Saturday, August 02, 2014

You can accumulated wealth with a 401(k): just do the math


A website called “Personal Capital” has a useful chart showing how much your “low end” and “high end” wealth balances vary according to a 401(k) savings plan and how long you stay in it.  It assumes you start working at age 22 (I started at 26 – we had a draft then, for one thing).  The link is here.  The article is useful in challenging some assumptions that, if retired and you have some wealth, you should start spending it because you can’t take it with you.  You may live longer than you think.
  
It is critical that the employer provide some match. 
  
Only you can save yourself, the libertarian-oriented article suggests.
   
Another issue, of course, is the stability of the entire financial system, and whether “entitlement” programs remain stable, or become more means-tested.


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