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In Example 4, a spreadsheet was used to estimate the balance in the 401(k) plan. There are also many websites that offer retirement calculators such as 401k Planning, AARP, and Bankrate.com.
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Did you know that 401(k) plans were started by the U.S. Government as a way to encourage Americans to save more money for retirement? To learn about how 401(k) plans work check out this article at How Stuff Works, where you can also watch a video with tips on saving for retirement.
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You will be 59 at the end of 37 years.
The account balance appears to be about $750,000 after 37 years. So with interest the total balance at the end of the year will be about
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Guest 7 years ago |FART0 0
Ron Larson (author)1 decade ago |401(k) funds are typically invested in the stock market. Normally, the owner of the plan is not guaranteed a specific rate of return. Instead, the rate at which the investment grows depends on the stock market. During times of recession or depression, your retirement fund can actually lose value. I remember during one recession the value of my 401(k) dropped by 25%. Fortunately, most of that loss was regained the following year.1 1