At age 40ish how much money "should" you have in the bank?

Question

Im 43, and i have $16k in my savings account

Answer 1

I agree with D DD... you should worry about your plan. But you can never have enough....after retirment will you be able to live with  that amount ?? and for how long do you plan on living ? You could out live your money. Or you could die before you run out of money and leave it as inheritence for grandchildren or your children. Keep saving and investing .

Answer 2

Everyone is different man.  What you "should" have depends on how you plan to live after retirement, when you plan to retire, and what you plan to do between now and then.

To some people who are 65 it would be amazing to have $16k in the bank.

To some people who are 25 it would be embarrassing to have $16k in the bank.

Don't worry about comparing yourself to others in this area- it's too broad.  Worry about having a PLAN.

Answer 3

Well, I agree with all the answers you have gotten. You can never save too much money. But when you save, it is best to use a high yield money market or savings account. Even though the fed funds rate has dropped, you can still get over a 3.0 APY. I'm going to include a savings calculator. It's fun and easy to use. Just punch in some numbers. For example, if you start with $16,000 and save $200 per month, at a 3.0% yield, then in ten years, you will have almost $50,000. I hope this helps.

Answer 4

"As much as possible" might be an appropriate answer. You never know what will happen in the future. But for now 16K is a good cushion Just don't touch it unless absolutely necessary (medical emergency or whatever).

Answer 5

There's no "right" answer to this question. Do you own your home? How much do you owe on it? Do you have liquid assets besides the savings (IRA, 401K, other retirement plan, stocks, bonds, mutual funds, etc.)? How much debt do you have? Are you alone? Have a family? Kids? College fund? What's your income? Where do you live? If $16,000 is the sum of your life savings, you are short.