Author Topic: 401k reached $80k  (Read 6014 times)

monte0930

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401k reached $80k
« on: May 10, 2016, 06:01:57 PM »
I logged in to my 401k account today and reached a new milestone! $60k is from my investments (25% REIT and 75% S&P 500 index) and $20k is in employee stock (employer contribution). Since I started reading MMM about a year and a half ago, I have upped my 401k contribution several times, from 5% (getting max employer match) up to 18%. Should be nearly maxed this year.

I also learned how to find the lowest expense ratio funds, and switched my "diverse" portfolio into a more simplified and lower expense rate one.

SwordGuy

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Re: 401k reached $80k
« Reply #1 on: May 10, 2016, 06:57:57 PM »
Congrats to you!

Isn't it an awesome feeling when you realize that the plan will really work?

Slow&Steady

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Re: 401k reached $80k
« Reply #2 on: May 13, 2016, 08:13:54 AM »
I have been bouncing around at $58k-59k for the last couple weeks and it is driving me crazy!

I know I shouldn't even check my 401k that often but it is so close to crossing over that $60k mark that I can't help myself.  Hopefully after the next contribution it will cross the $60k mark, and I can go back to ignoring it and letting it keep growing.

It is funny because when I hit 30 I was at 1x salary and really excited, then life happened (baby & DH health issues) and I didn't increase my contributions with each raise and now I am under 1x salary again.  I am not sure if I will hit the 1x salary mark this year but the plan is for the 401k to grow faster then my salary from here on out, we will see. 

I don't necessarily agree with everything in the quote below but I figure it is a guideline that is recommended for the rest of America.  If I can do better than that guideline that is great news for my FIRE plans.

Quote
For example, by age 35, Fidelity suggests that you should have saved 1X your current salary, then 3X by 45, and 5X by 55. By retirement age, you should have at least 8 times your ending salary. This will help you replace 85% of your pre-retirement income, which is a better rule than saving up a million dollars.
« Last Edit: May 13, 2016, 08:15:59 AM by NicoleO »

monte0930

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Re: 401k reached $80k
« Reply #3 on: May 13, 2016, 03:57:43 PM »
I have been bouncing around at $58k-59k for the last couple weeks and it is driving me crazy!

I know I shouldn't even check my 401k that often but it is so close to crossing over that $60k mark that I can't help myself.  Hopefully after the next contribution it will cross the $60k mark, and I can go back to ignoring it and letting it keep growing.

It is funny because when I hit 30 I was at 1x salary and really excited, then life happened (baby & DH health issues) and I didn't increase my contributions with each raise and now I am under 1x salary again.  I am not sure if I will hit the 1x salary mark this year but the plan is for the 401k to grow faster then my salary from here on out, we will see. 

I don't necessarily agree with everything in the quote below but I figure it is a guideline that is recommended for the rest of America.  If I can do better than that guideline that is great news for my FIRE plans.

Quote
For example, by age 35, Fidelity suggests that you should have saved 1X your current salary, then 3X by 45, and 5X by 55. By retirement age, you should have at least 8 times your ending salary. This will help you replace 85% of your pre-retirement income, which is a better rule than saving up a million dollars.

Yes, mine was fluctuating around the 58-59k mark for quite awhile as well. I check my balance way too often as well. Interesting about the Fidelity rules, My net worth at 33 is 2x my salary so I think I am on the right track.

MVal

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Re: 401k reached $80k
« Reply #4 on: May 16, 2016, 09:47:20 AM »
I have been bouncing around at $58k-59k for the last couple weeks and it is driving me crazy!

I know I shouldn't even check my 401k that often but it is so close to crossing over that $60k mark that I can't help myself.  Hopefully after the next contribution it will cross the $60k mark, and I can go back to ignoring it and letting it keep growing.

It is funny because when I hit 30 I was at 1x salary and really excited, then life happened (baby & DH health issues) and I didn't increase my contributions with each raise and now I am under 1x salary again.  I am not sure if I will hit the 1x salary mark this year but the plan is for the 401k to grow faster then my salary from here on out, we will see. 

I don't necessarily agree with everything in the quote below but I figure it is a guideline that is recommended for the rest of America.  If I can do better than that guideline that is great news for my FIRE plans.

Quote
For example, by age 35, Fidelity suggests that you should have saved 1X your current salary, then 3X by 45, and 5X by 55. By retirement age, you should have at least 8 times your ending salary. This will help you replace 85% of your pre-retirement income, which is a better rule than saving up a million dollars.

Yes, mine was fluctuating around the 58-59k mark for quite awhile as well. I check my balance way too often as well. Interesting about the Fidelity rules, My net worth at 33 is 2x my salary so I think I am on the right track.

I also agree the bobbing balance with the stock market as it is right now is quite maddening. I feel frustrated when I'm putting over $1,000 a month in my 401K and the balance just doesn't budge! I check my Personal Capital daily (like a psycho) and I keep wavering around the $60K net worth mark. If anything, this frustration is pushing me to find some side hustle that will bring in regular cash and be more satisfying to watch grow instead of these waffling investments right now. I'm also 33 and should have 1x my current salary before the end of the year in the 401K...although if you count everything else I have right now, I'm already way past it.

Ed Mills

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Re: 401k reached $80k
« Reply #5 on: May 16, 2016, 05:31:45 PM »
Nicely done all around!  You guys seem to be well ahead of me in my youth.  Good luck hitting the 6-figure mark and eventually the 7-figure mark.  Ed

MVal

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Re: 401k reached $80k
« Reply #6 on: May 18, 2016, 09:29:40 AM »
Nicely done all around!  You guys seem to be well ahead of me in my youth.  Good luck hitting the 6-figure mark and eventually the 7-figure mark.  Ed

Thanks, Ed! I doubt I'll ever see the 7-figure mark, but I am anxious to hit six-figures. I hope it's true what they say about the saving being faster/easier after that. By the way, loved your interview on MadFientist!

Bikeguy

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Re: 401k reached $80k
« Reply #7 on: May 18, 2016, 01:09:43 PM »
I know I shouldn't even check my 401k that often
Quote

You know what a Boglehead says when asked how the market is doing?

Who cares.

It has always gone up eventually.  If 58-59K depressed you, imagine checking once a year, and finding after maxing out for the year, you were at the same place you started the year.  That happened to me.

Then, imagine within a year or two the amount in your 401K doubled.  That happened to me too.

If you need to see it always going up, you are in for a lot of disappointment.

Slow&Steady

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Re: 401k reached $80k
« Reply #8 on: May 19, 2016, 09:16:53 AM »
I know I shouldn't even check my 401k that often
Quote

You know what a Boglehead says when asked how the market is doing?

Who cares.

It has always gone up eventually.  If 58-59K depressed you, imagine checking once a year, and finding after maxing out for the year, you were at the same place you started the year.  That happened to me.

Then, imagine within a year or two the amount in your 401K doubled.  That happened to me too.

If you need to see it always going up, you are in for a lot of disappointment.

I know and agree with all of this. 

I have been adding to a 401k for more than a decade, although I had no clue what I was doing and only added a very small % for most of my 20 (hence the lower than I would prefer total). I was contributing leading up to 2008 and continued to contribute during and after 2008.  In the past I only ever looked a my quarterly statement until the last 5-ish years so I know I saw flat (maybe even negative) returns and also double digit returns.  I believe that leaving my asset allocation alone is the best thing to do so although I watch the ups and downs of my 401k I do not make any changes to it.  I probably need to return to the forget it is there approach I had in my 20s (with the higher contributions of my 30s) but now that I am more aware of my desire to not work forever I just can't help but take a peek.

I do not NEED to see it always going up but is sure is nice when it does.

GrOW

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Re: 401k reached $80k
« Reply #9 on: May 22, 2016, 03:40:40 PM »
Congrats!! The pebble started rolling downhill, is picking up momentum, becoming a boulder, and soon an avalanche. Keep it going.

Slow&Steady

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Re: 401k reached $80k
« Reply #10 on: May 31, 2016, 02:37:57 PM »
I have been bouncing around at $58k-59k for the last couple weeks and it is driving me crazy!

I know I shouldn't even check my 401k that often but it is so close to crossing over that $60k mark that I can't help myself.  Hopefully after the next contribution it will cross the $60k mark, and I can go back to ignoring it and letting it keep growing.

It is funny because when I hit 30 I was at 1x salary and really excited, then life happened (baby & DH health issues) and I didn't increase my contributions with each raise and now I am under 1x salary again.  I am not sure if I will hit the 1x salary mark this year but the plan is for the 401k to grow faster then my salary from here on out, we will see. 

I don't necessarily agree with everything in the quote below but I figure it is a guideline that is recommended for the rest of America.  If I can do better than that guideline that is great news for my FIRE plans.

Quote
For example, by age 35, Fidelity suggests that you should have saved 1X your current salary, then 3X by 45, and 5X by 55. By retirement age, you should have at least 8 times your ending salary. This will help you replace 85% of your pre-retirement income, which is a better rule than saving up a million dollars.

My 401k has officially crossed the $60k mark, it is sitting at $61k as of a few minutes ago!!!

MustachianAccountant

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Re: 401k reached $80k
« Reply #11 on: June 01, 2016, 03:41:13 AM »
I'm at the $70k mark and it's driving me crazy too. It keeps going up/down and I'm maddeningly waiting for that $75k mark.  Next it will be $100k. Hopefully by early next year ;)

OP, I too did the 5% 401k contribution and after finding this site have upped it to 20% which will max it by Novemberish. 

Isn't it Awesome???

Once your 401k is maxed for the year, and you can't contribute in December, does your employer not contribute anything in December either?

GrOW

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Re: 401k reached $80k
« Reply #12 on: June 01, 2016, 03:54:19 AM »
Once your 401k is maxed for the year, and you can't contribute in December, does your employer not contribute anything in December either?

This is a problem for my employer. After talking to HR a handful of times I am still not sure if they would not pay the amount or if they just don't know since noone has ever done it. I have thought about finding out via maxing in November since losing out on one month of employer contribution would not get the end of the world and I would know if I could go all MillionaireEducator on them and front load by end of Q1 in future years.

Eurotexan

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Re: 401k reached $80k
« Reply #13 on: June 02, 2016, 09:36:30 AM »
I would spread the contributions out so that you get the employer match for every paycheck, including December. You're not going to lose out on market gains for just one month and take every penny of free money that is on offer!

Ox05

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Re: 401k reached $80k
« Reply #14 on: June 07, 2016, 03:17:30 PM »
Awesome! I'm in the low 70's. Hoping to join you soon!

twood80

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Re: 401k reached $80k
« Reply #15 on: June 11, 2016, 07:51:44 PM »
Once your 401k is maxed for the year, and you can't contribute in December, does your employer not contribute anything in December either?

This is true for my employer, so you can't do too much front loading or leave mid-year and still get a full year match.  Combine this with needing to contribute in whole percentages, and it taking a variable 0-3 pay cycles before requests to change contributions are actually processed, and it's hard to both max out and get the full employer match.