The Milestones

I often get asked “Bench marking” questions. For instance – I’m 30.. what should I have saved by now?


So here’s a neat and simple break down:

First of all – every individual should have 3 months of their expenses in cash or cash-like equivalents. We call this the “emergency fund” and it is incredibly important for the general stability for your financial plan.

Second – As soon as you start working, you should contribute to your company’s available retirement plan and be saving about 15% of your income between retirement plan savings and your own personal savings.

And lastly – all of the number targets that will be listed below assume that you want to maintain your current lifestyle during retirement. Which also means that you are living within your current income. Or simply, you are not currently spending more than you earn.  

The Milestones:

Age 30 – The goal is to have 1x salary saved. (Gross). So if you make $100,000 you should have saved about $100,000 by now.

Age 35 – Have 2x salary saved

Age 40 – Have 3x salary saved

Age 50 – Have 6x salary saved

Age 60 – Have 8x salary saved

Age 67 (average retirement age in US currently) – Have 10x salary saved


Now, a few key assumptions play a role here:

  • This will work if you start saving 15% of your income every year starting at age 25
  • You invest a least 50% of your savings in stocks on average over your lifetime
  • You retire at age 67

If you retire later, you will need to have less money saved. The opposite is true if you plan to retire before age 67.

If this makes you feel a little down today, then i’m sorry that i’m not sorry. BUT I’m happy to work with you to get your sh*t together.