The Unfortunate Truth About Expecting to Max Out Your 401(k)
Since their creation in 1978, 401(k) retirement accounts have become the centerpiece of many Americans' retirement savings plans -- and for good reason. They not only allow workers to tuck away a great deal of money in tax-deferring accounts, but also offer employers an important employee recruitment and retention tool. For many people, their 401(k) will be their single biggest source of retirement income.
There is one ugly truth about the average 401(k) plan, however. Even if you're looking to max out your yearly 401(k) contributions, the typical person struggles to generate enough to maintain the standard of living they've enjoyed while working.
There are exceptions, of course. Plenty of high earners have been able to contribute the maximum amount of money every year for years and years on end. They've invested wisely, and/or received shares of the company they work for before a massive wave of growth. Some of these folks boast seven-figure 401(k) account values.
Source Fool.com
