Am I in okay shape as far as how much I've saved at age 27?

So I work in an industry that is very niche. I graduated magna cum laude from a top target school, did management consulting for awhile, and then moved into something in sales with somewhat low hours, pretty minimal travel, and when I do travel, unlike in consulting, it's usually international and to major city centers. It definitely fits my interests completely and allows some creativity on the job.

Anyway, nowadays, I manage to put away about 40K-60K per year. I'm age 27, and I have $250K saved, most of which is invested in a low cost index fund and bonds which give me about 5%-6% per year. So I'm passively making about $12,500 per year from investments.

My field isn't one where I am going to have that many promotions in the short-term, although I am considering going out on my own and doing some entrepreneurial work within the industry if I'm able to get some funding from someone, which is definitely possible. So although it's possible I'll make more, to be conservative, I am going to say, I will save, bare minimum, $30K per year based on my base salary, and at most, $70K or maybe $80K per year, for the foreseeable future.

Clearly, I'm not putting away as much as many of my colleagues that went down the traditional path of investment banking or consulting, and stayed on it, but I really have a genuine passion for what I've been working on these last several years and have had a good quality of life.

So my question is: Am I on an okay track? I would rather just continue to do well in my job and save as much as I can than go to business school, which some of my friends have told me to do. Any thoughts?

Comments (43)

Nov 14, 2018

Ignoring inflation, what do you want for annual retirement income? How secure is your job? (How much of a cushion do you need for a shock?) I'm more bearish on crypto than most and would not bet on it being worth more than beanie babies or magic cards 20 years later.

Nov 14, 2018

Eh, I removed that bit from my post just because I'd rather this thread not become a debate about the future of digital assets.

Anyway, my job is very secure, and if I were somehow laid off, I could get another job in my industry without too much of a problem. No plans on having kids, and not really planning on getting married either. I'm somebody who has social skills, but I'm an introvert at heart.

I don't even like to put a number on what I would like for annual retirement income, because circumstances can change so drastically in that span of time, but I'm just going to try to be as frugal as I can and adjust my lifestyle accordingly when the time comes.. I would like to have the bare minimum needed to remain in a coastal city.

Nov 14, 2018

Yes you're on track the average American has like $50k saved congrats on being solidly UMC

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Most Helpful
Nov 22, 2018

Dude the average American can't come up with a couple grand in an emergency.

heister:

Look at all these wannabe richies hating on an expensive salad.

https://arthuxtable.com/

    • 10
Nov 26, 2018

Facts. Don't know how @Banking Sucks Guys means "average", but I believe the median American can't come up with something like $500 in an emergency. Scary.

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Nov 14, 2018

I am 28, graduated undergrad in 2017, wife and I have an $80,000 net worth. From that perspective you are doing fine. I do not plan to go to business school, only would do that if i planned to work for someone else for the rest of my life. Opportunity cost is too high. different strokes for different folks.

My main objection is with the premise of your question. "am i on track?" ... compared to what? You are the only one in your race. Where anyone else is, is not a good use of time and energy. If work is your focus, the peers in your field and your coworkers will be the best individuals to gauge your performance. Otherwise, you are giving us numbers with no back story, what are the goals, what are you trying to do with the numbers?

PS I have a bunch of my net-worth in digital assets too

    • 1
Nov 16, 2018

To have $250k at age 27 is phenomenal. You are way ahead of most people, including many of those with lucrative jobs. While there will be a subset of people ahead of you, you should be very proud of how much you've managed to save at this point. Continue putting away $50k/year and you'll be in a very good spot in your 30s. At some point you may find that you want to buy a home and having the money for a downpayment (which doesn't cripple your savings) will be a great luxury. Keep it up!

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Nov 17, 2018

Ya you're probably screwed tbh.

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Funniest
Nov 18, 2018

I bet you don't have the balls to INVEST IT ALL IN BITCOIN!

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Nov 20, 2018
Lloyd BIankfein:

I bet you don't have the balls to INVEST IT ALL IN BITCOIN!

i spit out my coffee lmao

Nov 18, 2018

You're easily within the top 5% of your age bracket, and have more money than at least 65% of Americans.

Congrats, you're probably going to be upper middle class (compared to the average American) by 35!

Nov 26, 2018

Your'e trying too hard to be this board's next darling troll. Play it more chill.

Nov 26, 2018

Just admit ur mad lol

Fuckin my way thru nyc one chick at a time

Nov 20, 2018

Saving 40-60K a year since you got out of undergrad........ how? Do you have family support for all living expenses?

    • 1
Nov 20, 2018

I'm sorry but to ask the question, you must be surrounded by a very select group of elite people (elite in terms of wealth). and someone said you're in the top 5%, i would say you're in like the 1% or less.

Nov 20, 2018

Only on this forum would someone who has saved $250k by the age of 27 need re-assurance that they're doing okay financially.

You are far, far ahead of most of your peers. If you're always going to compare yourself to people who are slightly better off than you (like most people do), you'll never be happy. "Comparison is the thief of all joy".

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Nov 20, 2018

You're doing fantastic, Idk how much your salary is but 40-60k a year is excellent.... really even in 30s-40s depending on who you ask/where you live so kudos.

The one thing I will say is that low cost index funds are great, but 5-6% over the last few years, (I assume you started 2015? or earlier) is telling me that you're a bit too conservative (generally speaking) for your age, given that this is retirement money going to be invested till 60ish etc. I don't know how comfortable you are with investments, maybe that's part of the reason you've got a more conservative mix, but consider either an advisor or doing some homework on your own, making some more "risky" adjustments to your portfolio because 2018 aside, last few years (2017 in particular) 8-9% is cruising, above that isn't too difficult either even in very diversified equity portfolios. The main concern isn't that you "missed out" or etc but that you continue to be too conservative, and the -1 to -2% compared to what you can have compounds over the next 30ish years.

That being said, doing fantastic, if you want to chat about investments feel free to pm me.

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Nov 22, 2018

Why don't you diversify some of that out of "low-risk" stuff and into some real assets that you can leverage and cash flow way harder than this 5% mumbo jumbo?

heister:

Look at all these wannabe richies hating on an expensive salad.

https://arthuxtable.com/

    • 1
Nov 26, 2018

if he took that money and became a SLUM LORD he'd never have to 'work' again

    • 1
Nov 26, 2018

Are you trying to insult me or make a joke? Just came off ignorant and dumb...

heister:

Look at all these wannabe richies hating on an expensive salad.

https://arthuxtable.com/

    • 1
Nov 26, 2018

Just don't blow away that money on women. Great job.

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Nov 26, 2018

Does the 250 include what you have in retirement and 401k accounts?

Nov 26, 2018

You're killing it man. If you're set on building your business then do it; even better if you do while saving cash. Take as much calculated risk as possible with your business. At worst, MBA and reset.

Work hard, work clean, & most of all do not give up.

Nov 26, 2018

Nov 26, 2018

This post is equivalent to the insecure skinny girl who claims she's fat

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Nov 27, 2018

Sounds like it, especially if you will be single with no children. Depends on what your total income is though...you should figure out what your savings rate is after-tax and evaluate from there. If you're doing 40%+ and are happy with your lifestyle expenses, then I'd say you're well on you're way to financial independence (passive income from investments covers inflation adjusted living expenses).

Nov 27, 2018

Weird Flex but ok...

Nov 27, 2018
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Nov 28, 2018
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