Flagpole wrote:
bs on 401k wrote:
Calling BS on 401K. Nobody with those salaries could have that much in 401K at that age.
You are wrong.
The Dow has averaged 11.214% return the last 10 years, so not including even 3 years of their contributions, they could have EASILY reached what they have in their 401ks even if right on the average during that time.
18% of both of their current incomes is $33,300. The can each put in 18% of their incomes, AND they can STILL accept any company match during that time that would take them above the individual allowable. If they DIDN'T have $750,000 in their combined 401ks now with those salaries, that would be a bad thing.
Average inflation adjusted return on the Dow over the past 10 years is like 6.67%. Anyways, the numbers might be plausible here, but I'm skeptical the OP has managed to consistently make a contribution payment every month for the past 14 years, and accrue $25K in cash and $120k in stock, and $200k in home equity, and all on $185k combined take home that I guess he and his wife have presumably made consistently and shared equitably since they started working at the age of 21.