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

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[quote=Anonymous][quote=Anonymous]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?![/quote]

I am a PP, who is now 43 and our combined 401Ks are about $1.5 M.  We hit $1M when I was 40.  We've always both maxed out since finishing grad schools.  I had a 5% match, and then my agency recently started an 8% match (but we've been temporarily suspending any contributions due to last year of nanny and PT preschool tuition).  Also, since I work for the federal govt, the TSP has some of the lowest management fees.

DH's job gives 11% without any contributions and requires a 5% contribution of salary of all employees.  I believe it's a 403b or something like that account.  He works for a not-for-profit company.  So, before this current year, DH and I would max, and he'd be contributing 16% extra (through his company and the mandatory 5% taken out), and I would max with a 5% match. His salary isn't as great as other professionals in this area, but on the back end the retirement plan is what keeps people at his company.   Also the market has been over valued for a while.  Finally, since we don't plan to retire for 20 plus years, I've diversified heavily in stocks and less in government bonds (in contrast to some co-workers who plan to retire sooner so have re-allocated their portfolios).[/quote]

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