The earlier you start working towards this goal, the more time your investment has to grow through compound interest. Compound interest is the magic of building your 401(k). Even modest contributions can lead to serious sums by the time you retire.
Maximizing your annual contributions is the most important step towards reaching a million dollars in your 401(k). The IRS sets contribution limits every year, and your goal should be to hit this maximum every year.
Don't forget to take advantage of employee matching, too. Many companies will match a portion of your contributions, which is essentially free money. Ensure you're contributing at least enough to take advantage of this match.
Achieving a million-dollar 401(k) isn't just about throwing money in an account, though. You also have to invest that money wisely in a diversified mix of assets.
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