I’m 35 with $330,000 in my 401(k). Am I on track for retirement?

The typical 35-year-old has $45,000 saved for retirement, according to the Federal Reserve’s most recent data. That’s not necessarily too worrisome, though.

Although $45,000 is not a ton of money, the typical 35-year-old might also have another 30 to save money, invest, and accumulate retirement wealth.

But in this Reddit post, we have a 35-year-old with a $330,000 balance in their 401(k). And they’re wondering if they’re in a good place as far as their long-term savings go.

I think this poster is doing a fantastic job of saving for their future. But that doesn’t mean their work is over.

Keep making those contributions

Given the typical 35-year-old’s retirement savings balance today, having $330,000 in a 401(k) by that age is terrific. And it also tells me that the poster here has been saving and investing for retirement for many years.

I would encourage the poster to keep contributing money to their 401(k). I would also suggest that they aim to snag their employer 401(k) match in full. There’s no sense in giving up free money for retirement when it’s available.

Here’s what might happen if the poster does not keep funding their 401(k). Their $330,000 balance could grow to close to $2.7 million in 30 years if their 401(k) generates a somewhat conservative annual 7% return.

Now there’s nothing wrong with retiring with $2.7 million. And it’s a lot more money than many retirees today have.

But if the poster contributes $500 a month to that 401(k) for the next 30 years, at that same return, they’re looking at a balance of about $3.3 million by age 65. And if they put in $1,000 a month, they’re looking at $3.9 million.

A balance of close to $4 million sounds like it would make for a much more comfortable retirement than $2.7 million, even though both are large numbers. So if the poster can continue funding their 401(k) at a decent pace, they stand to retire with plenty of money.

An investment checkup is important, too

Funding a 401(k) is a great way to grow retirement wealth. But it’s also important to make sure that 401(k) is invested appropriately. And that’s where a financial advisor can come in.

It’s common for people who contribute to 401(k) plans to have their money land in a target date fund. These funds adjust savers’ risk profiles based on how close to or far away from retirement they are.

But target date funds also tend to invest conservatively, which could leave savers with smaller balances by the time retirement rolls around. So it’s a good idea to consult a financial advisor and get some guidance on how to choose the right 401(k) investments based on factors that include your age and tolerance for risk.

To be clear, this is a suggestion I would make for someone with a $330,000 balance at age 35, or a $3,300 balance. Having the right investment mix could be the ticket to your success. So no matter your age or how much you have saved so far, it’s a good idea to have a professional’s help.