facebookIs there a range or a table to show how much 1 should have in investments like in their 20s/30s/40s. I am in my early 30s and checked i have around 70k, is this ok? - Seedly

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Anonymous

24 Sep 2024

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General Investing

Is there a range or a table to show how much 1 should have in investments like in their 20s/30s/40s. I am in my early 30s and checked i have around 70k, is this ok?

Majority of my holdings is in etfs. I would like to hit 100k in invesments.

Discussion (13)

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In terms of how much you should have in investments by a certain age, the answer can vary depending on your income, financial goals, and personal circumstances. However, financial advisors often suggest benchmarks to give a general sense of whether you're on track. Here's a typical guideline:

Investment Benchmarks by Age:

  1. By Age 30:Aim to have 1x your annual income saved or invested.
    Example: If you're earning $70,000 a year, you should ideally have about $70,000 invested by 30.

  2. By Age 35:Aim for 2x your annual income.
    Example: If you're earning $70,000, you should target around $140,000 by age 35.

  3. By Age 40:Aim for 3x your annual income.
    Example: With an income of $70,000, this would mean $210,000 by age 40.

Your Current Situation:

You mentioned you're in your early 30s and have $70k invested, mostly in ETFs. While individual situations vary, here's a quick look:

  • If you're earning around $35k to $70k, your current investment of $70k is in a solid range.
  • Hitting $100k is a great goal for your 30s, and depending on your income and investment returns, this could put you ahead of the curve as you approach your mid-30s.

Tips to Hit $100k:

  1. Increase Contributions: If you're not already maxing out your annual investment contributions (such as CPF contributions, SRS, or other tax-efficient accounts), try to increase your regular investments.
  2. Diversify: Continue holding ETFs, as they offer broad market exposure with lower risk, but consider diversifying with bonds, REITs, or emerging markets for balanced growth.
  3. Focus on Growth: At this stage, growth-oriented investments can help you accumulate wealth more quickly, while keeping your risk tolerance in mind.
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Jus wanting to give you a pat on your shoulder

I don't think there's a good comparison in any case, considering X who holds a $3k job and securing $100k in investments by 30 is far better than Y who earns $10k monthly and has $100k by 30.

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I would compare against myself (save more in terms of % each year), work on growing income to be higher than the median (earn more each year), and the rest should work out itself.

There is a one-sized fits all answer. Just take the below and adjust by % based on your relative position to median income.

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By 50s, 500k

By 40s, 250k

By 30, 100k

There's no one-size-fits-all answer for how much you should have invested by your 30s, as it depends...

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