Retirement Savings Guideposts by 40: 3x Income, 60% Stocks, $500k Target
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There's no definitive rule for how much to have invested in stocks by 40 - it depends on income, expenses, risk tolerance, etc.
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A good guideline is to have 3x your annual household income saved overall by 40.
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The "rule of 100" says to subtract your age from 100 to find the % to allocate to stocks - so by 40, 60% in stocks.
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Maxing out 401(k) contributions from early on and letting compound interest work can lead to $500k+ by 40.
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Most experts recommend keeping a higher percentage in stocks until at least 50 since there's still time before retirement to recover from volatility.