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ERA: Have you guys planned your retirement yet? (What's your retirement number? $)
- Thread starter hwarang
- Start date
I maxed out my Roth IRA last year, but honestly with a max of $6,000 even if I maxed every year til I retire it would be like 100k tax free? Which I feel like won't be that much with inflation by like 2060? I wish the limit was higher.
Wait...that doesn't sound right.
Is that not being properly invested into the market? $6000 a year in a Roth IRA into the market like the S&P500, which averages growth of say 7% over the course 39 years would gross you over a million dollars before taxes.
$6,000 now and $6,000 added annually, assuming a 7.0% rate of return, would be worth $612,438 in 2050. The calculator at https://smartasset.com/investing/investment-calculator#bbKZzzjtnj is useful.
You guys are right, I wasn't taking the growth into account. Makes me feel a little better, I should really learn more about my own finances
My 401k predicts that I'll retire (in 17 years) with maybe just enough to scrape by...in today's money.
I'll be 30 this year. Started saving about six months into my first job post graduation (not long after turning 23).
My goal is to have the flexibility to retire in my early 50s, at which point my second (and last) child will be 4 years out of high school. I might still do consulting gigs at that point depending on how bored I get.
According to Betterment, I'm ~80% likely to hit that goal. What Betterment doesn't know is that I'll be saving at least 50% more in a year or so once I'm done saving for a down-payment, so I feel even more confident.
I'm very lucky in that
a) I've always had a high paying job (software engineer)
b) I had low student loans (payed off three years after graduating). I lived in France in high school and stayed for university because of cost. My tuition was roughly 4000€ total for a 5-year masters, the loan was for 3x that to also cover the rest (rent, student trips, etc)
c) I was taught financial responsibility from a very young age
My goal is to have the flexibility to retire in my early 50s, at which point my second (and last) child will be 4 years out of high school. I might still do consulting gigs at that point depending on how bored I get.
According to Betterment, I'm ~80% likely to hit that goal. What Betterment doesn't know is that I'll be saving at least 50% more in a year or so once I'm done saving for a down-payment, so I feel even more confident.
I'm very lucky in that
a) I've always had a high paying job (software engineer)
b) I had low student loans (payed off three years after graduating). I lived in France in high school and stayed for university because of cost. My tuition was roughly 4000€ total for a 5-year masters, the loan was for 3x that to also cover the rest (rent, student trips, etc)
c) I was taught financial responsibility from a very young age
My plan is to not live past 50. The only exception would be if I had kids or maybe at least some semblance of a family I'm providing for.
I make $70k/year right now at 33 y/o, and that figure is going to be close to $90k at 50. Zero debt. So setting aside money late on isn't going to be a problem.
I make $70k/year right now at 33 y/o, and that figure is going to be close to $90k at 50. Zero debt. So setting aside money late on isn't going to be a problem.
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I was thinking of learning to paint, or I don't know, something artistic and physical like that
We'll be able to live comfortably off my wife's retirement alone. Mine is just buttah baby. I've been putting matched 7% into my 401k since I was 27. I'm 45 now and will switch to 10-12% when I hit 50. (Company will still only match 7% max). Our wild card is my wife's inheritance when her father eventually passes. He's worth millions, but it has never been part of our financial planning. Dude is 75 and plays the stock market all day so he could live for decades and be worth considerably more, or nothing at all by then lol. He's already made 100k in 2021!
Retirement age keeps rising, automation and potential bad health will make it a struggle to keep working to then.
So my main plan is to hope that my parents (and maybe Uncle) don't burn through my inheritance. Rent out their house, live in shack. Maybe marry into money.
Independant back up plan is that I'm in a really good pension scheme for as long as I can cling onto this job.
So my main plan is to hope that my parents (and maybe Uncle) don't burn through my inheritance. Rent out their house, live in shack. Maybe marry into money.
Independant back up plan is that I'm in a really good pension scheme for as long as I can cling onto this job.
Yeah but you got to also factor in inflation and what that million will be worth in 40 years.
Ideally being UK based it's when I get access to my private SIPP pension which at the moment would be in 12 years time at 58 (they keep increasing the age due to tax benefits). I want pension fund maxed (currently limit is about £1.07m) and separately have around £500k in liquid assets plus house value with no mortgage.
Eeh feels like I'll retire around 72 and I'm 27. Right now I'm saving for a house instead, a bit of my pay is automatically going into my retirement funds anyway. Maybe I'll start saving around 35.
I am just going to say this.
The people writing "my inheritance," it may be true but it is still gross.
The people writing "my inheritance," it may be true but it is still gross.
Somewhat. My wife and I are maxing out our 401k's and since I'm 52 I can put extra in which I do (we should have a couple of million when all is said and done). We also have some investments that she manages. We own an apartment that we rent out right now but the plan is once the kids leave and are on their own (who knows if that'll happen) we'll sell the house and move into the apartment which will be paid for. We'd likely get another place somewhere warm and winter down there
Retirement? Please. I'm dying on the clock.
If I even manage to live to retirement age, I'll consider life an unqualified success.
If I even manage to live to retirement age, I'll consider life an unqualified success.
I have been very fortunate so far that I have been able to get all my ducks in a row. I have 3 years left on my mortgage. It looks like I will
have between 1.6 to 1.9 million in rrsp/tfsa and I can retire from work with a 50k a year pension from work at 57.
I`m trying to aim for approx 5.5k to 6k a month when I pull the plug. But I still have 15 years to go.....sigh
have between 1.6 to 1.9 million in rrsp/tfsa and I can retire from work with a 50k a year pension from work at 57.
I`m trying to aim for approx 5.5k to 6k a month when I pull the plug. But I still have 15 years to go.....sigh
The country where I live allows me to earn 70% of the salary of my last 10 working years as a life time pension at 63, so I'm going for that. Guess I need to find a nice job by the time I'm 53, but at least my retirement is secured. If I don't die like an idiot first that is.
Yes, I plan to have a dividend income stream yield at least $50K annually. At my current pace I'll achieve that in 15-20 years, so right around the age of 45-50.
Yep! Current plan is for my wife to work until 57 and then she gets her full pension from our state and we will both retire then (I'll be 53). We max out our IRA's and both contribute to our 401k and 403b's, but we aren't maxing them out yet. Hoping to have a comfortable retirement. Biggest unknown variable will be both our parents. Don't know if either set has enough saved up to live in retirement for a prolonged lifespan, so we may end up needing to support them.
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Not remotely possible. I'll just have to make sure I have a cheap way to kill myself before my age makes things difficult. Luckily I work myself to exhaustion so I might just die from that first. It's been the source of most of my health problems so I think my prospects are looking pretty good right now.
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This thread is a good example of the haves and have nots. At least some of the people posting in here about their favourable circumstances are able to acknowledge their privilege, but I just hope that everyone recognises that this is the exception and not the rule.
Being able to afford to retire in your thirties, or having an inheritance, or realistically being able to look forward to having millions set aside at retirement are all wonderful things but not remotely representative. I suppose there's an element of response bias here, and those in a good position are more likely to post about their situation.
None of this is a knock on those doing well, of course.
Being able to afford to retire in your thirties, or having an inheritance, or realistically being able to look forward to having millions set aside at retirement are all wonderful things but not remotely representative. I suppose there's an element of response bias here, and those in a good position are more likely to post about their situation.
None of this is a knock on those doing well, of course.
Pretty much just paying off my home over the next 25 years and then gonna sell it and live off the profit and SSI in an apartment the rest of my days. Sucks, but that's my only real option.
Why on earth would you need that much to retire at 60?
With the 4% rule (which is already conservative) you're looking at an annual retirement "income" of $240k-$400k
Yes, couple of good points here. When I first started saving, I was making about $12/hour in a mailroom job; pretty much literally the bottom rung of the ladder at the company I was with. With steady promotions over the years, I was able to put more in over time. It doesn't look like much at first, and you feel like you're never going to get to where you need to be, but with steady contributions over 30 years, you CAN get there.
Your second point is right as well. I think a lot of posters here might be under the assumption that you just withdraw everything from the market once you retire, and have to live off of that forever. The idea is to just withdraw enough to support your lifestyle, and keep the rest in, so you're still making a return.
I don't get the "work till I'm dead" thing. Several people seem to be serious about it. Unless you're a combination heavy smoker, heroin user and highway sleepwalker, you're gonna end up too old, slow and washed up to work by the time you're in your 60s, with a few exceptions like if you're a company owner or some artistic auteur who can call your own shots. Make a plan, folks. If you work in the US, ageism IS a thing. They'll find a way to fire your ass once you can't keep up.
The most powerful force in the world is compound interest and you'd be be missing out on it.
Take two people, one who puts $100/mo into their nest egg from age 20 through 30, and the other who starts at 30 and never stops. At an average 7% growth rate (not unreasonable,) the person who started at 30 never catches up. Ever.
Just hit my mid-30s and am just NOW able to start saving after a decade plus of paying down debt and busting ass to get my career to the place it is. I have a small retirement fund but I honestly fucking hate the stock market. I am saving but not fully investing quite yet. I guess I should talk to a financial advisor at some point.
In the meantime I've just made sure I have a kick ass life insurance policy because I also don't think I'll ever live long enough to retire. Not a single male in my family has lived past 65. My only concern with savings is to make sure there is enough money around to help family if something happens to me. Beyond that, I think I'll always be working.
In the meantime I've just made sure I have a kick ass life insurance policy because I also don't think I'll ever live long enough to retire. Not a single male in my family has lived past 65. My only concern with savings is to make sure there is enough money around to help family if something happens to me. Beyond that, I think I'll always be working.
While we don't have an exact plan, we spend less than we save every year. We're both 30 now and even if we stopped contributing today I think the power of compounding would be enough to put us in a decent place.
You're not wrong, but this is a bit self-evident, isn't it?
More illuminating would be to consider how much you would have accumulated at age 65 (say), investing 100 per month at 7%. Starting at age 20, you'd have 355k at 65, but waiting until 30 to start would only give you 171k at 65. Alternatively, to end up with the same 355k at 65 you'd need to invest over twice as much per month starting at 30 versus starting at 20.
That 100 per month from 20 to 30, with nothing else invested beyond 30, would be worth 180k at 65 at 7% p.a., which is more than 100 per month from 30 to 65 would be worth at 65! So 10 years of very early investing is more valuable in this case than 35 years at a later start.
