Anonymous
Anonymous asked in Business & FinanceInvesting · 1 month ago

If I put $287 every month without company match in my 401K for the next 40 years, how much will I have at the end of the 40 years?

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  • KaleyK
    Lv 7
    1 month ago
    Favorite Answer

    The answer, of course, depends on the performance of your 401K.  If you attain the market average (over a 40 year span) of 7% you will have about $735k.

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    • KaleyK
      Lv 7
      1 month agoReport

      @ L ... the question was "how much will I have" ... my assumption is he is asking for the value of the 401K. Yes, you are correct about the possible tax effect & there is also the issue of withdrawing 401K funds @ an older age, in a lower tax bracket, having an effect.  But that's not the question.

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  • Bryce
    Lv 7
    1 month ago

    The compound average return of the S&P 500 over the last 40 years is 12%.  If it does the same over the next 40 years, you would have $3,376,490.  If it doesn't do as well, maybe 7%, then you would have $753,321.

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  • 1 month ago

    No one can predict what kind of investment performance you will see over 40 years. We can tell you that you will have contributed $137,760.

    There are online calculators that will tell you how much you will have after Z years by contributing X per month at a yearly yield of Y %.

    For example, starting with $0 and putting in $287 every month, at a yearly rate of 5%, at the end of 40 years, you would have about $425,000.

    But that is only an estimate, not reality. A yearly rate of 5% wouldn't be unreasonable, but the real market doesn't work that way. Some years you might see 20% gains. Some years you might lose money. Over those years, as the pile grows, you want to rebalance the things you have the money invested in, so that you don't have too much in any one thing.

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