Personal Finance

I'm 27 and have I have $33,000 in a Roth and $48,000 in my 401K. Here are some of my biggest wins.

Joey Frenette

Published: March 12, 2025 11:40 am

Retirement doesn’t have to be someone’s number-one priority as they get started on their professional journeys in their early-20s. That said, after one has settled into a new career, starting the retirement saving journey can put your head and shoulders above the crowd, as you aim to retire more comfortably.

Furthermore, if you’re miles ahead in the game, perhaps the door to an early retirement (think the FIRE movements) could open, giving you more options as you shoot to achieve financial freedom. Of course, there are numerous early retirement success stories on Reddit, with a number of Millennials and Gen X’ers boasting nest eggs sizeable enough to retire well before the traditional (think Social Security-eligible age) finish line.

Of course, an earlier retirement will be “leaner” (think less extravagant spending) than if you’d retired later. Either way, the key is staying ahead and taking advantage of any 401(k) matches an employer may offer.

In this piece, we’ll explore the case of a 27-year-old who’s faring quite well, with $33,000 saved up in a Roth and close to $50,000 in the 401(k), comprising an impressive net worth of just north of the $100,000 mark. This relatively young over-achiever shared their biggest wins on Reddit. For the young readers striving to get ahead at a young age, here are the most important takeaways, at least in my view.

Keeping contributions consistent and investing in the steady blue-chips

Having a look at their portfolio, it’s clear they’re not investing like many people in their age group. Indeed, someone in their late-20s would probably be likelier to speculate on the hot tech stock of the day in search of the next timely double.

Instead, the Reddit user seems to have opted for “boring” stocks that, I believe, are more common in the portfolio of a much older investor (think a retiree). Indeed, investing with such a balanced approach at a young age can be a wise long-term move, given stocks don’t always go up — something many market newcomers discovered in the Trump 2.0 term.

So, what’s at the core of their portfolio? First, there’s quite a bit of index funds in there, with low-cost S&P 500 ETFs topping the list.

Pretty solid blue chips make up the core of this portfolio

With a bit of Invesco QQQ Trust (NASDAQ:QQQ) sprinkled on top, the Reddit user has a nice balance of growth and stability. Looking further under the hood, we see some rock-solid blue-chip names like Berkshire Hathaway (NYSE:BRK-B), AT&T (NYSE:T), Caterpillar (NYSE:CAT), 3M Company (NYSE:MMM) and Walmart (NYSE:WMT) — staples for many retirees.

However, it’s not all boring retiree-friendly stocks. The Reddit user has a mix of “growthier” Magnificent Seven names — like Apple (NASDAQ:AAPL) — to balance things out.

Overall, it’s a very well-rounded and balanced portfolio that looks like it can hold up in this market hailstorm. As the market turns lower, here’s hoping the Reddit user adds to fallen positions on weakness. Indeed, the first $100,000 is just the start, as they embark on a multi-decade journey towards (early) retirement.

Personally, I’d suggest adding more to index funds (S&P 500 or the QQQ) on further weakness to simplify things. A correction has struck, making it a great time to top-up on low-cost index funds, especially since the market is moving faster than one can keep up with a rather long list of individual names.

As for the other names, I’d encourage the investor to do their own homework and pare positions that have become overbought. For instance, 3M and CAT stand out as names that may make sense to take profits in.

The bottom line

This self-guided Reddit user acts as a great example for how new investors should go about beginning their retirement journeys. They’ve got a balanced portfolio and seem well-equipped to win at the long-term game! Though they’re a tad light on tech compared to most other young people, I do think they’re well-insulated from a bursting of an AI bubble — that is, if one even exists.