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(CNBC)   If it's mid-month, it's time for the monthly 'here's the utterly unobtainable amount of money you should have saved by age 30' article from CNBC   (cnbc.com) divider line
    More: Dumbass, Retirement, Pension, Deposit account, Ageing, Investment, Annual percentage yield, savings account, Money market deposit account  
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3530 clicks; posted to Main » and Politics » on 17 Sep 2020 at 9:34 PM (6 weeks ago)   |   Favorite    |   share:  Share on Twitter share via Email Share on Facebook



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2020-09-17 5:20:34 PM  
In fact, retirement-plan provider Fidelity Investments says that to retire by age 67, you should have saved 1 times your income - or the equivalent of your annual salary - by the time you turn 30 years old. This means that if you earn $40,508 per year (the average yearly earnings of a 20- to 34-year-old according to Q2 2020 data from the Bureau of Labor Statistics), you should have $40,508 saved by your 30th birthday.

*looks back at where we were financially at age 30, in the middle of the housing crash, and evaluates whether we could have saved 1x our salary at any point*

Fark user imageView Full Size
 
2020-09-17 5:25:37 PM  

Grand_Moff_Joseph: In fact, retirement-plan provider Fidelity Investments says that to retire by age 67, you should have saved 1 times your income - or the equivalent of your annual salary - by the time you turn 30 years old. This means that if you earn $40,508 per year (the average yearly earnings of a 20- to 34-year-old according to Q2 2020 data from the Bureau of Labor Statistics), you should have $40,508 saved by your 30th birthday.

*looks back at where we were financially at age 30, in the middle of the housing crash, and evaluates whether we could have saved 1x our salary at any point*

[Fark user image 400x223] [View Full Size image _x_]


Right?  Last crash happened in 08', IIRC, I was 28, in grad school, wondering if there would be any jobs when I  graduated.
 
2020-09-17 5:48:36 PM  
I listen to Jim Kramer for all my financial advice. He has never once been wrong.
 
2020-09-17 6:14:31 PM  

JulieAzel626: I listen to Jim Kramer


And your eardrums still work?
 
2020-09-17 6:19:49 PM  
The bright side is that, no matter how little cash you have to store away, any bit helps and you don't need much to get started.

And if that number is negative?

What good is savings or investing if you owe 24% on credit cards?

Have medical bills in collections absolutely tanking your credit score so that your next car loan will also be 24%?

/being poor is expensive
 
2020-09-17 7:33:19 PM  
I find that timeline ambitious but not wholly unreasonable.
I was told at  a fairly early age that it is easier to live poor when you are young than it is when you are older.
I actually got that lesson. It paid off.
 
2020-09-17 9:37:35 PM  

blender61: I find that timeline ambitious but not wholly unreasonable.
I was told at  a fairly early age that it is easier to live poor when you are young than it is when you are older.
I actually got that lesson. It paid off.


The problem is that far too many people do not have a choice about this, young or old.
 
2020-09-17 9:39:09 PM  
i just tipped at a restaurant and emptied the $10 that i had in it.
 
2020-09-17 9:40:27 PM  
1x my salary by age 30?  Good thing I was (temporarily) unemployed when I was 30.
 
2020-09-17 9:40:39 PM  

weddingsinger: The bright side is that, no matter how little cash you have to store away, any bit helps and you don't need much to get started.

And if that number is negative?

What good is savings or investing if you owe 24% on credit cards?

Have medical bills in collections absolutely tanking your credit score so that your next car loan will also be 24%?

/being poor is expensive


I thought if you paid like something every month it didn't hit credit? Yeah probably wrong or been changed
 
2020-09-17 9:40:47 PM  
You should have saved 1 times your income - or the equivalent of your annual salary - by the time you turn 30 years old.

One times the zero, carry the zero, carry the zero from the other account...
 
2020-09-17 9:41:14 PM  
Let's see how many people complain about not being able to save money but have TF next to their name.

But it is (oops, was) only $60 a year!  In my life that's 4 months of water bills.

/Priorities are a thing
 
2020-09-17 9:41:46 PM  
TL;DR: If you are a member of the working class, you are inherently inferior. You should feel ashamed. Also, you should feel guilty for because your existence is a burden on your betters.
 
2020-09-17 9:43:48 PM  
Get your cake up, boys!
upload.wikimedia.orgView Full Size
 
2020-09-17 9:44:22 PM  

raerae1980: Grand_Moff_Joseph: In fact, retirement-plan provider Fidelity Investments says that to retire by age 67, you should have saved 1 times your income - or the equivalent of your annual salary - by the time you turn 30 years old. This means that if you earn $40,508 per year (the average yearly earnings of a 20- to 34-year-old according to Q2 2020 data from the Bureau of Labor Statistics), you should have $40,508 saved by your 30th birthday.

*looks back at where we were financially at age 30, in the middle of the housing crash, and evaluates whether we could have saved 1x our salary at any point*

[Fark user image 400x223] [View Full Size image _x_]

Right?  Last crash happened in 08', IIRC, I was 28, in grad school, wondering if there would be any jobs when I  graduated.


Yep, that crash followed the crash in the 90s.
And now we're headed for another crash.
I'm sure most Americans are totally socking away huge amounts of money while surfing from one crash to the next.
 
2020-09-17 9:44:51 PM  
????
So wreck your health by eating ramen for 15 years so that you can pay off your student loan and a mass savings?

And don't get laid.
Don't see a movie.
And don't help out family.
And don't drink/dope?
 
2020-09-17 9:45:14 PM  
<looks at age>
<looks at bank account>
<looks back at age>


.. <closes the link>

I prefer denial.
 
2020-09-17 9:46:40 PM  

Somaticasual: <looks at age>
<looks at bank account>
<looks back at age>


.. <closes the link>

I prefer denial.


🍸🍸🍸🍸🍸🍸🍸🍸🍸🍸🍸🍸🍸🍸🍸
 
2020-09-17 9:46:42 PM  
I'm ahead of the curve but not by much.  I'd be a lot further ahead if 2008 economy hadn't taken a long walk off a short pier. Lost a stable job and was unemployed for 3 years and lost my IRA.  I did go back to college though. Only 3.5 more years before those loans are forgiven and I'm dumping 13% of my income into a 403(b) plus doing some peer lending which is going great.

/38 years old
 
2020-09-17 9:48:04 PM  
It can be done. But not while paying expensive rent in big cities working an average job.

I've spent the last three years at school, working at sea, and firefighting. Despite only working 8-10 months a year I have managed to squirrel away my annual income at age 31. No rent and driving an economical vehicle has allowed me to live reasonably well.

And yes, I have spent money where I do not need to. If I was being stingy, I could throw another 5-10k into my savings. But you only live once - so enjoy today, but not at the expense of tomorrow.
 
2020-09-17 9:48:45 PM  

Bruscar: TL;DR: If you are a member of the working class, you are inherently inferior. You should feel ashamed. Also, you should feel guilty for because your existence is a burden on your betters.


You'd be surprised how many working class folks feel superior to their 'betters' as you call them while those betters know better than to feel superior.
 
2020-09-17 9:49:46 PM  

Burke Turkey: It can be done. But not while paying expensive rent in big cities working an average job.

I've spent the last three years at school, working at sea, and firefighting. Despite only working 8-10 months a year I have managed to squirrel away my annual income at age 31. No rent for some of the year, and low rent for the rest while driving an economical vehicle has allowed me to live reasonably well. I have spent a lot of money on travel but it is often cheaper than just living day-to-day in developed countries.

And yes, I have spent money where I do not need to. If I was being stingy, I could throw another 5-10k into my savings. But you only live once - so enjoy today, but not at the expense of tomorrow.

 
2020-09-17 9:50:29 PM  
Financial network who keeps Jim Cramer on the air says what?
 
2020-09-17 9:50:50 PM  
Because unpaid internships pay so much that I can save.
 
2020-09-17 9:51:10 PM  
I was about there, but then I got blood clots in my lungs at 28.  I had insurance, but it still took everything I had and left me in debt for years. Yay America
 
2020-09-17 9:51:34 PM  
When I hit 30 I was saving just what got matched into the retirement fund.  Everything else was getting saved into the 'buying a house' fund.

I'm happy with how that worked out, but different people have different situations, so YMMV.
 
2020-09-17 9:53:33 PM  

Holy Carp: I was about there, but then I got blood clots in my lungs at 28.  I had insurance, but it still took everything I had and left me in debt for years. Yay America


Jesus, I'm sorry. That's just unconscionable
 
2020-09-17 9:54:09 PM  

Burke Turkey: It can be done. But not while paying expensive rent in big cities working an average job.

I've spent the last three years at school, working at sea, and firefighting. Despite only working 8-10 months a year I have managed to squirrel away my annual income at age 31. No rent and driving an economical vehicle has allowed me to live reasonably well.

And yes, I have spent money where I do not need to. If I was being stingy, I could throw another 5-10k into my savings. But you only live once - so enjoy today, but not at the expense of tomorrow.


And don't ever get sick
 
2020-09-17 9:57:50 PM  
If a 25 year old starts socking away $75 per month (preferably in an IRA) and can grow it at 6% (historical returns over the past 20 years for a 60/40 stock/bond asset allocation) will end up with $40K by the time they turn 30. I've known plenty of 25-30 year olds who blew far more than $75 per month on pot and alcohol and expensive lattes yet still never saved anything. IMO, many people out there are just not very dedicated at saving money.
 
2020-09-17 9:58:09 PM  

tinfoil-hat maggie: weddingsinger: The bright side is that, no matter how little cash you have to store away, any bit helps and you don't need much to get started.

And if that number is negative?

What good is savings or investing if you owe 24% on credit cards?

Have medical bills in collections absolutely tanking your credit score so that your next car loan will also be 24%?

/being poor is expensive

I thought if you paid like something every month it didn't hit credit? Yeah probably wrong or been changed


Really depends on the medical provider.  Many will accept payment arrangements and won't kick you to collections as long as the arrangement is being met.

Once an account is with collections you can make partial payments all you want, if they want to post the debt they will regardless of account status. Once it posts to your credit even if you pay it off it still appears as a paid collections account. You can't get it removed early unless it's incorrect. Some debt collectors never post the debt, some do it the day they are legally allowed.

The key is don't let it get to collections.

Fortunately FICO (and many other credit models)  don't consider medical debt or medical collections to be as serious of an issue as in the past.  It doesn't impact the score as much and it probably won't keep you from getting loans or even a mortgage if your credit is in otherwise fair shape ---- even if there is a judgment based on that medical debt.  They realize medical debt is a normal part of life.

/ which says something sad about life, especially of the American Healthcare system imo.
 
2020-09-17 9:58:41 PM  
I definitely did not have 1x of my income saved when I was 30. It's a decade and a half later, and I'm finally in a place where I am comfortable that if something happened and I couldn't work for a while that I'd be able to survive for a time.

This year has been crazy with my investments, but I'm still up 12% or so since the beginning of the year. It's not earth shattering, but it's outpacing the overall market by 3x. I have at least a decade and a half more to go before I can think of retiring, and I really don't know whether my accounts will be sufficient to support me then. I may need to keep working a while into my old age.

I remember investing my first big chunk of money right at the end of 2007. I didn't see that amount return to zero for 10 years, but during that time the prices were lower and my dividends had much higher buying power. So coming out of that, I was in a slightly better position than going in, though I was certainly behind because of the 10 year drought.

I know a bunch of you are overwhelmed with debt, and I empathize. There's really no way out except to keep plugging away at it. But once you're out, man, it's so much nicer on this side of that line. But the reality is that retirement is still a ways off for most of us.
 
2020-09-17 9:59:50 PM  

Bruscar: raerae1980: Grand_Moff_Joseph: In fact, retirement-plan provider Fidelity Investments says that to retire by age 67, you should have saved 1 times your income - or the equivalent of your annual salary - by the time you turn 30 years old. This means that if you earn $40,508 per year (the average yearly earnings of a 20- to 34-year-old according to Q2 2020 data from the Bureau of Labor Statistics), you should have $40,508 saved by your 30th birthday.

*looks back at where we were financially at age 30, in the middle of the housing crash, and evaluates whether we could have saved 1x our salary at any point*

[Fark user image 400x223] [View Full Size image _x_]

Right?  Last crash happened in 08', IIRC, I was 28, in grad school, wondering if there would be any jobs when I  graduated.

Yep, that crash followed the crash in the 90s.
And now we're headed for another crash.
I'm sure most Americans are totally socking away huge amounts of money while surfing from one crash to the next.


That's going to be life going forward--a major crash every ten to twenty years.
 
2020-09-17 10:00:48 PM  

toraque: blender61: I find that timeline ambitious but not wholly unreasonable.
I was told at  a fairly early age that it is easier to live poor when you are young than it is when you are older.
I actually got that lesson. It paid off.

The problem is that far too many people do not have a choice about this, young or old.


Unfortunately, that is very true and it is becoming much more common.
We might want to look into that and maybe even take some corrective measures.
 
2020-09-17 10:01:32 PM  
I graduated during the middle of the last recession.  The idea that I should, or even could, have an entire year of pay saved is a farking joke.

Not sure if the people writing these articles have noticed things cost more now but nobody gets paid more.

I took a pretty significant pay cut to work for the government because all the extra money I was earning was just going to pay for absurdly priced health insurance.  I still have the same amount of money now, I just don't have it taken directly out of my check.

That amount is none.  I have none money.
 
2020-09-17 10:01:40 PM  

bobroberts: If a 25 year old starts socking away $75 per month (preferably in an IRA) and can grow it at 6% (historical returns over the past 20 years for a 60/40 stock/bond asset allocation) will end up with $40K by the time they turn 30. I've known plenty of 25-30 year olds who blew far more than $75 per month on pot and alcohol and expensive lattes yet still never saved anything. IMO, many people out there are just not very dedicated at saving money.


That's great when the market isn't in a death spiral.
 
2020-09-17 10:03:20 PM  

waxbeans: ????
So wreck your health by eating ramen for 15 years so that you can pay off your student loan and a mass savings?

And don't get laid.
Don't see a movie.
And don't help out family.
And don't drink/dope?


You don't necessarily have to suffer to save. Some people's position in life is much worse. Things happen. Dave Ramsey gives ok advice.
 
2020-09-17 10:04:02 PM  

bobroberts: If a 25 year old starts socking away $75 per month (preferably in an IRA) and can grow it at 6%


If frogs had wings, they wouldn't bump their butts when they hopped.
 
2020-09-17 10:05:06 PM  
Your current salary saved by age 30? And people think that's unobtainably difficult?

I've never been a fan of court ordered conservatorships, but damn, a whole lot of you need someone else managing your finances because you sick at it.
 
2020-09-17 10:05:26 PM  
Sounds like a lot of yall need to pick yourself up by the bootstraps and borrow money from your parents to start a venture capital company. Quit sitting around, work for it like I did.
 
2020-09-17 10:07:56 PM  

bobroberts: If a 25 year old starts socking away $75 per month (preferably in an IRA) and can grow it at 6% (historical returns over the past 20 years for a 60/40 stock/bond asset allocation) will end up with $40K by the time they turn 30. I've known plenty of 25-30 year olds who blew far more than $75 per month on pot and alcohol and expensive lattes yet still never saved anything. IMO, many people out there are just not very dedicated at saving money.


Er... Might want to check a calculator. You appear to be off by close to a factor of 10.
 
2020-09-17 10:08:07 PM  
Take solace that when the economy crashes again in the near future and the people come at them with guillotines we can pen articles about how you should have grown a metal neck by the age of 50.
 
2020-09-17 10:08:16 PM  

Smirky the Wonder Chimp: Bruscar: raerae1980: Grand_Moff_Joseph: In fact, retirement-plan provider Fidelity Investments says that to retire by age 67, you should have saved 1 times your income - or the equivalent of your annual salary - by the time you turn 30 years old. This means that if you earn $40,508 per year (the average yearly earnings of a 20- to 34-year-old according to Q2 2020 data from the Bureau of Labor Statistics), you should have $40,508 saved by your 30th birthday.

*looks back at where we were financially at age 30, in the middle of the housing crash, and evaluates whether we could have saved 1x our salary at any point*

[Fark user image 400x223] [View Full Size image _x_]

Right?  Last crash happened in 08', IIRC, I was 28, in grad school, wondering if there would be any jobs when I  graduated.

Yep, that crash followed the crash in the 90s.
And now we're headed for another crash.
I'm sure most Americans are totally socking away huge amounts of money while surfing from one crash to the next.

That's going to be life going forward--a major crash every ten to twenty years.


Crashes are just opportunities for those with intestinal fortitude. Had you invested instead of panicking in March, you could have tripled your money.

PS., the best time to have bought property was 2009-2011. If you didn't, bummer. Try it again with the next market pull back.

Remember, the markets are the only place where you can gamble and always win. You can only lose by panicking and doing stupid shiat.
 
2020-09-17 10:13:53 PM  

bobroberts: If a 25 year old starts socking away $75 per month (preferably in an IRA) and can grow it at 6% (historical returns over the past 20 years for a 60/40 stock/bond asset allocation) will end up with $40K by the time they turn 30. I've known plenty of 25-30 year olds who blew far more than $75 per month on pot and alcohol and expensive lattes yet still never saved anything. IMO, many people out there are just not very dedicated at saving money.


How do I get 1 Million in 12 years. Because I can't replicate the numbers that got me that some when I was in college.
Because I crunched some numbers and I came up with being able to sit aside a million dollars and under 12 years by simply setting aside 25% of my gross.
We together made 50K.
 
2020-09-17 10:14:22 PM  

rocket333d: bobroberts: If a 25 year old starts socking away $75 per month (preferably in an IRA) and can grow it at 6% (historical returns over the past 20 years for a 60/40 stock/bond asset allocation) will end up with $40K by the time they turn 30. I've known plenty of 25-30 year olds who blew far more than $75 per month on pot and alcohol and expensive lattes yet still never saved anything. IMO, many people out there are just not very dedicated at saving money.

Er... Might want to check a calculator. You appear to be off by close to a factor of 10.


At $75 a month at 6% interest, you'd have $12k in ten years.

That being said, if you invested $75/week, you'd have $40k in 10 years.

$75/week is just 10% of someone making $36k a year.
 
2020-09-17 10:15:24 PM  

FarkBucket18: rocket333d: bobroberts: If a 25 year old starts socking away $75 per month (preferably in an IRA) and can grow it at 6% (historical returns over the past 20 years for a 60/40 stock/bond asset allocation) will end up with $40K by the time they turn 30. I've known plenty of 25-30 year olds who blew far more than $75 per month on pot and alcohol and expensive lattes yet still never saved anything. IMO, many people out there are just not very dedicated at saving money.

Er... Might want to check a calculator. You appear to be off by close to a factor of 10.

At $75 a month at 6% interest, you'd have $12k in ten years.

That being said, if you invested $75/week, you'd have $40k in 10 years.

$75/week is just 10% of someone making $36k a year.


*$50k in ten years.
 
2020-09-17 10:16:25 PM  

rocket333d: bobroberts: If a 25 year old starts socking away $75 per month (preferably in an IRA) and can grow it at 6% (historical returns over the past 20 years for a 60/40 stock/bond asset allocation) will end up with $40K by the time they turn 30. I've known plenty of 25-30 year olds who blew far more than $75 per month on pot and alcohol and expensive lattes yet still never saved anything. IMO, many people out there are just not very dedicated at saving money.

Er... Might want to check a calculator. You appear to be off by close to a factor of 10.


They meant a 2.5 year old.  All good. Pesky decimals.
 
2020-09-17 10:17:48 PM  

NotThatGuyAgain: Let's see how many people complain about not being able to save money but have TF next to their name.

But it is (oops, was) only $60 a year!  In my life that's 4 months of water bills.

/Priorities are a thing


Bahhahahahaha! Our water bill is 240 every two months and we don't even have a sprinkler system.
 
2020-09-17 10:17:52 PM  

rocket333d: bobroberts: If a 25 year old starts socking away $75 per month (preferably in an IRA) and can grow it at 6% (historical returns over the past 20 years for a 60/40 stock/bond asset allocation) will end up with $40K by the time they turn 30. I've known plenty of 25-30 year olds who blew far more than $75 per month on pot and alcohol and expensive lattes yet still never saved anything. IMO, many people out there are just not very dedicated at saving money.

Er... Might want to check a calculator. You appear to be off by close to a factor of 10.


Oops -- haha. You're right. It looks like the online calculator I used may have compounded at the 6% per month, which would obviously be ludicrous. $375 / month for 7 years (from age 23 - 30) @ 6% gets you to $40,000
 
2020-09-17 10:18:38 PM  

bobroberts: If a 25 year old starts socking away $75 per month (preferably in an IRA) and can grow it at 6% (historical returns over the past 20 years for a 60/40 stock/bond asset allocation) will end up with $40K by the time they turn 30. I've known plenty of 25-30 year olds who blew far more than $75 per month on pot and alcohol and expensive lattes yet still never saved anything. IMO, many people out there are just not very dedicated at saving money.


On the other hand, life sucks and is too short, and most people will be physically and mentally infirm by the time they hit 75 if they even live that long.  So enjoy what sort of life you can have now.

/applies to Americans and other residents of third-world countries only
 
2020-09-17 10:19:20 PM  

m57lyra: NotThatGuyAgain: Let's see how many people complain about not being able to save money but have TF next to their name.

But it is (oops, was) only $60 a year!  In my life that's 4 months of water bills.

/Priorities are a thing

Bahhahahahaha! Our water bill is 240 every two months and we don't even have a sprinkler system.


Same and we pull our water from one of the largest sources of freshwater in the world (Lake Erie).
 
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