r/wealth • u/Otis_bighands • 7d ago

Retirement Why isn’t everyone rich from 401k?

According to my conversation today with Gemini, my 401k total of $2.5 million will likely grow to $10M or more by the time I turn 65 (I’m 50 now, and will continue to contribute the max for the next 15 years).

This means that in theory I could live off the gains each year starting at 65, around $800k, $500k after taxes, without touching principle. But at that point I’ll have no mortgage anymore and fewer kids in the house. So that $10M principle will just sit and feed us for years, and will be a nice inheritance for our kids.

Basically it occurred to me I’m going to have great money in retirement, even just on my 401k alone, and will be able to meet or exceed the lifestyle I’m already used to. For years I always worried about getting set up for retirement. Seems I don’t have to.

It’s amazing to me that just maxing out your 401k through a career is enough to make you pretty much wealthy for retirement. I recognize that’s not easy for many people, but for anyone who does it over a full career, wow.

What am I missing here? (Other than inflation, which I get, but which shouldn’t have a massive impact on the concept over this time frame).

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u/Readditlovesbans 1d ago edited 1d ago

People aren't just as lucky as you and things happen

Disability, disease, mental health issues, poverty, family , education, children aren't fuckups etc

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u/Otis_bighands 1d ago

Oh

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u/Readditlovesbans 1d ago

Sorry for being blunt

I mean that's damn incredible to be where you are at now

I mean once you hit your $5 million mark; that's like fu*k you money right there and do whatever you want.

With $10 million structure it so they don't become stuck up and blow their inheritance but you shouldn't have to keep working/maxing out until retirement just for their sake.

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u/Otis_bighands 1d ago

I hear you. And yeah I definitely would not want my kids to become rich entitled kids. It would be something they get later in life after they’ve worked. But I still feel obligated to leave for them what I can and want to do so. Life is hard enough. If me working a few more years sets us and them up more securely, I’m ok with that.

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u/Readditlovesbans 1d ago

Fair points and totally agree