I’m 44 with $1.3 million in my 401(k) — can I stop contributing and still retire in 15 years?

• A 44-year-old with $1.3M saved would scope $3.59M by property 59.5 astatine 7% returns without further contributions.

• The caller harmless withdrawal complaint of 3.7% requires $2.7M to make $100K annually successful retirement.

• Stopping 401(k) contributions means forfeiting leader matching funds and existent taxation deductions.

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Recently, a Reddit poster asked if they were astatine a signifier erstwhile investing successful a 401(k) nary longer made consciousness due to the fact that the maturation of the relationship from compound maturation would acold outweigh the magnitude they could invest.

The Redditor had $1.3 cardinal saved astatine property 44 and a extremity to discontinue astatine 59 1/2. He commented that adjacent if helium contributed the max, that would lone marque up 1% of the expected maturation of the relationship for the year. He besides said helium hopes his nest ovum volition nutrient a minimum of $100,000 per twelvemonth by the clip helium reaches his chosen status age.

So, the large question is, tin helium halt contributing and deed his desired status savings people oregon should helium support investing?

The archetypal measurement successful deciding whether helium tin halt investing oregon not is to determine however overmuch wealth he'd request to nutrient his desired $100K income arsenic a retiree.

Traditionally, astir experts advised pursuing the 4% rule, capping withdrawals successful twelvemonth 1 of status astatine 4% of the relationship balance. However, this estimation has precocious been revised down to 3.7%. If you travel the 3.7% rule, you'd request astir $2,703,000 for your nest ovum to springiness you $100,000 to unrecorded connected arsenic a retiree.

If you person $1.3 cardinal present and gain a 7% mean yearly instrumentality connected it for the adjacent 15 years, you'd extremity up with $3,586,741 million.  You would person more than capable to deed your target. In fact, the nest ovum you're connected way for would springiness you astir $132,709 successful yearly income arsenic a retiree.

Technically, this means the Reddit idiosyncratic is close and there's truly nary wide crushed to support investing successful this relationship conscionable based connected these numbers alone.

Although you nary longer needfully request to marque 401(k) contributions to physique a unafraid future, you whitethorn inactive privation to.

After all, if your leader offers matching funds, leaving them connected the array is benignant of foolish. You're giving up escaped wealth that's portion of your compensation package. There's nary crushed to walk that up unless you truly can't spend 401(k) contributions close present portion maintaining a comfy modular of living.

Putting much wealth into your 401(k) successful the coming years tin besides marque you adjacent richer arsenic a retiree. If you put adjacent $500 a period implicit the adjacent 15 years and gain a 7% rate, you'd extremity up with $3,737,515.13 alternatively of $3,586,741 (not including immoderate other from leader matching funds). An other $150K positive could assistance you bask status more, screen unexpected healthcare expenses with ease, oregon permission much to your heirs.