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To: setter
Here was my secret to becoming a 401k millionaire (and there are millions more like me).

For the past 35+ years, I simply ensured that at least 10% of my income (including my company's 401k match) was going into my 401k plan. For most of that time, I had about 80% of it allocated to stocks. Basically S&P 500 index type funds and more recently what is called target funds (where your allocation between stocks and safer funds changes as you approach your target retirement age).

I never messed with it. I just left it alone. I never tried "timing" the market. I didn't panic during "crashes" like we saw in 1987, 2000 and 2007/2008. In fact, during those times, I didn't change a thing, realizing that my bi-weekly contributions were now buying stocks at a much lower price (dollar cost averaging) and eventually I rode the market back up in much better shape than I was before.

I'm no Warren Buffet. I'm not even smart about investing. In fact, I know very little how it all works. So I never broke a sweat when the markets went down, I never lost sleep when my 401k balance dropped 30% or so back in 2007/2008 - I just let it ride. Never once contemplated taking my money out of the stock market. And now as I approach my target retirement age, it's sitting nicely in seven figures.

Slow and steady is the way to go. Don't overthink it.

40 posted on 11/05/2021 2:15:41 PM PDT by SamAdams76 (I am 26 days away from outliving Holly Dunn)
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To: SamAdams76
your allocation between stocks and safer funds changes as you approach your target retirement age

So you reach your target retirement age and the "safe" funds are all (presumably) bonds.

Except your safe bonds are getting killed by inflation.

What now?

53 posted on 11/05/2021 2:54:33 PM PDT by grobdriver
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To: SamAdams76

Congratulations, and good for you.
We all play the hands we are dealt.
Not all of them are good hands.


55 posted on 11/05/2021 2:59:10 PM PDT by Repeal The 17th (Get out of the matrix and get a real life.)
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To: SamAdams76
Yep. With the exception that I handed off the responsibility for choosing investment vehicles to someone else, I’m the same — started early, and never really panicked. (Last year in April or May, being 57, I thought about getting out after seeing the market get hammered day after day during the unprecedented situation, but didn’t. Thank goodness..)

Start young, save the max with respect to employer matching, and don’t pretend you can outfox the market. When you hit retirement, that’s the best way to be in good shape.

58 posted on 11/05/2021 3:08:29 PM PDT by untenured
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