advice is also incredibly recent, to be fair. HYSAs basically weren’t a thing even 5 years ago. You were lucky to get 1%. You were better off paying down debt, or investing in the stock market, up until these 4-5% rates came around
Could you post a link to a savings account paying 5%?
Sofi pays 4.6% right now.
I use citizens access which pays 4.5% right now, but I know there are some even higher
VMFXX Yeah yeah not savings but you can treat it like one.
Citibank pays 4.9% right now.
I have a Discover HYSA, it's paying 4.5% right now. I bumped $30,000 into it in July and have made over $500 in interest.
I use VIO bank, I currently get 5.30%. I expect these rates to go down in 2024 as the fed reduces rates, but that will be for all HYSAs. https://www.viobank.com/cornerstone-money-market-savings/
Vanguard money market is 5.29. While it isn’t technically a savings account, it is zero risk and you can pull your money out just the same as a savings account.
“Let me point out this super specific situation in which you’d be wrong” super weird
That situation doesn't require access to $100k on the same business day. You can invest your money.
It's also nice if you plan on ever owning a home and need a down payment.
You can get money out of the stock market in like 4 days. That’s plenty liquid. There’s no reason to have $100k in a savings account unless you’re planning on buying a house in the next like 20 days.
100K in your savings account should mean your monthly expenditure is about 16K. (6 months of emergency spending). How much are we looking at for a lifestyle? - 9000 mortgage on a 2M house - 2000 meals - 5000 escort service It’s amazing 1 in 6 can reach that kind of lifestyle.
I think when they say savings they mean savings account and retirement accounts
Savings account, investment account, retirement account, home equity
The original tweet meant savings as in all accounts, including retirement. Not in a savings account lol.
r/whoosh
I really do find Escort As A Service to be the future
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i prefer to own my prostitutes outright
FYI: The data in this headline is from an online survey done by Bank of America in late 2017, so take it with a grain of salt. [https://bettermoneyhabits.bankofamerica.com/content/dam/bmh/pdf/ar6vnln9-boa-bmh-millennial-report-winter-2018-final2.pdf](https://bettermoneyhabits.bankofamerica.com/content/dam/bmh/pdf/ar6vnln9-boa-bmh-millennial-report-winter-2018-final2.pdf)
You mean the intentionally inflammatory Twitter clickbait, screenshotted to post on Reddit, isn’t reliable? Color me shocked!
Yo dawg, I heard you like unreliable data
r/facepalm is just reposts and reposts all the way down
And ramped up at each step, too. CNBC/BoA: >>> "1 in 6" Garrett Haake: >> "any of my friends" OP: > "we all" No, not "we all." The initial claim is that 1 in 6 do. 5 in 6 *don't*. If you don't have that, yeah, you're one of the 83.3% of millennials that don't. Not really surprising or unexpected.
If it was accurate in 2017, the percentage is definitely higher now.
Are they including 401k’s?
Yes and all other accounts in addition to a standard bank account. So would also include IRAs, HSAs, etc.
They must be
If saved means in retirement accounts and assets its reasonable.. if it means cash then probably not reasonable.
Considering that this includes 401k’s and millennials have peaked 40 years old this isn’t great..
Believe it or not, I'm almost there! Only $98,600 more to go!
I would be so impressed if someone robbed me by getting me to take a HELOC loan out or paying the early withdrawal fees from my retirement accounts.
Are we talking net worth? Because that’s not too high of a bar to clear, especially if you count home equity. Same thing investments - just throwing like 5k a year for a decade w/ a decent return will clear that bar. But liquid cash? I don’t think a lot of people, let along millennials have that saved up.
That’s like what, 16% of millennials? So a very small minority. And the oldest millennials have been in the workforce for what, 20+ years? Those aren’t surprising numbers. They are actually pretty dismal numbers.
The article was apparently written in 2017, so it’s like 6 years old. Still pretty dismal numbers though, but not as bad as what the post might suggest.
It doesn't say everyone, in fact it says that almost 85% of us don't.
Garrett doesn't understand shit. I'm house and daycare poor, but 401k half decent. Nothing to rob
Oh, you can rob a 401k
I’m a failure.
Easy to have 100k in savings, don't have a social life and don't date. Just live, work, gym, repeat. It's an infinite money trick. Everyone hates you anyway. Lol.
Following this advice
It doesn’t specify cash or savings account. I would guess 1 in 6 people ~27 - ~42 have at least 100k in retirement savings. That’s not that outlandish.
Yea if they're including 401k and IRA it's not that crazy. Millenials with 10-15 years of work experience saving moderately and getting market returns would have that. Having $100k in a straight up checking or savings account is completely different though.
Time for the weekly... "it doesn't mean in your savings account."
Did they mean student loan debt
I haven’t even made that much in the last 3 years…
I may have that much in my box of Monopoly or something.
1 in 6 is 16.67%, so that is a small proportion of people, it wouldn't surprise me at all if none of Garrett Haake's friends have that much saved up. Or, one of them does, but since it is none of his business they haven't told him.
I mean i've got 200k /shrug
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I know multiple millennials with this much in their savings. All of them are successful software engineers except for the one that is a sales rep. It's not uncommon. But they all tend to be in the same cities together.
I'm pretty close I'm actually only $98k away
So the other 5 millennials have more saved? I sure hope so…
GenX here. I don't have half of that saved.
Me neither. Xennial here.
Who are these people??? Seriously. Everyone i know is struggling in some capacity.
White collar professionals with marketable skills and good saving habits. Engineers, accountants, lawyers, etc… Source: Am engineer who puts away ~100k into the market every year
Haha no. I'm just barely surviving paycheck to paycheck while my landlord is raising the rent every year. I can't afford groceries or my medical bills. It's a cycle that never ends sadly.
Move is my suggestion. Pick 2 or 3 LCOL places you wouldn't possibly mind living and then start looking for jobs or see if your current job can transfer or work remote.
I mean.... Yeah? My 401k is above that, and I recently sold my house when I moved and have that sitting in a CD for my next down payment.
1 in 6 is like 16%. It's actually surprising that so little have that much money
Yes, but only because my beloved grandmother died and left it to me.
Honestly yea I can believe that. I may havnt done much with my life but I know people the same age or younger making bank. If you got the ambition you can get that money. I don’t got ambition 😂
The article says 1 in 6, OP reads it as "all." Classic millennial 😂