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

[Anonymous]

Combined, we had about $300k in our retirement accounts at age 40. At 55 we have about $400k with essentially zero contributions since age 40 and tons of withdrawals related to medical expenses. Life comes at you fast sometimes.

[Anonymous]

At 40 we had a combined 330K, now in late 40s it's about 900k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't understand how these high Numbers are possible for people under 35-40 in only a 401k, the max per year isn't enough to get over $1mm even if you were maxing out every year.... what am I missing?!

Think the same thing looking at these numbers. I too have maxed out to 18k since graduating law school at age 25. I too but it all in the S&P -- not in bonds etc. Yet 11 yrs into it, I'm struggling to reach 300k. Difference is -- I've never worked for any employer with a match until this past yr (it's just industry standard - not that I was with bad employers). I am just now realizing how quickly it grows if you have a generous match. People are posting on here with 5% matches or at companies where you get 12% put in automatically, whether you put in $1 or not. Those things in addition to putting in 18k yourself adds up fast. I hope to make up some ground in the next few yrs.

As another poster has explained, the “max” for 401(k)s is not 18k. Matches help, but it is really profit sharing which has a limit of of $55k for 2018 that allows people to really sock money away.

Depends on your job though -- if you have access to it, yeah the 55k max is great. Most W2 employees of a company don't get that, so 18.5k is it if you are also with a 0 match employer; and it's not even about a good or bad employer -- so much of this varies based on what industry you're in.

[Anonymous]

Anonymous wrote:At 40 we had a combined 330K, now in late 40s it's about 900k.

Wow hope to be in your position in a decade. So tell us -- what were you putting in? 18.5k each? Or was it up to the 55k with profit sharing? Any matching?

[Anonymous]

Regarding the questions on why some 401k's are so high - I'm a partner at a lawfirm and am able to put away $55,000 pre-tax. This number will go up even more in a few years. Between this benefit and my husband's employer's match, we are 45 and currently putting away $91,000 per year, pre-tax.

[Anonymous]

Math challenged poster - Bankrate.com has calculators that are helpful in predicting long term savings.

[Anonymous]

Anonymous wrote:39: $511K
Wife 38: $345K
529: $83k

Over $850K combined in 401k and not 40 yet. How??

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't understand how these high Numbers are possible for people under 35-40 in only a 401k, the max per year isn't enough to get over $1mm even if you were maxing out every year.... what am I missing?!

Think the same thing looking at these numbers. I too have maxed out to 18k since graduating law school at age 25. I too but it all in the S&P -- not in bonds etc. Yet 11 yrs into it, I'm struggling to reach 300k. Difference is -- I've never worked for any employer with a match until this past yr (it's just industry standard - not that I was with bad employers). I am just now realizing how quickly it grows if you have a generous match. People are posting on here with 5% matches or at companies where you get 12% put in automatically, whether you put in $1 or not. Those things in addition to putting in 18k yourself adds up fast. I hope to make up some ground in the next few yrs.

As another poster has explained, the “max” for 401(k)s is not 18k. Matches help, but it is really profit sharing which has a limit of of $55k for 2018 that allows people to really sock money away.

I hope you’re right. I didn’t max out in my 20s but now I’m contributing (with matching obv) 52k per year. I certainly hope it adds up.

[Anonymous]

I saved 300. I had no match.

[Anonymous]

When I was 40 (DH was a few years younger). We had about 200K combined, I had about 10% more than him. 13 and a half years later we have about 1.8M combined, I still have about 10% more than him. We have always maxed and I have started the catch up contributions this year. We are both feds so have the 5% matching. I expect about 15 or so more years of contributions before we retire. I am hoping to be at 5-6M by the time we retire but time will tell.

[Anonymous]

Anonymous wrote:When I was 40 (DH was a few years younger). We had about 200K combined, I had about 10% more than him. 13 and a half years later we have about 1.8M combined, I still have about 10% more than him. We have always maxed and I have started the catch up contributions this year. We are both feds so have the 5% matching. I expect about 15 or so more years of contributions before we retire. I am hoping to be at 5-6M by the time we retire but time will tell.

Seems like overkill for your needs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:When I was 40 (DH was a few years younger). We had about 200K combined, I had about 10% more than him. 13 and a half years later we have about 1.8M combined, I still have about 10% more than him. We have always maxed and I have started the catch up contributions this year. We are both feds so have the 5% matching. I expect about 15 or so more years of contributions before we retire. I am hoping to be at 5-6M by the time we retire but time will tell.

Seems like overkill for your needs.

Not sure how so since I did not mention our needs or wants in retirement. The amount I put away in catch up I put into the TSP Roth and I plan to use that part for our younger child’s college if we need it. We put away about $60K/year in retirement including the catch up and matching. We have a 350K HHI and are not super savers outside retirement, although our only debt is mortgage debt.

[Anonymous]

regarding all these fed folks referring to having a pension AND a TSP account-- did you start in the old system-- something like CSRS and now it is FERS? I was under the impression that feds only have the TSP and no more pension on top of that. Or are you considering social security to be "Federal pension"?

[Anonymous]

Sorry PP here-- I googled and I think I answered my question above. There is both TSP and FERS, but you only get access to FERS if you stay in federal service until a minimum age like 60. So if you leave federal service before that age, you don't get that pension-- but you do get to take your TSP. Please correct me if I have that wrong.

[Anonymous]

Anonymous wrote:Sorry PP here-- I googled and I think I answered my question above. There is both TSP and FERS, but you only get access to FERS if you stay in federal service until a minimum age like 60. So if you leave federal service before that age, you don't get that pension-- but you do get to take your TSP. Please correct me if I have that wrong.

You're wrong - you don't get the full benefit of the pension if you leave federal service before the minimum retirement age, but you still have access to FERS under "Deferred retirement":

Deferred Retirement
Refers to delayed payment of benefit until criteria are met, as follows:
If you leave Federal service before you meet the age and service requirements for an immediate retirement benefit, you may be eligible for deferred retirement benefits. To be eligible, you must have completed at least 5 years of creditable civilian service. You may receive benefits when you reach eligible age.

https://www.opm.gov/retirement-services/fers-information/eligibility/