Mint is projecting my first $1 million in 19 years...accurate?

[Vpxggmr17]

Based on my current savings (I'm 25) and my current monthly contributions to investments/retirement, my Mint account is projecting I hold my first liquid million by 6/2032.

Just wondering if anyone else here has ever plotted that out in the past and then reasonably attained that goal? Not putting a lot of stake in Mint's projection but just curious.

For perspective, I have $14,500 in retirement currently and I've upped my contributions between my IRA, 401K and brokerage account to $1,600/month.

[Petunia 100]

To make that sort of projection, you must make certain assumptions. Will the actual rate of return be close to the projected rate of return? Will your actual savings be close to your projected savings? We will know in 19 years.

[KTP]

Based on my current savings (I'm 25) and my current monthly contributions to investments/retirement, my Mint account is projecting I hold my first liquid million by 6/2032.

Just wondering if anyone else here has ever plotted that out in the past and then reasonably attained that goal? Not putting a lot of stake in Mint's projection but just curious.

For perspective, I have $14,500 in retirement currently and I've upped my contributions between my IRA, 401K and brokerage account to $1,600/month.

No, it is not accurate. If you are already saving $19200 a year at age 25 when others your age are deep in debt, it is likely you will hit one million in a shorter amount of time as your earnings grow and you save more. I would guess 12 to 15 years. Well done.

[Vpxggmr17]

No, it is not accurate. If you are already saving $19200 a year at age 25 when others your age are deep in debt, it is likely you will hit one million in a shorter amount of time as your earnings grow and you save more. I would guess 12 to 15 years. Well done.

Agreed. All I see with my friends is them out blowing money on bars/dumb things on a weekly basis while having $0 in their savings. I paid off my student loans in August, and while I have a car payment and am moving into a tad more expensive apartment next month, I still have the ability to save a lot.

As it stands right now, I max out my IRA, contribute to the company match for my 401k and this month will be starting to take $450 out of every paycheck for my brokerage account.

If I calculate it out, including my company match, I contribute $825 per pay period (26 times a year).

[bigdaddybus]

Sound like you are doing great!

I recommend that you look more into your company 401K and see if you would benifit from contibuting more there. Here is what I found out at my employer.
1. My 401K has 4 options with ZERO fees and 6 target date funds with minimal fees. (I was surprised my 401K had zero fee options. And those fees really eat away at earnings over a quarter century)
2. 401K's allow distributions to start at 55 where your maxed out IRA is 59.5 yrs of age. (might not matter to you, but it might impact your retirement plan if you want to retire early)
3. Compare pretax 401K contributions with after tax IRA contributions in a future value of earnings calculator. The differences might surprise you.

[Vpxggmr17]

Sound like you are doing great!

I recommend that you look more into your company 401K and see if you would benifit from contibuting more there. Here is what I found out at my employer.
1. My 401K has 4 options with ZERO fees and 6 target date funds with minimal fees. (I was surprised my 401K had zero fee options. And those fees really eat away at earnings over a quarter century)
2. 401K's allow distributions to start at 55 where your maxed out IRA is 59.5 yrs of age. (might not matter to you, but it might impact your retirement plan if you want to retire early)
3. Compare pretax 401K contributions with after tax IRA contributions in a future value of earnings calculator. The differences might surprise you.

Appreciate the insight. Luckily I have a pretty decent set of options within my 401k although I'm forced to have half of my company match be in company stock which is inherently more risky. However, since I started last April, I'm up almost 48% so pretty happy with my choices.

As my income rises I do plan on increasing the contributed amount to the 401k though as a side note and in response to your third point, both my accounts are Roth accounts. I personally preferred the advantages provided by them and feel that my ability to pay taxes now while having withdrawls tax-free was the smarter choice going forward.

[Caoineag]

Based on my current savings (I'm 25) and my current monthly contributions to investments/retirement, my Mint account is projecting I hold my first liquid million by 6/2032.

Just wondering if anyone else here has ever plotted that out in the past and then reasonably attained that goal? Not putting a lot of stake in Mint's projection but just curious.

For perspective, I have $14,500 in retirement currently and I've upped my contributions between my IRA, 401K and brokerage account to $1,600/month.

Keep watching the projected date, it will move as it forecasts your current rates as your future rates. When you have lower than average returns, it adjusts down, when you have higher, it adjusts up. Definitely not a static calculation. My husband loves to watch our retirement date move based on higher than expected contributions and returns.

[sblatner]

Make sure to continue to save outside of retirement also. Good to have a three prong approach. Retirement, social security and savings. Yes, I think SS will be around. You might have to start claiming it when you are 75, but it will be there.

[Vpxggmr17]

Make sure to continue to save outside of retirement also. Good to have a three prong approach. Retirement, social security and savings. Yes, I think SS will be around. You might have to start claiming it when you are 75, but it will be there.

While I do agree, my outlook on my financial future/retirement is to plan to not have it. That way, if in fact, in one form or another it still exists 50 years from now, it will just be an added bonus.

I don't think it takes a lot to live comfortably in retirement if you plan ahead and start early as I am doing. However, when I look at my friends (or even my parents) and they live paycheck to paycheck and go buy a tattoo or a brand new car or sporadic expensive trips, I just shake my head. Playing catch up from 40 year old with a house with a second mortgage, a HELOC and student loans from 20 years prior along with 2 car payments is never going to work.

I've been told the phrase, adults plan ahead, and that's what I'm doing for my retirement, but I don't get how our society has gotten so okay with drowning themselves in debt and financial chaos. I'm not even a business or finance major from school and the whole process to retire "rich" seems to be common sense. However, I'll admit nobody at home, or in school, taught me these practices.

[feh]

Just wanted to echo the advice to max out your 401K before contributing to a taxable account.

[Vpxggmr17]

Just wanted to echo the advice to max out your 401K before contributing to a taxable account.

Can I get any feedback as to my focus on that?

My brokerage I can buy/sell and profit while also having constant access to the funds. The 401k I cannot.

[feh]

Can I get any feedback as to my focus on that?

My brokerage I can buy/sell and profit while also having constant access to the funds. The 401k I cannot.

Well, the assumption is that the vast majority of your investments will be for retirement.

If you're saving for retirement, I suggest you max out your 401K. If you're investing for something else, then yes, using a brokerage account is fine.

[bjl584]

It looks like Mint is giving a conservative estimate. I doubt that it will take 19 years.

Good job so far.

[kv968]

It looks like Mint is giving a conservative estimate. I doubt that it will take 19 years.

Good job so far.

I don't know, it sounds pretty accurate to me. With those numbers, Mint is predicting an annualized return of 9.4% which is about the same annualized return of the S&P for the past 30 years. Granted a diversified portfolio could bring in more (or less) than that but overall it seems about right as a guideline.

[LivingAlmostLarge]

401k allows you to lower your taxable income. So i'd take advantage of that first then focus on outside that investing. The tax savings can be a lot. For us it's around 30% tax savings on those dollars first. Who cares about the choices I pick the basic index and leave it alone. I'd have to save 30% more outside to make up the difference of investing the tax free dollars. Can you beat that? Most people can't save an extra 30 cents on every dollar that they would have saved in a 401k.

Now if you are saving for a home or something else fine, but I feel it's leaving excess money not maxing out the 401k first.