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

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[quote=Anonymous][quote=Anonymous][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]

Think the same thing looking at these numbers. I too have [b]maxed out to 18k[/b] 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.[/quote]

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.[/quote]

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.[/quote]

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