How many years did it take for your 401k to hit 1 million ?

[PatrickA5]

Never made it.

Back in the 90's, I was working for a company that had an awesome match. They would put in 12% on only a 3% contribution (4 to 1 match). Only problem was their match was in company stock that could not be sold. Then, (thanks to Enron), the company stock went from $60 to less than a dollar in just a few months. Say goodbye to all of that match. Learned a valuable lesson.

Went into savings overdrive after that and retired at age 50 in July, 2008. Great timing. Saw what we had saved drop about 30%.

Still, things worked out over then next decade and we're in pretty good shape now.

 

[Retire52]

Much like others here, I didn’t have access to a 401K for most of my early career. The military wasn’t given access to TSP until January 2002.

So my generation of military investors had to make due with IRAs, Savings Bonds and taxable investments.

In my opinion, based on my generation that joined the military in the 1980s, they fall into two categories: 1. Those with at least a million after 20 years of service. And 2. Those who will never come close to a million. The reason for this shocking disparity is that very few actually make it to retirement. And of those very few, not many took advantage of the investing options available.

Too many spent their bonuses and extra cash on fast cars, stereo systems (big deal in the 80s and 90s)...oh and divorce. LOTS of divorce in the US military world and that shite is very expensive!

It took my DW and I, both military, about 15 years to hit $1mm if I combine both of our 401ks--Thrift Savings Plans, which is the Fed 401k program--and our IRAs. This figure also included my IRA, about $75k, I had prior to the military offering the TSPs to military. My DW did not have any savings before we met.

I started TSP right from the get-go when it was avail and then a couple years later for my DW to contribute. We made about 50% of max contributions each year until we started to max about the last 5 years of our careers. Though the military does not get any employer matching, it was a great incentive to save.

As you mentioned, Jollyquick, the majority of our peers did not opt to max or in many cases, contribute at all. In fact I later learned that the average enlisted soldier didn't start to contribute to their TSP until they were E-6s and officers, not until they were captains. What a wasted opportunity.

 

[TEO]

I never did either. Once I decided to retire early I realized that I would need more money in a taxable account to avoid using the SEPP rule. So I cut back from maxing my 401K and sent all the extra money to Ameritrade instead. That ended up growing much faster than the crap that was offered in the 401K.

When I retired and moved the money from 401K to IRA, I had about 50% in an IRA and 50% in a taxable account. Seems like a good mix for me at 46.

I dont think I could have retired as early as I did if I maxed out my 401K. The investment choices were not risky/growth oriented enough.

T.J.

 

[indiajust]

IRA 17k (last contrib 04), Roth 15k (last contrib 06), 401k's 85k/27k me/match (last contrib 08)

Last rollover to IRA in 08 for 112k

Last rollover to Roth in 13 for 267k

10 more years of compounding if "retire" 65, projecting 1-1.2M Roth

 

[N02L84ER]

We contributed the maximum every year we worked for a company that offered a 401K. Unfortunately, that only amounted to 2 years for me and 5 years for DH. So, no we never hit the $1M.

 

[Koolau]

I actually started in a company "savings plan" before 401(k)s were "invented." The rules were significantly different. However, I was allowed to roll that plan into the 401(k) once it became available. I'm guessing it was 25+ years after that when I hit the magic number. Of course, back then, a million was a lot of money (heh, heh.) YMMV

 

[PointBreeze]

Took me 29 years; had a couple of episodes of consulting during those years when I wasn't able to contribute. Many of those years I worked for employers that did not match. Max'ed out my own contributions for 18 of the years.

 

[RockyMtn]

23 years.

Would have been earlier but it has been 100% bonds since 2005. Always maxed the match and maxed the individual contribution and catch up contributions after age 50. Did have a couple of years when it was highly compensated employee top heavy so was not able to contribute max.

 

[Alan]

Never made it. Only worked in a job with a 401k for 16 years, and after rolling it to an IRA 9 years ago it still is well short of $1m

 

[Dean56]

Love this. Thanks for sharing. Your experience likely makes you a more compassionate person, as well. [emoji1360]

+1


I totally agree.......love Mdlerth's honesty. Time is the factor........markets will rise and fall like the ocean's waves. Be patient!!

 

[RobbieB]

Never made it either. After consolidating all the 401's and the IRA's into one account after retirement I still didn't have it.

But now I do -

 

[foxfirev5]

I actually started in a company "savings plan" before 401(k)s were "invented." The rules were significantly different. However, I was allowed to roll that plan into the 401(k) once it became available. I'm guessing it was 25+ years after that when I hit the magic number. Of course, back then, a million was a lot of money (heh, heh.) YMMV

Yeah at Mega Corp they called it a Thrift Savings Plan back in the day. I only noticed it when rolling my 401k into an IRA. Some was before and some after tax. Lucky to be in on the ground floor 40 years ago.

Likewise I'm grateful I jumped on the Roth bandwagon about 20 years ago.

 

[Caligal611]

It took me 19 years to hit $1 million in my 401k. I maxed out every year and invested heavily in stock funds.

 

[Souschef]

I rolled mine over in 2009, and hit the mark last year-10 years. As Einstein once said, "There is no force in the universe as powerful as that of compound interest"
BUT it has come back to bite me as I now have to take RMD's which really ups my taxable income.However, I do some QCD's which eases the bite a little