25 (M) was looking over my 401(k). My current balance is $27k and I am contributing $1000/month. Napkin math says with an 8.5% annual average return I’d have $5.3 million by 2065. What will the value of $5.3 million be in the year 2065? I’m having trouble gauging it. I think an accurate way to assess it may be to look back 40 years from today and find what that dollar amount was then to find a multiplier.
I’m not sure that just looking at the US governments inflation numbers would be accurate. For instance I think if you ran the numbers 40 years ago and multiplied by the inflation rate every year I don’t think you’d have enough in todays money.
$250k in 1985 is $750k in 2025
1985 $250k - enough to retire back then
2025 $750k - Not enough to retire now
When I retire, I’d like to have what it feels like to have about $1.5- $2m in todays money.
I hope this make sense