Time is on your side!

[jeffmete]

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%

 

[latexman]

75000(x)^28=1000000
x=1.096923607941969
9.7%
Yep.

 

[VanWinkle]

Great story and something to share with the people in their 20s that might gain some insight into compounding.

 

[Fermion]

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!

 

[FANOFJESUS]

Man what a story. Great fund.

 

[tmm99]

OMG, that's incredible!!

 

[Car-Guy]

Of course 75k today won't buy what 75k would in 1992 (need about 140k today) but that's still a really nice gain.

 

[Sunset]

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...............

 

[whatnot]

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.

 

[latexman]

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.

 

[Closet_Gamer]

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)

 

[ls99]

So say the Rolling stones.

 

[Souschef]

2009 Rolled over $185,000 401 K. Now worth $1,225,000 woohoo
There is no more powerful force than that of compounding.

 

[RenoJay]

Congratulations! That’s an awesome milestone!

 

[RenoJay]

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.

 

[street]

Great story! The power of compounding is huge.

 

[latexman]

 

[jeffmete]

Great story! The power of compounding is huge.

Also the power of keeping your hands off your saving!

 

[street]

^ that is true also!

 

[Ronstar]

Nicely done OP!

 

[jeffmete]

Nicely done OP!

Thanks!

 

[FREE866]

Congratulations!
As others have said, the magic of compounding. Stock market over time can make poor people rich; unfortunately investor behavior usually negates that scenario.