### Author Topic: enough in my 401 K question  (Read 3140 times)

#### wallacemerle

• 5 O'Clock Shadow
• Posts: 3
##### enough in my 401 K question
« on: March 05, 2016, 02:45:05 PM »
My questions is in response to post
http://www.mrmoneymustache.com/2011/11/11/how-much-is-too-much-in-your-401k/
and the option #1 listed there.
I cannot figure the math and I wonder if anyone can help me based on my own numbers:
13 years til 59.5
195,727 in 401k

trying to get to the 622,000 # in 13 years. I dont think the 5% growth mentioned in the option #1 will get me there, so I do not see an 'early' retirement for me, but can someone use my # and explain the math?
how does one calculate : "The answer is of course 144,000 x 1.05 to the power of 30 (years)." (from the original post)
in my case the 195,727 x 1.05 to the power of 13 years?
If you have a good link to a calculator that will help me figure out this kind of growth only scenario and then allow me to add in various contributions, I would welcome that. Thanks for your help!

#### bearkat

• Stubble
• Posts: 120
• Age: 32
• Location: California
##### Re: enough in my 401 K question
« Reply #1 on: March 06, 2016, 09:42:36 AM »
This is the calculator that I like to use:

http://www.thecalculatorsite.com/finance/calculators/savings-calculators.php

In 13 years, it shows you getting up to \$369k from earnings alone. To get to ~\$622k, you would need to invest an extra ~\$1,200 / month.

Good luck!

#### Jeremy E.

• Handlebar Stache
• Posts: 1947
• Location: Lewiston, ID
##### Re: enough in my 401 K question
« Reply #2 on: March 07, 2016, 09:57:31 AM »
I like using excel, it's pretty quick once you get the hang of it, not as quick as a calculator, but I still prefer it.
I threw your numbers into excel and got almost the same numbers as bearkat,
I ended up with you would have \$374,417.1 if you didn't add any in, and if you added in just \$1130 per month you could get to \$622,010.70 in 13 years. This is assuming 0.4167% gains every month for 13 years.
If you have excel and want some pointers, let me know.

#### MDM

• Senior Mustachian
• Posts: 10998
##### Re: enough in my 401 K question
« Reply #3 on: March 07, 2016, 02:59:59 PM »
how does one calculate...1.05 to the power of 30...?

Assuming the part above is the heart of the question,

In Excel:                  =1.05^30

In the Windows 7 Calculator:      1.05   xy   30   =

In many hand held calculators:   1.05   yx   30   =

All the above should give ~4.322 as the answer.  Then 144000 * 4.322 = ~622000.

#### wallacemerle

• 5 O'Clock Shadow
• Posts: 3
##### Re: enough in my 401 K question
« Reply #4 on: March 17, 2016, 10:06:34 PM »
thanks to all. I am mulling this over-- I think I've got it...