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Will a 401k make me a millionaire?
I'm 25 and making $40,000 annually. This provides me with an income of $3,333 per month before taxes. My business friend says that if I set aside $600 per month (18 percent of my gross income). Invest that $600 in a tax-advantaged retirement account, such as a 401(k) or an IRA and that after 34 years it will become a million dollars.
Is this just a meme? It sounds to easy to be true and I don't know shit about stocks or business in general.
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>>1291208
The earlier you start the more you will end up with. And yes, a 401k can net you over a million.
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>>1291208
Depends on what you earn on you investments. If you earn closer to the historical average for an aggressive stock index portfolio, it'll far less than 34 years.
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>>1291208
In 34 years, a million dollars might buy you a nice cup of coffee
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>>1291278
>In 34 years, a million dollars might buy you a nice cup of coffee
$1MM discounted over 34 years at current inflation rates is $510,028.17 in today's dollars.
I'm pretty sure you can get a couple cups of coffee for $510,028.17.
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>>1291278
Big deal, he will be getting raises and hopefully promotions in that time. If a cup of coffee is 1 million, then he will be making dosh cash on top of that and if he scales his 401 payments he might be a billionaire. Seriously, never put off starting a 401k.
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Sorry a newfag here, what is 401k?
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>>1291284
I will not. There's no big money for me until I'm the owner. [spoiler]family business[/spoiler]
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>>1291288
It's a private retirement account. Basically an IRA. There are some tax benefits to it and it will stay with you because you own it. Like a company can't fire you and keep the funds that were deposited.
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>>1291208
save ur money do your research invest wisely OP if you do it right you can make millions or even tens or hundreds of millions if you know what your doing and think different and are smart and time it right my friend knows a guy who made like 70 million dollars off the stock market after he invested and waited like 10 years
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Traditional 401k vs ROTH?
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>>1291324
Thank you
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