Is anyone NOT a 401k millionaire?

[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?

+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.

My DH’s company puts in 25% up to the total max, which is something like $69k this year. Still, very unlikely that someone in their twenties would get the max at his company.

[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.

If you’re being serious about all this (and I seriously don’t give enough of a sh!t to check or even think about it) then OBVIOUSLY the entire premise of your post (title question) is NOT serious and is little more than a reason for you to brag… anonymously.

So my question to you is… why, though?

[Anonymous]

Laughs in teacher.

[Anonymous]

Just as COVID hit, I sold out of growth funds and went to stable value, as I knew the

Why would a 20-something do this? You’re supposed to put money in and relax during big dips. You’re decades from needing that money.

[Anonymous]

Anonymous wrote:

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😆😆😆

Uhh, yeah. You’ll be kicking yourself if you don’t sell now. Terrible shame to see $1.2M dwindle down to $750K.

[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.

Sure, Jan

[Anonymous]

Brilliant work, OP. I agree that the number of 401k millionaires has reached an all time high. Our HHI is $150K and we’re just entering our 40s and we’re pushing about $4M in our combined retirement accounts (3 total). Kinda seems like grade inflation in a way cuz the average person is going to need $10M+ to retire comfortably in the future.

[Anonymous]

If you're with Fidelity, it's likely your company has BrokerageLink which your 401k will likely have access to and allows you to buy individual stocks.

[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.

Right? I believe a twenty-something has $1m in investable assets but not in a 401k. The math doesn't work.

[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?

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

Right? I believe a twenty-something has $1m in investable assets but not in a 401k. The math doesn't work.

It's complete BS, but I guess it was interesting enough for me to respond so the troll worked! Good job on the trolling OP, but there is 0 chance anything you stated is accurate.

[Anonymous]

OP has enough common sense to know that they're abnormal.

I'm 41 with 550-600K in retirement accounts. I've taken loans and a hardship withdrawal (yes, I know) and still know that I'm blessed compared to the average American. I have peers far ahead of me, but far more with less. I'll be very comfortable in retirement thanks to a Fed pension, a paid off home, and having kids in mid-20s. I'll probably also supplement my mom's retirement income and am very happy overall with my lot.

[Anonymous]

A $1 million 401k upon retirement is rare, let alone in your 20s.

According to this article, only 3.2% of retirees retire with over $1 million in their 401ks.

https://www.fuchsfinancial.com/retire-with-5-million/

Over $5 million is rarer still; only 0.1% of retirees retire with that much or more in their 401ks.

[Anonymous]

Anonymous wrote:Brilliant work, OP. I agree that the number of 401k millionaires has reached an all time high. Our HHI is $150K and we’re just entering our 40s and we’re pushing about $4M in our combined retirement accounts (3 total). Kinda seems like grade inflation in a way cuz the average person is going to need $10M+ to retire comfortably in the future.

Whut?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Brilliant work, OP. I agree that the number of 401k millionaires has reached an all time high. Our HHI is $150K and we’re just entering our 40s and we’re pushing about $4M in our combined retirement accounts (3 total). Kinda seems like grade inflation in a way cuz the average person is going to need $10M+ to retire comfortably in the future.

Whut?

PP clearly has spent too much time on DCUM.

That said, there was a survey of various generation on how much they would have to make and how much net worth they would need to consider themselves a financial success.

Gen Z numbers were way beyond any other generation's: $588 in income and $9.5 million in net worth.

[Anonymous]

^^$588,000