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][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]

I hope you’re right.  I didn’t max out in my 20s but now I’m contributing (with matching obv) 52k per year.  I certainly hope it adds up.  [/quote]

It definitely does pay off.  We put very little into 401(k)s in our 20s as we were paying off student loans.  Were able to start shoveling around 50k per year into it in 2009 (which turned out to be great timing!) and it has exploded since then with the great stock market.  [/quote]

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