The Personal Finance Podcast Summary

Episode: How Much Is in Retirement Accounts (By Generation!) + Money Q&A
Host: Andrew Giancola
Date: November 24, 2025

Episode Overview

Andrew Giancola delves into the average retirement savings by generation, breaking down fresh data on 401(k)s and IRAs from Gen Z through Baby Boomers. He emphasizes actionable retirement and investing principles for every generation and then answers listener questions on student loans versus investing, brokerage flexibility, and first-time real estate investing. The episode is pragmatic, motivational, and sprinkled with Andrew's signature "anyone can be wealthy" optimism.

1. Main Theme: Retirement Savings by Generation

Andrew uses new data from Fidelity to compare the average balances and behaviors in retirement accounts for each generation, discussing the implications and what individuals can do to improve their situation no matter their age.

2. Key Discussion Points and Insights

Gen Z: Planting Seeds Early

(00:59 – 05:30)

• Who is Gen Z: Born 1997–2012 (ages 13–28 in 2025).
• Retirement Stats:
  • Average 401(k) balance: $13,500
  • Average employee contribution: 7.2%
  • Average employer contribution: 3.7%
  • Roth 401(k): 18.2% contribute (higher than older generations)
  • Average IRA balance: $6,672
• Positive Trends:
  • Gen Z is starting to invest earlier than ever before.
  • Social media and increased financial education are driving early action.
• Andrew’s Advice:

  “Someone who starts in their 20s will massively outperform someone who starts in their 30s and who works twice as hard…” (03:40)

  • Even small amounts ($100–$200/month) have huge compounding potential.
  • Aim for 20% of income invested; start with anything you can.
• Wealth Builders Matrix:
  • Every $1 invested in your early 20s can be worth $100+ by age 65.
• Outlook:
  • If the trend continues, Gen Z could become the wealthiest retirement generation yet.

Millennials: Wealth-Building Prime

(05:30 – 10:50)

• Who is Millennial: Born 1981–1996 (ages 29–44 in 2025).
• Retirement Stats:
  • Average 401(k) balance: $67,300
  • Avg. employee contribution: 8.7% | employer: 4.6%
  • Roth 401(k): 18.3% contribute
  • IRA balance: $25,109
• Key Issues:
  • Millennials now hitting prime earning years but face time pressure and family/career demands.
  • Competing priorities: student loans, skyrocketing childcare costs, rising house prices.
• Andrew’s Call to Action:

  “This is where your retirement plan really starts to accelerate... If you don’t get your act together right now, then you are going to start to fall behind and you are going to feel behind.” (08:30)

  • Invest 20–30% of income if possible, and increase contributions gradually with the “1% rule.”
• Critical Reminder:
  • Inflation is eroding your purchasing power every year—investing is required, not optional.

Gen X: Retirement Crunch Time

(10:50 – 16:20)

• Who is Gen X: Born 1965–1980 (ages 45–60 in 2025).
• Retirement Stats:
  • Average 401(k) balance: $192,300
  • Avg. employee contribution: 10.2% | employer: 5%
  • Roth 401(k): Only 14.5% contribute (lower than younger groups)
  • IRA balance: $103,952
• Situation:
  • Many entering critical decade before retirement; catch-up contributions available after age 50.
  • Facing heavy responsibilities: teenage kids, aging parents, mortgages.
• Andrew’s Encouragement:

  “It is never, ever too late.” (15:41)

  • Start catch-up contributions now; every extra dollar invested counts.
• Notable Insight:
  • Roth 401(k) adoption is lower, possibly due to being a newer offering.

Baby Boomers: Drawing Down, Social Security Risk

(20:02 – 23:30)

• Who is Boomer: Born 1946–1964 (ages 61–79 in 2025).
• Retirement Stats:
  • Average 401(k) balance: $249,300
  • Avg. employee contribution: 11.9% | employer: 5%
  • Roth 401(k): Only 12.2% contribute (lowest rate)
  • IRA balance: $257,000
• Situation:
  • Many already retired and drawing down savings; heavy reliance on Social Security persists.
• Long-Term Lesson:
  • Younger generations shouldn’t plan to depend on Social Security—control your own retirement destiny.
  • Longevity risk is real; retirement savings may need to last many decades.

Retirement Account Balances by Generation Recap

(23:30)

• Baby Boomers: $249,300
• Gen X: $192,300
• Millennials: $67,300
• Gen Z: $13,500

3. Listener Money Q&A

Q1: Student Loans vs. Roth IRA – Which Should I Prioritize?

(23:45 – 27:36)

• Scenario: Listener has $21k in federal student loans at a low average rate (after deduction: 3.1%). Maxing out payments using the avalanche method but wondering if those dollars should go into a Roth IRA instead.
• Andrew’s Answer:

  "With your numbers, I would say 100% yes... your true interest rate is so low. We always want to attempt to get our dollars invested when we have low-interest debt." (25:00)

  • The long-term, average return in a Roth (invested in S&P 500, ~10%) far outweighs the return from pre-paying ~3% loans.
  • Roth IRA contributions are "use it or lose it" yearly—don’t miss those compounding years.
  • Exception: If debt causes anxiety, some may prefer to pay it off for peace of mind.
  • Suggested Order:
    1. Make minimum payments on loans.
    2. Redirect $600/month to Roth IRA (automate if possible).
    3. Once Roth is maxed, consider 401(k) or additional loan payments.

Q2: Should I Switch to a Brokerage with Fractional Investing?

(27:36 – 30:34)

• Scenario: Listener invests via Merrill Edge, but can't do fractional ETF shares.
• Andrew’s Recommendation:

  "If you have a brokerage account without fractional shares, that is something where they just don't have a lot of flexibility." (28:15)

  • Suggests moving to Vanguard, Fidelity, M1 Finance, or Charles Schwab for fractional investing and easier automation.
  • The transfer process is straightforward—call the new brokerage and they’ll assist.
  • Fractional shares help you invest small sums as soon as they're available, enabling faster compound growth.

Q3: First-Time Real Estate Investor – Should I Buy New Construction in a Different State?

(30:34 – 36:50)

• Scenario: Listener Anna wants to buy a Florida rental (her sister is a real estate agent there), possibly new construction, with $24k saved, currently living in NJ.
• Andrew’s Guidance:

  "The hardest part about out-of-state investing is trust and who's on the ground… but if your sister is willing to partner… this eliminates the biggest risk." (31:25)

  • Build your local team (contractors, property managers).
  • Run the numbers: All profit is made on the “buy,” not the sell.
  • Cash flow must be analyzed after all expenses—including taxes, HOA, management, maintenance, and potential CDD fees (common in new builds).
  • New builds often offer incentives, warranties, and reduced maintenance, but taxes and fees can erode cashflow.
  • Steps:
    1. Keep saving aggressively.
    2. Work with your sister to build a “deal pipeline.”
    3. Use a rental property calculator (Andrew offers one for $19 or free with Master Money Academy).
    4. Interview multiple lenders and property managers.
    5. Only purchase if the property actually cashflows after running all numbers.
  • Extra Tips: Watch for overbuilding in Florida; ensure demand remains strong for the property.

4. Notable Quotes & Memorable Moments

• “You could absolutely turn your entire family tree around just by planting the seeds. Even if it's $100 a month... it is going to make a massive difference.” – Andrew, (03:10)
• “If you don't get your act together right now, then you are going to start to fall behind and you are going to feel behind.” – Andrew, (08:30)
• “It is never, ever too late.” – Andrew, encouraging Gen X in catch-up mode, (15:41)
• “I don’t want you relying heavily on Social Security. Why? We don't know how much is going to be there. Relying on something you cannot control is dangerous.” – Andrew, (22:00)
• “Your money can work so much harder than you can.” – Andrew, on prioritizing investing over low-interest debt, (26:12)
• “All your money in real estate investing is made on the buy. Don’t guess—run the numbers every time.” – Andrew, (32:40)

5. Timestamps for Key Segments

• Gen Z Retirement Overview: 00:59 – 05:30
• Millennials Retirement Overview: 05:30 – 10:50
• Gen X Retirement Overview: 10:50 – 16:20
• Baby Boomers Retirement Overview: 20:02 – 23:30
• Retirement Account Balances Recap: 23:30
• Q&A – Student Loans vs Investing: 23:45 – 27:36
• Q&A – Switching Brokerages for Fractional Shares: 27:36 – 30:34
• Q&A – First-Time Real Estate Investing: 30:34 – 36:50

6. Takeaways and Action Steps

• Start investing ASAP, no matter your age—compounding is king.
• Strive for 20%+ of income invested during your “wealth prime” years.
• If you’re behind, it’s never too late—start catch-up contributions now.
• Don’t plan your retirement around Social Security; take control with your own savings.
• Choose brokerages that support your investing goals (fractional shares, automation).
• For real estate, do the math and build your local team—success hinges on the buy and the support on the ground.

Andrew wraps with gratitude for his audience and encouragement to take proactive steps no matter where you are in your wealth journey.

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