398: 7 Ways to Get $1 Million in Your 401(k) Plan
Be Wealthy & Smart · Linda P. Jones
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Show Notes
Learn how to maximize your investments so your 401(k) or retirement plan will accumulate $1 million.
About 150,000 people have a 401(k) of $1 million or more in 2017 and 152,000 IRA's have $1 million or more.
Here are the steps to take:
1. Start as soon as possible.
2. Invest the maximum or at least get the match.
401(k) & 403 (b) = $18,500
Roth IRA benefits phase out (you can't contribute) if you earn too much money.
IRA $5,500
3. If you're over age 50, add the catch up provision.
401(k) $18,500 + 6,000 = $24,500
IRA $5,500 + $1,000
4. Invest in stocks.
10% average annual return.
$3,000 per year for 35 years @10% = $978k
$8,000 per year for 25 years @ 10% = $952,000
$24,000 per year for 15 years @ 10% = $939,000
5. Don't use target funds.
6. Get comfortable with risk.
7. Stay the course.