How much savings should you have by 30?

[jlee]

Originally posted by: Spac3d

Originally posted by: Hector13

Originally posted by: Spac3d

Originally posted by: Spac3d

His rent+utilities adds up to $20,000 a year. He banks more or less, everything else. Making $225,000 + bonus per year, it isn't so hard to save $500,000.

He is a 22 year old investment banker and graduated in 2002 from Wharton.

funny, I work at an investment bank (a pretty good one at that), and I don't know of a single first year analyst who even made half of that last year (unless your brother somehow has an MBA from wharton already).

plus, most junior ibankers will never see a base salary of 225K, that is just BS. Most bankers who have been there for 5-6 years probably won't even see a base pay of that high (although they might make 150k base + 750k bonus).

Yet somehow your brother did this in one of the crappiest M&A and IPO markets in years...

He just completed his first year of investment banking. His new job, starting in three months, is at that salary of 225k. He only made $100k this year, including his bonus.

Edit: How do you have time to browse the web? My brother works something like 100+ hours a week, he has no free time until his new job.

Just wondering.

That's over 14 hours a day, seven days a week.
Some of us actually want a life..and some of us don't want to lose 20 years off of said life in the first 18 months of a career.

 

500K at 30 huh.
No, that sounds very unreasonable.

 

[Rudee]

Originally posted by: Spac3d

Originally posted by: Spac3d

Originally posted by: notfred

Originally posted by: Spac3d

Originally posted by: notfred
Heh, Yes, you graduate from school at 22, immediately get a job making $50k/year, work till you turn 30, and have made a total of $400,000. Yes, $500k in savings sounds totally reasonable

Not all of us are idiots

. My brother will have $500,000 in the bank within 4 years of graduating college.

How the hell do you know what's going to happen in the future? And you're right, not all of us are idiots, but if you think that it's reasonable to expect the average American to save $70,000 a year until he's 30, you are.

Even if your brother is saving $125k/year, it's still not "reasonable" it's EXTREMELY high.

500k in 9 years is defintely attainable. The only expenses my brother has is his rent + utilities. All food, transportation, entertainment, etc is all taken care of by the company he works for.

His rent+utilities adds up to $20,000 a year. He banks more or less, everything else. Making $225,000 + bonus per year, it isn't so hard to save $500,000.

He is a 22 year old investment banker and graduated in 2002 from Wharton.

Your brother is blowing smoke up your ass.

 

[HomeBrewerDude]

Originally posted by: Zugzwang152
eleventy billion

i was waiting for someone to say that... thank you! now i go to bed.

 

[rufruf44]

Originally posted by: Rudee

Originally posted by: Spac3d

Originally posted by: Spac3d

Originally posted by: notfred

Originally posted by: Spac3d

Originally posted by: notfred
Heh, Yes, you graduate from school at 22, immediately get a job making $50k/year, work till you turn 30, and have made a total of $400,000. Yes, $500k in savings sounds totally reasonable

Not all of us are idiots

. My brother will have $500,000 in the bank within 4 years of graduating college.

How the hell do you know what's going to happen in the future? And you're right, not all of us are idiots, but if you think that it's reasonable to expect the average American to save $70,000 a year until he's 30, you are.

Even if your brother is saving $125k/year, it's still not "reasonable" it's EXTREMELY high.

500k in 9 years is defintely attainable. The only expenses my brother has is his rent + utilities. All food, transportation, entertainment, etc is all taken care of by the company he works for.

His rent+utilities adds up to $20,000 a year. He banks more or less, everything else. Making $225,000 + bonus per year, it isn't so hard to save $500,000.

He is a 22 year old investment banker and graduated in 2002 from Wharton.

Your brother is blowing smoke up your ass.

Wharton is a dang good school, but even the best brokerage house won't pay $225K for a fresh MBA graduate with 0 experience. $100K + good deal of bonus is possible, but $225K base salary? No freaking way! Especially in today's economy, they won't spend that kind of money for a greenpea.

 

[bcterps]

Spac3d, your bro is full of it. I work in a top tier IB and no one makes that with those credentials, at least not legally.

Anyhow, back to the topic, the amount of savings really all depends on the person and the credentials. Most people in the USA have different ideas about fiscal responsibility. Most people think nothing about taking out loans, especially for non essential items like cars and consumer electronics, not to mention the amount of credit card debt and/or student loans they may already have. That is certainly their perogative, but most people live in the "I want/deserve everything NOW" mentality instead of trying to plan ahead.

Not that a person shouldn't enjoy life, but frivalous spending early in your life only makes it harder to build up savings later.