[USER]

Happy New Year, I had a late start with my career after changing industries and making my way up. My income has increased to $350K a year but in a highly taxed state (CA).

I’m already 37 and worried I’m behind on retirement savings. I have only about $130K in savings, although no debts.

Monthly expenses are $6K total. Maxing out Roth and have employer 401K.

Appreciate advice on what I should do to grow my savings faster, is it possible to get past 500K in the next 2 years?

[Sartaj]

Hmm… You might wanna check again. At that income level, you cannot contribute to roth IRA.

Also, you failed to mention anything about your expenses. Is the 6k a month including payment for a house? If not, 6k a month is a lot.

Make sensible choices, you can still cover for the previous age at this salary level.

[Alexander]

IMO until you have 500k or so invested you should take volatile / high-reward bets that increase your net worth faster.

Since you don’t have much invested yet the volatility doesn’t matter that much. This strategy worked well for me in the past.

Once you are over 7 figures then make more safer investments.

[Russell]

If you make $350k, and your expenses are only $72k, you should be able to save $200k a year even after taxes.

So even without compound interest and a good market year, you should be at $500k in two years.

[Scott]

Absolutely, live on 200k and start pounding 100k into investments. You’ll catch up quickly

[Author]

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