How much should be in 401k at age 40?

[Anonymous]

43 and 460k. Feeling behind.

[Anonymous]

I had $206,000 in my 401k when I was 40. Have $1.4 million now at 53.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You're asking about the 401k, but by 40 you should try backdoor contributions to a Roth IRA as well.

Odd advice without knowing income. Most Americans make below the Roth contribution phase out.

Strongly suggest looking up the details for “backdoor” Roth contributions.

You missed the point. The average American doesn't make enough money to have to use a backdoor to contribute to a Roth. Sorry you live in a UMC bubble.

No, you missed the point. Regardless of OP’s income, Roth IRA benefits are available to OP. And by 40, the advice is to look into taking advantage of that by contributing to a Roth IRA. Thats solid advice, and you’re focused on whether or not a backdoor is needed - who cares.

I don't think you understand how tight the average American's finances are. While I appreciate your mansplaining, you continue to miss the point.

[Anonymous]

I had $0 in 401(k) or even in stocks in brokerage, but I had a paid-off house and lot of cash in the bank. I don't care what anyone says, that makes your life so much easier than a huge 401(k) balance that you can only access when you're a senior citizen.

To each their own.

[Anonymous]

Anonymous wrote:I had $0 in 401(k) or even in stocks in brokerage, but I had a paid-off house and lot of cash in the bank. I don't care what anyone says, that makes your life so much easier than a huge 401(k) balance that you can only access when you're a senior citizen.

To each their own.

So how much do you have in a 401k now and what is your age?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:You're asking about the 401k, but by 40 you should try backdoor contributions to a Roth IRA as well.

Odd advice without knowing income. Most Americans make below the Roth contribution phase out.

Strongly suggest looking up the details for “backdoor” Roth contributions.

You missed the point. The average American doesn't make enough money to have to use a backdoor to contribute to a Roth. Sorry you live in a UMC bubble.

No, you missed the point. Regardless of OP’s income, Roth IRA benefits are available to OP. And by 40, the advice is to look into taking advantage of that by contributing to a Roth IRA. Thats solid advice, and you’re focused on whether or not a backdoor is needed - who cares.

I don't think you understand how tight the average American's finances are. While I appreciate your mansplaining, you continue to miss the point.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:I had $0 in 401(k) or even in stocks in brokerage, but I had a paid-off house and lot of cash in the bank. I don't care what anyone says, that makes your life so much easier than a huge 401(k) balance that you can only access when you're a senior citizen.

To each their own.

So how much do you have in a 401k now and what is your age?

42 and about $250K spread out over 401(k), Roth IRA, HSA and brokerage. I now save about $150K per year. Part of the reason that no mortgage and a lot of cash made sense for me is because it allowed me to take more risks as a business owner. I would be saving a lot less if I couldn't take those risks.

[Anonymous]

Whatever maxing out for the duration of your employment years would get you to. Differs based on career choice and salary

[Anonymous]

Anonymous wrote:I'm 44 and have $1.15M.

Been maxing out 401k since 25 years old.

Me too, without fail, but only $780k at 41.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm 44 and have $1.15M.

Been maxing out 401k since 25 years old.

Me too, without fail, but only $780k at 41.

You would be surprised how much of a difference employer match makes.

Also keep in mind the investment strategy (high risk vs low risk)

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm 44 and have $1.15M.

Been maxing out 401k since 25 years old.

Me too, without fail, but only $780k at 41.

With three more years of maxing and strong stock market returns you could also potentially be at 1.15M by 44.

[Anonymous]

Aim for $1 mil by 40 then you have this money working for you! The next millions go so much faster when you have money to make money.

[Anonymous]

Anonymous wrote:Average

Here's one way to evaluate it:

https://www.businessinsider.com/how-to-define-wealth-formula-the-millionaire-next-door-2019-1?op=1


This gives you way to simply evaluate where you are currently and where you want to be if you aren't there currently(PAW). I think anyone who it in PAW territory is doing pretty good.

[Anonymous]

Millionaire next door says (age x annual income)/10. Ie: ($150,000x 40)/10 = $600,000.

[Anonymous]

Anonymous wrote:Whatever maxing out for the duration of your employment years would get you to. Differs based on career choice and salary

Once you reach a certain income/lifestyle level, you have to save a lot more than the retirement max if you want to maintain your lifestyle when you retire.