Milestone in my 401k

[disneysteve]

I shared this on my blog but since Singuy posted hitting $1 M mark, I figured I'd share here too.

As of this week, my 401k hit $200,000.

While that isn't a huge number, and it's nowhere near enough to retire with, I think it's useful to look at it because I only started this job in April 2016 and I wasn't full time until November 2017. The fact that I've accumulated that much in just over 5 years really speaks to the benefit of participating in your employer-sponsored plan.

Someone in the blog comments asked how it got there so quickly so I went back and looked at the breakdown.

My contributions: $107,955.52
Employer match: $42,549.37
-----------------------------------------
Total contributions: $150,604.89

Total value 8/30/21: $200,395.59

So I got $42,500 in "free" money from my employer and earned another $50,000 through growth of the investments. And this account is somewhat conservatively invested in a 60/40 fund. Had I been more aggressive, the total would be even higher.

Anybody not contributing enough to at least get the full company match is really throwing away money.

[GoodLiving]

Congrats! Yes, I recall when I had my first "real job" that my supervisor told us about the match, so grateful because that was the start of my personal finance journey. Most folks don't know or pay attention or....(insert some explanation here) that they don't participate. Tuition reimbursement/remission is another benefit few use.

[Singuy]

I shared this on my blog but since Singuy posted hitting $1 M mark, I figured I'd share here too.

As of this week, my 401k hit $200,000.

While that isn't a huge number, and it's nowhere near enough to retire with, I think it's useful to look at it because I only started this job in April 2016 and I wasn't full time until November 2017. The fact that I've accumulated that much in just over 5 years really speaks to the benefit of participating in your employer-sponsored plan.

Someone in the blog comments asked how it got there so quickly so I went back and looked at the breakdown.

My contributions: $107,955.52
Employer match: $42,549.37
-----------------------------------------
Total contributions: $150,604.89

Total value 8/30/21: $200,395.59

So I got $42,500 in "free" money from my employer and earned another $50,000 through growth of the investments. And this account is somewhat conservatively invested in a 60/40 fund. Had I been more aggressive, the total would be even higher.

Anybody not contributing enough to at least get the full company match is really throwing away money.

So were you mainly investing in Roth/IRA prior to 2016?

[disneysteve]

So were you mainly investing in Roth/IRA prior to 2016?

Yes. I did not have an employer-sponsored plan until I took this job in 2016. Up until then, it was all on me. Roth and taxable accounts.

I do have a couple of small rollover accounts from years ago. There was a non-contributory plan of some sort (I don't recall the details) when I was an intern and resident. Technically, I didn't qualify because I wasn't there long enough to be vested, but the hospital got sold and part of the terms of the deal was that everyone got 100% vested so I ended up with some money from that unexpectedly. My first practice (1993-2000) also had some sort of profit sharing plan and when the owner retired, the plan was shut down and I got a lump sum from that. I think it was about 20K.

Other than that, it was all Roth/IRA until this job. That's why we have such a large taxable portfolio. I didn't have access to much tax-sheltered stuff.

[Singuy]

Yes. I did not have an employer-sponsored plan until I took this job in 2016. Up until then, it was all on me. Roth and taxable accounts.

I do have a couple of small rollover accounts from years ago. There was a non-contributory plan of some sort (I don't recall the details) when I was an intern and resident. Technically, I didn't qualify because I wasn't there long enough to be vested, but the hospital got sold and part of the terms of the deal was that everyone got 100% vested so I ended up with some money from that unexpectedly. My first practice (1993-2000) also had some sort of profit sharing plan and when the owner retired, the plan was shut down and I got a lump sum from that. I think it was about 20K.

Other than that, it was all Roth/IRA until this job. That's why we have such a large taxable portfolio. I didn't have access to much tax-sheltered stuff.

Were you an independent contractor?

[disneysteve]

Were you an independent contractor?

No. I’ve always been an employee.

[LivingAlmostLarge]

great job! it does make things exciting

[riverwed070707]

I've been watching my account this week because I'm about $75 from hitting $300k. I started my account in 08 so much longer growth period and I wasn't able to start maxing contributions until this year but what I would echo is the growth in the last year and a half has been wild. I'm up 17% YTD. $60k this year alone and only $14k of that is employee and employer contributions. I could get used to this but I anticipate its temporary.

[bjl584]

Congrats on the milestone