I have been with Chevron for about 20 years and have approximately $750K in my 401(k) account. I am wondering if that’s about average relative to others. Can you please share your range? Thank you in advance.
52 replies (most recent on top)
Creeping on this post from Marathon Petroleum…..14 years in $770k in 401k. Not sure how our salary grades stack up to y’all’s but on a high enough grade to get $25k a year in RSUs.
No, that @7qlm was the "anyone who has done better in the market than I did is lying" response. All of the others are completely plausible.
So you find $317MM to be plausible?
I am beginning to see the pattern on this thread. I'll ask a normal question, then It's the "anyone who has done better in the market than I did is lying" pattern.
21 years, ~$317 million, PSG 22. Made some really wild bets along the way that paid off massively. I go to work for something to do and to keep my wealth “stealth.” I don’t fear layoffs and I daydream about other things when listening to any of our Sr leaders babble on and on because I know I’m likely wealthier than they will ever be.
$3.8 MM 22 years, psg 21. about 10% CVX, rest managed equities.
$2.1MM 26 years, psg 25. have always contributed maximum from day 1. lazy invester who just adjusted contributions and never paid attention to what it was invested in. it's about half cvx, half S&P500 index now
Hello, when I go into Fidelity Netbenefits there is a section on the webpage called "Your Financial Wellness Journey". I edit it for peer comparison. Then under "Who do you want to compare yourself to?" I select the options for location (Texas) age range (55-59) and then salary range (250K+). After hitting the View button, the data presented is...
Average savers are saving 13%, and have a balance of 817,000$
Top savers are saving 15% and have a balance of 1.2 million $.
The top savers balance updates monthly; looks like they made about a 5% return last year.
Keep one thing in mind if converting those 401K balances to a Roth: Up front taxes. They will be taxed at your current marginal tax rate. If still employed that could be a high rate.
Also, it's best to pay the conversion taxes with cash from outside the 401K/IRA. Using cash from the retirement account will reduce the benefit of the conversion.
Lastly, if the Roth conversion rules get changed blame p thiel (the venture capitalist). He abused the system by funding a Roth with founders shares valued at under $2K. When the company went public his Roth exploded to over $5 billion. His obscene greed will have wrecked the system for everyone else.
Combining megabackdoor and backdoor roth ira along with the 401k, folks younger than 50 can save $67000 in their tax advantaged accounts for 2022. Might as well take advantage before Biden nixes it.
A couple people have mentioned this, but a few people in here might think about having TOO MUCH in their 401k’s, which probably sounds weird.
If you know your expenses well, and you forecast upwards for inflation, use the 4% rule to determine what your portfolio size will need to be at the age you intend to retire. When you know this, work backwards … is your portfolio already so big that without further contributions it should mature to, or beyond, what you’ll need when you plan to retire? If so, consider stopping maxing out your 401k, and use that extra money now for other things (pay off your mortgage, grow your taxable accounts, etc.).
I’ve gotten really into the concept of Coast FIRE recently, and backed off my 401k contributions as a result.
I’m in year 14 of work with “only” $800k in retirement accounts and I’m only going for match at this point, because I can’t turn down free money.
The numbers I see mentioned here seem pretty reasonable for well paid engineers and such. Some fluctuation in the gross amounts to be expected, given individual investment choices and timing issues.
However, to the lower paid staff, especially the younger ones, these numbers will seem unrealistically high. For them, such balances will indeed be unattainable, at least in the mentioned time frame. That said, the trick to achieving a high 401K balance isn't strickly determined by income level. Savings discipline and time play major roles. Start early and keep at it. Compounding will do the rest.
In my own case, I recollect thinking in the first few years that my 401K contributions didn't amount to much. But after 10 years or so compounding began to kick in. After that the balance grew quickly, more than tripling in the next 10 (contributions and growth). Patience was the main requirement.
One more thing for all you millionaires: Now that you've been rewarded for your diligence on the front end, what plans do you have for the back?
With those large 401K balances come major RMD requirements at age 72. In my own case, the starting distributions will be significantly larger than my final annual salary. That will mean a high marginal tax rate in retirement. It also means a significant increase in the cost of Medicare insurance premiums, to the tune of thousands of dollars annually (X2 if married).
If you haven't done so already, and you still have a few years left before your RMDs start, it would be wise to speak with a competent financial adviser on mechanisms to minimize your tax consequences.
Roth conversions, for example, may be an option for minimizing taxes on your retirement savings. With sufficient time a significant portion of your 401K balance can be converted to a Roth, reducing the size of your later distributions. It's one tool that could be useful, particularly for those who have retired early and find themselves temporarily in a lower tax rate.
That's one part of the retirement equation I wish I'd considered earlier.
Good luck.
The point of saving is to have enough income to support your lifestyle in retirement. Anyone who has saved more or too much has missed out enjoying life during their peak years.
individual savings would be affected by your total compensation, saving rate, risk appetite, years of service, personal situation, location of residence, functional discipline, etc. if you want to find out if you have enough use the Fidelity planner please.
LMAO @ @3otr
$4 million in pension is not that easy in 25 years. You need to get to at least PSG30, which is a list of may a half dozen people I can think of. With 20 years of service you would need to be a 41 or 42. Are there any managing directors or VPs under age 45?
@3ylo, No, a reasonable 20-25 year retirement target would be $4 million each in 401k, pension, after tax savings and real estate. Chevron stock would be gravy. That's much closer to what I have, so I consider that "reasonable", in case you're wondering.
I usually get my investment advice from the losers with no life who troll all day on thelayoff.com and pretend to be wealthy and know what they're doing and give out advice instead of being on an actual investment forum where they would be ridiculed and laughed off the board. It's just too much fun here. keep em coming, I'll get the popcorn!
I understand what the thread topic is…I was offering my thoughts on some advantageous strategies for accumulation. At 14 years with the company, I have just above $1 million in my 401k. Like I said, plow money into out-of-favor assets during the dips (e.g., buy cheap). If people don’t have the stomach for volatility, then they can enjoy the negative real return of bond yields.
The non-CVX plan Roth IRAs for my wife and I after 15 years are around $250K combined. Same strategy. But then again, that’s not possible with a $6K annual limit, right?
I worked for 12 years at Chevron before leaving last December - PSG 22 - Had about $580k in the 401k. Would have been a lot more but I didn't have it in the markets from 2009-2014. Didn't hang on to any Chevron stock during the years the match was made with it.
A reasonable 20-25 year retirement target would be $2 million each in 401k, pension, after tax savings and real estate. Chevron stock would be gravy.
Hold on. Your explanation proves the point. The thread topic is what’s in your 401k. Not what’s in your IRA and 401 and property and outside brokerage accounts. If you want to state all of that please do and be specific about where the money is because there is no way to have $1m in 401k after 15 years. Now is it possible to have a new worth or even stocks offside of 401 at 15 years. Yes it is and I have done that but it’s darn sure not all in my 401
@3rn, not sure what to say to get you to believe these numbers are possible for most of these posts. Read up on reinvested dividends and compounded growth. Max out 401k, contribute max to an IRA outside of plan, have dry powder ready for the dips. I had dry powder ready in 2008, 2016, 2018, and 2020 and plowed every spare cent I had into stock funds. Not always possible to save that much, because life happens, but it’s a repeatable formula that works wonders. 2022, the 401k max personal contribution goes up to $20.5K…take advantage if you want to fight against inflation eroding your assets.
I have $800K in my 491(k) after 18 years. PSG 23.
What's funny are the jealous responses from the losers who don't know how to save and invest and can't believe that others have that skillset and the numbers blow their minds. No, junior, math is not hard, neither is saving and investing, you should try it one day.
It’s funny when people clearly lie so much that’s it becomes apparent they are lying. When the math is physically impossible and then they claim, it’s because I was superior. Is the same garbage you hear at work and we all know that is a bold face lie.
How long before I will get to $1million on my 501(k)? I only have 3 years with Chevron and less than $30K in my account.
14 years, 401K is $1.1MM, PSG 24. Maxed it out and stuck to index funds, zero CVX stock in portfolio. Also went overseas for a couple years early and started buying rental properties with the excess cash. Have made more from real estate than Chevron. Net worth $4.8MM last time I checked and cash flow off the rentals is more than my salary. Working is for suckers, unfortunately I’m one of them!
@ogd, no not mid-thirties, I am an ol' fa-t. Just didn't spend as much time at Chevron as some. It took quite some time to earn my nest egg. That's what the younger generation doesn't understand. The time and patience part. And don't forget to enjoy yourself along the way, which is the most important part.
If you are lucky with your fund picking, your 401K can be enormous even without huge savings. On the other hand, if you are unlucky, it can be pretty small even with huge savings.
@1bqi, the maximum employee contribution amounts you cited is correct, but the Dollar amount of the 8% company match (of employee’s annual salary) goes much higher than that, although there is a maximum limit for this as well. While you have a point that earning over a million dollars over 10 years is not easy, it can and has been done. It took me 25 years to earn $1.2MM in my 401k with only the minimum 2% contribution of my pay of $106,000 by my final year on the job. My lump sum pension was an extra $512,000. And like I previously mentioned, I built up a small fortune in a Roth IRA I had at Charles Schwab for 15 years, along with my paid off home and two residential rental properties, also owned free and clear. Anyone can also do this if they are dedicated to saving money and living within their means. We all will retire one day, so live well enough today so you live better tomorrow when it’s time to relax and enjoy a comfortable life.
Seems some are just bragging about something that is not realistic. As of 2021 the max you can contribute annually is $19,500, say you get 8% matched by Chevron that makes another $1,560. Ok so at best over 10 years you put at best $210,000, if you get 20% rise on your investment each year, in total you will not be above $1.0MM. Anyone claiming he starts from zero and over 10 year goes above $1MM is just bluffing.
Now if you rolled over from previous employer that is a different story.
@qvv, no Congrats, you did exceptionally well, you are set including the pension. It's nice to hear a real report along with the tall tales lol.
@jup, no, not inside the CVX 401k, in a rollover 401k that can be invested freely.
I retired with 25 years of service, PSG 20 for the last 8 years. Probably not the average paid employee. I always contributed the 2% of my salary and the company matched the rest. But despite my low personal contribution to the 401k plan, I did manage my portfolio wisely, constantly rebalancing it at least twice yearly and once in a while moving my entire holdings to cash. It wasn’t luck, but a disciplined approach and my strong interest in following the financial news. When I retired, my 401k balances totaled $1.2 million. Not too shabby for a PSG 20 contributing the minimum to get the full company match. You may ask why I didn’t contribute more to my 401k? That’s because I saved my as much of my extra salary to be flexible. I lived within my means and put my extra money into a Roth IRA, paid off my home mortgage quickly and managed to acquire two prime residential rental properties along the way at a good price.
@jup, no, most of those gains are in a rollover, and although per 401 rules, and pretax, the investment options are like any other brokerage account and not limited.
- 5 million in a 401k with only 12 years, wow! I certainly did great in my after tax accounts but I didnt think there were that many great options to invest in with our 401ks.
“ 12 years, $6.5 MM. I was lucky with a few good picks is all. No talent involved.”
So you are mid-thirties with probably $7 MM+ net worth?
12 years, $6.5 MM. I was lucky with a few good picks is all. No talent involved.
- 5 years. $3.8 million in 401k, (over half was rollover)100% equities, mostly FANG and similar.
Man, I thought I wasn't doing all that great with some pretty conservative investments in my 401k but the ones posted here for the most part sound frighteningly low.
I rolled mine over from a previous employer with $600K in it. Five years later it's over $1.25MM. I did get lucky in parking a big portion of it in cash in Feb 2020 then moved it back in around May 2020 when the Fed decided to go full r3tard.