Exactly. Wish I was taught this earlier in life. It should be taught as a staple alongside the three branches of government, etc. Like just this simple example alone needs to be in front of every HS kid at least a few times.
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ERA: Have you guys planned your retirement yet? (What's your retirement number? $)
- Thread starter hwarang
- Start date
Exactly. Wish I was taught this earlier in life. It should be taught as a staple alongside the three branches of government, etc. Like just this simple example alone needs to be in front of every HS kid at least a few times.
This isn't a Whole Life policy, is it? At your age, Term is perfectly fine, and the extra you'd spend on the premiums for Whole is most likely better off going towards your retirement fund.
At 60 I don't get slapped with an early withdraw penalty and I want the money I have accumulated to kick off the process of my family having generational wealth. I don't want any of my descendants to be poor ever again.
I know you guys mean well, but I really don't care. As I said, it's almost a certainty that I won't live long enough for that money to be any good. The way things are going for me right now on a personal level, I'm not even sure I'll make it to 34.
About 30 / 40k in savings and I own a house. So there's something, but retirement... nothing. The options for independently employed ppl in the Netherlands fucking suck. I can start investing by myself but it feels like such a crapshoot. Still, it's better than giving it to an intermediary who will tell me things didn't work out when I'm 70 and it's all gone.
the subject keeps me up at night though. I'm 37 in two months, so kinda fucked already.
the subject keeps me up at night though. I'm 37 in two months, so kinda fucked already.
Started saving when I was 22. Wish I would have understood what I was doing a bit more back then, cause I would have put more back. I'm glad I started early though.
Right now my plan is to build up equity in my current house, then use it and some other investments to get the down payment on a forever house in about 7-9 years. I think I should be able to get that house paid off or close to paid off by the time I retire at 65. Hopefully I can retire earlier if my investments do well.
Right now my plan is to build up equity in my current house, then use it and some other investments to get the down payment on a forever house in about 7-9 years. I think I should be able to get that house paid off or close to paid off by the time I retire at 65. Hopefully I can retire earlier if my investments do well.
I have a work RRSP and my partner does too but it won't be enough to support either of us unless we retire when we are like 102.
I also have a condition that statistically tells me I won't live to old age, not to be morbid, but that's weirdly a relief, even though I am doing my best to stay tip top.
I also have a condition that statistically tells me I won't live to old age, not to be morbid, but that's weirdly a relief, even though I am doing my best to stay tip top.
I'm really surprised by people saying they'll need multiple millions to retire. That seems incredibly high. By my calculations, if you factor in things like social security and perhaps some of your home equity (you can always downsize or sell and rent), than even $1,000,000 (in today's dollars) seems more than adequate for a very comfortable retirement, including plenty of travel. What am I missing?
Yes -- but I honestly don't ever want to stop working. I would like to be a developer/creator/artist until I die. Stagnation is a killer in my opinion.
Looking to retire early. $500k-$1M in taxable accounts by 35 is my target. I'm ok with living frugally, but everything may change depending on the person I settle down with.
I won't speak for others but I fully expect to have to cover expenses for some older close family members by my retirement age. I'm aiming high because we want to be comfortable and not feel overly burdened by those expenses.
My target number is for a completely passive $100k/yr. I figure that even with inflation, 80 year old wife and me could survive on that. Planning on that to come roughly equally from three buckets; SS, wife's pension, and our various retirement accounts and we hit that basically as soon as we decide to start taking SS.
If you don't take steps early for your retirement because you think you'll never be able to, well then... you won't be able to (except as noted in my example below, you actually could retire, it just won't be very cushy.) I always want to say two things in these discussions to hopefully dispel some of the fatalism:
0. I certainly recognize that there is privilege in this discussion and that there are people who can't afford a robust retirement, that's why we should support a robust security safety net.
1. SS is not going away, even if the fund is depleted (which is a political nuclear bomb,) it'll still pay out~75-76% of benefits
2. Small efforts early pay off thanks to compound interest/growth. At just 5%, your money more than doubles in ~17 years, and if you're able to keep adding to it, shit gets off the rails.
.
So two examples:
My mom was horrible with money. As a single mom, she was up to her eyeballs in debt even though my dad was good about child support. Credit cards, second mortgage, "invested" in a mini motor home that she had to use as her daily driver, decided to retire very early after she got laid off and is getting hundreds less than the average SS benefit. Her only advantage is that she's in a low cost of living area. It's tight, but she is fully retired on SS alone.
I'm not much better. I threw whatever the default amount was in an early job's Simple IRA for ~4 years. Wife and I inconsistently put a painless amount per month in a Roth IRA after that. Threw another default small amount in to a 401k at my current job until I got more serious about contributing after a promotion last year (2 pay periods before they killed the match due to COVID.) Wasted thousands of dollars and years in the market on a whole life insurance policy. It would be hard for me to be less investment-savvy, everything has been on autopilot in low risk mutual funds. And yet that still projects to fund a third of a decent retirement income stream. When I finally sat down and ran the numbers, I was so surprised that I posted in the retirement thread asking what I was missing.
This thread is also a good example of fatalism becoming a self-fulfilling prophecy.
If you don't take steps early for your retirement because you think you'll never be able to, well then... you won't be able to (except as noted in my example below, you actually could retire, it just won't be very cushy.) I always want to say two things in these discussions to hopefully dispel some of the fatalism:
0. I certainly recognize that there is privilege in this discussion and that there are people who can't afford a robust retirement, that's why we should support a robust security safety net.
1. SS is not going away, even if the fund is depleted (which is a political nuclear bomb,) it'll still pay out~75-76% of benefits
2. Small efforts early pay off thanks to compound interest/growth. At just 5%, your money more than doubles in ~17 years, and if you're able to keep adding to it, shit gets off the rails.
.
So two examples:
My mom was horrible with money. As a single mom, she was up to her eyeballs in debt even though my dad was good about child support. Credit cards, second mortgage, "invested" in a mini motor home that she had to use as her daily driver, decided to retire very early after she got laid off and is getting hundreds less than the average SS benefit. Her only advantage is that she's in a low cost of living area. It's tight, but she is fully retired on SS alone.
I'm not much better. I threw whatever the default amount was in an early job's Simple IRA for ~4 years. Wife and I inconsistently put a painless amount per month in a Roth IRA after that. Threw another default small amount in to a 401k at my current job until I got more serious about contributing after a promotion last year (2 pay periods before they killed the match due to COVID.) Wasted thousands of dollars and years in the market on a whole life insurance policy. It would be hard for me to be less investment-savvy, everything has been on autopilot in low risk mutual funds. And yet that still projects to fund a third of a decent retirement income stream. When I finally sat down and ran the numbers, I was so surprised that I posted in the retirement thread asking what I was missing.
Yeah, my dad and FIL could potentially leave us something, and my aunt (no spouse or kids) that passed away last year apparently left me something too, but I can't bring myself to even consider any of that in my projections. My dad has a really nice tool chest and a Paul O'Neill home run ball that he caught at a game he and I went to, if that's all I get, I'll be happy.
True, but don't forget that there are plenty of people living paycheck to paycheck for whom even a 3% contribution to a retirement fund just isn't affordable. If it's a choice between locking that money away for retirement or needing it for today's bills then it's no choice at all really.
I do accept that there are people who could afford to save for retirement but don't, and that we need better education about retirement savings in general.
Lol I don't even know what a 401K is or never bothered to look into mine (I don't know how to).
So far retiring is just a fantasy.
So far retiring is just a fantasy.
I just put my whole nest egg on them to concede in extra time. Never fails.
Plan is ambitious. I HOPE to retire and have enough money to do so in my late 60s.
I should have my house paid off before 50 but then I have to pay for my kids college and I am sure they will need some other help before they get settled. Me and my wife can live pretty simply but all our retirement plans involve a lot of assumptions. Stable or increasing income, 401k growing consistently (mine has kind of lagged honestly), and savings in general.
I should have my house paid off before 50 but then I have to pay for my kids college and I am sure they will need some other help before they get settled. Me and my wife can live pretty simply but all our retirement plans involve a lot of assumptions. Stable or increasing income, 401k growing consistently (mine has kind of lagged honestly), and savings in general.
I have three kids so hahahaha. I stopped contributing to RRSP this year so I could focus on credit card debt instead.
You mentioned a robust retirement, I was just emphasising the point that some people can't afford any sort of retirement.
I don't think we're in disagreement here.
I opened a 401k through work with my first job out of college. Index funds and I contribute 3% which is the max my work will match, so it's 6%. I don't know what total amount I'm supposed to aim for but according to the site calculator, I'm status green for retirement
A big problem is my wife has nothing planned. As it stands, it might be my 401k for us both. If that's the case, we aren't going to have enough. She needs to get something started asap
A big problem is my wife has nothing planned. As it stands, it might be my 401k for us both. If that's the case, we aren't going to have enough. She needs to get something started asap
Even though I do have savings and some investments, I already have come to the conclusion, unless something in society drastically changes, I am going to be working till I die.
No specific plan about when I plan to retire. I am just saving what I can so when I reach my 60-70s I have enough saved up to retire.
Mostly maxing my RRSP. I have my one from my old job, a new one from my new job I recently started and one with my bank which I use as a end of year dump before filing my taxes. I like to keep some wiggle room in case I get a year where I end up owing money on my taxes. Max out my TFSA, and have an investment account. Also have my e-saving which acts as my emergency funds and temp storage for extra saving before being moved to other accounts.
Mostly maxing my RRSP. I have my one from my old job, a new one from my new job I recently started and one with my bank which I use as a end of year dump before filing my taxes. I like to keep some wiggle room in case I get a year where I end up owing money on my taxes. Max out my TFSA, and have an investment account. Also have my e-saving which acts as my emergency funds and temp storage for extra saving before being moved to other accounts.
I should be able to retire in my early 60s if all goes as planned
Edit then I can have my dream job of watching other people's dogs for them. But only nice dogs. Sorry no mean ones
Edit then I can have my dream job of watching other people's dogs for them. But only nice dogs. Sorry no mean ones
Definitely term life for that very reason. My goal by the end of the year is to start funneling a manageable portion my savings towards retirement. I just need to focus on building up a savings safety net right now given the conditions of the world around me. My job is secure for now but we all know how fast shit can change. Money on hand is more important to me that some imaginary future I can't even picture at the moment. I fully understand the benefits or retirement and how compound interest and all that. Just need to take care of other priorities this year.
My job has a pension (one of the few left in the U.S) so I'm looking at 79% of the average of my best 3 years at 62. Should have my house paid off by then (barely) and have no other debt to speak of. I'll probably still have to cut back on some stuff but it's a comfort knowing I'll have income.
Okay, gotcha. Yeah, term life is the way to go; I've seen too many younger people get suckered into Whole life.
Inheritance will be by far the largest transfer of wealth from the Baby Boomer generation to the Millennial generation. For many people in the USA, inheritance will be the only time they will get to fully own property and build equity.
When my grandfather---who was an apple farmer---passed away, he left his children little cash but he built multiple houses from scratch, including a compound on a beautiful lake upstate, which his children split up and sold in modern times for >$10 million in total.
That kind of wealth transfer gives everyone a leg-up in society and a chance to move up an income class. Sometimes it gets squandered, but it can also be properly leveraged to ensure subsequent generations don't have to worry about retirement. It serves a very important function in society.
Yeah but, fuck the children. Death tax should be 50% to 100%. No one deserves a easy life based on the sperm lottery.
Millennials will inherit >$68 trillion from their Baby Boomer parents (aka the wealthiest generation in history). So in general, yeah. But it definitely is a roll of the dice and I feel for all the people who won't get anything.
Not had enough stable incomes enough to save anything basically. Had just bad luck over and over basically in my careers lol so will not have anything saved 90% likely.
Like last job I had was in the event industry and was very stable until my bad luck hit again this time a pandemic that shut down the whole event sector ... 🤷🏻‍♂️
My only bet would be to inherit my parents together with my 2 siblings. They have a lot of savings, stocks, house with a lot of value etc.
Like last job I had was in the event industry and was very stable until my bad luck hit again this time a pandemic that shut down the whole event sector ... 🤷🏻‍♂️
My only bet would be to inherit my parents together with my 2 siblings. They have a lot of savings, stocks, house with a lot of value etc.
Well here's the thing - this is exactly the right time to think about it. Check out what kind of instruments are available through your company and absolutely do not go even one more pay period without setting up a match if your employer has one. It is quite literally free money.
I've been saving 15% of my paycheck into Thrift Savings Plan since I've joined the military. I have a pretty good chunk of change in it that'll hopefully grow pretty well throughout the years.
That plus depending on how shit goes, hopefully a military pension plus SS and TSP. I should hopefully be ok.
That plus depending on how shit goes, hopefully a military pension plus SS and TSP. I should hopefully be ok.
Assuming a 5-8% annual return I could have anywhere between 3 and 6 million by 65, not including my wife's assets. I don't have a number in mind but that range sounds like I'm on target.
I'll be 63 by the time I qualify for the maximum NY civil service pension, so that's my number. I have some doubts that my current job will be around by then.
Thats a strange take. The parents worked hard for that money their entire life, they can decide who it goes to. You can still tax it as an income source, but to say such drastic and harsh measures like that is crazy. And thats coming from someone who told my parents to spend all their money while they are alive so they can enjoy it fully
Health cost in a later stage of life. Even with first-class health care plan, long-term illnesses like dementia will eat up your savings really fast. I just hope we can make more and quicker progress in rejuvenating medicine, it would reduce the need to save millions significantly.
I have no "plan".
I have about $130k in a 401k, with another 21k in a Roth, which gets about $7k added a year.. I have 6% of my paycheck going into a pension. I got a mortgage that will be paid off in 19 years. I'm hoping I'm well enough to work until I'm 60. I'm 45 now.
I have about $130k in a 401k, with another 21k in a Roth, which gets about $7k added a year.. I have 6% of my paycheck going into a pension. I got a mortgage that will be paid off in 19 years. I'm hoping I'm well enough to work until I'm 60. I'm 45 now.