Reply to Anyone else dealing with this issue of "gap years" before retirement?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]We’re in this bucket, unfortunately. We maxed our 401ks in our 20s and are projected to have $12m+ at 55 (15 years from now). 40 and 45 now. The kids will be out of college when we are 55 and 60. A few changes I recently made:

- Drop 401k to just get the match
- Switched our 401k contributions to Roth 401k contributions 
- redirect what we were contributing to our 401ks to my brokerage account
- look into the Rule of 55 - it allows you to tap your 401k balance at 55 instead of 59 from the employer you retire from.
- I plan on drawing down 401k balances for college funds, or repayment of our kid’s loans, since we have undersaved there. In an effort to reduce RMD before 73.
- haven’t yet, but  will do Roth conversions after 55
- generally started living a bit more of a rich life - more family vacations now while our four kids are young

Very interested in other strategies too! [/quote]

How exactly does a 401k get that high?  You generally can’t put more than $15k per year and investment options are usually index funds. How did you have such smashing returns?[/quote]

Sorry, PP. The limit hasn’t been 15k/year since like 2006. So we have been putting in the max (24.5k this year), then company match, stock market growth and x2 for spouse. It probably would end up being more like 70k a year. It adds up but having too much was never on my radar until a couple years ago.  Everyone just says to max out 401k. [/quote]

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