Reply to Super-savers in 401(k) - what are your retirement plans?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]How can you be a super saver in a 401k? You can only put in $19,500. That makes for a nice retirement, but it's not 5m in the bank. [/quote]

its amazing how many people on this board don't understand retirement plans and how they work.  Combined contribution (employee + employer) maximums for 2022 are $61,000 (under 50) or $67,500 (over 50).  Those limits easily allow for 5M in the bank.  Take into account that some of that can be Roth / post tax, and it realizes you even more in retirement.[/quote]

If you were able, starting at 22, to have access to company resources that allowed for contributions to the full $61k/year (ignoring the fact that it hasn’t been $61k for 20 years), someone at 42 would only have about $1.2 in contributions. It would be nearly impossible to get to $4-5M from that given the limitation on most company sponsored plans. Maybe two people, but even then, how many people have access to plans that allow them to fully max the contribution before 30? [/quote]

Do you hold 100% of your retirement in cash?  or 0% return?  In your hypothetical, thats how you end up at 1.2M.  assume 7% and you're at 2.5M   over the last 10 years the s&p has returned 13.9%.

So I don't know what to tell you.  I'm 40.  My company matches 100% up to 12% of my salary.  I started at ~60k 20 years ago, only hit max contribution last year, most of my part is post tax.  I have over 2M (just me) in my retirement account from nothing other than contributions to my company plan.    If I keep my contributions at the current level (which I won't, it will go up from here along with the caps) and estimate a conservative 5% return, in 20 more years I will have 6.7M.  If returns are what they have been for the last 20 years, I'll have 13.1M [/quote]

Reread the OP and everything I wrote. [/quote]

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