[USER]

I’m a 37 yr old female making $100k a year. Contributing 15% per paycheck to 401k and Roth. Planning on bumping it up to 20% soon.

$70k in retirement accounts. $30k in CDs. No debt other than mortgage.

Paid off car, no student loans, no cedit card debt. Equity in house is $200k, still owe 80k at 2.9% 1 year emergency fund.

Am I ok or pretty far behind?

[Robert]

Considering where a lot of people your age are, I think you’re in good shape. And I think that bumping up to 20% from 15% is a great idea.

I’d also look for ways to cut your cost of living- if at all possible – to free up more cash for investing.

I know frugality is not for everyone; but it’s been an indispensable part of my own journey towards FIRE.

[Ryan]

you’re doing ok, keep feeding the retirement account and you will be in great shape in 5 years or so!

[Richard]

Depends on your retirement goal, but definitely solid in terms of normal retirement age.

[Beien]

Invest the CD unless you’re using it for something. The money is locked up and useless when you already have a year of savings.

[Meng]

You’re absolutely well for yourself and that’s impressive. Personally, I’ll ditch the CDS and have it invested in other reputable portfolios

[Angie]

While some may say you are behind what you should have done, in reality, you are better off than most Americans (over 50%).

So, don’t feel bad, just do your best.

[Matt]

You’re behind but now it sounds like you got it together and will pull ahead. Just keep doing what you’re doing and enjoy the ride.

Life is short

[Ross]

How are you doing on the other side of the equation? What are your annual expenses? How have your expenses changed as your income has been growing?

You said you’re putting 15% into your 401k, but are you spending the rest?

For me, it’s not as simple as keeping expenses as low as possible. It’s keeping them low, but still living how you want.

Living frugal is spending money only on things that are important to you.

[Andrew]

How much do you spend? I would ditch the CD and invest it. You sound like you’re doing pretty well.

[Laura]

You are doing okay but maybe move the CDs partly to HYSA for an emergency fund that is more accessible.

If you can bump to 20% savings to catch up, go for it.

I make about the same as you, 13 yrs older and currently 800k in retirement funds.

Good luck!

[Benj]

Why cds? They are typically not the best option as a general rule so unless you have a good reason for them I would consider moving them.

Also, general rule is 1x income in retirement by 30 and 3x at 40 so I would increase to the 20%

[Winter]

Might want to up it to at least 25% at 40 retirement accounts should be at 3x based on the fidelity model for retirement.

But you are doing a lot better than most 37 year olds that still have debt and no retirement at all.

[David]

Max out the 401K and open a Roth IRA. Saving 20% will get you a comfortable traditional retirement.

If you want to do FI/RE, you’ll need to increase your savings rate.

[Scott]

Hard to say, is 3.6m by 67 good enough? You’re definitely on track to retire at your current income.

Ratcheting up to 20% and increasing your income along the way, will put you on track to start looking at retiring early.

[Author]

Posts