Did you have 3x salary in retirement by 40?

[Anonymous]

At 40, I made $120K and I had about $1.4 million, so yes, much more.

When my husband retired at 58, we had an HHI of about $300,000 and a net worth of $7 million.

[Anonymous]

Anonymous wrote:At 40, I made $120K and I had about $1.4 million, so yes, much more.

When my husband retired at 58, we had an HHI of about $300,000 and a net worth of $7 million.

$1.4 in a 401K or investment account?

[Anonymous]

No. I didn't have 3x until I was 46.

[Anonymous]

Anonymous wrote:

Anonymous wrote:At 40, I made $120K and I had about $1.4 million, so yes, much more.

When my husband retired at 58, we had an HHI of about $300,000 and a net worth of $7 million.

$1.4 in a 401K or investment account?

Yes 401(k)

[Anonymous]

In retirement? No, because our income rose around 40. Those rules of thumb only work for people with middle incomes that are more stable. Or FIRE adherents.

[Anonymous]

Anonymous wrote:

Anonymous wrote:At 40, I made $120K and I had about $1.4 million, so yes, much more.

When my husband retired at 58, we had an HHI of about $300,000 and a net worth of $7 million.

$1.4 in a 401K or investment account?

Probably not. 18 years ago, 401k maxes were much lower.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At 40, I made $120K and I had about $1.4 million, so yes, much more.

When my husband retired at 58, we had an HHI of about $300,000 and a net worth of $7 million.

$1.4 in a 401K or investment account?

Probably not. 18 years ago, 401k maxes were much lower.

This. I don't understand how this math works unless someone had a really rich stock plan from a company.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At 40, I made $120K and I had about $1.4 million, so yes, much more.

When my husband retired at 58, we had an HHI of about $300,000 and a net worth of $7 million.

$1.4 in a 401K or investment account?

Probably not. 18 years ago, 401k maxes were much lower.

This. I don't understand how this math works unless someone had a really rich stock plan from a company.

In 1998, 401ks were limited to 10k/year.

So for a married couple who both have access to 401ks through work, 20k.

I’m 41 and my NW (with spouse) is over 1.4M, but much of that is outside of 401ks. If I only saved there, I’d be worth a lot less. My taxable savings is only a couple hundred thousand below my retirement accounts (IRA and 401k).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At 40, I made $120K and I had about $1.4 million, so yes, much more.

When my husband retired at 58, we had an HHI of about $300,000 and a net worth of $7 million.

$1.4 in a 401K or investment account?

Probably not. 18 years ago, 401k maxes were much lower.

This. I don't understand how this math works unless someone had a really rich stock plan from a company.

Unless the poster make some unusual investments, it sounds like a lie. Maxing out every year from age 22 to age 40, even with generous company matches, is unlikely to get you to $1.4m at age 40.

[Anonymous]

Where is this target number from?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At 40, I made $120K and I had about $1.4 million, so yes, much more.

When my husband retired at 58, we had an HHI of about $300,000 and a net worth of $7 million.

$1.4 in a 401K or investment account?

Probably not. 18 years ago, 401k maxes were much lower.

This. I don't understand how this math works unless someone had a really rich stock plan from a company.

Unless the poster make some unusual investments, it sounds like a lie. Maxing out every year from age 22 to age 40, even with generous company matches, is unlikely to get you to $1.4m at age 40.

Or sounds like his money is our money and my money is mine

[Anonymous]

I did not. Now have 4x salary at 50.

[Anonymous]

I’m only 1x, with salary around 210. Slow start, but maxing last two years and will continue to from here on…

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At 40, I made $120K and I had about $1.4 million, so yes, much more.

When my husband retired at 58, we had an HHI of about $300,000 and a net worth of $7 million.

$1.4 in a 401K or investment account?

Probably not. 18 years ago, 401k maxes were much lower.

This. I don't understand how this math works unless someone had a really rich stock plan from a company.

Unless the poster make some unusual investments, it sounds like a lie. Maxing out every year from age 22 to age 40, even with generous company matches, is unlikely to get you to $1.4m at age 40.

No, sorry, the $1.4 million was at age 58, not age 40.

[Anonymous]

No. We barely have 3 times income in retirement/taxable accounts at 50. We have lots in home equity, 529s, and some prime earning years to come so I am not at all worried.

There are lots of reasons why this rule of thumb might not apply. Eg if your income has increased rapidly. Higher income means higher taxes too which may affect your ability to hit these metrics.

Savings as a percentage of spending is probably a more useful number.