Utilize your 401K Plan to become a Millionaire

U.S.  statistics indicated that most Americans were not saving enough for retirement. However, more recent numbers show that the number of employees with $1 million or more in their 401K plans has increased by 45% from one year prior.  Because the stock market had a staggering 2017 year, this has no doubt impacted the rise in numbers. Regardless of your age, it's never too late to start saving in your 401K plan, but the sooner the better, as it usually takes a solid 30 years with both savings and employer match in order to see the maximum results.


You shouldn't think of retirement as a future achievement or goal that you will eventually get to, rather an objective that demands your immediate attention. Without a secure retirement account, your future retirement account will become weaker and weaker, and therefore your financial security as you become older will be very vulnerable.

Presently, you're allowed to contribute up to $18,500 a year to your 401K plan if you're under the age of 50, or $24,000 if you're age 50 or older. The issue typically becomes that most people can not afford to invest such a large chunk of their earnings, and therefore only contribute a much smaller percentage. The key to building a strong financial profile and retirement account through your 401K plan is to be educated, therefore, if you haven't already, reach out to your retirement plan administrator or investment specialist for more information. In the meantime, check the list below to get you moving in the right direction.

Starting at saving $300 a month at age:                  The average return will be approximately:

• 25                                                                                 $1.39 million
• 30                                                                                 $932,000
• 35                                                                                 $620,000
• 40                                                                                 $408,000
• 45                                                                                 $263,000
• 50                                                                                 $165,000
• 55                                                                                 $35,000

TIPS

• Start saving very early in your career (don't delay)
• Take advantage of your employer match program
• Invest your savings 

So it's clear committing to saving for the span of your entire career will put you in the driver's seat for a comfortable retirement. But remember the longer you delay, the more money you will need to reach the goal of $1 Million dollars in retirement.