Reply to What is your HHI and how much do you save?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I don't understand how people are say, in their 40s, with roughly a $200k income (assume didn't earn that the whole time) and have multiple millions of dollars in investments....? Were you able to max 401ks or something from day 1 at age 21?

Even if you max your 401k from age 21, it would take 20+ years to get to "multiple millions" with compounded interest[/quote]

"Were you able to max 401ks or something from day 1 at age 21?"

Married at 23, and then...yes.

"it would take 20+ years to get to "multiple millions" with compounded interest"

Correct. [/quote]

Well dang, hats off to you. Got till my 30s before even starting a 401k or accruing much savings at all (and then.... kids and daycare).[/quote]

Most people are like you PP. If I would have maxed out my 401k at my first job out of college (at age 22), it would have been 42% of my gross salary. That's not realistic for most of us without parental help. [/quote]

But you likely could have done 5-10%.  If you start that way, it's just a part of your budget and you pick your apt, vehicle, and everything else you do accordingly.  It's just like so many 20 somethings don't do the 401K and often leave employer match untouched---if your employer has a match, you must at minimum maximize it.  And then most people will do best with maxing their Roth IRA first, then returning to 401k above the match amount.  
So while you may not do 25-40%, you could have likely done some, even if it was only the $6K for Roth [/quote]

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