Depends what it's for and what your personal situation is. It's a great emergency fund and a good down payment on a house. If you are relatively young, it's a good start on a sizable retirement nest egg. It is too less to retire on, you can only expect 4–5k income per year from a 100k investment.
Having a 100k in savings or investments might mean quite a bit to you. It could be a number of years expenses depending on your lifestyle costs. This could mean you could take one or more years off work or work part-time because you don't need the money. You could do that around the world trip in the style you like.
According to a new Bank of America survey, 16 percent of millennials — which BoA defined as those between age 23 and 37 — now have $100,000 or more in savings. That's pretty good, considering that by age 30, you should aim to have the equivalent of your annual salary saved.
On an individual level, $100,000 is a lot of money, especially as a lump sum. Above that, it very quickly becomes an insubstantial value.
How much is too much? The general rule is to have three to six months' worth of living expenses (rent, utilities, food, car payments, etc.) saved up for emergencies, such as unexpected medical bills or immediate home or car repairs.
You may be starting to think about your retirement goals more seriously. By age 40, you should have saved a little over $175,000 if you're earning an average salary and follow the general guideline that you should have saved about three times your salary by that time.
It found that about 54% of Americans live paycheck to paycheck. And nearly 40% of high earners — those making more than $100,000 annually — said they live that way. That means high-earning millennials aren't the only ones feeling stretched thin, but they feel that way more than their six-figure-making peers.
Saving $50,000 per year is well ahead of most people, so first off congratulations. Your plan of action should be something like the following: Make an emergency fund. It should be multiple months' worth of expenses.
$150k is a lot of income for most places in the US. Of course, you won't get by well in the most expensive places, but most people in the US don't have $150k/year incomes. Median household income is something like $68k/year. Average household income is about $100k.
So, to use this formula for the $100,000 investment mentioned above, with a 6% rate of return, you can determine that your money will double in 11.9 years, which is close to the 12 years you'd get if you simply divided 72 by 6.
Saving $100,000 is a difficult but important goal
Saving $100,000 is one of the most important financial milestones for the same reason that it is one of the most difficult milestones to reach; it is the point where investment returns are likely to match or surpass your annual savings.
According to CNN Money, someone between the ages of 25 and 30, who makes around $40,000 a year, should have at least $4,000 saved.
By age 30, you should have saved close to $47,000, assuming you're earning a relatively average salary. This target number is based on the rule of thumb you should aim to have about one year's salary saved by the time you're entering your fourth decade.
Typically most of the six figures earners will be in their early 30s to late 30s where their work experience has enabled them to have a more rewarding career or start their own venture after some experience working for others. “six figures”, so that would be about 22 years old.
Can I retire on $500k plus Social Security? Yes, you can! The average monthly Social Security Income check-in 2021 is $1,543 per person.
If you actually have $20,000 saved at age 25, you're way ahead of the national average. The Federal Reserve's 2019 Survey of Consumer Finances found that the median savings account balance was $5,300 across households of all ages, not just 20-somethings.
Many experts agree that most young adults in their 20s should allocate 10% of their income to savings.
$150K is a nice nest egg. A really nice savings if under 25, OK for 30, low for the age of 40, not much if you're 50, and you're way behind in savings if you are closing in on 60 etc.
$40,000 or even half of that would be a good down payment on a house, which in many locations is a good investment. Like any other option, DO YOUR RESEARCH. Check market home value increases or decreases in any area you are looking.