How to Get More Money in Your Retirement Account

Most of us would like to have more money in the accounts we’ve chosen to provide for our retirement, whether those are traditional retirement accounts, like 401(k)s and Roth IRAs, or just a non-qualified, taxable account (or even in non-residential brokerage accounts). However, many people do not understand the best way to have more money in those accounts. So, I’ll tell you.

Are you ready?

Here it is:

“The best way to have more money in your retirement accounts is to put more money into your retirement accounts, especially early in your career.”

Did I get it? What? Did that seem too obvious? I’m sorry, but it’s the honest truth. In my life, I don’t see why many people try to use another method. Let me explain what I mean by an example and, even better, a comparison.

Some Case Studies

Let’s run the numbers. For all the doctors below, I will use below average income. The average American doctor made something like $376,000 in 2024, so we’ll spend $300,000 in 2026.

Our first doctor leaves residency in 2026 at age 30. By living like a resident for four years, this doctor saved 30% of his $300,000 retirement income AND paid off his student loans within four years of finishing. Then they started saving 30% of their salary. This doctor worked until 65 and, on average, earned 5% real on their investments. How much is their retirement income at age 65 (in 2026 dollars)?

=FV(5%,35,-30%*300000) = $8.1 million.

That’s enough to provide a retirement income of something like R8.1 million x 4% = $325,000 per year, more than this doc ever earned. And that doesn’t count any other source of income like Social Security. Where did all that money come from? However, 35 x $300,000 * 30% = $3.2 million of that came from conserving the power of abuse. They had more money in their retirement accounts because they put more money in their retirement accounts. Millions of dollars over the years.

Our second doctor took extra time to get in and out of school and stay. They complete the training at the age of 35 and earn the same amount of $300,000 (in 2026 dollars). They spent the next five years paying off student loans but prioritized that over retirement. Then they wanted a big house for the doctor, so they set aside some money to pay, moved there, and repaired the house. By the time Doctor No. 2 turned 45, they were ready to start serious about saving for retirement. They learned somewhere that 15% is a great retirement savings goal, so save 15% of their retirement income. After five years, they felt a little tired, heard about Coast FIRE, and decided to work and save hard for another five years before quitting, making enough money to live on until the doctor retired at age 65. How much money should they take when they are 65 years old?

At 45, they have nothing.

At age 55, they have =FV(5%,10,-15%*300000) = $566,000.

At 65 years, they have =FV(5%,10,0,-566000) = $922,000.

That $922,000 would provide a retirement income of $37,000 (in 2026 dollars). There’s probably another $50,000 in Social Security income there, and they can have a modest and comfortable retirement, but not a lavish one.

Why Doc No. 2 has only $922,000 while Doc No. 1 has $8.1 million? That’s because the second document put less into their retirement accounts. If you consider that they put in 10 x $300,000 x 15% = $450,000, that’s about 1/7 as much as the first doctor. The second doctor put in MORE.

Now, I’m not telling you that you have to work for 35 years. I’m not telling you that you should save 30% of your income for retirement. I’m not telling you that you can’t have a great retirement on less than $8 million. I am by no means telling you that you should live like a citizen your entire career or feel poor or never buy a brand new car or never go on a luxury European vacation. What I am telling you is that if you want to have a lot of money for retirement, you need to save a lot of money for retirement. And do it early if you can, so the compound interest has more time to work on it.

Even a moderate approach between these two people can have a much better result than the second doc. Let’s consider a third doctor.

This doctor comes out of training later at age 32, earns $300,000 in 2026 dollars, and pays off student loans in five years. But this doctor also saves 10% in those five years by living like a resident and then 20% after that until age 60. Then, they downsize (Coast FIRE) and save nothing until they retire at age 65. What is Doctor No. 3 when he was 65?

At 32, they have nothing.

At 37, they have =FV(5%,5,-10%*300000) = $166,000.

At age 45, they have =FV(5%,8,-20%*300000,-166000) = $818,000.

At age 55, they have =FV(5%,18,-20%*300000,-166000) = $2.1 million.

At age 60, when they stop saving, they have $3.0 million.

At age 65, when they retire, they have =FV(5%,5,0,-3000000) = $3.8 million.

That would support spending of $3.8 million x 4% = $153,000 (in 2026 dollars) per year. Add in $50,000 a year for Social Security, and their income should be at least what they spent during their career after taxes and retirement savings. That should provide a happy retirement without having to worry about real money.

How did Doctor No. 3 do that? How come they get so much more than the second doc?

Oh. Are they putting more into their retirement accounts? How much?

They put in 10% * $300,000 x 5 + 20% * 300,000 x 23 = $1.5 million. That’s three times more than Doc No. 2. No wonder they get to spend twice as much in retirement, right?

More info here:

Safe Savings Rate — What Percentage of My Income Should I Save for Retirement?

High Savings Amount Covers Many Sins

It’s just math

You don’t get past the math. There is no reliable shortcut. Yes, you can probably earn more by working hard or taking a side gig and saving for that. Yes, you can probably get a higher return by taking on more market risk, by taking on more risk, or by personally adding value to your investment with more work. Yes, you can be smart about how you spend (travel hacking?) and how you invest (Mega Backdoor Roths, cash balance plans, index funds, and carefully traded real estate?). Yes, you can pay less taxes with careful strategic planning.

But none of that REALLY moves the needle compared to putting more money into those accounts, especially early on. Go ahead. Run the numbers. I think that after five minutes playing with a financial calculator or a spreadsheet, you will come to the same conclusion that I have. The secret is no secret.

Is it boring?

Yes.

Does it work well?

A lot.

I have yet to meet someone I didn’t work for. Go ahead, find a doctor who has saved 20%+ of his income for 25+ years and invested it in any kind of rational way that he feels committed to retirement. I will wait.

No one?

Yes, that person does not exist. There are no guarantees in life, but this is pretty close to being one.

More info here:

Saving for Your Unknown Future

Here’s How We Make, Save, and Spend As ‘Middle Earners’

Why Don’t People Want to Put More Money into Their Retirement Accounts?

Despite the simplicity of the method, it is still chosen only rarely. There are all kinds of reasons why people don’t do this. Let’s list a few:

• They feel entitled because they gave up their 20s and maybe most of their 30s.
• Their friends want to spend more money.
• They want to spend more money.
• Gucci.
• Tesla.
• They have a family in their high tax state, with a high cost of living.
• They love their patients so much that they don’t want to run a successful practice or negotiate for fair pay.
• No one ever taught them how to invest in med school.
• Little did they know that they could invest more money than they could put into their retirement accounts.
• They feel burned.
• The local schools are terrible, despite the fact that 95%+ of the children in the area go to them.
• They want to eat healthy food or they don’t have time to prepare it.
• They don’t have time to drive on vacation, and you can’t drive to Italy anyway.
• They will save for retirement AFTER buying a house or taking care of student loans.
• They get bad advice from an untrustworthy “financial advisor”.

Does any of that sound familiar? It does for me. I hear it all the time, even if it’s not written in those terms.

This is the “cold, hard truth” about retirement.

This is “God’s honest truth” about retirement.

If you want to get rich, stop spending all your money. Now. And start putting it into sensible investments, preferably in retirement accounts. And leave it there for a while.

WHAT DO YOU THINK? Why is saving for retirement so difficult for doctors? What have you done to encourage yourself to start saving early and often?