Anonymous
Post 10/12/2021 20:23     Subject: Re:How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?
I'm 31 and DW is 27. With employer contributions we are putting in about 70k a year into 401ks. (just started this much this year)

Currently we have a combined of around $360k

by the time i'm 40 we should easily have 2M+ in 401ks. I fully expect to have 10M + in retirement accounts alone when we retire. No bragging by any means, just answering how it's possible.
Anonymous
Post 10/12/2021 17:24     Subject: How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?
Anonymous wrote:
Anonymous wrote:Power of compounding. Start maxing early, as soon as you can.


This. Started at my first job making $18k and I was thrilled to make that. Match at the time was 6% from my employer, so I put away 6% of my salary. Upped my contribution with every raise, with every new job, and while I can't remember when I maxed (definitely late 20s/early 30s), it grew amd grew.

+1 we showed our kids examples of the power of compounding.

They have their own investment savings now, and 16 yr old has been saving and investing.
Anonymous
Post 10/12/2021 17:23     Subject: How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?
We are old and the market has been kind.
Anonymous
Post 10/12/2021 17:20     Subject: Re:How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?
Also when people say they have X dollars in their retirement accounts, they’re probably including all their savings and investments that they have earmarked for retirement, even those that aren’t officially “retirement” accounts for tax purposes.
Anonymous
Post 10/12/2021 17:16     Subject: How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?
My employer matches 4.5 percent, so that’s nice. (I’ve just started my professional career at 35 though, so it will be a little later in life for me that I see the benefits of this.)
Anonymous
Post 10/12/2021 17:15     Subject: Re:How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?
I started maxing everything when I was in my mid 20’s. IRA’s, 401K’s, SEP/IRA for non W-2 comp. I’m sure there were years when I was putting in $40-50,000 but it’s now so long ago I can’t recall exactly how I did it. But I kept pouring it in and with compounding it’s worth a few million. I invested it for high growth given I had a very long term view. I’ve been retired for nine years and still haven’t withdrawn any of it but need to in two years.
Anonymous
Post 10/12/2021 16:56     Subject: How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?
Anonymous wrote:I have never been able to max (teacher) and only have $350k at age 45. I am a bit jealous of all these company matches. This year I am finally in a position to max my 403b and 457b. That along with my pension paying $5k a month should have my wife and I pretty well set though. I put 7.5% of salary into the pension. Basically teachers pay 75% of the typical pension benefits. States pay about 25% on average for the typical state pension.


That is $60k per year, which, based om a 4% withdrawal rate, is equivalent to $1.5m in 401k savings. It also carries no SORR, although you won't share in any market upsides.
Anonymous
Post 10/12/2021 15:59     Subject: How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?
Anonymous wrote:Matching, profit sharing, exceptional returns the past decade or so, taxable savings.


This
Anonymous
Post 10/12/2021 15:30     Subject: How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?
I have never been able to max (teacher) and only have $350k at age 45. I am a bit jealous of all these company matches. This year I am finally in a position to max my 403b and 457b. That along with my pension paying $5k a month should have my wife and I pretty well set though. I put 7.5% of salary into the pension. Basically teachers pay 75% of the typical pension benefits. States pay about 25% on average for the typical state pension.
Anonymous
Post 10/12/2021 15:24     Subject: Re:How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?
1) they've always maxed out 2) they have generous employer matching 3) they are old.
Anonymous
Post 10/12/2021 15:20     Subject: How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?
Time. I started working making $55k out of undergrad (now $160k). I contributed %10 a year and was matched %4-6. Its been 15 years and growth has been good.
Anonymous
Post 10/12/2021 15:14     Subject: How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?
OP here , y'all are amazing!!! Thanks for all these responses!
Anonymous
Post 10/12/2021 15:08     Subject: How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?
The Dow closed at 7980 the year I started working. I maxed every year. Back then it was $9500. If you ever see it, you don’t miss it. Now the Dow is 34,500. So, about or 4.5x higher plus 24 years of putting in $10k-$19k a year plus match.
Anonymous
Post 10/12/2021 14:56     Subject: How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?

It’s what happens when you buy Apple and Amazon and Google early and keep them for decades.

Anonymous
Post 10/12/2021 14:53     Subject: How do people have massive retirement accounts if it's a $19,500 (or whatever) limit per year?
OP, same! We did not invest early. Our employers do not match. And we are limited by max contributions. Obviously I’m kicking myself for not investing early. I was broke all the time so that’s why I didn’t.