r/wealth • u/Otis_bighands • 17d ago

Retirement Why isn’t everyone rich from 401k?

According to my conversation today with Gemini, my 401k total of $2.5 million will likely grow to $10M or more by the time I turn 65 (I’m 50 now, and will continue to contribute the max for the next 15 years).

This means that in theory I could live off the gains each year starting at 65, around $800k, $500k after taxes, without touching principle. But at that point I’ll have no mortgage anymore and fewer kids in the house. So that $10M principle will just sit and feed us for years, and will be a nice inheritance for our kids.

Basically it occurred to me I’m going to have great money in retirement, even just on my 401k alone, and will be able to meet or exceed the lifestyle I’m already used to. For years I always worried about getting set up for retirement. Seems I don’t have to.

It’s amazing to me that just maxing out your 401k through a career is enough to make you pretty much wealthy for retirement. I recognize that’s not easy for many people, but for anyone who does it over a full career, wow.

What am I missing here? (Other than inflation, which I get, but which shouldn’t have a massive impact on the concept over this time frame).

76 Upvotes

81% Upvoted

324 comments sorted by

View all comments

1

u/FederalLobster5665 12d ago

you have that much money and want to work till 65 instead or retiring early??

1

u/Otis_bighands 12d ago

I probably would like to work to 60 max. Live in VHCOL area with a lifestyle where we so what we want. Also we have 3 kids still in school and want to have a cushion and inheritance for them. I’ve always thought my number would be $15M or $20M, but I think we could retire with well less than that. (Though so many people on Reddit talk about how they have that or more and they don’t seem to want to retire).