|
Consulting

I’m screwed. 35 yo. Had some medical emergencies in my twenties and wasn’t able to save so only got $10k in 401k. This is assuming $19k max into 401k, retiring @ 67, $5300 monthly retirement income.

Post Photo
like
Arrow Icon
Posting as :
works at
Highlighted IconHIGHLIGHTED

I don't want to be Debbie Downer, but I just feel obligated to point out here that the assumption that our future is stable enough to predict like this just really isn't substantiated by the facts on the ground. This isn't going to be the rodeo it was for our parents. The experts in climatology generally agree we are past the point of no return. Those that work in sustainable food supply predict core foods, like fish, start to collapse within little more than a decade. And economic inequality is putting not just the United States on a path of economic collapse, but, as Jared Diamond (one of the most famous, regarded and awarded anthropological researchers in the world) points out in his new book upheaval, entire global civilization. So, if it makes you feel less stressed there is a better than 50% chance that extra million isn't going to make a lick of difference! 👍

likefunny
Arrow Icon

SC5: Whoa! Hold up. The aristocracy is concerned that income inequality might lead to a civil uprising? Wow. Just absolutely ground breaking stuff right there. That hasn’t been happening since the beginning of time.

smartfunny
Arrow Icon

OP, now that you are aware, you can take small actions that will pay off handsomely. So, yes, time to do some new things, but panic isn't one of them. As others have said, max out your 401K. Then you can open a Roth IRA. You are way too young to have more than 8-12 weeks emergency fund in liquid savings. You can also invest outside retirement accounts after you maximize those contributions. An investment advisor can really help you, and one of the primary strengths beyond understanding your options and situation is helping you not do dumb things. Very smart people still do dumb things around finances. Asking and getting help is fine. Just as we use SMEs in consulting without worry or embarrassment, so should we here. Just like with your lawyer, doctor and accountant, you must tell the truth to get the best advice. I'm more than willing to share the name of a great Registered Investment Advisor if you wish. Or you can use TDAmeritrade or Fidelity. But get help. We can sympathize and empathize here, and that should be in parallel with proper help. You are young, have tremendous upside potential and will be fine with some simple (though not always easy or fun) steps.

like
Arrow Icon
Recent IconRecent

$5300/mo certainly seems livable...

likehelpful
Arrow Icon

It is reasonable in 2019 - but in 2050?

like
Arrow Icon

You aren’t negative... just not as positive as others. You still have a lot of years to tuck stuff away if you get debt down and manage your cost of living.

like
Arrow Icon

Thanks. I need the positive encouragement

like
Arrow Icon

I was 35 with $0 saved because of life. I’m now 38 with close to $130,000 saved in various accounts. The markets have been good and I’ve been living a simple lifestyle to save money. Don’t give up now because you are behind.

like
Arrow Icon

M3: how did you find your financial advisor?

Arrow Icon

OP, please keep in mind that these projections generally don’t account for comp growth nearly as aggressively as us consultants experience it. For reference, Wealthfront’s “Path” planner puts their ‘high’ option for comp growth rate at ~3.5%; whereas, with regular promotions or firm hopping, most consultants are probably growing anywhere from 2-5x that rate.

like
Arrow Icon

$MTBC $TEUM $BABA $TCEHY $BZUN $MU $JD $PCRFY $LTHM $CRON $TWLO $EQIX $DLR $LK proceed with caution

likefunnyhelpful
Arrow Icon

Get rich or die trying🔥

like
Arrow Icon

Use the fear to drive you OP. Great advice and support here. You’ll hit some nice raises by the time you’re 45 too. Just work smart. You’re a consultant and imo that puts you ahead. So many resources available to you. Most important thing is enjoy life and take care of your health. Shoot, at worse - retire to a cheap country and live like a king 🤴

like
Arrow Icon

You’re not necessarily screwed but it’s going to be hard to catch up. Consult with a financial advisor. Are you taking into account company matching? The short of it is that you’re going to need to start investing more of your savings into other investment vehicles. And save way more.

like
Arrow Icon

Here’s a podcast to piggyback off M1’s point. It explains the difference between fee-only (😍) and fee-based (😖) https://www.npr.org/2018/12/12/676160245/should-you-pay-for-financial-advice

Arrow Icon

Dude why do you assume your income won’t go up and why retire at 67? Are you really not planning on doing anything for income or having anything in your checking account? Your income can only go up from here.

like
Arrow Icon

Why are you yelling at me. Pls stop

likefunny
Arrow Icon

OP you know that most of Americans don’t even have 100k when they retire right??

like
Arrow Icon

My point exactly. Op has every right to be concerned but perspective should help calm him/her down

Arrow Icon

I’d say if you have $M as a goal you’ll be ok. Might fall short of your goals but screwed is a bit hyperbolic

like
Arrow Icon

Any $M is workable, but not great. Perspective.

Arrow Icon

https://joinfishbowl.com/bowl_k5o4h

like
Arrow Icon

This right here OP. I joined the FIRE community a few years back and it’s snowballed into an amazing effect in just 2-4 years. I only made 45-60k from 22 to 27/28 yr old but was still able to save handsomely with the mindset to live below your means, pay down high interest debt and adjust lifestyle expectations. Core tenants of FIRE, I still live in Chicago with high COL but go out on the company card/free events and enjoy myself at least 3-4 times a month. Travel on points and take vacations regularly (pro tip - tac on vacations to sandwiched weekly work trips and fly both ways on project budget, use Marriott points for hotel while your away)

like
Arrow Icon

36 and have zero in retirement. Have about 80k in equity in my house, zero debt other than the house, and $15k in savings. I’m a little worried, but my wife will be back to work when our kids are in school, and that money will all be going to savings.

like
Arrow Icon

start now, save what you can, save a little more next year, be patient and avoid stupid debt. when you pay off your car or phone; keep it and save the payment when you get a raise; save most or all of it. you have plenty of time; and those calc tools love to scare us into action

like
Arrow Icon

On top of it the news of CMS and SSA going bankrupt in next 10 years takes a good 2000 out of that 5300

Arrow Icon

open an ira and max that too. and a brokerage. you may not be able to do a Roth ira anymore with your current income but you would have a platform for multiple income streams

Arrow Icon

+ social security! Assuming you own a home by then. You’ll be alrighty! Sorry for your challenges.

Arrow Icon

If you’re putting the absolute max into your 401K every year (not just what the company matches but the max contribution allowed), and you have the wiggle room, start saving some more of your paycheck into another market account to grow that money too.

Arrow Icon

- company matching - HSA - company stock plans Do none of these apply?

Arrow Icon

Related Posts

Isn't the US markets due for correction - my 401k 90% invested in Stocks. Should I be concerned ? I think if the market goes down - dollar cost averaging should compensate through more units that can be bought. Is that a correct understanding?

like
Arrow Icon

If you start a career at a new company and are pregnant, do you get maternity leave? I know some companies say you have to work at the company for a year

like
Arrow Icon

Hey Guys. I am Traveling to the US without health insurance. Should I buy travel insurance from India or get one from the US? Any recommendation on which one to buy? Need till end of the year.

like
Arrow Icon

I see a lot of people post about HSAs. I have no medical expenses and don’t plan to have children anytime soon. Is there a non-medical reason to max out HSAs? Is everyone just playing it really safe?

Arrow Icon

Benefits of a book club to drive capability building and thought leadership for teams?

like
Arrow Icon

After investing just enough in 401k to get the employer match, is there any additional benefit to investing more into your 401k compared to investing in index funds?

Arrow Icon

Constantly hearing keeping money just siting in the bank isn’t a good idea and I should have my money “working for me”. So for someone who knows nothing about investing (other than having a 401k and opened a Roth recently), where to begin with investing/where else should I put my money? Stocks require caution due to independence requirements at my current firm.

likehelpful
Arrow Icon

Late to the game but want to start saving more. Currently putting 15% into my 401k and have a couple of questions. 1. Does it matter how I split up my 401k contribution (traditional vs Roth)? 2. I want to open up an IRA and am confused on how I should proceed. I'm above the income limit for a Roth, so should I go with a traditional, or backdoor a Roth? And if I do a backdoor Roth, do I have to convert it every time I contribute? And lump sum or equal amounts each paycheck? Thanks!

like
Arrow Icon

If I quit, and want to pull money out of my company 401k, what penalties will I face? Can I roll it into Real Estate without penalty?

Arrow Icon

Husband resentment. How to deal constructively? It’s been unfortunately simmering for years and boiling now. Before we had kids we agreed I’d be the “primary” parent. Word to the wise, don’t ever do this. Anyway I thought that meant I’d be the one handling most doctors appointments and nanny sick days and random days off school. He apparently thinks it means any care he does when I’m not present is “extra”. If I went out of the house for a work event or to get my hair done he felt (continued)

likehelpful
Arrow Icon

Kinda sick of boomers & gen xers hating on millennials. I'm 28 and value life over work. I'm not some lazy kid who lives with his parents. STFU old people. Your debt addiction fucked our country.

like
Arrow Icon

I'm so sick of hearing "build your brand" from senior leadership. We actually have very little choice on the projects we work on and leadership doesn't care what my "brand" is...they just want $$$

like
Arrow Icon

Should I have an HSA account? What are the benefits?

like
Arrow Icon

Any one else tired of how major free agents in football effect fantasy football so immensely. I’m sick of poorly drafted teams winning after major free agent pickups.

funny
Arrow Icon

Worried I’m not investing enough in my 401k/IRA. In my early 30s w/ $82k (down from $94k). I know variables like target ret. age matter but do I sound behind? Anyone willing to share your stats?

like
Arrow Icon

I want to create a Microsoft teams group to share recipes with coworkers since we are all home and sick of takeout. Is it easy to create a Teams group?

like
Arrow Icon

I've been aggressively stockpiling cash now not sure how best to invest it, have 401k employer match maxed, not buying house due to life considerations in 2 years, what to do with 60k? VTSAX?

like
Arrow Icon

I am turning down a life-changing opportunity because of my wife’s parents. They are old, sick and need us. Family is first. But, it may not be the best for me. Life is tough.

like
Arrow Icon

Feeling like a failure, on medical leave from work and they are emailing me and was close to terminating me which doesn’t help me.. idk how much more i can take

Arrow Icon

I maxed out my 401k for the year. Can I also contribute to a traditional IRA? TC is 200k. My goal is to reduce taxable income for the year.

Arrow Icon

Additional Posts

When your boarding gate gets changed from C to B en route to ORD 🙌🏼

like
Arrow Icon

TFW you stay up until 3am to crank out a crazy analytical exercise that your client will never understand...

like
Arrow Icon

What's the starting salary for NYC big four tax??

like
Arrow Icon

As a tech consultant, is the AWS cloud practitioner good for an analyst or is the AWS solutions architect more necessary?

like
Arrow Icon

I’ve been getting horrible allergic reactions, but I never made the correlation. Until I realized that I only get them while at work. DB, you literally make me sick now.

like
Arrow Icon

Looking for basic sales starter pointers for consultant who wants to move up. How did you get started? Pipeline building?

like
Arrow Icon

This gate 52 for AA flights out of LAX to SFO is nonsense

like
Arrow Icon

Feel sick and ill, throat swollen but haven't really left house since Feb (other than getting deliveries), don't have much appetite, only had an apple pie today but still not hungry, when is the end..

likehelpful
Arrow Icon

Are associates really worth double what analysts are worth (in terms of salary)?

like
Arrow Icon

KPMG fish - I am starting w the firm at the end of the month so don’t have access to this info yet - what kind of time off do you guys get for July 4th? Thurs and Fri? Just Thurs? Thx!

like
Arrow Icon

Chicago-based 🐠: What airline do you choose when traveling for work and why? What rewards program benefits/perks do you get?

Arrow Icon

How far do you live from your home office? How often do you go in? (pre-pandemic)

like
Arrow Icon

When you’re “promised” a promotion but don’t get it..do you jump ship?

like
Arrow Icon

Has anyone postponed offer to 6-8 months later start date due to VISA issues (e.g. waiting for EAD Card)?

like
Arrow Icon

What are partners hearing about the need to do furlough/layoffs? Heard of Deloitte and Accenture laid off/furloughs already within certain practice areas

like
Arrow Icon

Was there a massive flight delay thay stranded everyone in philly?

Arrow Icon

Would you move to another country for a FAANG product manager role? I would be leaving all my family and friends but wouldn’t have this opportunity in home country (and it would be a good experience)

like
Arrow Icon

heard bcg just gave a $750 wfh stipend? Is this true?

like
Arrow Icon

Consulting noob here. Where does our pay come from ? I’d guess a portion ( or all?) of it comes from your partner’s revenue ? Does it differ for annual salary and bonus?

smartfunnylike
Arrow Icon

New to Fishbowl?

Download the Fishbowl app to
unlock all discussions on Fishbowl.
That was just a preview…
Sign Up to see all discussions
  • Discover what’s it’s like to work at companies from real professionals
  • Get candid advice from people in your field in a safe space
  • Chat and network with with other professionals in your field
Sign up in seconds to unlock all discussions on Fishbowl.

Already a user?
Login here

Share

Embed this post

Copy and paste embed code on your site

Preview

Download the Fishbowl app

Get realtime notifications and see
what's happening in your industry
from the palm of your hand.

Please enter a valid number