Читать книгу Retirement Planning For Dummies - Matthew Krantz - Страница 20

To build a nest egg that will help them live the life they want in retirement, most people take advantage of the 401(k). For example, assume that in 1988 you were a 35-year-old worker. You decided to put the maximum allowed into your 401(k) that year and every following year until you turned 65. The money was invested aggressively for the first 10 years, with 80 percent stocks and 20 percent bonds. The risk was dialed back in following decades, with 70 percent stocks and 30 percent bonds from age 45 to 55, and 60 percent stocks and 40 percent bonds going forward. (At this point, don’t worry about the mix of stocks and bonds.)

As Table 1-2 shows, you never contributed more than $24,500 to your 401(k). But after more than 30 years of saving, you end up with $1.4 million! Now that was worth the sacrifice, wouldn’t you say?

TABLE 1-2 Maxing Out a 401(k)

Year	Age	Contribution Limit (Including Catch Up)	Ending Balance
1988	35	$7,313	$7,313
1993	40	$8,994	$63,243
1998	45	$10,000	$232,431
2003	50	$14,000	$315,963
2008 (U.S. stocks fell 37% this year)	55	$20,500	$459,908
2013	60	$23,000	$937,733
2018	65	$24,500	$1,414,942

Based on actual contribution limits from 1988 to 2018. Stock returns indexed to the Standard & Poor’s 500 and bond returns, while 10-year Treasury bond yields used for bond allocation.

Don’t let the fear of market volatility scare you from saving for retirement. As you can see in Table 1-2, some years the market declined and hurt the portfolio’s balance, but remaining in the plan and maintaining contributions won out. Also, keep in mind that the government lets you make catch-up contributions, or additional money you can put more in your 401(k) after you turn 50.