Tim Mazanec Quoted in USA Today article on 401K savings

BOSTON, April 8, 2023

Harvest Group Wealth Management, LLC, a family-owned, independent Registered Investment Advisor (RIA),  announces that Tim Mazanec MPAS®, CFP®, CMT®, CRPC® was recently quoted in a USA Today article on 401K retirement savings. Below is an excerpt:

According to Tim Mazanec, a certified financial planner at wealth management firm The Harvest Group Wealth Management, “One way to understand how much one’s 401(k) balance may be at any given age would be to run through an illustration. Everyone is going to be in a unique position and will have differing abilities to contribute to 401(k) plans, but the following math may act as a guide for some.”

Mazanec provides the following example.

Assuming an individual begins contributing to a 401(k) plan at 22 years old. They have a starting salary of $40,000 and receive 3% annual salary increases. They contribute 6% of their salary to the retirement plan, and their employer contributes a full 3% match. The annual rate of return is 6%.

• At age 32, their balance would be approximately $63,000.
• At age 42, the balance would grow to approximately $190,000.
• At age 52, the balance would grow to approximately $444,000.
• At age 62, the balance would grow to approximately $869,000.

If this individual did not receive an employer match throughout their career, their 401(k) balance at age 62 would be approximately $580,000, or lower by one-third.

“Not everyone is going to be able to contribute to a 401(k) plan each year,” Mazanec adds. “People change jobs, lose jobs, can be financially strained, and may have parental or other duties that preclude them from contributing. This scenario is for illustration purposes only.” 

Read the full USA Today article.