Let’s start with the numbers. The median 401(k) balances in America tell an interesting story. Under 25? You’re looking at a $3,000 median balance. Ages 25–34? About $15,000. By the time people hit 55–64, that median rises to $88,000. But keep in mind: median means middle-of-the-pack—not average. A few outliers with millions can skew averages, so the median gives a better picture of where most folks really are.

Now, I don’t share these numbers to make anyone feel behind. Quite the opposite. I want you to see these as reference points, not goals. Because your retirement plan needs to fit your life, your income, and your dreams—not someone else’s.

My Go-To Strategies for Growing Retirement Savings

Here’s what I recommend: Start as early as you can, stay consistent, and let time and compound interest do the heavy lifting. Use tax-advantaged accounts like 401(k)s, traditional or Roth depending on your situation, and never leave an employer match on the table. That’s free money—take it!

One small change I love? Increase your contribution rate by just 1% each year. Over time, that can push you closer to the ideal target of saving 15–20% of your income for retirement.

Saving Benchmarks to Guide You

There are some general benchmarks I keep in mind to check my progress:

• By age 30: 1x your income saved
• By 40: 3x
• By 50: 6x
• By retirement: 8–10x

But again, these aren’t one-size-fits-all. If you’re planning to retire early, or your income jumps dramatically later in life, your path might look different. And that’s perfectly okay.

What the Generations Are Saving

I found it fascinating that Gen Z is saving about 7.2% of their income, Millennials about 8.6%, Gen X 10.2%, and Boomers 11.8%. And when you factor in employer contributions, many are hitting that 10–15% sweet spot recommended by financial planners. That’s good news—it means we’re moving in the right direction.

Don’t Make These Common 401(k) Mistakes

One of the biggest mistakes I see is people cashing out their 401(k)s when they change jobs. Nearly 41% of employees do this, and 85% of them take the entire balance. That’s a huge hit—not just in penalties and taxes, but in long-term growth.

If you’re changing jobs, consider rolling your 401(k) into your new employer’s plan or into an IRA. And whatever you do, don’t time the market or jump in and out based on headlines. Stay invested. Stay the course.

Max Out Your Contributions (If You Can)

If you’ve got the budget for it, 2025 contribution limits are generous: $23,500 for most people, and $34,250 for those aged 60–63. If you’re over 50, you also qualify for catch-up contributions. Every dollar counts, especially if you’ve got some ground to make up.

You can also build multiple income streams to reduce reliance on any one source. And don’t overlook the value of Roth accounts for tax-free withdrawals, or HSAs for future medical costs.

Play the Long Game

If there’s one thing I want you to take away, it’s this: consistency wins. Whether you’re 25 or 55, what matters most is making saving a habit and letting your money grow over time.

In your 40s and 50s, assess your progress. Adjust if needed. In your 50s and 60s, finalize your withdrawal strategy and tax plan. Don’t wait until retirement hits you—prepare for it on your terms.

Final Thoughts

Retirement isn’t just about stopping work—it’s about freedom. It’s about having choices. And I truly believe that with the right strategy, anyone can get there.

So start where you are. Save what you can. And increase it over time. I’d love to hear your thoughts—how are you preparing for retirement? Let’s keep the conversation going.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post How to Build a Strong Retirement Plan at Any Age appeared first on ROI TV.

1. The Importance of Investing for Building Wealth

To build wealth and achieve financial freedom, you need to do more than just save—you must invest. The real secret to building wealth isn’t just in earning a paycheck or cutting back on expenses; it’s about taking that money and making it work for you.

Investing allows you to grow your wealth over time, leveraging the power of compounding growth. By consistently investing a portion of your income—ideally, at least 15%—you’re setting yourself up for long-term financial success. This doesn’t happen overnight, but over time, your money will grow exponentially, especially if you start early and stay consistent.

The key is understanding that investing isn’t a get-rich-quick scheme. It’s a long-term strategy that can help you build a financial cushion that outpaces inflation and provides for your retirement, your family, and your goals.

2. Changing Your Mindset: From Spending on Liabilities to Investing in Assets

One of the biggest obstacles to wealth-building is the mindset that focuses on spending rather than investing. Most people spend their money on liabilities—items that don’t contribute to long-term wealth, such as gadgets, cars, or expensive vacations. While these things can bring temporary satisfaction, they don’t generate income or appreciate in value over time.

To build lasting wealth, you need to shift your focus from spending on liabilities to investing in assets. Assets like real estate, dividend-paying stocks, and business ventures generate income and increase in value over time, contributing to your financial freedom.

When you start viewing money as a tool to build wealth—rather than as something to spend on fleeting pleasures—you’ll begin to make smarter, more strategic financial decisions. The goal is to put your money into things that will earn you more money, rather than spending it on things that will lose value.

3. The Significance of Consistent and Aggressive Investing

Consistency is the cornerstone of wealth-building. One of the most important rules of investing is to start early and invest consistently. Even if you’re not making huge contributions at first, the key is to get into the habit of investing regularly—whether it’s through automatic deductions from your paycheck or contributions to your investment accounts each month.

However, with the decline of Social Security and traditional pensions, becoming an aggressive investor is more important than ever. You can’t rely solely on retirement benefits to sustain you in your golden years. You need to take control of your financial future through consistent, strategic investing.

Being aggressive doesn’t mean taking excessive risks. It means prioritizing your investments and automating them so you’re investing consistently, no matter what. By investing early and consistently, you benefit from compounding growth, which significantly accelerates the growth of your wealth over time.

4. Retirement Accounts vs. Non-Retirement Accounts: Balancing Your Investments

When it comes to investing, there are two main types of accounts: retirement accounts (like 401(k)s and IRAs) and non-retirement accounts (such as brokerage accounts).

• Retirement accounts: These accounts offer significant tax benefits, such as tax-deferred growth in a 401(k) or tax-free withdrawals in a Roth IRA. However, retirement accounts come with contribution limits and withdrawal restrictions, so they’re best used for long-term savings. The earlier you start contributing to retirement accounts, the more you can benefit from tax-advantaged growth.
• Non-retirement accounts: These accounts offer greater flexibility than retirement accounts. You can invest in a variety of assets, such as stocks, bonds, or real estate, without worrying about contribution limits or withdrawal restrictions. While they don’t offer tax benefits, they provide a lot more freedom in terms of investment options and access to your money.

Balancing both types of accounts is important. Retirement accounts are great for long-term goals, but non-retirement accounts give you the flexibility to invest in other opportunities and access your money when needed. A healthy mix of both ensures you’re optimizing your wealth-building strategy.

5. The Impact of Time and Amount of Money Invested on Wealth Growth

The amount of money you invest and the amount of time you give your investments to grow are both critical factors in building wealth. The earlier you start investing, the more time your money has to grow, thanks to compounding.

• Start early: If you begin investing in your 20s or early 30s, you’ll have decades for your investments to grow. Starting earlier gives you a significant advantage in terms of compounding, allowing you to build wealth exponentially.
• Consistent contributions: The more money you contribute to your investments, the faster your wealth will grow. Starting with even small amounts can result in significant growth over time, as long as you remain consistent.

A simple example: If you invest $200 per month in a portfolio that grows at an average rate of 7%, you could accumulate over $100,000 in just 20 years, even though you’re only contributing $48,000. The power of compounding allows you to earn returns on your previous returns, making early and consistent investing one of the most powerful wealth-building tools available.

Conclusion: The Road to Financial Freedom Starts with Investing

Building wealth is a journey that requires discipline, patience, and consistency. By investing at least 15% of your income, shifting your mindset from spending to investing, and taking an aggressive yet strategic approach to your financial future, you can achieve financial freedom and create a lasting legacy.

Remember, the key to success is starting early, staying consistent, and continually adjusting your strategies as your income increases. By making smart investment choices today, you can set yourself up for a financially secure future.

Start investing now—your future self will thank you.

Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but is he is not providing you with legal advice in this article. This article, the topics discussed, and ideas presented are Jaspreet’s opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.

The post Why Investing 15% of Your Income is Key to Building Wealth and Financial Freedom appeared first on ROI TV.