Most people nowadays are awash in debt (college, their kids' college, weddings, cars, all things whose prices went through the roof because of women entering the workforce coupled with the widespread use of credit.
Not to mention that 401(k)s get taxed when you retire: and as the govt. continues to run out of money, look for the tax rate on withdrawals to go through the roof.
If you start investing the max at age 30 and continue till age 67 and gain on average 7% you will have $4,973,897 at retirement age.
Now that 5 million won’t quite be $5 million in today’s dollars. But lets says it’s 2 million in today’s dollars.
I am 30 years old. I have invested 15% of my income for 10 years (since age 20) and I have no debt. Thanks to good parenting and Dave Ramsey.
If you can do 10%/year average (very doable). You will end up with $10,525,355 in 37 years.