How a 46-Year-Old With a $1 Million 401(k) Can Hit $2 Million by Retirement

Core Insights - Many individuals in their mid-40s have minimal retirement savings, making a $1 million portfolio a significant advantage compared to most Americans [1][2] - A $1 million retirement fund may not suffice for a luxurious retirement, prompting the desire to increase it to $2 million [2][3] Investment Growth Potential - Doubling a $1 million portfolio to $2 million by retirement is achievable with proper strategy and discipline [3] - Historical data shows that major U.S. stock indexes have provided average annual returns of 8% to 10%, which can significantly grow a $1 million investment over time [4] - At an 8% annual return, a $1 million investment could grow to approximately $4.66 million in 20 years, while a 10% return could increase it to about $6.73 million [4][7] Retirement Planning Considerations - The timeline for retirement greatly influences financial goals, with different outlooks for those planning to retire at ages 55 versus 65 or 67 [6] - Catch-up contributions become available at age 50, allowing for higher tax-advantaged savings limits, which can further enhance retirement savings [7]