Good morning. It's Tuesday, March. 26 and we're covering how much money Americans in their 30s have in their 401(k)s, 5 money habits that will keep you poor, home prices falling after realtor lawsuit settlement, and much more. | First time reading? Sign up here. | Stock Market Update | | | | | Market Performance: March 25, 2024. | The Dow Jones Industrial Average and other major indexes dropped Monday, as Intel (INTC) and Advanced Micro Devices (AMD) sold off after China blocked the use of their chips in the government's personal computers and servers. And Tesla (TSLA) stock reversed from early losses after an analyst downgrade on the stock market today.
The Dow Jones Industrial Average moved down 0.3% in morning action, while the S&P 500 lost 0.2%. The tech-heavy Nasdaq composite fell 0.4% after the opening bell.
Among U.S. exchange traded funds, the Nasdaq 100 tracker Invesco QQQ Trust ETF (QQQ) was down 0.6%, while the SPDR S&P 500 ETF (SPY) fell 0.2%. The 10-year Treasury yield ticked higher 4.24%. Further, oil prices rallied, as West Texas Intermediate futures added 1.3% to trade near $81.70 a barrel. |
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| | Financial Maverick Insights | | | | | Here's how much money Americans in their 30s have in their 401(k)s | Americans in their 30s have another 30 or so years before they reach retirement age, but they may not be saving enough to retire comfortably. On average, Americans believe they'll need nearly $1.3 million to retire comfortably, according to Northwestern Mutual's 2023 Planning and Progress study.
However, the amount Americans in their 30s currently have saved is much lower. The median 401(k) balance for account holders in their 30s is around $20,400, according to the latest data from Fidelity Investments, the nation's largest 401(k) provider. The data is from the fourth quarter of 2023.
The low amount could be due to several factors. A little over a third of Americans say rising living costs have gotten in the way of their ability to reach their retirement goals, while 27% say paying down their credit card debt has been a barrier, according to Fidelity's 2024 State of Retirement Planning report.
People in their 30s put about 11% of their salaries toward retirement savings, inclusive of any employer match, which falls slightly below the 15% savings rate Fidelity recommends.
One way to boost your savings rate without feeling like you're sacrificing too much is to increase your contributions by 1% or 2% each year, Lester says. Many plans will even let you do this automatically through an auto-escalation feature, so you don't have to remember to change your contribution amount each year.
However, if you don't have anything saved for retirement, you may need to make some short-term sacrifices, such as contributing a larger percentage of any raises you receive toward your 401(k) or setting aside a larger chunk of any future bonuses or tax refunds, Lester says.
"If you promise yourself that you'll save future raises, it actually won't be as painful as it sounds," she says. Remember, you won't have to make these adjustments forever. When you feel that you're on track with your retirement savings goal and your other financial priorities, it's OK to begin rewarding yourself, Lester says. |
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| | | | | | These 5 Money Habits Will Keep You Poor: Stop Doing This | Financial habits can make or break your economic future. It's essential to recognize the patterns that lead to poverty and take decisive action to avoid them. The line between thriving financially and remaining trapped in a cycle of scarcity often hinges on daily decisions.
From the pitfalls of earning just enough to the dangers of living beyond one's means, these behaviors are more than bad habits—they are the silent saboteurs of financial stability.
Not Earning Enough to Cover Living Expenses:
Earning an insufficient income to cover basic living expenses can immediately lead to financial strain, making it challenging to meet even the most essential needs.
Underestimating the Importance of Income Growth:
Not actively seeking ways to increase income through skill development or looking for higher-paying job opportunities can prevent financial advancement and keep you in a stagnant financial state.
Living Beyond Your Means:
Spending more than you earn, regardless of your income level, creates a cycle of debt and financial pressure, preventing the accumulation of savings or investments.
Frequent Use of High-Interest Debt:
Relying on payday loans or high-interest credit cards for everyday spending can trap you in a cycle of debt with substantial interest payments, making it difficult to achieve financial stability.
Lack of Financial Education:
Not having a basic understanding of financial principles like budgeting, investing, and the power of compounding interest can hinder your ability to make informed financial decisions, limiting opportunities for financial growth and security. |
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| Real Estate News |  | Local Event: From Clutter to Clarity: Real Estate Strategies for Downsizing | Check out the latest community post from one of your neighbors. (The views expressed in this post are the author's own.) |
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|  | Will home prices fall after Realtor lawsuit settlement? You shouldn't count on it. | Will the NAR settlement change things? Research has shown that the most effective check on skyrocketing home prices is simply to build more homes. |
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|  | Homebuilders are still buying down rates to move houses - HousingWire | When mortgage rates approached 8%, people wondered if homebuilders could still buy down rates to boost sales. The answer is no. |
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| | Personal Finance Tips |  | Food prices rising, and Colorado professor says spending habits have changed | Inflation is cooling right now, but the prices of groceries and food are still rising. For example, the latest CPI data shows that grocery store prices are 25% higher than in January 2020. |
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|  | The Daily Money: How to save on taxes while investing in your health care and education | If you have medical and educational expenses, you might be able to get a deduction or credit for some of them to save on your taxes. |
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|  | 'Best Buy Drops' — 6 Ways This Best-Kept Shopping Hack Can Save You Money Year-Round | This shopping app feature will save you money all year. |
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| | Alternative Investing |  | Apple, Google, Meta face EU probe for potential violations of sweeping Digital Markets Act | Apple, Google and Meta face noncompliance investigations in connection to a sweeping new European law aimed at cracking down on anticompetitive business practices, EU regulators revealed Monday. |
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|  | Goldman Sachs hedge fund clients are piling back into crypto this year | Institutional clients of Goldman Sachs' Asia Pacific arm are showing renewed interest in Bitcoin, Ether, and other crypto assets. |
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|  | Should You Invest In AI Startups In 2024? Sure, But Here's A Piece Of Advice | Last year, AI-related startups raised nearly $50 billion. But if we look at who received that money, we'll see that a significant portion of this sum went to investments in technology giants. |
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| | Should you invest in AI startups in 2024? | | | Reach Over 100,000 Financial Mavericks | Advertise with Financial Maverick to get your brand in front of the Financial Gurus in the world. The Mavericks are high-income and highly knowledge people who are always looking for an interesting product or tool. | | | Share Financial Maverick | Calling all Financial Mavericks! To help out a family and friend in need by sharing this newsletter. Tell you what if you ever wanted to be a Hero, Financial Guru, or a Nice Person this is your time! | | | DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. | |
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