About this Video

• Video Title: Average 401(k) Balance In Your 30's
• Channel: The Money Guy Show
• Speakers: Brian (likely, not explicitly stated)
• Duration: 00:08:26

Introduction

This video from The Money Guy Show discusses average 401(k) balances for people in their 30s, comparing them to benchmarks and offering advice on savings and investment strategies during this life stage. The video aims to help viewers assess their financial progress and plan for the future.

Key Takeaways

• Average 401(k) Balances: The average 401(k) balance for 30-year-olds is around $35,000, increasing to roughly $59,000 by age 35 and $91,000 by age 40.
• Target Net Worth: The video suggests aspirational financial goals: around $55,000 net worth at age 30, $146,000 at age 35, and a liquid net worth of three times annual income by the end of one's 30s (approximately $257,000 based on median income).
• Power of Compounding: The video highlights the importance of early savings and investment, emphasizing how compound growth can significantly increase wealth over time. Even a relatively modest initial investment can grow substantially over a decade.
• Strategies for your 30s: The video recommends optimizing savings to reach a 25% savings rate, reassessing Roth vs. traditional IRAs as income rises, and understanding 401(k) vesting schedules before changing jobs.
• Vesting Schedules: The video explains different types of vesting schedules (100% vested, cliff vesting, graded vesting) and their importance in making informed job-change decisions.