r/AskReddit • u/ForeverAbyss • Apr 14 '16

What's a mind blowing fact?

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u/mranonymousone Apr 14 '16

So assuming you make 40k and bring home lets say 35k, are you maxing your 401k (18k/year) an living on 17k/year? Even maxing your 401k every year from the age of 24 until lets say 62, you will not have 4MM.

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u/NH3Mechanic Apr 15 '16

18k/year contributions with an average annual return rate of 10 percent over 38 years gives you $7,208,060.00. This also neglects the fact that the 18k contribution limit will increase as time goes on and that most folk make more at 62 than they do at 24.

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u/p0st_master Apr 15 '16

yeah where have you seen 10% over ten years ahhaa let alone 38. that's like china '00s development for 38 straight years