How Much is Enough?

Nov 11, 2021 3:13:39 PM / by Michael Dailey




How much should I have in Investments?

Investors often struggle to understand how much they should have in investments to achieve their retirement goals. Of course, this will vary by age, but there is a formula to give you a good idea of your progress toward achieving your long-term financial goals.


The Investment Asset to Gross Pay Ratio:

(Investment Assets + Cash and Cash Equivalents) / Gross Pay

 To calculate this ratio: Add the value of all your investment accounts (401(k), 403(b), 457, IRA, Brokerage, etc.) to all your cash accounts (savings, money market, time deposit accounts, and then divide the number annual gross pay (pay before taxes).


The benchmark depends on your age and financial goals, but the general age-based guidelines are:

Age 25: 0.2:1

Age 30: 0.6-0.8:1

Age 35: 1.6-1.8:1

Age 45: 3-4:1

Age 55: 8-10:1

Age 65: 16-20:1


Discuss with your financial professional to ensure you are planning, saving, and investing properly in order to accomplish your financial goals.





Michael Dailey

Written by Michael Dailey

Michael Dailey is the Founder and CEO of InvestorKeep, a company passionate about help you save money and maximize your investments. The average investor loses well over $100K to the implications of investment fit, fees, and quality. InvestorKeep gives you an easy way to monitor investments helping you keep and earn more.