Nick

More Americans than ever are saving what they're supposed to be saving for retirement. According to Fidelity Wealth Management experts, 401k savings rates should be 15% of your income. And right now, boomers are saving 17% of their income and millennials are impressively saving 13.5% of their income. In fact, Americans are saving a record high percent for their IRAs and their HSA accounts too.

Basically, when it comes to retirement accounts, you are saving like Nana down in Sarasota. All right. Now, Nick, I just noticed we've done like five highly jargony things. Like we said 401k, HSA, IRA. Oh, yeah. Can we sprinkle on some context, please? FYI, I was going to say we should sprinkle on some context, Jack.

Basically, when it comes to retirement accounts, you are saving like Nana down in Sarasota. All right. Now, Nick, I just noticed we've done like five highly jargony things. Like we said 401k, HSA, IRA. Oh, yeah. Can we sprinkle on some context, please? FYI, I was going to say we should sprinkle on some context, Jack.

Basically, when it comes to retirement accounts, you are saving like Nana down in Sarasota. All right. Now, Nick, I just noticed we've done like five highly jargony things. Like we said 401k, HSA, IRA. Oh, yeah. Can we sprinkle on some context, please? FYI, I was going to say we should sprinkle on some context, Jack.

A 401k lets you save up to $23,000 of your paycheck pre-tax and invest it in the stock market for your retirement. And then you can withdraw that money from the stock market when you're 59 and only pay taxes on the gains. A lot of times the company matches 401k contributions, which is like free money. Now, if a company doesn't offer a 401k, you could set up an IRA account.

A 401k lets you save up to $23,000 of your paycheck pre-tax and invest it in the stock market for your retirement. And then you can withdraw that money from the stock market when you're 59 and only pay taxes on the gains. A lot of times the company matches 401k contributions, which is like free money. Now, if a company doesn't offer a 401k, you could set up an IRA account.

A 401k lets you save up to $23,000 of your paycheck pre-tax and invest it in the stock market for your retirement. And then you can withdraw that money from the stock market when you're 59 and only pay taxes on the gains. A lot of times the company matches 401k contributions, which is like free money. Now, if a company doesn't offer a 401k, you could set up an IRA account.

With an IRA, you can save up to $7,000 a year and withdraw it when you turn 59. Now, there's also a Roth IRA in which you pay the taxes first as the income from your paycheck, but then you don't pay taxes when you withdraw that money from the stock market. Unlike a regular IRA where you don't pay taxes at the beginning, but you do pay taxes when you withdraw.

With an IRA, you can save up to $7,000 a year and withdraw it when you turn 59. Now, there's also a Roth IRA in which you pay the taxes first as the income from your paycheck, but then you don't pay taxes when you withdraw that money from the stock market. Unlike a regular IRA where you don't pay taxes at the beginning, but you do pay taxes when you withdraw.

With an IRA, you can save up to $7,000 a year and withdraw it when you turn 59. Now, there's also a Roth IRA in which you pay the taxes first as the income from your paycheck, but then you don't pay taxes when you withdraw that money from the stock market. Unlike a regular IRA where you don't pay taxes at the beginning, but you do pay taxes when you withdraw.

So add up all those acronyms, besties, and the reason we like retirement accounts is they let you skip a tax payment. And that's huge. If you just take your paycheck and invest it in a regular brokerage account, you pay taxes twice. First, you pay taxes with your paycheck, and then you pay taxes on any gains when you withdraw.

So add up all those acronyms, besties, and the reason we like retirement accounts is they let you skip a tax payment. And that's huge. If you just take your paycheck and invest it in a regular brokerage account, you pay taxes twice. First, you pay taxes with your paycheck, and then you pay taxes on any gains when you withdraw.

So add up all those acronyms, besties, and the reason we like retirement accounts is they let you skip a tax payment. And that's huge. If you just take your paycheck and invest it in a regular brokerage account, you pay taxes twice. First, you pay taxes with your paycheck, and then you pay taxes on any gains when you withdraw.

And that's like one of the reasons why retirement accounts are suddenly going viral like frappuccinos out there. Everyone's figuring out on TikTok that they can pay less taxes if they use a retirement account. Hashtag Roth IRA has 800 million views on TikTok. Yeah, but it's not TikTok that has Americans putting a record 14.3% of their paycheck into a 401k.

And that's like one of the reasons why retirement accounts are suddenly going viral like frappuccinos out there. Everyone's figuring out on TikTok that they can pay less taxes if they use a retirement account. Hashtag Roth IRA has 800 million views on TikTok. Yeah, but it's not TikTok that has Americans putting a record 14.3% of their paycheck into a 401k.

And that's like one of the reasons why retirement accounts are suddenly going viral like frappuccinos out there. Everyone's figuring out on TikTok that they can pay less taxes if they use a retirement account. Hashtag Roth IRA has 800 million views on TikTok. Yeah, but it's not TikTok that has Americans putting a record 14.3% of their paycheck into a 401k.

It's the default that made them do it, Jack. We'll explain. Yetis, in 2006, Congress passed a bill encouraging companies to auto-enroll their employees in 401ks. Basically, instead of requiring workers to opt in to a retirement account, they required them to opt out of a retirement account. And that change in the default boosted enrollment just as millennials were entering the job market.

It's the default that made them do it, Jack. We'll explain. Yetis, in 2006, Congress passed a bill encouraging companies to auto-enroll their employees in 401ks. Basically, instead of requiring workers to opt in to a retirement account, they required them to opt out of a retirement account. And that change in the default boosted enrollment just as millennials were entering the job market.

It's the default that made them do it, Jack. We'll explain. Yetis, in 2006, Congress passed a bill encouraging companies to auto-enroll their employees in 401ks. Basically, instead of requiring workers to opt in to a retirement account, they required them to opt out of a retirement account. And that change in the default boosted enrollment just as millennials were entering the job market.

Another interesting change, the default contribution. The percentage of your paycheck that was defaulted into a retirement account was 3%, but now it's 5%. So basically, they nudged you to save a little bit more money. And those nudges resulted in more millennials on pace to become 401k millionaires.