Author Topic: 10 Years = 401(k) worth $200k  (Read 12057 times)

birdman2003

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10 Years = 401(k) worth $200k
« on: May 05, 2017, 08:26:44 AM »
I am having my 10 year anniversary with my employer this month, and checked my 401(k) balance which is just over $200k.  I'm happy with that but I wish I discovered the MMM ways earlier in my career and started maxing it out . . .

BTDretire

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Re: 10 Years = 401(k) worth $200k
« Reply #1 on: May 05, 2017, 10:44:20 AM »
Congrats,
 That can easily double in the next 10 years plus, you will save at least another $200k and have growth on that.
You will have $700k or more 10 years from now.
 Starting late is better then never starting.

2Birds1Stone

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Re: 10 Years = 401(k) worth $200k
« Reply #2 on: May 05, 2017, 10:48:40 AM »
Great Job!

Are you maxing accounts outside of of 401k? Roth? HSA? Taxable?

sw1tch

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Re: 10 Years = 401(k) worth $200k
« Reply #3 on: May 05, 2017, 12:05:05 PM »
I'm the same way (now just over 10 years in) but just slightly different numbers:

401k was at 157,000
457b was at  60,000

Totaling ~ 217000

I wish I had ramped up my savings a long time ago.  I didn't really start until 2014; I think you're doing pretty good - way better than I would be if I only had the 401k!

Scandium

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Re: 10 Years = 401(k) worth $200k
« Reply #4 on: May 05, 2017, 12:57:28 PM »
Hmm let's see. Jan next year will be the 9th of my working career. I'm projecting $196k in my 401k then! So I'll hopefully be close to 1/4 mill by 10 years. Wish I had started earlier too:(
« Last Edit: May 05, 2017, 01:10:10 PM by Scandium »

khangaroo

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Re: 10 Years = 401(k) worth $200k
« Reply #5 on: May 05, 2017, 05:24:00 PM »
Nice! I'm at $71k and I'll be at 5 years in 2 months. This will be the first year that I've been able to max my 401k. It's been an awesome feeling seeing it grow since I've gotten debt-free (March 2016) and able to max the contribution at 25% of my income.

Another thing I'm excited about is when my contribution maxes out in November and I got an extra ~$700 bucks in my paycheck because its not going to the 401k!!

inline five

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Re: 10 Years = 401(k) worth $200k
« Reply #6 on: May 05, 2017, 07:08:49 PM »
You're doing fine!

We were the same way, a late bloomer, just didn't make enough to put a ton away plus never invested in index funds and when we did I thought I could time the market. We lost out on some huge gains.

Three years ago, plus two months, we had <$400k to our names. Today? $1.1m. Mostly investment gains with savings thrown in.

What surprised me is JUST HOW FAST it starts accumulating once you get to a larger amount. That snowball keeps getting larger and larger. It will happen and it will happen fast.

Our total household income has averaged ~$100k since graduating college 14 years ago.

kimmarg

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Re: 10 Years = 401(k) worth $200k
« Reply #7 on: May 05, 2017, 07:14:00 PM »
10 years next week, $179k. I actually feel pretty good at that. This year will be the first year to max out the contribution.

Pylortes

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Re: 10 Years = 401(k) worth $200k
« Reply #8 on: May 05, 2017, 07:52:15 PM »
I think you are doing great! Just to give another data point as to what you might be around had you maxed the whole time- I am just shy of 10 yrs (maxed the entire time and 4% employer match) and I'm at $299.7k as of today- just about to hit $300k.

4n6

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Re: 10 Years = 401(k) worth $200k
« Reply #9 on: May 05, 2017, 09:09:01 PM »
I am in the same boat. I am a late starter (not until 33 b/c of my Ph.D.). I am hitting about just over 270k for 11 years of investing including a 401a, 403b, and Roth IRA. This is the first year when I can max out my 403b and it feels great. Hopefully, less than 10 more years of work and I will be to my FI goal.

VoteCthulu

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Re: 10 Years = 401(k) worth $200k
« Reply #10 on: May 08, 2017, 09:23:02 AM »
I have $298k after nearly 12 years, and i should crack 300k next month. It's fun to watch the little workers multiply!

markpst

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Re: 10 Years = 401(k) worth $200k
« Reply #11 on: May 08, 2017, 10:11:02 AM »
At 10 years, I was at $173K. I didn't start maxing my 401k until year 8 - only $93K at the end of that year (2011). Now at year 13 (and 4 months) and now at $308K.

2004 - $6K
2005 - $14K
2006 - $26K
2007 - $33K
2008 - $28K
2009 - $54K
2010 - $79K
2011 - $93K
2012 - $128K
2013 - $173K
2014 - $202K
2015 - $220K
2016 - $278K
now     $308K
« Last Edit: May 08, 2017, 10:14:12 AM by markpst »

semiretired31

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Re: 10 Years = 401(k) worth $200k
« Reply #12 on: May 08, 2017, 08:45:54 PM »
Extremely motivating thread. $228k after 15 years. Lower than most. But now the fun begins.

Tyson

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Re: 10 Years = 401(k) worth $200k
« Reply #13 on: May 08, 2017, 09:09:04 PM »
With a lot of effort I can save and invest about $30k per year. 

I have a stache of $310k.  With 10% gains/year, it grows at $31k per year all by itself.

Can't believe that passive gains are officially outstripping my active contributions now.  Crazy.

10 years ago I had maybe $50k.  My records were so bad back then that I don't really even know. 
« Last Edit: May 09, 2017, 10:22:36 AM by tyort1 »

boarder42

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Re: 10 Years = 401(k) worth $200k
« Reply #14 on: May 09, 2017, 06:21:16 AM »
i know we've had some pretty good years and i'm not sure about your match but the simple 18k a year over 10 years at 7% a year is 266k so you're not incredibly far behind.

birdman2003

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Re: 10 Years = 401(k) worth $200k
« Reply #15 on: May 09, 2017, 06:56:10 AM »
Great Job!

Are you maxing accounts outside of of 401k? Roth? HSA? Taxable?

Thanks 2B1S - maxing out the HSA, wife and I combined make too much for a Roth, and after we pay off student loans we will crank up the taxable funds!

birdman2003

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Re: 10 Years = 401(k) worth $200k
« Reply #16 on: May 09, 2017, 07:01:21 AM »
You're doing fine!

We were the same way, a late bloomer, just didn't make enough to put a ton away plus never invested in index funds and when we did I thought I could time the market. We lost out on some huge gains.

Three years ago, plus two months, we had <$400k to our names. Today? $1.1m. Mostly investment gains with savings thrown in.

What surprised me is JUST HOW FAST it starts accumulating once you get to a larger amount. That snowball keeps getting larger and larger. It will happen and it will happen fast.

Our total household income has averaged ~$100k since graduating college 14 years ago.

Wow - that is great! Thanks for sharing your story.

birdman2003

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Re: 10 Years = 401(k) worth $200k
« Reply #17 on: May 09, 2017, 07:02:37 AM »
I think you are doing great! Just to give another data point as to what you might be around had you maxed the whole time- I am just shy of 10 yrs (maxed the entire time and 4% employer match) and I'm at $299.7k as of today- just about to hit $300k.

This is the way to do it!

birdman2003

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Re: 10 Years = 401(k) worth $200k
« Reply #18 on: May 09, 2017, 07:03:15 AM »
I am in the same boat. I am a late starter (not until 33 b/c of my Ph.D.). I am hitting about just over 270k for 11 years of investing including a 401a, 403b, and Roth IRA. This is the first year when I can max out my 403b and it feels great. Hopefully, less than 10 more years of work and I will be to my FI goal.

Congrats on maxing it out this year

birdman2003

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Re: 10 Years = 401(k) worth $200k
« Reply #19 on: May 09, 2017, 07:06:54 AM »
i know we've had some pretty good years and i'm not sure about your match but the simple 18k a year over 10 years at 7% a year is 266k so you're not incredibly far behind.

Yeah with the good years and my generous employer match I should be higher than I am, but thanks for doing that comparison boarder42

SnackDog

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Re: 10 Years = 401(k) worth $200k
« Reply #20 on: May 09, 2017, 07:20:26 AM »

Three years ago, plus two months, we had <$400k to our names. Today? $1.1m. Mostly investment gains with savings thrown in.


At your current rate you will have $20 million in under ten years.  $1 billion in less than 25 years.  Whatever you are doing, keep doing it.

aspiringnomad

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Re: 10 Years = 401(k) worth $200k
« Reply #21 on: May 09, 2017, 11:06:35 PM »
I'm at $283k a couple months shy of 11 years in. My current employer's match is very generous at 8%, but previous matches have been 4-5%.

JLee

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Re: 10 Years = 401(k) worth $200k
« Reply #22 on: May 10, 2017, 12:05:22 AM »
I'm about 1.5 years in at my current employer (1yr 7.5mo) and my 401k is at $43k.  It's fun to watch it grow without any intervention on my part...just showing up at work!

I'm a red panda

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Re: 10 Years = 401(k) worth $200k
« Reply #23 on: May 10, 2017, 02:53:31 AM »
:(
I've been in the workforce 12 years and have only $144k in my 403b.  I've had generous matches, but about 6 of those years were low salary. Only in the past two years have I been at what I consider a high salary (though below $100k)

Much Fishing to Do

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Re: 10 Years = 401(k) worth $200k
« Reply #24 on: May 10, 2017, 07:11:47 AM »
:(
I've been in the workforce 12 years and have only $144k in my 403b.
Ha, only here is that a poor start!  Most 12 years in are just starting to think about saving for retirement and the only wealth they might have is forced savings of a mortgage and appreciating home.

Spitfire

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Re: 10 Years = 401(k) worth $200k
« Reply #25 on: May 10, 2017, 07:56:09 AM »
This is my 13th year into a career and I will pass $200k this year. I think this is only my 3rd year maxing though after finding MMM. Hoping to get to 600k by 2025.

NESailor

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Re: 10 Years = 401(k) worth $200k
« Reply #26 on: May 10, 2017, 09:38:14 AM »
:(
I've been in the workforce 12 years and have only $144k in my 403b.
Ha, only here is that a poor start!  Most 12 years in are just starting to think about saving for retirement and the only wealth they might have is forced savings of a mortgage and appreciating home.

Exactly.  My FIL has about 150K to his name after 40 years of work...and he's one of the lucky ones out there if you read the news!!!

We're also a bit slower.  Wife and I have about 160K between the 2 of us 10 years out of school.  Like many, the first 4-5 years were relatively modest household income, wife still in school, not saving much.  We then proceeded to spend a lot on fixing a fixer upper so there's about a 100K in that too (shoulda rented :D ).  Up 80K from a year ago and aiming to start increasing our NW by 6 figures annually hopefully this year but at latest when kids get out of daycare (which is about $15K/year).  This should be driven by investments and no other big asset acquisitions.

Nothlit

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Re: 10 Years = 401(k) worth $200k
« Reply #27 on: May 10, 2017, 10:47:24 AM »
Here are my year-end balances over the last decade since I started working. First column is my 403b balance. Second column includes 403b plus IRA and HSA for comparison. I have a pretty generous employer match, which helps a lot.

Year: 403b / 403b + IRA + HSA
2008: $7,700 / $7,700 (partial first year of work, 401a/403b up to employer match only)
2009: $34,000 / $40,000 (started Roth IRA at max)
2010: $62,000 / $74,000
2011: $78,000 / $95,000
2012: $119,000 / $146,000 (started HSA at max; increased 403b to max)
2013: $175,000 / $219,000
2014: $220,000 / $279,000
2015: $247,000 / $314,000
2016: $296,000 / $381,000
2017: $332,000 / $430,000 (so far)

I'm a red panda

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Re: 10 Years = 401(k) worth $200k
« Reply #28 on: May 10, 2017, 11:20:24 AM »
:(
I've been in the workforce 12 years and have only $144k in my 403b.
Ha, only here is that a poor start!  Most 12 years in are just starting to think about saving for retirement and the only wealth they might have is forced savings of a mortgage and appreciating home.

Yeah...

My husband and I are just nearing the million net worth mark (together, probably hit it late next year) so we are doing OK. I also have non retirement investments and an IRA.  We've always, and still do, hold probably too much cash.

birdman2003

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Re: 10 Years = 401(k) worth $200k
« Reply #29 on: May 10, 2017, 11:46:03 AM »
Here are my year-end balances over the last decade since I started working. First column is my 403b balance. Second column includes 403b plus IRA and HSA for comparison. I have a pretty generous employer match, which helps a lot.

Year: 403b / 403b + IRA + HSA
2008: $7,700 / $7,700 (partial first year of work, 401a/403b up to employer match only)
2009: $34,000 / $40,000 (started Roth IRA at max)
2010: $62,000 / $74,000
2011: $78,000 / $95,000
2012: $119,000 / $146,000 (started HSA at max; increased 403b to max)
2013: $175,000 / $219,000
2014: $220,000 / $279,000
2015: $247,000 / $314,000
2016: $296,000 / $381,000
2017: $332,000 / $430,000 (so far)

Wow - that is the power of maxing that 403b !

Valhalla

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Re: 10 Years = 401(k) worth $200k
« Reply #30 on: May 10, 2017, 12:13:15 PM »
Before we get too giddy, the last 10 years have been exceptional in stock market growth, due to a huge plunge in the market shortly in the beginning of the period around 2007 / 2008.

I had around $800k in 401k / IRA's before 2007... now I'm around $1 million + in 2017.  Mainly because the value of my investments took a huge plunge before recovering.

If I had only started counting 10 years ago, and discounting the huge loss prior to that, my 10 year returns would look pretty amazing. 

The last 10 years have been great, and I have been fully maxed in my 401k / IRA / HSA when I can... but it's not as magical as only looking at that period would have you believe.

Valhalla

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Re: 10 Years = 401(k) worth $200k
« Reply #31 on: May 10, 2017, 12:14:08 PM »

Three years ago, plus two months, we had <$400k to our names. Today? $1.1m. Mostly investment gains with savings thrown in.


At your current rate you will have $20 million in under ten years.  $1 billion in less than 25 years.  Whatever you are doing, keep doing it.
Those numbers look really astonishing... I've love to know how they went from $400k to 1.1m in 3 years.

inline five

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Re: 10 Years = 401(k) worth $200k
« Reply #32 on: May 10, 2017, 12:18:48 PM »

Three years ago, plus two months, we had <$400k to our names. Today? $1.1m. Mostly investment gains with savings thrown in.


At your current rate you will have $20 million in under ten years.  $1 billion in less than 25 years.  Whatever you are doing, keep doing it.
Those numbers look really astonishing... I've love to know how they went from $400k to 1.1m in 3 years.

I was mostly cash and bought BAC and VLKAY (bought and sold and bought again after Brexit). I don't index (at the moment).

I'm about to pull the plug on VLKAY, it has barely kept up with the market average and I expected a much faster recovery.
« Last Edit: May 10, 2017, 12:21:12 PM by inline five »

Valhalla

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Re: 10 Years = 401(k) worth $200k
« Reply #33 on: May 10, 2017, 12:22:20 PM »

Three years ago, plus two months, we had <$400k to our names. Today? $1.1m. Mostly investment gains with savings thrown in.


At your current rate you will have $20 million in under ten years.  $1 billion in less than 25 years.  Whatever you are doing, keep doing it.
Those numbers look really astonishing... I've love to know how they went from $400k to 1.1m in 3 years.

I was mostly cash and bought BAC and VLKAY (bought and sold and bought again after Brexit). I don't index (at the moment).

I'm about to pull the plug on VLKAY, it has barely kept up with the market average and I expected a much faster recovery.
So you bought single stocks instead of investing in an index or a fund... risky but good for you that it paid off.

I know people who bought WorldCom and Enron (a neighbor of mine - who came into some cash) and lost it all... so it could easily go the other way... I wouldn't advise investing in single stocks and betting so big... but that's just me.

inline five

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Re: 10 Years = 401(k) worth $200k
« Reply #34 on: May 10, 2017, 12:26:08 PM »
So you bought single stocks instead of investing in an index or a fund... risky but good for you that it paid off.

I know people who bought WorldCom and Enron (a neighbor of mine - who came into some cash) and lost it all... so it could easily go the other way... I wouldn't advise investing in single stocks and betting so big... but that's just me.

I've never advised anyone to do that, in fact I've advised the opposite.

I also bought MMTOF but don't currently hold it. I bought it for basically free as market cap was equal to their cash on hand. I should've held on to that instead of VLKAY!!

I don't know the history of those companies, just that they had accounting fraud of some sort and went bankrupt. Were they showing large losses after the stock ticked downward? I don't buy anything that shows losses that they can't cover with cash on hand. Basically I look for low PE relative to average then investigate from there. I also look for large market sell offs at the same time for various world events.
« Last Edit: May 10, 2017, 12:28:48 PM by inline five »

Valhalla

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Re: 10 Years = 401(k) worth $200k
« Reply #35 on: May 10, 2017, 12:27:40 PM »
So you bought single stocks instead of investing in an index or a fund... risky but good for you that it paid off.

I know people who bought WorldCom and Enron (a neighbor of mine - who came into some cash) and lost it all... so it could easily go the other way... I wouldn't advise investing in single stocks and betting so big... but that's just me.

I've never advised anyone to do that, in fact I've advised the opposite.

I also bought MMTOF but don't currently hold it. I bought it for basically free as market cap was equal to their cash on hand. I should've held on to that instead of VLKAY!!
You've definitely lucked out... how long do you intend to buy single stocks before you go back to indexing?   You're far braver than I am.

inline five

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Re: 10 Years = 401(k) worth $200k
« Reply #36 on: May 10, 2017, 12:33:48 PM »
You've definitely lucked out... how long do you intend to buy single stocks before you go back to indexing?   You're far braver than I am.

My goal was to obtain enough wealth and invest in a more steady form of income to retire off of. I would prefer a 20-30 unit apartment building. I'd like ~$75k/yr in passive income which I will use to basically enhance my lifestyle while working and retire on once I get sick of it.

COEE

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Re: 10 Years = 401(k) worth $200k
« Reply #37 on: May 10, 2017, 01:38:35 PM »
10 years ago I had just graduated college with a EE degree.  My finances were awful back then - but I probably made a little bit of money - I did start contributing to 401k back then - although I'm sure it was a small amount - but I don't have any records to know for sure.

Today, I'm at around $165k in retirement funds.  So I haven't done great - but like others have pointed out - I'm far ahead of others.  This year was suppose to be the first year I maxed out my 401k, but I ended up losing my job.  So that might have to wait until next year.  We'll see.

5 years ago I did start paying attention.  My net worth was $0.  Today it's close to $400k.  In 5 years!  Most of that has been lucky due to the crazy housing market where I live, but I can't believe how fast the stach can grow.

As @Valhalla mentioned though - this has been an absurd decade and many of us have not had to weather the storm yet.  We have to stick to the plan and remember the plan - and not freak out.  It's humbling for me to hear what others have had to endure and get a reality check on what can happen.

The_Dude

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Re: 10 Years = 401(k) worth $200k
« Reply #38 on: May 10, 2017, 02:17:33 PM »
Before we get too giddy, the last 10 years have been exceptional in stock market growth, due to a huge plunge in the market shortly in the beginning of the period around 2007 / 2008.

I had around $800k in 401k / IRA's before 2007... now I'm around $1 million + in 2017.  Mainly because the value of my investments took a huge plunge before recovering.

If I had only started counting 10 years ago, and discounting the huge loss prior to that, my 10 year returns would look pretty amazing. 

The last 10 years have been great, and I have been fully maxed in my 401k / IRA / HSA when I can... but it's not as magical as only looking at that period would have you believe.

I was beginning to have the same thoughts as I read so many people talking about the past 10 years. 

sirdoug007

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Re: 10 Years = 401(k) worth $200k
« Reply #39 on: May 10, 2017, 03:50:28 PM »
Before we get too giddy, the last 10 years have been exceptional in stock market growth, due to a huge plunge in the market shortly in the beginning of the period around 2007 / 2008.

I had around $800k in 401k / IRA's before 2007... now I'm around $1 million + in 2017.  Mainly because the value of my investments took a huge plunge before recovering.

If I had only started counting 10 years ago, and discounting the huge loss prior to that, my 10 year returns would look pretty amazing. 

The last 10 years have been great, and I have been fully maxed in my 401k / IRA / HSA when I can... but it's not as magical as only looking at that period would have you believe.

What have you been doing with your money the last 10 years?

The S&P500 was around 1500 in 2007 and is not at about 2400.  So with just your $800k invested it should be around $1.3 million if it was invested in the S&P500 (not even including dividends!).  And that doesn't count any additions you have made in the last 10 years.

At $1.0 million or so that is only 2% per year over 10 years growth with no additions.


sirdoug007

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Re: 10 Years = 401(k) worth $200k
« Reply #40 on: May 10, 2017, 03:58:05 PM »
At 10 years, I was at $173K. I didn't start maxing my 401k until year 8 - only $93K at the end of that year (2011). Now at year 13 (and 4 months) and now at $308K.

2004 - $6K
2005 - $14K
2006 - $26K
2007 - $33K
2008 - $28K
2009 - $54K
2010 - $79K
2011 - $93K
2012 - $128K
2013 - $173K
2014 - $202K
2015 - $220K
2016 - $278K
now     $308K

This is scary how close this is to my own investing path offset by a few years.  I only started maxing my 401(k) starting in year 12 but with my company match is was pretty close to the individual max through that timeframe.

It's amazing how these things pile up and ACCELERATE over the years.

inline five

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Re: 10 Years = 401(k) worth $200k
« Reply #41 on: May 10, 2017, 04:32:52 PM »
Guys, for those who started in earnest in 2007-2008 time frame, you literally had some of the best timing and luck possible in any 10 year period.

Valhalla

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Re: 10 Years = 401(k) worth $200k
« Reply #42 on: May 10, 2017, 04:55:07 PM »
Before we get too giddy, the last 10 years have been exceptional in stock market growth, due to a huge plunge in the market shortly in the beginning of the period around 2007 / 2008.

I had around $800k in 401k / IRA's before 2007... now I'm around $1 million + in 2017.  Mainly because the value of my investments took a huge plunge before recovering.

If I had only started counting 10 years ago, and discounting the huge loss prior to that, my 10 year returns would look pretty amazing. 

The last 10 years have been great, and I have been fully maxed in my 401k / IRA / HSA when I can... but it's not as magical as only looking at that period would have you believe.

What have you been doing with your money the last 10 years?

The S&P500 was around 1500 in 2007 and is not at about 2400.  So with just your $800k invested it should be around $1.3 million if it was invested in the S&P500 (not even including dividends!).  And that doesn't count any additions you have made in the last 10 years.

At $1.0 million or so that is only 2% per year over 10 years growth with no additions.
Glad you asked... I just pulled up my old statements, I actually had about $600k in 401k / IRA's / investments at the end of 2007.  Today's total is about about $1.1 million, which doesn't include around $100k - $150k I pulled out to buy real estate, etc.  Not too shabby, I guess.

aspiringnomad

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Re: 10 Years = 401(k) worth $200k
« Reply #43 on: May 10, 2017, 11:04:58 PM »
Guys, for those who started in earnest in 2007-2008 time frame, you literally had some of the best timing and luck possible in any 10 year period.

Well, it would have been luckier to have had a sizeable stash than to just be starting out in 2007 to better leverage those returns. See Valhalla's gains over that time compared to the rest, for example.