Why do people contribute so much to 401k & IRA
Jan 2, 2020
22 Comments
I want to understand why do people save so much for retirement like max out 401k and backdoor roth. I dont think you need 6 million to retire at 55 if you already have a house and a car.
I understand the power of conpounding and all. Serious question and want to understand. #401k
comments
Where else would you put your money if not in tax-advantaged accounts? Real estate? Taxable brokerage account? Spend it?
If you plan to pass it on, then there are other tax advantage instruments.
But I realized now that just maxing 401k for 30 years would be around 1.8 million, which may not be enough for some.
Boats and airplanes get expensive fast.
I mean regular flight tickets or occasional cruises aren’t all that expensive.