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Time is on your side!
Old 09-02-2020, 07:16 PM   #1
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Time is on your side!

I got laid off in 1992 and my new employer wouldn’t take a 401k rollover, so I rolled over $75K into a vanguard Wellington fund. That was just a little over my yearly salary at the time and I never added to this account. Just saw today that it is now worth 1,000,000! So 28 years to turn 75K into a million. Smarter people than me can calculate an exact average return, but it must be close to 10%
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Old 09-02-2020, 08:55 PM   #2
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75000(x)^28=1000000
x=1.096923607941969
9.7%
Yep.
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Old 09-03-2020, 06:31 AM   #3
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Great story and something to share with the people in their 20s that might gain some insight into compounding.
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Old 09-03-2020, 06:41 AM   #4
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I had to roll over a 401K from quitting a job in 2000 that was $1700. I put it in a IRA and today it is worth $205,000.

Sort of glad I didn't just take the cash back then!
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Old 09-03-2020, 06:50 AM   #5
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Man what a story. Great fund.
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Old 09-03-2020, 10:36 AM   #6
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OMG, that's incredible!!
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Old 09-03-2020, 10:58 AM   #7
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Of course 75k today won't buy what 75k would in 1992 (need about 140k today) but that's still a really nice gain.
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Old 09-03-2020, 11:32 AM   #8
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Originally Posted by Fermion View Post
I had to roll over a 401K from quitting a job in 2000 that was $1700. I put it in a IRA and today it is worth $205,000.

Sort of glad I didn't just take the cash back then!
Wow...............
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Old 09-03-2020, 11:40 AM   #9
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Great story! Young people really need to hear more stories like this from real people!
Our education system needs to do a better job in educating students in Financial matters.
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Old 09-03-2020, 11:55 AM   #10
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Quote:
Originally Posted by Fermion View Post
I had to roll over a 401K from quitting a job in 2000 that was $1700. I put it in a IRA and today it is worth $205,000.

Sort of glad I didn't just take the cash back then!
1700(x)^20=205000
x=1.27076500645025
27%



How did you do that? We ALL want to know.
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Old 09-03-2020, 01:35 PM   #11
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Before today's little implosion, my 401k crested $1M for the first time yesterday.

I've been with the company since 2003 and contributed the max every year. I'm guessing the average max contribution over the years was about $16000/yr.

So 18 years * $16000 = $288K principle contribution.
So, $712k of gains through company contributions and growth.

Pretty amazing. (Of course, after today it will be a tad less amazing! LOL)
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Old 09-03-2020, 05:34 PM   #12
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So say the Rolling stones.

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Old 09-03-2020, 08:58 PM   #13
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2009 Rolled over $185,000 401 K. Now worth $1,225,000 woohoo
There is no more powerful force than that of compounding.
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Old 09-03-2020, 11:30 PM   #14
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Congratulations! That’s an awesome milestone!
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Old 09-03-2020, 11:33 PM   #15
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Great story! Young people really need to hear more stories like this from real people!
Our education system needs to do a better job in educating students in Financial matters.


I’d encourage people in this forum who enjoy non profits to donate time and/or money to Jr. Acheivement. Volunteers go into schools and teach a curriculum about financial literacy as well as entrepreneurship. Obviously things have changed this year as far as volunteers going into schools but hopefully we can back to normal sooner rather than later.
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Old 09-04-2020, 05:23 AM   #16
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Great story! The power of compounding is huge.
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Old 09-04-2020, 07:30 AM   #17
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Old 09-04-2020, 06:06 PM   #18
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Great story! The power of compounding is huge.
Also the power of keeping your hands off your saving!
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Old 09-05-2020, 05:07 AM   #19
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^ that is true also!
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Old 09-05-2020, 05:10 AM   #20
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Nicely done OP!
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