50 year olds - how much retirement $ do you have saved?

[Anonymous]

We have maybe 600K saved in retirement funds. Maybe more. I don't keep up with the downs of the market.

More importantly, we have a federal pension coming and my spouse will have 40 years of service upon retirement, so it will be substatial.

We also have 1 million in home equity and money put away for kids' college.

So we're really not worried about it. Especially since our home will be paid off within ten years which is well before retirement.

[Anonymous]

Anonymous wrote:

Anonymous wrote:51&51

350k in 401k
750k in commercial real estate (PO 2028)
800k in house (PO 2030)
A business I might be able to sell for a few hundred k.

3 529’s with 197k each but they’ll be used, no full ride scholarships on the horizon.

It’s gonna get rough for the coming years on dented cans and manager special meat!

Did you save in 529s instead of for retirement?

My business has occasional windfalls and I wanted to provide for their education as my parents did for me.

[Anonymous]

Anonymous wrote:OMG PP, stop saving for college and start saving for retirement!

I know! It happened fast but I’m getting focused on us now.

[Anonymous]

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Anonymous wrote:Ages 49/48
$1M tax-deferred
$600k Roth
$750k home equity (paid off townhome)
$175k college (one kid)

SS estimate for both of us $4,500/mo.

It is really odd seeing so many posters like PP above who have nothing saved outside of tax advantaged vehicles.

What does that mean?

Why is it odd? A balance of Roth and Traditional is all you need to manage your tax burden in retirement. There are plenty of strategies for withdrawing penalty free early if you want to retire early.

Maybe penalty free, but you will get hosed by taxes.

Not with a Roth.

The PP had 4 mil in a 401k, so yes, they will get hosed even if they do Roth conversions.

DP but naaah. I have $3.5M in pre-tax vehicles and will retire in a year or so. I will not enjoy paying taxes on those RMDs but be very happy to still pay a much lower tax rate on those withdrawals than the marginal tax rate I avoided while working.

[Anonymous]

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:Ages 49/48
$1M tax-deferred
$600k Roth
$750k home equity (paid off townhome)
$175k college (one kid)

SS estimate for both of us $4,500/mo.

It is really odd seeing so many posters like PP above who have nothing saved outside of tax advantaged vehicles.

What does that mean?

Why is it odd? A balance of Roth and Traditional is all you need to manage your tax burden in retirement. There are plenty of strategies for withdrawing penalty free early if you want to retire early.

Maybe penalty free, but you will get hosed by taxes.

Not with a Roth.

The PP had 4 mil in a 401k, so yes, they will get hosed even if they do Roth conversions.

DP but naaah. I have $3.5M in pre-tax vehicles and will retire in a year or so. I will not enjoy paying taxes on those RMDs but be very happy to still pay a much lower tax rate on those withdrawals than the marginal tax rate I avoided while working.

Sure, especially if you move a low-tax or no-tax state. However, since you'll hit the lower tax rate when you retire, you could easily do a Roth conversion of a good chunk of it between your retirement date and RMD starting so that your kids are not left with a huge tax bill after you pass.

[Anonymous]

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Anonymous wrote:

Anonymous wrote:Ages 49/48
$1M tax-deferred
$600k Roth
$750k home equity (paid off townhome)
$175k college (one kid)

SS estimate for both of us $4,500/mo.

It is really odd seeing so many posters like PP above who have nothing saved outside of tax advantaged vehicles.

What does that mean?

Why is it odd? A balance of Roth and Traditional is all you need to manage your tax burden in retirement. There are plenty of strategies for withdrawing penalty free early if you want to retire early.

Maybe penalty free, but you will get hosed by taxes.

Not with a Roth.

The PP had 4 mil in a 401k, so yes, they will get hosed even if they do Roth conversions.

DP but naaah. I have $3.5M in pre-tax vehicles and will retire in a year or so. I will not enjoy paying taxes on those RMDs but be very happy to still pay a much lower tax rate on those withdrawals than the marginal tax rate I avoided while working.

Sure, especially if you move a low-tax or no-tax state. However, since you'll hit the lower tax rate when you retire, you could easily do a Roth conversion of a good chunk of it between your retirement date and RMD starting so that your kids are not left with a huge tax bill after you pass.

That's the key. Two hump camel's back.

[Anonymous]

50 is the easiest age to have saved a lot. You missed all the prior crashes

[Anonymous]

Anonymous wrote:50 is the easiest age to have saved a lot. You missed all the prior crashes

You mean time to recover from the crashes. I'm 52, went through two or three market crashes.

[Anonymous]

Retirement age is 70 so 50 plenty of time and RMDs not till 73.

Given 50 is when 401k catch’s ups happen you have 20 years to ramp up the 401k.

Most people never even touch their retirement money principal other than RMDs.

[Anonymous]

Anonymous wrote:Retirement age is 70 so 50 plenty of time and RMDs not till 73.

Given 50 is when 401k catch’s ups happen you have 20 years to ramp up the 401k.

Most people never even touch their retirement money principal other than RMDs.

really? I doubt that's true. Most "rich" people may not, but most people are not rich.

[Anonymous]

Anonymous wrote:Retirement age is 70 so 50 plenty of time and RMDs not till 73.

Given 50 is when 401k catch’s ups happen you have 20 years to ramp up the 401k.

Most people never even touch their retirement money principal other than RMDs.

OK, you clearly associate only with most people who have substantial retirement savings. My mother's RMD totals $1700 a year.

[Anonymous]

Anonymous wrote:Retirement age is 70 so 50 plenty of time and RMDs not till 73.

Given 50 is when 401k catch’s ups happen you have 20 years to ramp up the 401k.

Most people never even touch their retirement money principal other than RMDs.

Retirement age is not 70; it’s when you want it, if you have the money.

[Anonymous]

Anonymous wrote:

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Anonymous wrote:

Anonymous wrote:Ages 49/48
$1M tax-deferred
$600k Roth
$750k home equity (paid off townhome)
$175k college (one kid)

SS estimate for both of us $4,500/mo.

It is really odd seeing so many posters like PP above who have nothing saved outside of tax advantaged vehicles.

What does that mean?

Why is it odd? A balance of Roth and Traditional is all you need to manage your tax burden in retirement. There are plenty of strategies for withdrawing penalty free early if you want to retire early.

Maybe penalty free, but you will get hosed by taxes.

Not with a Roth.

The PP had 4 mil in a 401k, so yes, they will get hosed even if they do Roth conversions.

DP but naaah. I have $3.5M in pre-tax vehicles and will retire in a year or so. I will not enjoy paying taxes on those RMDs but be very happy to still pay a much lower tax rate on those withdrawals than the marginal tax rate I avoided while working.

Sure, especially if you move a low-tax or no-tax state. However, since you'll hit the lower tax rate when you retire, you could easily do a Roth conversion of a good chunk of it between your retirement date and RMD starting so that your kids are not left with a huge tax bill after you pass.

No kids but still planning on that too.

[Anonymous]

I am 50 and DH will be 49 in a few months.

We have at least 3.3-3.5M in 401k/403b accounts. It’s gone up recently and spouse hasn’t bothered to check his since two months or go. Home equity is @900K on 1.4-1.5M.

I will have at least $80k in a fed pension but more if I continue to 60. Right now really thinking of retiring around 58.

[Anonymous]

Actual middle class person here. These numbers are crazy. I’m 41 and have $207K in 401K and like $140k in investments.