Is this immaterial?

[Anonymous]

I am 42 with $1.1 million in my 401k, which according to this website and others is kind of behind considering my income is $266k. I do have a lot of home equity ($1.1 million). Also will likely inherit but I’m assuming I won’t.

To get ahead I am now contributing $60k each year into my 401k. This includes company match.

However when I run retirement calculators it doesn’t seem like it increases my retirement to the extent I would expect.

Am I missing something?

[Anonymous]

Yah, you already have a good nut.

Your money can work harder than you can, so under ordinary circumstances, your $1.1mm is growing by $100k a year all on its own, without your contributions.

So put the $60k in there, but as Thomas Piketty pointed out, money works harder than labor these days, even high-earning labor.

[Anonymous]

$1.1M with $5,000 invested monthly until you are 65 at 7% return (average real return for US stocks) gives you about $9M.

$1.1M with $0 invested monthly until you are 65 at 7% return gives you $5.6M.

That's 60% more money with your ongoing savings, which is a lot. What calculation did you run?

[Anonymous]

Anonymous wrote:$1.1M with $5,000 invested monthly until you are 65 at 7% return (average real return for US stocks) gives you about $9M.

$1.1M with $0 invested monthly until you are 65 at 7% return gives you $5.6M.

That's 60% more money with your ongoing savings, which is a lot. What calculation did you run?

I’ve ran a few calculators - Fidelity, vanguard etc and they tell me I won’t have enough money. I’m suspicious the calculators are rigged to suggest you need to invest way more than necessary.

[Anonymous]

You're good to go.

[Anonymous]

You'll need to know how much you plan to spend before you can evaluate if you have enough. A rough rule of thumb is that a 4% withdrawal calculated on your invested assets at the time of your retirement will last you 30 years even with "normal" market bumpiness. So if you have $5M at age 65, you can withdraw $200,000 per year to cover all expenses and taxes and feel pretty confident you won't run out of money until you die at 95. Note that does not include pensions or Social Security, home sales, inheritances, or any income you earn while retired.

I'm not sure how you are using those calculators and why they are saying you won't have enough. You seem to be on-track.

[Anonymous]

401k is not the best place for your money. That's what you are missing.
401k is a savings account more than an investment account, because of the low returns.
Don't forget the taxes in retirement. They are much higher than they would be in regular investment account.

[Anonymous]

You are completely fine

[Anonymous]

Anonymous wrote:I am 42 with $1.1 million in my 401k, which according to this website and others is kind of behind considering my income is $266k. I do have a lot of home equity ($1.1 million). Also will likely inherit but I’m assuming I won’t.

To get ahead I am now contributing $60k each year into my 401k. This includes company match.

However when I run retirement calculators it doesn’t seem like it increases my retirement to the extent I would expect.

Am I missing something?

What rate of return are you using?

[Anonymous]

Anonymous wrote:401k is not the best place for your money. That's what you are missing.
401k is a savings account more than an investment account, because of the low returns.
Don't forget the taxes in retirement. They are much higher than they would be in regular investment account.

Okay this is nonsense

[Anonymous]

Anonymous wrote:

Anonymous wrote:$1.1M with $5,000 invested monthly until you are 65 at 7% return (average real return for US stocks) gives you about $9M.

$1.1M with $0 invested monthly until you are 65 at 7% return gives you $5.6M.

That's 60% more money with your ongoing savings, which is a lot. What calculation did you run?

I’ve ran a few calculators - Fidelity, vanguard etc and they tell me I won’t have enough money. I’m suspicious the calculators are rigged to suggest you need to invest way more than necessary.

I am suspicious of this as well. Most people are not savings enough but for high earners who are saving well, I think these calculators are off

[Anonymous]

You’re probably at coast fire

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:$1.1M with $5,000 invested monthly until you are 65 at 7% return (average real return for US stocks) gives you about $9M.

$1.1M with $0 invested monthly until you are 65 at 7% return gives you $5.6M.

That's 60% more money with your ongoing savings, which is a lot. What calculation did you run?

I’ve ran a few calculators - Fidelity, vanguard etc and they tell me I won’t have enough money. I’m suspicious the calculators are rigged to suggest you need to invest way more than necessary.

I am suspicious of this as well. Most people are not savings enough but for high earners who are saving well, I think these calculators are off

+1

Similar story with 529 calculators. The best part is how they suggest you invest say, $1k per month until age 18 and never mention that $1k now is a lot more than $1k 18 years from now. I’d love to see an inflation adjusted calculator.