Tell me how much you have saved in your 401K at age 40.

[Anonymous]

we're both 39 and I have around 450k in retirement accounts and DH has around 350k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When we were about 40, my husband and I had $325K between us in retirement accounts (401k+IRA). We are now about 50 and we have $1.2M in those same accounts with only one of us working (so only one of us is contributing to a 401k, although with a very generous match).

How generous is the match? I'm the PP with 50k a year going into my 401k/pension and hoping it catches me up. Given irs rules I assume your husband isn't putting more than 54k into the 401k

I haven't contributed to my 401k since I was 40 in 2007 (stopped working full-time). My husband has contributed the max during those 10 years which was about $18K each year (a bit less in earlier years, I think). For most of that time his company matched 50%, so they put in $9K each year, so $27K contribution each year. He turned 50 in 2015 so he has put in $24K for the past 2 years, again with a match of $9K (they do not match catch-up contributions). We have also each put in $5500 into our IRAs every year, with my husband putting in $6500 since 2015. We haven't made this year's contribution yet, and I turn 50 this year, so will start putting in $6500 each year. Hope that helps.

Serious question - if you use a buy and hold strategy, as most people do, why contribute post-tax dollars to an IRA rather that just keep it in a taxable account? I am assuming you aren't doing a backdoor Roth.

Actually, I should have been more specific. We each contribute the maximum to a Roth IRA each year. And my husband also contributes to a regular 401K. It's not a backdoor Roth, but a regular Roth as we meet the income requirements. I like the Roth for the withdrawal flexibility, the tax-free growth, and as a hedge against future tax increases/change in tax bracket. I still have more in my 401k than in my Roth (but Roth is catching up). My husband has much more in his 401k than in his Roth.

[Anonymous]

Anonymous wrote:We're over 50 and we're poors, so zero.

That doesn't scare you?

[Anonymous]

Anonymous wrote:

Anonymous wrote:We're over 50 and we're poors, so zero.

thanks. i'm with you at age 49. i do have some saved - but nothing like what I'm seeing on this thread.

I am sure you need much less to live on, though.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How are people building such large 401k balances for those ages given the annual contribution limits? Even with high market returns it doesn't seem to add up. Maybe it's generous employer match??

I'm early 40s with 500k. I don't max out (used to). Govt matching.

I'm 38 and have $500k +/- $25k. I have been maxing out since age 30 and coming close before that. I remember when the max was $13k. I get a 3% match and an annual profit sharing contribution. I have a diversified mix of low cost Vangaurd funds balanced annually.

LOL I remember when the max was $7,500.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When we were about 40, my husband and I had $325K between us in retirement accounts (401k+IRA). We are now about 50 and we have $1.2M in those same accounts with only one of us working (so only one of us is contributing to a 401k, although with a very generous match).

How generous is the match? I'm the PP with 50k a year going into my 401k/pension and hoping it catches me up. Given irs rules I assume your husband isn't putting more than 54k into the 401k

I haven't contributed to my 401k since I was 40 in 2007 (stopped working full-time). My husband has contributed the max during those 10 years which was about $18K each year (a bit less in earlier years, I think). For most of that time his company matched 50%, so they put in $9K each year, so $27K contribution each year. He turned 50 in 2015 so he has put in $24K for the past 2 years, again with a match of $9K (they do not match catch-up contributions). We have also each put in $5500 into our IRAs every year, with my husband putting in $6500 since 2015. We haven't made this year's contribution yet, and I turn 50 this year, so will start putting in $6500 each year. Hope that helps.

Serious question - if you use a buy and hold strategy, as most people do, why contribute post-tax dollars to an IRA rather that just keep it in a taxable account? I am assuming you aren't doing a backdoor Roth.

Because the earnings are tax deferred.

[Anonymous]

Anonymous wrote:DH and I both 42

I have about 200k in iras/Roth/401k(I didn't work for a few years when kids arrived)
DH has 760k of same mix
90k for kids 529-3 kids
170k in investments and stocks
80k cash
430 home equity

You guys basically have a million bucks for retirement, a half-mil in home equity plus another $300k+ in cash & investments? That's pretty amazing, and you should be proud. We don't make near enough to have that kind of nest egg

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When we were about 40, my husband and I had $325K between us in retirement accounts (401k+IRA). We are now about 50 and we have $1.2M in those same accounts with only one of us working (so only one of us is contributing to a 401k, although with a very generous match).

How generous is the match? I'm the PP with 50k a year going into my 401k/pension and hoping it catches me up. Given irs rules I assume your husband isn't putting more than 54k into the 401k

I haven't contributed to my 401k since I was 40 in 2007 (stopped working full-time). My husband has contributed the max during those 10 years which was about $18K each year (a bit less in earlier years, I think). For most of that time his company matched 50%, so they put in $9K each year, so $27K contribution each year. He turned 50 in 2015 so he has put in $24K for the past 2 years, again with a match of $9K (they do not match catch-up contributions). We have also each put in $5500 into our IRAs every year, with my husband putting in $6500 since 2015. We haven't made this year's contribution yet, and I turn 50 this year, so will start putting in $6500 each year. Hope that helps.

Serious question - if you use a buy and hold strategy, as most people do, why contribute post-tax dollars to an IRA rather that just keep it in a taxable account? I am assuming you aren't doing a backdoor Roth.

Because the earnings are tax deferred.

No! Because you've already paid the tax! The growth is tax free!

[Anonymous]

http://moneyning.com/retirement/tax-free-growth-why-so-many-love-the-roth-ira/

[Anonymous]

On a $220k HHI, at 40 (in 3 years), we should have about $1.3M in retirement accounts, and maybe $600k in non-retirement, Vanguard stock index fund.

[Anonymous]

42 yo - my individual retirement accounts (Rollover IRA, Roth IRA, SEP IRA) total: $266,790.32
40 yo spouse (401k, Roth IRA, and Rollover IRA): $117,926.60
We save about 12% of our pre-tax income for retirement each year, and my wife has a pension plan that is pretty secure and has a solid payout at retirement age.
1 12yo son - 2 semesters (1 yr of tuition and fees at 4-year university) of Virginia Pre-paid 529 and $10,514.74 in regular Virginia 529
Savings in cash/cash equivalent: $89,412.25

New financial planner said we're "good, but not wow." We have an aggressive and achievable plan for college savings to purchase 2 semesters/year for next 3 years (currently $15,650/year) + $8,000/year in regular 529 (to max our Virginia tax deduction). This feels fine. Not sweating it.

[Anonymous]

Anonymous wrote:42 yo - my individual retirement accounts (Rollover IRA, Roth IRA, SEP IRA) total: $266,790.32
40 yo spouse (401k, Roth IRA, and Rollover IRA): $117,926.60
We save about 12% of our pre-tax income for retirement each year, and my wife has a pension plan that is pretty secure and has a solid payout at retirement age.
1 12yo son - 2 semesters (1 yr of tuition and fees at 4-year university) of Virginia Pre-paid 529 and $10,514.74 in regular Virginia 529
Savings in cash/cash equivalent: $89,412.25

New financial planner said we're "good, but not wow." We have an aggressive and achievable plan for college savings to purchase 2 semesters/year for next 3 years (currently $15,650/year) + $8,000/year in regular 529 (to max our Virginia tax deduction). This feels fine. Not sweating it.

What's you HHI?

[Anonymous]

Feel behind. Returned to woek at age 37 aftwr raising children. Started contributing max then, company match of approx 10k. So for me 28k/yr for thr last 3 years, 90k in my account.

DH has 500k at age 41. His current company does not match. So nearly 600k at 40 and a lot of catch up for us to do, but at leat there are now 2 full contributors and i work for a generous company.

[Anonymous]

DH is 39 w/ about $500k in his 401k + a pension
I'm 31, I only have $42k and no pension, I started late, playing catch up

[Anonymous]

Anonymous wrote:

Anonymous wrote:42 yo - my individual retirement accounts (Rollover IRA, Roth IRA, SEP IRA) total: $266,790.32
40 yo spouse (401k, Roth IRA, and Rollover IRA): $117,926.60
We save about 12% of our pre-tax income for retirement each year, and my wife has a pension plan that is pretty secure and has a solid payout at retirement age.
1 12yo son - 2 semesters (1 yr of tuition and fees at 4-year university) of Virginia Pre-paid 529 and $10,514.74 in regular Virginia 529
Savings in cash/cash equivalent: $89,412.25

New financial planner said we're "good, but not wow." We have an aggressive and achievable plan for college savings to purchase 2 semesters/year for next 3 years (currently $15,650/year) + $8,000/year in regular 529 (to max our Virginia tax deduction). This feels fine. Not sweating it.

What's you HHI?

~$300k. I am an independent consultant and my income varies $180k-$210k. 2016 HHI was $312k