[USER]

I am 28 and currently maxing out all of my retirement accounts (401k, Roth IRA, HSA), and 100% SP500.
($23000+employer match + $7000 + $8000) / 12 = $3750

Based on this calculator, if I keep maxing out until I am 35.

Assuming the return is 10% every year. Then even if I stop contributing, I still have a comfortable amount of money at 60.

Is it this simple or am I missing something?

[Melinda]

One thing to consider is whether your income will eventually hit a point where you’re not eligible to max out or even contribute to an IRA.

You can, of course, set that same amount of money aside in a regular taxable brokerage amount, but the gains will be somewhat smaller.

[Trung]

Where does the 7k and 8k comes from? Besides that, yeah, it’s that simple except for that 10% is based on a much longer time frame so your actual mileage may vary because of the 7 years short timeframe.

[Tolga]

I’d say you are on the right track. One thing to consider is that $6.6mil in 32 years is worth much less in today money.

When I use calculators, I typically use 3-4% growth.

That is net growth above inflation. Then, the numbers I get from the calculator would be about equal to today’s money.

[Steve]

It is that simple, but if you want to FIRE then you want to fill your tax bracket with your brokerage account and Roth.

It makes no sense to max out retirement accounts unless it pushes you into a higher bracket or is a match/free money.

[Monique]

It’s that simple, but don’t stop contributing. The buying power of money declines overtime with inflation. Great job tho!

It may be a good idea to put some beyond employees match into a taxable brokerage account count, also in the S&P 500 index, for penalty free access if you decide to retire early.

[Manuel]

Yes that simple. Just a couple of items to consider. The market may not actually achieve a 10% CAGR and inflation will erode at whatever you hope to accumulate.

But I think you’re on an excellent track.

[Author]

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