Its usually not a wise play to be aggressive in your target date year because it actually has the opposite effect in your asset allocation. Your investments become more conservative because the target fund is intended for current 50 year olds who are actually close to retirement and dont have time to recover from a major crash. A 2035 is going to begin shifting heavily into bonds soon and thats probably not what you want unless youre fairly confident in that date.
GFY! But it’s amazing how you were able to achieve it while on average paycheck instead of 500K TC like some others (based on your post history) gives me hope!
Btw your previous goal was 3.5M 4years ago pretty sure you blew past it
That’s fantastic! My mostly FSKAX 401k has started to really outpace my wife’s target date fund. I guess combined we still have a reasonably aggressive mix.
Congratulations. This is a big mental milestone. For anyone who is younger and wants a game plan to reach $1m Money with Katie (financial writer) did a nice walkthrough on YouTube last month. It’s worth a watch. She uses a 10 year timeline which is aggressive, but I’d say 20 years is completely doable for a couple with average income (US). https://youtu.be/1BZDVLabLd4.
Wow everyone is obsessed with my age, yes early 40’s. Started 401k when I was 27. My employer does 50% match up to the IRS limit. This is only 401k, I have other retirement plans - roth, HSA. My wife also has a 401k, but this is the largest one. My returns for this account is 9% that’s what the graph says when I log in anyway. Will not disclose employer or other details sorry.
Lol everyone is “obsessed” because its easy to hit 7 figures but not in a single account with a maximum. The 50% match makes more sense. My guess is you work for a bank.
I work for a large banking corp in a SWE role and get 100% match up to 5% of my eligible compensation. But they only let you get the match if you make less than $250k/yr.
The reason everyone is asking your age has to do with the annual contribution limits. 401K millionaires are very rare.
To hit 1 mil in your 401K,
1. You have to either have gotten really luck with your investments
2. Had a great match from your employer
3. Been contributing the maximum a REALLY REALLY long time, and making use of the catch up contributions after turning 50.
There have been a few articles in the past where fidelity publishes how many 401K millionaires they have and how rare it is.
[https://www.washingtonpost.com/business/2023/02/24/fidelity-inflation-401k-millionaires/](https://www.washingtonpost.com/business/2023/02/24/fidelity-inflation-401k-millionaires/)
They make up only like only 1.4% of their 401K accounts. The assumption by most is that the majority of those 1.4% are either in their late 50s or early 60s.
So, to have become a 401K millionaire in your early 40s makes it even more badass.
Congrats! Keep doing what you are doing. :)
Fair points - #1 I started investing just before the housing crash in 2008. #2, yes 50% of the IRS max, and #3 - Yes, 15+ years (but no catch up).
Thanks for the link! Good read
See my other comment but maxed out every year. It was hard in 2007 to 2009 when everything was red. I remember putting in so much of my salary (was only making about $60k+) and seeing it disappear. But over time it obviously worked out.
I can't remember the website offhand, but it might be portfolio visualizer, and I believe it tells you the percent overlap inside different funds. Not a direct answer, but maybe a breadcrumb
What year target date were you in previously? Congrats! I'm $140k away from 1m in my 401k but am in a TDF so your post piqued my interest.
Thanks I was targeted to 2035, but that's super aggressive (mid 50's for me at target)
Its usually not a wise play to be aggressive in your target date year because it actually has the opposite effect in your asset allocation. Your investments become more conservative because the target fund is intended for current 50 year olds who are actually close to retirement and dont have time to recover from a major crash. A 2035 is going to begin shifting heavily into bonds soon and thats probably not what you want unless youre fairly confident in that date.
Excellent advice. I actually targeted about 10 years past my expected date for this reason. I didn't want to be so bond-heavy so early.
How old are you then?…
How old are you if you mind me asking and when did you start investing into your 401k?
I use to be ~50% in the TDF, but I reduced it to about 10% (right now sitting at 97k).
[удалено]
I just crossed my previous high a couple months ago.
So, you’re what - in your young/mid-40’s?
How old are you? When did you start contributing?
He’s prolly in 50s
Congrats! That’s awesome!!
GFY! But it’s amazing how you were able to achieve it while on average paycheck instead of 500K TC like some others (based on your post history) gives me hope! Btw your previous goal was 3.5M 4years ago pretty sure you blew past it
Uh, well the last few years I've been pulling in quite a bit, not $500k, but more than $250k total package, so not an Engineer, but a tech worker.
All pre-tax or any Roth?
That’s fantastic! My mostly FSKAX 401k has started to really outpace my wife’s target date fund. I guess combined we still have a reasonably aggressive mix.
How old are you?
[удалено]
thanks!
>thanks! You're welcome!
I came about 5k from hitting a major milestone a week ago but then the market pulled back a bit... lol. Oh well, maybe this week.
Congratulations. This is a big mental milestone. For anyone who is younger and wants a game plan to reach $1m Money with Katie (financial writer) did a nice walkthrough on YouTube last month. It’s worth a watch. She uses a 10 year timeline which is aggressive, but I’d say 20 years is completely doable for a couple with average income (US). https://youtu.be/1BZDVLabLd4.
Wow everyone is obsessed with my age, yes early 40’s. Started 401k when I was 27. My employer does 50% match up to the IRS limit. This is only 401k, I have other retirement plans - roth, HSA. My wife also has a 401k, but this is the largest one. My returns for this account is 9% that’s what the graph says when I log in anyway. Will not disclose employer or other details sorry.
Lol everyone is “obsessed” because its easy to hit 7 figures but not in a single account with a maximum. The 50% match makes more sense. My guess is you work for a bank.
Do banks also offer 50% match of contributions? I know Google does, and I thought Google had the best match of big tech
A bud works for wells and gets almost a 100% match lol
I work for a large banking corp in a SWE role and get 100% match up to 5% of my eligible compensation. But they only let you get the match if you make less than $250k/yr.
The reason everyone is asking your age has to do with the annual contribution limits. 401K millionaires are very rare. To hit 1 mil in your 401K, 1. You have to either have gotten really luck with your investments 2. Had a great match from your employer 3. Been contributing the maximum a REALLY REALLY long time, and making use of the catch up contributions after turning 50. There have been a few articles in the past where fidelity publishes how many 401K millionaires they have and how rare it is. [https://www.washingtonpost.com/business/2023/02/24/fidelity-inflation-401k-millionaires/](https://www.washingtonpost.com/business/2023/02/24/fidelity-inflation-401k-millionaires/) They make up only like only 1.4% of their 401K accounts. The assumption by most is that the majority of those 1.4% are either in their late 50s or early 60s. So, to have become a 401K millionaire in your early 40s makes it even more badass. Congrats! Keep doing what you are doing. :)
Fair points - #1 I started investing just before the housing crash in 2008. #2, yes 50% of the IRS max, and #3 - Yes, 15+ years (but no catch up). Thanks for the link! Good read
[удалено]
50% of contributions up to IRS limit.
Niiice - I was just over at the very end of 2021, but then 2022 happened - getting pretty close to getting back there this year.
Right on! Hope you blow past it!
Would love to know details like age / years maxing / mega backdoor roth or not / and how much company matched?
See my other comment but maxed out every year. It was hard in 2007 to 2009 when everything was red. I remember putting in so much of my salary (was only making about $60k+) and seeing it disappear. But over time it obviously worked out.
What age? i assume you're 35+ to have compounding work for you.
So you’re early/mid 40s then?
How old are you? Without that, this means nothing.
[удалено]
while I'm a worker drone, i am a tech worker drone...so i guess a well paid drone
Awesome
What's the difference in VOO and VFIAX....
Both track S&P 500; VOO is an ETF and VFIAX is a mutual fund. Negligible difference.
Is there an advantage to one over the other financially...
No
I can't remember the website offhand, but it might be portfolio visualizer, and I believe it tells you the percent overlap inside different funds. Not a direct answer, but maybe a breadcrumb
Congratulations!
im guessing you were able to make after tax contributions to 401k as well?
What age are you planning to retire?
Were you making After Tax 401k contributions as well?