When it comes to retirement planning, we all have our personal ideas of how much we need across accounts and investments in order to continue living comfortably after we’ve quit our job. Saving $1.1 million for retirement and paying off a $475,000 mortgage, all within 5 years, is quite a lofty goal. While certainly difficult, it is not impossible, so long as you remain committed. You must consistently be aware of your financial position and overall strategies. 

For those over the age of 50, the maximum annual contribution to a 401(k) as of 2025 is $31,000. Of course, whether this amount is enough to reach your $1.1 million goal depends on how much you already have in the account. Similarly, the practicality of paying off a mortgage in 5 years is based on how much you have previously paid off. Compound interest and smart investing will make a big difference when it comes to reaching this ambitious financial goal.

In this slideshow, we cover the best approach to preparing for your retirement and acquiring the necessary funds. We discuss key numbers, timelines, and realistic benchmarks to help you decide whether this financial undertaking is feasible. We’ll also cover the amount of money you need to have already stocked away so you can retire stress free.

Can You Retire With $1.1 Million in 5 Years?

• Achieving $1.1 million in a 401(k) and paying off a $475,000 mortgage in 5 years is possible but depends on your current finances
• Strategic contributions, compound interest, and budgeting are key to success

Maximizing 401(k) Contributions

• In 2025, you can contribute $31,000 annually to your 401(k) if over 50
• Monthly maximum contributions are $2,583, which helps boost your savings significantly over 5 years

The Power of Compound Interest

• A current 401(k) balance of $800,000 earning 7% annually could exceed $1.3 million in 5 years
• Even if you start with less, consistent investing can still grow your portfolio

Not There yet? Diversify Your Investments

• Consider adding traditional or Roth IRAs, HSAs, or CDs to your strategy
• Diversified investment tools can help you reach your goal more efficiently

Paying Off a $47,000 Home in 5 Years

• The feasibility depends on your current loan balance and extra monthly payments
• A $250,000 mortgage balance would require ~$3,056 in extra payments per month

How Much Extra To Pay Monthly

• A $300,000 balance requires ~$3,668 extra monthly to pay off in 5 years
• A $100,000 balance would need only ~$1,223 extra monthly payments

Build a CD Ladder for Security

• CDs offer stable returns and are FDIC or NCUA insured up to $250,000
• A CD ladder staggers maturity dates for better access and higher yields

Use High-Yield Accounts Wisely

• Consider MMAs and high-yield savings for flexibility and growth
• These accounts can complement your 401(k) and reduce investment risk

Consult a Financial Advisor

• A professional can help you project future growth and retirement readiness
• Advisors offer insights on health costs, inflation, and income gaps

The Bottom Line

• If you’re starting with ~$700,000 in your 401(k), your goals are within reach
• With the right strategy and a strong commitment, you can retire in 5 years with savings and no debt

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