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CNBC
22 minutes ago
- Business
- CNBC
How much Americans have in their 401(k)s at every income level
It's not uncommon for Americans to feel like they're not saving enough for retirement — no matter their age or income level. But earning a higher salary can help you save more, as long as you increase your contributions along with your income. So it may not be surprising that workers with higher incomes tend to have higher 401(k) balances, according to newly released data from asset management firm Vanguard. The median balance of defined contribution plans — which are employer-sponsored retirement plans like 401(k)s or 403(b)s — among workers making between $100,000 and $149,999 is nearly double what workers making $50,000 to $74,999 have invested, per Vanguard. The firm examined data from nearly 5 million participants across its defined contribution plans. Here's how much workers have in their retirement savings plans at each income level. Notably, the average balances are significantly higher than the median balances. The median is often a more representative figure, however, because averages can be skewed if a small number of participants have significantly higher or lower amounts invested. And keep in mind these figures only represent savings held in Vanguard defined contribution plans. Investors may have additional retirement accounts with other plan providers or separate brokerage accounts. Despite ongoing macroeconomic uncertainty like stubbornly high prices and recession fears, many Americans have prioritized their long-term financial goals through retirement account contributions. "There has been persistent, year-over-year progress in retirement savings behaviors," David Stinnett, head of strategic retirement consulting at Vanguard, told CNBC Make It in an email. "Seemingly regardless of market and economic conditions, we find that workers are getting started saving earlier, saving more of their paycheck, and investing their savings in age-appropriate asset allocations more consistently." Regardless of income, one factor that has helped boost savers' balances is automatic enrollment. Employees with 10 or more years of tenure who were automatically enrolled in their company's retirement plan had median account balances roughly 60% higher than those who had to opt-in to contributions, the same Vanguard study found. The median balance among auto-enrolled investors with at least 10 years of service was $192,372 in 2024, compared with $121,094 for voluntary enrollees. "We're encouraged by how employers design their 401(k) plans to make it easy for workers to save and invest for retirement, and automatic enrollment is a big part of that," Stinnett said.
CNBC
32 minutes ago
- Business
- CNBC
Look inside: Couple bought a chateau in France for $835,000, spent over $300,000 turning it into a bed and breakfast
After years of living in San Francisco, California natives Malana Moberg, 59, and Roland Salvato, 64, were ready for a change. Salvato had spent approximately 30 years working as a project manager, while Moberg worked as a marketing consultant. After a stint running their own company, The RoMa Group, they decided to the countryside to start a bed and breakfast. "We had lived in San Francisco and experienced everything that the wonderful city has to offer and we wanted to change," Moberg tells CNBC Make It. "We love traveling and entertaining so we thought this could be an interesting second career for us." The idea to start a bed and breakfast didn't come from a desire to make money. Instead, Salvato and Moberg were looking for a challenge to take on in their next chapter. "We obviously made good money, but it wasn't the goal of either of our lives," Salvato says. "Experience is much more important than material wealth. Any investment in our curiosity about life is worthwhile." The couple began their search for a new home, looking for a property that would not only have space for plenty of guests, but also for animals. "I always knew I wanted to move to the country. I just didn't know which country," Salvato says. They looked in Spain, Portugal and North Africa, but France and its rich history kept calling to them. It also helped that Salvato already spoke French. They scoured the country looking for the perfect spot, eventually ending up in a town called Druelle Balsac. Here, they found a chateau that felt perfect. The 6,458 square feet property was listed for 736,000 euros (approximately $835,000 USD) and included a main chateau with three bedrooms and three-and-a-half bathrooms, and a four-bedroom, two-bathroom guest house. The chateau's foundation dates back to the 12th century, and other parts of the property were built in the 14th and 15th centuries. In 2017, Moberg and Salvato sold their San Francisco apartment for $1.45 million and used that money to purchase the chateau in cash. They put the rest of the money towards renovations and living expenses. The chateau hadn't been renovated or had any upgrades in 50 years. "We decided we want to make it great for us first, because we have to live here, we have to be comfortable," Salvato says. Renovations started in 2018 and are still ongoing. The two estimate they've spent about $332,000 on the work so far — including the dining room, living room and kitchen. But the property is generating some income for them. They were able to open the guesthouse to visitors for $238 a night, and have three rooms in the chateau available for $187 a night. At Château de Balsac, the couple offers week-long, all-inclusive workshops on yoga, cooking, book arts, drawing and painting for roughly $4,500 per person. The workshops help the bed and breakfast stay booked outside of the summer, which is typically their busiest season. Last year, the chateau hosted 60 guests and generated $22,000 in revenue, according to documents reviewed by CNBC Make It. The couple's estimated monthly expenses are around $2,212 for utilities, insurance and Wi-Fi. Last year, they paid about $2,000 in property taxes. The business isn't profitable yet, but the income helps them get by. "That little amount of money doesn't sound like much but it really helps us cover a lot of the costs of the chateau, which is really what we were looking to do," Moberg says. Until the bed and breakfast turns a profit, the couple is using their savings to cover living expenses. "I guess you could say this has been a very expensive French lesson," Salvato says. And though the couple enjoys living and hosting guests at the chateau, they are most proud that they have been able to breathe new life into the property. "We are merely caretakers of this piece of history and this legacy for the next generation," Salvato says.
Time of India
2 days ago
- Health
- Time of India
Forget the gym: This one regular exercise can be your complete anti-aging workout
Staying strong and mobile as we age doesn't necessarily require fancy gym equipment or intense cardio regimens. According to health experts and government guidelines, one regular, no-fuss workout could be the key to maintaining strength, stability, and flexibility well into your later years—and it doesn't cost a rupee. The humble squat may be the most powerful (and overlooked) full-body exercise in your wellness toolkit. A recent article by The Mirror explores how this foundational movement, often associated with gym-goers and weightlifters, can actually be a game-changer for older adults looking to combat reduced mobility, joint stiffness, and declining muscle mass. The best part? Squats require no special equipment and can be performed in the comfort of your own home. The aging body's silent shift With age, it's natural for muscle strength and flexibility to decrease. This decline can make everyday movements—like bending down to pick something up or climbing stairs—more difficult. It also increases the risk of falls, slows down recovery from injuries, and can worsen chronic conditions like arthritis. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Stolt over fremgangen Hydroprot Les mer Undo To counter this, the CDC and other public health bodies recommend that older adults aim for at least 150 minutes of exercise per week. But it's not just about walking or yoga. Targeted strength training, even in its simplest form, plays a critical role. That's where squats come in. Why squats matter Squats are a compound exercise, meaning they work several muscle groups at once—glutes, hamstrings, calves, core, and lower back. This mirrors the kind of movements we perform daily, making it a functional exercise that supports real-world activity. You Might Also Like: Think diet and exercise are enough? Ignoring this one thing still puts your health at risk From helping you sit and stand more easily to improving your balance and posture, squats strengthen the muscles that make life simpler and safer. Importantly, they don't require a gym membership or expensive gear. A simple bodyweight squat, done correctly and regularly, can lead to noticeable improvements in strength and joint support. iStock Squats are a compound exercise, meaning they work several muscle groups at once—glutes, hamstrings, calves, core, and lower back. From basics to benefits: how to squat smart While the squat is a powerhouse exercise, form is key. Beginners are advised to prioritize technique over intensity. Start by standing with your feet slightly wider than hip-width apart, keeping your chest lifted and core engaged. From this stance, slowly lower yourself as if sitting in an invisible chair, and then return to standing. As confidence and strength grow, variations such as goblet squats or resistance band squats can be introduced to add intensity and focus on different muscle groups. A study cited in the CNBC Make It report highlights that gradually increasing the intensity and volume of squats over time—especially with added weights—can help prevent injury while enhancing full-body strength. No shortcuts, just consistency If there's one golden takeaway, it's this: squats are for everyone, not just athletes or bodybuilders. They're a safe, adaptable, and efficient way to support your body through the aging process. But as with any physical activity, form and consistency matter more than speed or weight. Experts recommend consulting a healthcare provider if you're new to squats or have existing joint issues. You Might Also Like: Want to lose weight faster at the gym? Science reveals the most-effective workout order So next time you think about skipping the gym, remember—your living room could be the best fitness studio you never knew you had. All you need is a little space, the right technique, and a commitment to keep moving.
CNBC
3 days ago
- Business
- CNBC
More Gen Zers are becoming bosses—and they're prioritizing flexibility and well-being
At 25 years old, Rai says he's often the youngest person in the room at work. It can be a tough spot to be in as a manager with eight reports. The young professional, who goes by Rai Tryna on social media, is among the growing share of Gen Zers taking on the role of "boss" — and many of these young managers are changing how business gets done. Gen Zers, the oldest of whom turn 28 this year, now make up 1 in 10 bosses, and they'll outnumber the share of Baby Boomer managers by next year, according to new research from Glassdoor. The trend shows up on both ends of the income spectrum, like food service (where there tend to be younger workers in general) and in tech (where advancement is usually faster), says Daniel Zhao, lead economist at Glassdoor. Twenty-something bosses are gaining ground at the same time many from the age group have become the faces behind trends like "conscious un-bossing," or the idea that young people don't want to take on the responsibility of managing their own team. The data doesn't support that claim, Zhao tells CNBC Make It — Gen Zers are actually taking management roles at similar rates as their generational predecessors. "When you look at the workforce overall, we do still see that Gen Z is interested in management," Zhao says. "They do still view the corporate ladder as a way to earn more money and rise the ranks." Rather, the conscious un-bossing trend taps into "a real frustration that some workers have, where they feel like they haven't been getting the recognition or compensation that comes with additional responsibilities," Zhao says. For his part, Rai, a partnerships manager at a tech company, says he wanted to become a manager after having had both good and bad bosses, and seeing how an excellent one can promote a positive work dynamic and help people thrive in their careers. Rai declined to share his last name for professional reasons. It's not always smooth sailing for the young leader who says he's learned to manage expectations with reports who are sometimes older than him. He can also see why young people might avoid a management role if it's not fairly compensated. "Dealing with eight direct reports is dealing with eight different lives and personalities and goals and ambitions — and you have to manage that while still doing the core job function," says Rai, who posts some of his career lessons on TikTok. Then, there's also having to "be the bad guy" when delivering disappointing news, like if someone is being passed over for a raise. "So I understand why people don't want to do it." That said, "I think if you enjoy people and you're getting fairly compensated," taking on leadership at work can be fulfilling, he says. Being a young leader means Rai can also set an example of the level of flexibility he wants to receive as an employee. He says he rarely denies a PTO request and doesn't mind wherever his reports work from, as a fully remote team. "If you're not taking any client-facing calls and you're getting your work done and you're at the beach, by all means, go get a tan," he says. The flexibility comes with open communication and trust that the work will get done, he adds. Many workers think the youngest crop of employees will bring a bigger emphasis on flexibility and well-being to the workplace, especially as they gain leadership experience, according to Glassdoor surveys. "What constitutes good leadership is changing at the same time that Gen Z is entering management ranks," Zhao says. "So this is not necessarily saying that Gen Z is inherently different in how they approach leadership, but it's just saying that the expectations on them [are] different than previous generations of managers." Between leading through global crises like the pandemic to integrating artificial intelligence in the workplace, many business experts have highlighted skills like emotional intelligence and empathy as crucial leadership skills for the future of work. "That also says something about how to train the next generation of managers," Zhao says. "The way that we've trained managers in the past might not be as relevant to what workers want moving forward, and that is going to be a challenge that employers and Gen Z managers alike will have to, well, manage."
CNBC
3 days ago
- Business
- CNBC
34-year-old works remotely from Mexico City, makes $350,000 a year: 'My goal isn't necessarily to just be rich'
When the Covid-19 pandemic shut down courts in early 2020, Derrick Morgan Jr.'s work at an Indianapolis-based law firm slowed dramatically. Faced with reduced contingency work, he started looking for new ways to earn income. Around that time, his cousin was starting a business and asked for help registering a trademark — something Morgan had studied in law school. "I did the trademark for it and was like, 'Oh, that's not that bad, I remember it,'" the 34 year-old tells CNBC Make It. "It's just like riding a bike." Morgan began offering trademark services on Fiverr, an online freelance platform. "After a few months, it really took off," he says. What began as a side project quickly grew into a full-time business on track to earn nearly $500,000 this year, of which he will pay himself over $350,000. He also earns $440 per month in rental income from a condo he owns in Chicago. Trademark law gives him the flexibility to work remotely, which fits his lifestyle. A lifelong traveler who has visited more than 60 countries, he now splits his non-travel time between Dallas and Mexico City, where he's put down roots. "Mexico City is home for the foreseeable future," Morgan says. He's hired a Spanish tutor, made friends with locals and tries to live, he says, as a "neighbor and not as a tourist." Here's a look at how Morgan juggles travel, his business and his plans for early retirement. Morgan's trademark services found an early audience on Fiverr, where his customer-friendly style stood out to small business owners and entrepreneurs. He became a Top Rated seller, the platform's highest designation. "A lot of these prospective clients, they're first-time business owners ... they've never dealt with a big fancy attorney who's going to be charging them hundreds of dollars to confuse them," he says. "I get a lot of clients because I'm approachable and I meet them where they are." By the time Morgan quit his day job in 2021, his boss wasn't surprised. "He said he saw it coming," Morgan says. "I've always been someone who has an entrepreneurial spirit." Morgan's company offers trademark services ranging from searches and filings to brand enforcement. "It's A to Z for trademark services," he says. Much of the work is procedural, which lets him serve more clients efficiently. He typically charges between $600 and $800 per client, depending on the scope of the service. While he still uses Fiverr, much of his business comes through word of mouth and social media. What began as a solo operation now includes a small team. "I have myself, my paralegal and an AI assistant where everything is a lot more streamlined," says Morgan. His business is fully remote, allowing him to set his own hours and work from anywhere. "There are no requirements for me to be in the States," he says. "Trademark law is federal law, so it doesn't matter where you're licensed, as long as you have a U.S. license. With the state bar, you can practice anywhere." Morgan used to work up to 90 hours a week when he was running the business solo. With a team in place, he now works closer to 45 to 50 hours a week — including some evenings to accommodate clients in different time zones. Before budgeting for anything else, Morgan sets aside at least 40% of his income — often $12,000 or more each month. "I make sure I invest as much as I can and then live off of the remainder," he says. Morgan's low fixed costs allow him to invest consistently across both tax-advantaged and taxable accounts, including a solo 401(k), a SEP individual retirement arrangement, a health savings account and a brokerage account. Recently, he's paused contributions to his investment accounts and is directing most of his earnings toward a boutique hotel property development project in Mexico. He says he expects to complete his payments within a few months, and plans to catch up on his retirement contributions later in the year. "I invest in real estate because I don't want all my wealth tied to the stock market," he says. Here's a look at how he spent his money in March 2025: Morgan says his apartment in Mexico City costs about half of what he'd pay for a similar place in a major U.S. city like Chicago. While he lists Texas as his U.S. home base, he spends most of the year abroad. "I spend nine months in Mexico City, three months, wherever the wind takes me," he says. "Texas is where home is — that's where my family is — but I might be in Europe or traveling around other parts of the U.S." Morgan first developed his "travel mindset" in college. He studied abroad in the U.K. and volunteered in rural Vietnam, then kept that momentum going in law school, visiting about three countries a year. In 2018, he even skipped his graduation to fly to South Africa because the flights were cheap. He recently spent several weeks exploring countries in South America and often joins friends on spontaneous trips abroad. Morgan also enjoys eating out frequently. He lives in a walkable Mexico City neighborhood known for its cafes, lush parks and late-night taco spots. "I do like to splurge on food and eat out a lot," he says. "Outside of food, I try to keep a lot of my expenses low." He doesn't own a car, choosing instead to get around with rideshare apps, rental bikes and public transit. Some of his expenses, like his phone, are covered through his business. All health-care expenses are paid out of pocket. His only debt is $42,000 in student loans, and he pays off his credit card balances in full each month. Morgan is inspired by the principles of the FIRE movement — short for financial independence, retire early — and wants the option to stop working in his 40s. For him, it's less about building wealth and more about "being able to do what I want, when I want," he says. When he does retire, he plans to focus on passion projects "instead of working to make money." "As a business owner, you don't know how long your business is going to thrive," he says. "So I ensure that I pay myself first and I front-load my investments because I do want to retire as early as possible." For now, Morgan remains focused on growing his business, traveling frequently and maintaining an affordable lifestyle in Mexico City. "My goal isn't necessarily to just be rich," he says. "My goal is just to have options."
