Is anyone NOT a 401k millionaire?

[Anonymous]

Troll. $22.5k current match. 10 years ago it was a lot less. Can't active trade with 401k.

I'm 46 and have something like $500k in my 401k. Never had a match, went to law school so started very late. Took a few years off where I wasn't contributing. DH has a match and I think has something like $800k in his. Both of us make over $1m a year, and we've got $8m of savings. But 401k is not the place where the value is.

[Anonymous]

Anonymous wrote:Troll. $22.5k current match. 10 years ago it was a lot less. Can't active trade with 401k.

I'm 46 and have something like $500k in my 401k. Never had a match, went to law school so started very late. Took a few years off where I wasn't contributing. DH has a match and I think has something like $800k in his. Both of us make over $1m a year, and we've got $8m of savings. But 401k is not the place where the value is.

Why? You said it yourself, never had a match and started late. That’s on you. I think it is possible, very privileged and op shouldn’t boast about it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:https://www.morningstar.com/news/marketwatch/20241205305/millennials-are-finally-joining-the-401k-millionaires-club-heres-how-they-got-here

Srsly. DH and I are still in our late 20s and each of us has $1M+ in our 401ks. Is being a millionaire the new lower class?

My wife and I are 60 and our combined 401ks are about $700k.

I guess we're somewhere below the new lower class.

Pretty much the same here and I think we’ll be okay! People here are often lying, crazy, or on another planet.

[Anonymous]

Anonymous wrote:

Anonymous wrote:https://www.morningstar.com/news/marketwatch/20241205305/millennials-are-finally-joining-the-401k-millionaires-club-heres-how-they-got-here

Srsly. DH and I are still in our late 20s and each of us has $1M+ in our 401ks. Is being a millionaire the new lower class?

+1 isn’t this so common in educated, dual income couples?

Not by "late 20s". Current 401k contribution limit is only $23K in 2024. Even if you contributed that yearly from age 22 to age 29 (8 years), you'd have put in $184K, so you might have $400-420K.

Also, most 22yo are not making enough to put $23K in a 401K, especially since it's better for them to first put $7K into a Roth IRA and then put what they can into a 401K, but at least enough to ensure they are getting full company match.

[Anonymous]

Anonymous wrote:

Anonymous wrote:https://www.morningstar.com/news/marketwatch/20241205305/millennials-are-finally-joining-the-401k-millionaires-club-heres-how-they-got-here

Srsly. DH and I are still in our late 20s and each of us has $1M+ in our 401ks. Is being a millionaire the new lower class?

Unless you started making bank at eight-years-old and maxed out every year after that, I don't see how this is possible.

it's not---max contribution currently is $23K/year. Given that you should max your ROTH Ira first and then contribute to 401K as possible (making sure to get the max company match), most 22yo are not contributing $30K to retirement. My kid makes $72K and lives in MCOL, no way they can contribute $30K/year and still live. However, they do contribute well and are on the path to being a 401K/Roth millionaire by mid to late 30s.

[Anonymous]

Anonymous wrote:https://www.morningstar.com/news/marketwatch/20241205305/millennials-are-finally-joining-the-401k-millionaires-club-heres-how-they-got-here

Srsly. DH and I are still in our late 20s and each of us has $1M+ in our 401ks. Is being a millionaire the new lower class?

BS. Let's do the math. 401K max for employee is 23K this year. Most employers don't match 100% with no cap--but let's say both of yours do.

From 22 to 25, let's say you were setting aside 10 per year, so 10+10 employer (20) from 22 to 25, and then let's say you went up to 23 + 23 = 46 from 26 to 29, and let's say you're now 29 (in your 20s). Assuming a 10% annual rate of return, which is above the S&P for the past eight years, you'd each have $350K. If you somehow got a 20% annual RoR for the entire period, you'd be at $460. And lastly, if you somehow were doing 46 each the entire time with 20%, you'd be at $760 each.

[Anonymous]

Anonymous wrote:

Anonymous wrote:https://www.morningstar.com/news/marketwatch/20241205305/millennials-are-finally-joining-the-401k-millionaires-club-heres-how-they-got-here

Srsly. DH and I are still in our late 20s and each of us has $1M+ in our 401ks. Is being a millionaire the new lower class?

BS. Let's do the math. 401K max for employee is 23K this year. Most employers don't match 100% with no cap--but let's say both of yours do.

From 22 to 25, let's say you were setting aside 10 per year, so 10+10 employer (20) from 22 to 25, and then let's say you went up to 23 + 23 = 46 from 26 to 29, and let's say you're now 29 (in your 20s). Assuming a 10% annual rate of return, which is above the S&P for the past eight years, you'd each have $350K. If you somehow got a 20% annual RoR for the entire period, you'd be at $460. And lastly, if you somehow were doing 46 each the entire time with 20%, you'd be at $760 each.

OP here. Y’all boomers are so dumb and so jealous. Let me break it down for you.

Graduated in 2017. Got a job that paid $225K to start. Immediately started to max out my 401k with dollar for dollar matching on first 6%. My 401k allows up to 20% investments in individual stocks and here are my contributions:

2017: $18K + $7K
2018: $18.5K + $14K
2019: $19K + $15K
2020: $19.5K + $15K
2021: $19.5K + $16K
2022: $20.5K + $16.5K
2023: $22.5K + $18K
2024: $23K + $18.5K

Even ignoring gains, I’ve contributed about $280K to my 401k since I started working.

Now let’s talk gains! I was 100% in high growth funds from June 2017 through January 2020. Portfolio was worth $30K at the end of 2017, $65K at the end of 2018, $122K at the end of 2019. Just as COVID hit, I sold out of growth funds and went to stable value, as I knew the market was going to tank. In March 2020 most of our friends were freaking out, but I continued to hold steady and had about $130K. In April 2020, I went all in again on high growth when the market bottomed. Rebalanced my entire portfolio for the second time in just four months.

But the end of 2020, I had $250K! By the end of 2021, this had grown to $369K. Then, again, I knew the market was overvalued, so I rebalanced in December 2021 and went all in on stable value. I held through October 2022. While everyone else was losing value, DH and I were doing well. By the end of 2022 I was up to $410K and had rebalanced once again into a large cap growth heavy portfolio, 20% of which we dumped into NVDA. Today, that 20% has grown to $600K and the other 80% has grown to $510K. And I’ve contributed another $80K on top of all that.

So, yeah, its the end of 2024, 29 yo, I’ve maxed out my 401k, I’ve got a balance of $1.2M, DH has about $1M in his, and we both just rebalanced AGAIN earlier this week. As we’ve predicted correctly in the past, the market is way overvalued and we’re cashing into stable value once again. This time with $2.2M invested. DH says until the S&P 500 hits 3750 and then we’ll be all in again on growth. Probably around October 2025, we think.

[Anonymous]

Together we are but no I'm not. I don't think there are that many millionaires.

[Anonymous]

Anonymous wrote:

Anonymous wrote:https://www.morningstar.com/news/marketwatch/20241205305/millennials-are-finally-joining-the-401k-millionaires-club-heres-how-they-got-here

Srsly. DH and I are still in our late 20s and each of us has $1M+ in our 401ks. Is being a millionaire the new lower class?

+1 isn’t this so common in educated, dual income couples?

Not if you have student loans to pay off and need to save for a downpayment on a house before you can max out your 401K.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:https://www.morningstar.com/news/marketwatch/20241205305/millennials-are-finally-joining-the-401k-millionaires-club-heres-how-they-got-here

Srsly. DH and I are still in our late 20s and each of us has $1M+ in our 401ks. Is being a millionaire the new lower class?

BS. Let's do the math. 401K max for employee is 23K this year. Most employers don't match 100% with no cap--but let's say both of yours do.

From 22 to 25, let's say you were setting aside 10 per year, so 10+10 employer (20) from 22 to 25, and then let's say you went up to 23 + 23 = 46 from 26 to 29, and let's say you're now 29 (in your 20s). Assuming a 10% annual rate of return, which is above the S&P for the past eight years, you'd each have $350K. If you somehow got a 20% annual RoR for the entire period, you'd be at $460. And lastly, if you somehow were doing 46 each the entire time with 20%, you'd be at $760 each.

OP here. Y’all boomers are so dumb and so jealous. Let me break it down for you.

Graduated in 2017. Got a job that paid $225K to start. Immediately started to max out my 401k with dollar for dollar matching on first 6%. My 401k allows up to 20% investments in individual stocks and here are my contributions:

2017: $18K + $7K
2018: $18.5K + $14K
2019: $19K + $15K
2020: $19.5K + $15K
2021: $19.5K + $16K
2022: $20.5K + $16.5K
2023: $22.5K + $18K
2024: $23K + $18.5K

Even ignoring gains, I’ve contributed about $280K to my 401k since I started working.

Now let’s talk gains! I was 100% in high growth funds from June 2017 through January 2020. Portfolio was worth $30K at the end of 2017, $65K at the end of 2018, $122K at the end of 2019. Just as COVID hit, I sold out of growth funds and went to stable value, as I knew the market was going to tank. In March 2020 most of our friends were freaking out, but I continued to hold steady and had about $130K. In April 2020, I went all in again on high growth when the market bottomed. Rebalanced my entire portfolio for the second time in just four months.

But the end of 2020, I had $250K! By the end of 2021, this had grown to $369K. Then, again, I knew the market was overvalued, so I rebalanced in December 2021 and went all in on stable value. I held through October 2022. While everyone else was losing value, DH and I were doing well. By the end of 2022 I was up to $410K and had rebalanced once again into a large cap growth heavy portfolio, 20% of which we dumped into NVDA. Today, that 20% has grown to $600K and the other 80% has grown to $510K. And I’ve contributed another $80K on top of all that.

So, yeah, its the end of 2024, 29 yo, I’ve maxed out my 401k, I’ve got a balance of $1.2M, DH has about $1M in his, and we both just rebalanced AGAIN earlier this week. As we’ve predicted correctly in the past, the market is way overvalued and we’re cashing into stable value once again. This time with $2.2M invested. DH says until the S&P 500 hits 3750 and then we’ll be all in again on growth. Probably around October 2025, we think.

So you are under the impression that "most" 20 something make as much as you do and can afford to invest the max from the start? Let me guess: you grew up wealthy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:OP if you are going to troll, at least educate yourself on the topic first.

+1

But yes, I’m a 401k millionaire in my early 50s.

+1 we hit 401K million in our early 50s.

[Anonymous]

Anonymous wrote:https://www.morningstar.com/news/marketwatch/20241205305/millennials-are-finally-joining-the-401k-millionaires-club-heres-how-they-got-here

Srsly. DH and I are still in our late 20s and each of us has $1M+ in our 401ks. Is being a millionaire the new lower class?

Fake news. The math doesn’t work.

If we assume you are 29 years old and have maxed out for the last 8 years, that is a total contribution of 160,500. If you got the S&P500 return all those years then you may be a little over 200k. Even with a generous match and investing in an aggressive fund maybe you get to 300k as an extreme outlier.

[Anonymous]

HCE for 10 years at a DC company and no, not a 401k millionaire due to this government regulation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:https://www.morningstar.com/news/marketwatch/20241205305/millennials-are-finally-joining-the-401k-millionaires-club-heres-how-they-got-here

Srsly. DH and I are still in our late 20s and each of us has $1M+ in our 401ks. Is being a millionaire the new lower class?

BS. Let's do the math. 401K max for employee is 23K this year. Most employers don't match 100% with no cap--but let's say both of yours do.

From 22 to 25, let's say you were setting aside 10 per year, so 10+10 employer (20) from 22 to 25, and then let's say you went up to 23 + 23 = 46 from 26 to 29, and let's say you're now 29 (in your 20s). Assuming a 10% annual rate of return, which is above the S&P for the past eight years, you'd each have $350K. If you somehow got a 20% annual RoR for the entire period, you'd be at $460. And lastly, if you somehow were doing 46 each the entire time with 20%, you'd be at $760 each.

OP here. Y’all boomers are so dumb and so jealous. Let me break it down for you.

Graduated in 2017. Got a job that paid $225K to start. Immediately started to max out my 401k with dollar for dollar matching on first 6%. My 401k allows up to 20% investments in individual stocks and here are my contributions:

2017: $18K + $7K
2018: $18.5K + $14K
2019: $19K + $15K
2020: $19.5K + $15K
2021: $19.5K + $16K
2022: $20.5K + $16.5K
2023: $22.5K + $18K
2024: $23K + $18.5K

Even ignoring gains, I’ve contributed about $280K to my 401k since I started working.

Now let’s talk gains! I was 100% in high growth funds from June 2017 through January 2020. Portfolio was worth $30K at the end of 2017, $65K at the end of 2018, $122K at the end of 2019. Just as COVID hit, I sold out of growth funds and went to stable value, as I knew the market was going to tank. In March 2020 most of our friends were freaking out, but I continued to hold steady and had about $130K. In April 2020, I went all in again on high growth when the market bottomed. Rebalanced my entire portfolio for the second time in just four months.

But the end of 2020, I had $250K! By the end of 2021, this had grown to $369K. Then, again, I knew the market was overvalued, so I rebalanced in December 2021 and went all in on stable value. I held through October 2022. While everyone else was losing value, DH and I were doing well. By the end of 2022 I was up to $410K and had rebalanced once again into a large cap growth heavy portfolio, 20% of which we dumped into NVDA. Today, that 20% has grown to $600K and the other 80% has grown to $510K. And I’ve contributed another $80K on top of all that.

So, yeah, its the end of 2024, 29 yo, I’ve maxed out my 401k, I’ve got a balance of $1.2M, DH has about $1M in his, and we both just rebalanced AGAIN earlier this week. As we’ve predicted correctly in the past, the market is way overvalued and we’re cashing into stable value once again. This time with $2.2M invested. DH says until the S&P 500 hits 3750 and then we’ll be all in again on growth. Probably around October 2025, we think.

Ha…nobody believes this. I bet you have less than 100k!

I like the wrong use of the word rebalance as well.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:https://www.morningstar.com/news/marketwatch/20241205305/millennials-are-finally-joining-the-401k-millionaires-club-heres-how-they-got-here

Srsly. DH and I are still in our late 20s and each of us has $1M+ in our 401ks. Is being a millionaire the new lower class?

BS. Let's do the math. 401K max for employee is 23K this year. Most employers don't match 100% with no cap--but let's say both of yours do.

From 22 to 25, let's say you were setting aside 10 per year, so 10+10 employer (20) from 22 to 25, and then let's say you went up to 23 + 23 = 46 from 26 to 29, and let's say you're now 29 (in your 20s). Assuming a 10% annual rate of return, which is above the S&P for the past eight years, you'd each have $350K. If you somehow got a 20% annual RoR for the entire period, you'd be at $460. And lastly, if you somehow were doing 46 each the entire time with 20%, you'd be at $760 each.

OP here. Y’all boomers are so dumb and so jealous. Let me break it down for you.

Graduated in 2017. Got a job that paid $225K to start. Immediately started to max out my 401k with dollar for dollar matching on first 6%. My 401k allows up to 20% investments in individual stocks and here are my contributions:

2017: $18K + $7K
2018: $18.5K + $14K
2019: $19K + $15K
2020: $19.5K + $15K
2021: $19.5K + $16K
2022: $20.5K + $16.5K
2023: $22.5K + $18K
2024: $23K + $18.5K

Even ignoring gains, I’ve contributed about $280K to my 401k since I started working.

Now let’s talk gains! I was 100% in high growth funds from June 2017 through January 2020. Portfolio was worth $30K at the end of 2017, $65K at the end of 2018, $122K at the end of 2019. Just as COVID hit, I sold out of growth funds and went to stable value, as I knew the market was going to tank. In March 2020 most of our friends were freaking out, but I continued to hold steady and had about $130K. In April 2020, I went all in again on high growth when the market bottomed. Rebalanced my entire portfolio for the second time in just four months.

But the end of 2020, I had $250K! By the end of 2021, this had grown to $369K. Then, again, I knew the market was overvalued, so I rebalanced in December 2021 and went all in on stable value. I held through October 2022. While everyone else was losing value, DH and I were doing well. By the end of 2022 I was up to $410K and had rebalanced once again into a large cap growth heavy portfolio, 20% of which we dumped into NVDA. Today, that 20% has grown to $600K and the other 80% has grown to $510K. And I’ve contributed another $80K on top of all that.

So, yeah, its the end of 2024, 29 yo, I’ve maxed out my 401k, I’ve got a balance of $1.2M, DH has about $1M in his, and we both just rebalanced AGAIN earlier this week. As we’ve predicted correctly in the past, the market is way overvalued and we’re cashing into stable value once again. This time with $2.2M invested. DH says until the S&P 500 hits 3750 and then we’ll be all in again on growth. Probably around October 2025, we think.

What a story lol!!!

You are hilarious. So now you are all in stable value until S&P500 hits 3750.

Good to know😆😆😆