"Funding a 401(k) plan is not an easy thing to do in your 20s. At that stage of life, a lot of people are focused on paying off student loans, tackling credit card debt, and trying to build up some sort of emergency fund. So it's easy to see why your 401(k) might have to fall by the wayside."
"As of the third quarter of 2024, the average millennial aged 28 to 43 had a 401(k) balance of $66,500, according to Fidelity. So if you're 29 with $100,000 in a 401(k), you're way ahead of the game, especially since you're also at the low end of that age range."
"Assuming you'd want to retire at 67, which would be your full retirement age for Social Security purposes, and assuming a 7% annual return on your investments, you'd be looking at about $1.3 million if you stopped contributing to your 401(k), period. That's pretty close to the $1.46 million Americans today think it'll take to retire comfortably."
"Consider investing outside of a 401(k) as well. This can provide additional opportunities for growth beyond the limits of employer-sponsored plans."
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