Reply to How many people max out BOTH the 401k and 457(B)?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I think some of these numbers are believable. I’ve always been employed and had good match and have $1.4mm in tax advantaged accounts at 37. Wife did a lot of grad school / jobs without 401k so only $100k.

If wife was in same career path as me, we’d have almost $3mm before 40.

It’s been a big bull market. The top 1-10% of retirement savers should have a fair bit by 40.

$1mm or $3mm isn’t what it used to be.[/quote]

A 37yo such as yourself has experienced one of the biggest bull markets in history. Seventeen years ago marks the financial market and housing collapse, after all. Markets have returned an average of 12.7% per year during this period vs. only 7% when including years 2000-2008. Huge difference. 2008 markets reverted back to 1997 levels.

In other words, most people who are currently 37yo [i]should[/i] have about the same as someone who is 48yo. The unlucky people that entered the market in 1997 and are now pushing 50 saw net zero growth for the first eleven years.

Don’t assume that because you have $1.4M at 37yo a comparable saver with a similar HHI history at 47yo would have $5.5M. It doesn’t work that way. [/quote]

Once again, this poster assumes people only invest in the S&P500. You can outperform the market (by a lot) by investing in other things dependent on your knowledge and risk tolerance. 401Ks have limited investment options but regular IRAs and Roth IRAs have many more investment options. Have to get away from that S&P500 mindset if you want to outperform.  [/quote]

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