Of course. But 401k would mean it's all taxable?

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May 8, 2024
3:50:22pm

Plato Truly Addicted User

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Plato

Bio page: Plato
Joined: Mar 21, 2017
Last login: May 19, 2024
Total posts: 20,073 (482 FO)

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Messages

Author

Time

Would you consider a $4 million 401k nest egg a decent amount for retirement?

CBaass

May 8, 3:48pm

Yes. Especially if housing is covered and medical expenses aren't crazy.

byubyu

May 8, 3:49pm

Of course. But 401k would mean it's all taxable?

Plato

May 8, 3:50pm

If it's Roth, no.

paulb

May 8, 4:58pm

Yep. That's a very healthy nest egg.

Zenoch

May 8, 3:50pm

If you can't make $200K a year work for you, then it's probably better if you simply pass away

Indy Coug

May 8, 3:51pm

#ActuarialSmack

TheWanderer

May 8, 3:53pm

Or move out of Manhattan or the Bay Area.

DubuMfalme

May 8, 4:51pm

That's way more money per year than most people live with now and with kids. You should be super comfortable in that

scall

May 8, 3:51pm

nah, poverty.

Mayor of Cougartown

May 8, 3:51pm

Me too. Rather be poor. Hate the taxes on that.

Don Carlton

May 8, 4:01pm

RE: Would you consider a $4 million 401k nest egg a decent amount for

Kilgore Trout

May 8, 3:52pm

Yes

BYU Grounds

May 8, 3:53pm

Sure, for most. I probably wouldn't be able to keep up with my payments though.

RSL

May 8, 3:53pm

Age?

ABN RGR

May 8, 3:55pm

If house is paid off, yes

Gustav

May 8, 3:55pm

RE: Would you consider a $4 million 401k nest egg a decent amount for

cougarim

May 8, 3:56pm

Not if you are 16.

Longseason

May 8, 3:57pm

Seriously? Anyone that says a 4 million nest egg isn't enough is nuts

docrick

May 8, 3:58pm

If you apply the 4% rule, how much could you live on every year for 30 years if

Scratch

May 8, 4:00pm

RE: If you apply the 4% rule, how much could you live on every year for 30 years

CBaass

May 8, 4:08pm

Sorry, what I meant was assuming 4% interest and 4M in 401K, how much could you

Scratch

May 8, 6:30pm

Between $220k-230k annually, with 4% growth you would run out in 30 years

BYUFootballisBack

May 8, 7:47pm

~$130k if you assume 4% inflation and adjust your withdrawals for said inflation

rad dawg

May 8, 4:20pm

Should be able to live comfortably on half of that, if invested well.

Hawk in the 303

May 8, 4:02pm

Half that amount and I would be ready to retire today - mid 30s

BYUFootballisBack

May 8, 4:07pm

Not if it was in your 401K, you wouldn't. Can't draw for another 25 years.

DubuMfalme

May 8, 4:55pm

There are ways to solve that, including just taking the penalty

BYUFootballisBack

May 8, 5:26pm

Sure, take the hefty tax hit, then try to live on 4% withdrawal for 50+ years.

DubuMfalme

May 8, 5:48pm

That is not what is being suggested

dratax

May 8, 6:02pm

Leave aside any of that and say it's 2M and you're retiring.

DubuMfalme

May 8, 6:27pm

My op wasn't saying I "would" retire, but that I could, especially as my current

BYUFootballisBack

May 8, 7:41pm

Look up Roth conversion ladders. You can access the money after 5 years.

Russnc

May 8, 10:11pm

Depends on your age. If you have $4mm at age 25, you're probably ok.

All-American

May 8, 4:08pm

You could put it in a HYSA right now or MMF and get 5.3% and not draw it

Windward_Coug

May 8, 4:17pm

If I had $4m in 401k, I'd quit my job immediately.

timpjynx

May 8, 4:46pm

Should be eligible for food stamps as well at that level or poverty. Good luck

machete

May 8, 4:48pm

Humblebrag of the year! Of course it is!

byucougarsbig12

May 8, 4:49pm

Biden’s weaponized lRS is knocking on your door. They want half!

byucougarsbig12

May 8, 4:53pm

If the 401k was in Roth accounts, right on!

rmsenior

May 8, 5:01pm

very comfortably if debt free and kids raised/done with college.

qwerew

May 8, 8:00pm

Certainly. Heck yes. Just be wise and disciplined.

DawgHaus

May 9, 3:41am

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