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Episode 135: Five Steps to Become the 401k Millionaire Next Door

Updated Jun 19, 2020 | Chris Petrie

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Benjamin Brandt, host of the Retirement Starts Today Radio Show and Founder/CEO of Capital City Wealth Management is coming on the show today to talk about the 5 steps to building wealth inside your 401k.

Believe it or not, $1 million may seem like a lofty goal by today’s standards, but will it be enough if you’re planning on retiring 20-30 years from now?

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The Show Notes

Benjamin is an expert when it comes to retirement planning and is highly respected by people from all over the financial world. He has an incredibly popular podcast, the Retirement Starts Today Radio Show where every Monday he is helping you prepare for the best retirement possible.

In my interview with Benjamin, I asked him to share with us the 5 simple ways to truly become a 401k millionaire and then to break down each step in detail.

Step 1: Start Saving Today 

The money you will be living off of in retirement is not from the money you are setting aside today. It’s from the money that your money will be making in the form of compound interest. 

Step 2: 10% -15% Invested

Start off by saving 10% – 15% of your income. Then, every time you get a raise, split the raise: half goes to you and the other half goes to your 401k.

Step 3: Always Get the Employer Match

97 percent of employers offer a company match. How much is the match, is it a tiered match, and how do you find this out? Remember, the employer match is truly FREE money for your nest egg.

Step 4: Invest Into the Right Funds

Not everyone will be investing into the same funds. Some of us retire next year and other will retire in 30 years from now. Knowing what to invest in based on the level of risk and time you have left is crucial. 

Benjamin gives some great insight on what you should be investing in depending on age vs risk vs reward.

Step 5: Keep Your Hand out of the Cookie Jar

There are three ways you can access money from your 401k, and only one of them is correct.

The correct way: wait until you are in retirement and access your nest egg penalty free.

Wrong way #1: early withdrawal and pay a hefty penalty

Wrong way #2: take a 401k loan

Due to COVID-19, the penalties for taking from your 401k have been waived. Also, the loan requirements have also loosened up due to the virus. You can learn all about the here inside Episode 128 of the Money Peach Podcast.

Links Mentioned in the Episode

I Want to Be Your Financial Coach

**Ready to reach financial freedom? Join me in our next live coaching program, Smart Money Academy. This is a live coaching program where you will learn how to manage every dollar, pay down debt, save more, and truly reach peace with your life and money.

Smart Money Academy is not an online course, but rather a live coaching program where you are guaranteed to change the way you manage money forever. I will personally walk with you step-by-step for 5 weeks inside a live coaching call showing exactly what to do and how to do it.

By the end of our 5 weeks together, you will have mastered a spending plan, saved at least $500, and you’ll have a personalized plan to reach financial freedom!

Chris Peach Author 150x150

Chris Petrie

Chris (Peach) Petrie is a personal finance expert, money coach, speaker and podcaster.

In 2011, Chris and his family were exhausted from living paycheck-to-paycheck and facing a mountain of debt. They started going against the society standards of misbehaving with money and made the decision to take back control of their lives and money. Within seven months they paid off $52,000, started saving like crazy and began building real wealth.

The word spread fast and Chris started showing friends how to create a budget over dinner. Soon after he started showing their friends how to do the same and eventually Chris started teaching personal finance classes around the community. As the need for the classes grew, Chris launched Money Peach in 2015.

Money Peach was created to help everyday people remove the stress and fear of money by showing them how to save more, make more, and keep more of their money.

Chris Peach has been featured in places like Business Insider, The Huffington Post, Elite Daily, and CheddarTV.

When Chris isn’t at “work” he can be found at the Crossfit gym or riding on the fire truck — Chris is also a full-time firefighter in Phoenix, Arizona.

One Comment

  • I retired five years ago with way more than a million dollars in my 401K. That was a reasonable amount then but for someone retiring in 25 years inflation will eat away at over half of its buying power. In other words if you want a million dollar lifestyle then you’ll need 2.1 million dollars to pay for it. On the other hand I was only allowed to put in around $7,000 when my company first opened up 401k accounts and now the contribution max is $19,500. So today if someone maxes out their contribution every year, like I did, they’ll have several million by the time they retire. I never noticed the money I invested, it was invisible to me. And when that balance finally hit seven figures? It was a pretty happy day for us!

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