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My wife & I looked at each other with a puzzled look, shrugged, turned to her and said, "No. You can't really put enough in IRA & 401K to get rich. Most of it is in taxable accounts."

*) When I had my "little chat" with each of my kids when they turned 21, I said to them that there is no reason that they couldn't have a $1,000,000 net worth in 25 years.

Define rich.

I put your comment about rich and your little chat together to make a point. On more than one occasion, I've heard that you can't retire on IRAs an 401ks alone. This year's contribution limit for the IRA is $5500 and 401k is $17,500. That's $23,000 per person not including any matching or other employer contributions. If your kids married and both your kid and their spouse worked, there is the potential savings of $46,000 per year. At 5% return, it becomes $2.3 million. Stuffing it under the mattress gives them $1.15 million. If they don't marry or one stays home to raise kids, $23,000 per year at 5% return results in $1.15 million in 25 years. This ignores COLA increases to contribution limits.

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