alt Hacker News> I tell the younger generation the same thing. Save, invest, max 401k, before you go off and party. Your older self will thank you.
401k max is $24,500. How much do you expect a person to earn to be able to max it out? And what percentile income is that at the bottom and top of the age range you consider “young”?
https://dqydj.com/income-percentile-by-age-calculator/
Tldr: you are telling almost every 20 to 30 year old to not party.
Replies
bluGill • today at 2:15 PM
A younger person shouldn't max out their 401k unless they are rich. When you are young time works for you and so a maxed out 401k is a very large retirement in the future (which you might not even live to see!). The max is useful for older people who didn't start young.
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If you are offered a 401k, you have the means to max it out. People who make less than $60k aren’t usually offered 401k’s.
I’m not telling you to forgo partying. I’m telling you to pay yourself first, before you do. Don’t max out a credit card for a trip. Don’t cover the table’s check when you only have $200. Be responsible, but still have fun.