If someone has $50,000 saved when the turn 26, would you consider that as good, average, or bad?
- roderick_youngLv 71 month ago
The better figure of merit would be where the savings came from. If it came from a regular savings contributions from every paycheck over the past 5 or more years, then it's good. If the contributions were more than 10% of gross income, I'd say great. If it was $50k that was inherited last year, and the person is slowly spending it down by $100 a month, that would be bad.
At a young age, look at the trajectory of savings; the absolute amount is less important.
- tiescoreLv 61 month ago
I have read that to be on track to a solid retirement you should have invested assets equal to a year's salary by age 30. Sounds like a good benchmark.
- Raymond L.Lv 41 month ago
WELL above average,
I woudl venture to guess the average 26 year old has around $4,000 saved, if that.
- Don GLv 71 month ago
No one cares how much you have saved.
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- Anonymous1 month ago
$50,000 saved up is good, but there is always better amounts to have saved up.
I think saving up more money at a faster rate if possible would be ideal.
- Elaine MLv 71 month ago
Totally depends on where you live. East or west coast it would be a drop in the bucket.
- PearlLv 71 month ago
i think its pretty good, wish i had that type of money
- oldprofLv 71 month ago
Bad. If you invest that at 5% per annum; 40 years later, when you retire, you'd have only $352,000 in the bank to live off in retirement. Assuming you'd live another 20 years while retired, that's not nearly enough to live on even if you end up drawing the maximum Social Security benefits for retirement.
So you need to keep adding to that principle, the $50K, above and beyond what it's earning by interest. If you started saving $10K per year upon reaching 21 yo, you should keep that up. Keep saving $10K or even more as your earning power rises.
Also, you've been earning I'm guessing for about five years. What were your annual expenses over those five years? You take that and project them out to age 65 to set your retirement goal expenses. That's the only way you can actually assess what you'll need in retirement to live on.Source(s): Retired in 2001 and living comfortably on my investments and Social Security.
- STEVEN FLv 71 month ago
It doesn't matter what someone considers it.
- Anonymous1 month ago
Depends on what they've been doing with eight years of adulthood.
If they've completed a bachelor's degree and have been putting 12k into their 401k for the past three years (plus appreciation), yeah, that's fine.
If they've been living rent free living in mummy's basement, haven't bothered to get an education, have no earning power and have been putting $250 from each McDonald's paycheck in the bank and spending the rest on a huge car loan, they're a moron.
Whether 50k is good or not depends individual circumstances. Context is everything and you've given zero.