Retirement Planning Strategies for Young Professionals

Kelly's proactive saving and investment strategies at 37 showcase her potential for a secure financial future.

### Catching Up on Retirement: Strategies for Young Professionals
* 🎉 Kelly, at 37, is not behind on retirement; in fact, she has a **lot of opportunity ahead of her** with her recent promotion and a raise.
* 📈 By increasing her 401(k) contributions to **20%** and starting a Roth IRA, she is taking positive steps towards **securing her financial future**.
* 💡 It's important for Kelly to assess her current savings using tools like the **wealth multiplier** to understand what her savings could **grow into by retirement**.
* 🔍 Aiming for a **25% savings goal** can significantly impact her retirement income replacement, suggesting she may **not be as far behind as she thinks**.
* 🛠 The "**Know Your Number**" course can help her evaluate her financial standing and determine if she needs to **adjust her savings strategy**.
* 💪 Kelly's proactive approach to saving after receiving a promotion exemplifies the mindset of a "**financial mutant**," where **small, consistent decisions** lead to **substantial wealth over time**.
* 📺 Engaging with resources like the **Money Guy YouTube channel** can provide further guidance and support on her journey to **financial success**.

[Music] Kelly's question is up next. She says, I'm 37, and I feel behind on retirement. Last year, I received a big promotion and a raise, which is awesome. Congrats! I increased my 401(k) contributions to 20% and started a Roth IRA, but I worry I won't catch up and still meet my other goals. Any advice? Yeah, well, my question would be, why? How have you assessed? How have you triaged that you are behind and that you won't catch up? 'Cause Kelly, let me tell you, 37 is young. It is not old, not even almost, not even close to being old. Like, that's just a wonderfully young age for you to be, and you have nothing but opportunity ahead of you. And you just said, I'm putting 20% in my 401(k), and I started a Roth IRA. So, I would be curious, have you gone out to money.com resource? Have you played with the wealth multiplier tool just to say, Okay, based on what I've saved up to this point, what am I on?

track for like what will just the money that I have up until today turn into. And then based on the money I'm saving right now, what will those dollars turn into by the time I get to retirement? Because just because maybe you didn't take it seriously in your 20s or maybe you didn't save as diligently as you would have liked to have. One of the reasons why we always say that 25% should be your goal is we know what 25% can do for you. There's a great deliverable out on the website moneyguy.com resources that will show you even at age 35 or age 40. If I can start saving 25%, how much of my pre-retirement income will I likely be able to replace? And I think when you look at those numbers, you'll probably recognize you're not as far behind. Or if you are that far behind by saving 25%, you are already naturally putting yourself in the position to move towards catching up. So just shared some great

resources, both the wealth multiplier and then what 25% can do for you. But I do. We've created a tool that goes beyond that. If you go to learn.money.com, when we talk about are you ahead of the curve, behind the curve, or right where you are, that's exactly what your question is, Kelly. You're saying, Where am I? Is somebody going to be able to tell me where I am? And maybe you're not at the point you feel like you need a financial planner yet. That's why we actually created the Know Your Number course. It's because this is going to allow you. I've always, you know, when we brainstormed this course, it really was. There was a commercial from an investment company many years ago where everybody walked around in front of elevators, in front of park benches, and they all had their number above their head. So that way, you could look at what you've saved and invested at this point, at age 37, and know where the number is, and then know on a monthly basis, Am I saving enough to

get there, or do I need to because I feel like I'm behind. I need to overfund my retirement just to catch back up to where I am. You're not going to be able to do that unless you actually create the plan and do the work, and that's why we actually, you know, did create this tool and the course of know your num. So, go check it out at learn.money.com. Congratulations. She said that she got a promotion. What was the other thing? A promotion. What was the other thing? She said she got a bonus. A big promotion. That's all good. Good for you for letting that, and let everyone, let this be, uh, use this as an example. When you do get a promotion, when you do get a bonus, there's nothing wrong with your lifestyle increase and you doing more stuff, but you heard what she said. She said, I got paid. I got a bigger B. I use that as an opportunity to catch up my savings, to save more, to move up my savings percentage. If you can do that

All throughout your career, man, it gets real, real excited. That's the mindset of a financial mutant, right? It really is. And that's what CU. You'll start wondering, people don't realize these small decisions you make as a financial mutant, but down the road, when they say, How did you get so wealthy? They never think about all those little things that you were doing that the typical American wasn't willing to make that sacrifice in the beginning. Everybody asks why. At the end, everybody asks how. When they ask you how, what you can say is, Well, I subscribed to the Money Guy YouTube channel, and that's how I got started on my way.

I Feel Behind on Retirement, and I'm Worried I Won't Catch Up!

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Catching Up on Retirement: Kelly's Situation

Kelly, at 37, feels behind on retirement despite increasing her 401(k) contributions to 20% and starting a Roth IRA.

The advisor emphasizes that 37 is young and encourages her to use resources like the wealth multiplier tool to assess her savings' future potential.

The suggestion to aim for a 25% saving goal is offered, highlighting its impact on replacing pre-retirement income and helping Kelly catch up.

com helps individuals assess their financial position and determine if they are ahead, behind, or on track.

The Know Your Number course was created to guide people in identifying their savings and investment goals.

The course is inspired by a commercial that depicted individuals with their financial numbers above their heads, highlighting the importance of knowing one's financial status.

Feeling behind on retirement savings is common, but creating a plan and taking action is essential.

The speaker emphasizes the importance of using promotions and bonuses as opportunities to increase savings and move up the savings percentage.

com aim to help individuals take control of their financial future.

The journey to wealth is driven by small, impactful decisions that set financial mutants apart from the typical American.

These individuals make sacrifices early on, leading to long-term financial success.

The Money Guy YouTube channel is highlighted as a valuable resource for those looking to start their journey towards wealth.