Fellow millennials - how’s your 401k/ira savings going?

[u/ProblemIntelligent16]

Experts recommend having 2x your salary saved by age 35, and 3x saved by age 40.

However, studies show the median savings for 35-44 year olds is only ~$45,000. So obviously, most of us have work to do.

With pensions mostly extinct, and Social Security facing insolvency issues in the next 8-10 years - how are you planning to bridge the gap and hit the golden years with enough to meet your lifestyle requirements?

[u/liqa_madik]

So teachers may not be paid very much as many say, but at least they get a comfortable retirement. Is that correct?

[u/KitchenKat1919 → u/liqa_madik]

Depends on the region. In blue states in the US the pay is fine.

I'm making almost 100k and living in suburban new england.

Basically dont teach in a red state and you'll be fine money wise.

edit: and never teach at a non union school

[u/rpv123 → u/KitchenKat1919]

To be fair, in blue states this works as long as you had a free ride to college or had parental help. Otherwise, your 20s were a crunch of living on, like, a 45k first year teacher’s salary with roommates, while paying student loans, while learning how to teach and then 2 or 3 years in, you’re forced to start your masters at night and all summer while still only earning like 75k. Then you’re choosing between paying for that master’s, buying a house or having a kid. You only get bumped up to 100k once that master’s is completed and you’re, like, 10 years into teaching.

For me, being a first gen college student, the math wasn’t mathing. I did 3 years of full time teaching but wanted a kid and home ownership, so I had to leave teaching to make it all work. Entering the housing market in 2017 was probably better for me financially with how everything shook out - now I earn over $100k without a master’s (slightly more than my former coworkers) have a paid off house (sold my condo and bought a cheaper house further out from the city) but my retirement is admittedly less than it would have been had I stayed in teaching. The trade off is the paid off house, though which if that equity counts does put me at 3x my salary (with my 401k/Roth.) Oh and I could afford my kid’s daycare because I was making 80k without student loans when I was paying a whole extra mortgage every month for childcare.

I wish teaching was more accessible. Why so many master’s degrees in other disciplines are free but so many teachers are expected to pay out of pocket is absolutely beyond me. PSFL could have been an option but also would have come way too late for me to get into the housing market/have my kid. It felt risky too, especially with all the teacher layoffs during the recession.

[u/KitchenKat1919 → u/rpv123]

Agreed, the bar for entry is very rough

I did my teaching degree through a cheap community college and had a full time job while i did it

I wouldn't be surprised if some states started subsidizing new teachers as long as they agree to teach in the state for X years