How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?

[Anonymous]

OP, same! We did not invest early. Our employers do not match. And we are limited by max contributions. Obviously I’m kicking myself for not investing early. I was broke all the time so that’s why I didn’t.

[Anonymous]

It’s what happens when you buy Apple and Amazon and Google early and keep them for decades.

[Anonymous]

The Dow closed at 7980 the year I started working. I maxed every year. Back then it was $9500. If you ever see it, you don’t miss it. Now the Dow is 34,500. So, about or 4.5x higher plus 24 years of putting in $10k-$19k a year plus match.

[Anonymous]

OP here , y'all are amazing!!! Thanks for all these responses!

[Anonymous]

Time. I started working making $55k out of undergrad (now $160k). I contributed %10 a year and was matched %4-6. Its been 15 years and growth has been good.

[Anonymous]

1) they've always maxed out 2) they have generous employer matching 3) they are old.

[Anonymous]

I have never been able to max (teacher) and only have $350k at age 45. I am a bit jealous of all these company matches. This year I am finally in a position to max my 403b and 457b. That along with my pension paying $5k a month should have my wife and I pretty well set though. I put 7.5% of salary into the pension. Basically teachers pay 75% of the typical pension benefits. States pay about 25% on average for the typical state pension.

[Anonymous]

Anonymous wrote:Matching, profit sharing, exceptional returns the past decade or so, taxable savings.

This

[Anonymous]

Anonymous wrote:I have never been able to max (teacher) and only have $350k at age 45. I am a bit jealous of all these company matches. This year I am finally in a position to max my 403b and 457b. That along with my pension paying $5k a month should have my wife and I pretty well set though. I put 7.5% of salary into the pension. Basically teachers pay 75% of the typical pension benefits. States pay about 25% on average for the typical state pension.

That is $60k per year, which, based om a 4% withdrawal rate, is equivalent to $1.5m in 401k savings. It also carries no SORR, although you won't share in any market upsides.

[Anonymous]

I started maxing everything when I was in my mid 20’s. IRA’s, 401K’s, SEP/IRA for non W-2 comp. I’m sure there were years when I was putting in $40-50,000 but it’s now so long ago I can’t recall exactly how I did it. But I kept pouring it in and with compounding it’s worth a few million. I invested it for high growth given I had a very long term view. I’ve been retired for nine years and still haven’t withdrawn any of it but need to in two years.

[Anonymous]

My employer matches 4.5 percent, so that’s nice. (I’ve just started my professional career at 35 though, so it will be a little later in life for me that I see the benefits of this.)

[Anonymous]

Also when people say they have X dollars in their retirement accounts, they’re probably including all their savings and investments that they have earmarked for retirement, even those that aren’t officially “retirement” accounts for tax purposes.

[Anonymous]

We are old and the market has been kind.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Power of compounding. Start maxing early, as soon as you can.

This. Started at my first job making $18k and I was thrilled to make that. Match at the time was 6% from my employer, so I put away 6% of my salary. Upped my contribution with every raise, with every new job, and while I can't remember when I maxed (definitely late 20s/early 30s), it grew amd grew.

+1 we showed our kids examples of the power of compounding.

They have their own investment savings now, and 16 yr old has been saving and investing.

[Anonymous]

I'm 31 and DW is 27. With employer contributions we are putting in about 70k a year into 401ks. (just started this much this year)

Currently we have a combined of around $360k

by the time i'm 40 we should easily have 2M+ in 401ks. I fully expect to have 10M + in retirement accounts alone when we retire. No bragging by any means, just answering how it's possible.