What is your net worth if you are 55 years of age

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Rather ironic that the years you need to put maximum dedication into your careers are the same years you want to bear and raise a family.

Not really. Kids are not China dolls, they don’t need you nesting at home while they are in school.

Just don’t spend your 20’s-30’s on fancy cars, nice dinners and expensive homes.

Big law (drop out) here. My 20s were spent in college, law school and clerkship. At 30, landed in big law with big salary and bigger expectations. By 35, discovered I loved litigation and trial work and was service partner for a couple major clients. At 40, had a couple high demand clients of my own and had made equity partner. By 42, walked away to make and keep family a priority. No pity, no sorrow, no apologies. Just my point that it’s a lot going on at the same time.

That's why a lot of lawyers, like me and my spouse, get out of private practice and go in house or become feds when kids come along.

[Anonymous]

Anonymous wrote:Are there a lot of people reading but not posting because they're as psyched out by these numbers as I am?

53 years old with husband in 60s and total net worth including 529s and everything else is only $1.4M. We'll have one tiny pension bringing in $20K annually and whatever the top rate is for SS. I never realized how poor we were until I read this.

It only took 6 years to go from $1 million net worth to $2 million, so you might be surprised when you are 60.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Are there a lot of people reading but not posting because they're as psyched out by these numbers as I am?

53 years old with husband in 60s and total net worth including 529s and everything else is only $1.4M. We'll have one tiny pension bringing in $20K annually and whatever the top rate is for SS. I never realized how poor we were until I read this.

You are not poor at all PP! If you stopped investing today, your $1.4 million - invested conservatively! - should bring in at least $50,000 per year. Top rate for Social Security should bring in at least $40,000 per year. Add your $20,000 pension on top of that and you are at an income of $110,000 annually. that's a lot!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Late 50s and retired for a half dozen years or so. Net worth as of today: $7.3 million. $4.1 million in retirement accounts, $1.4 million in brokerage/savings accounts, $1.8 million in home equity. Kids have all graduated college already.

What do you do for healthcare and how much does it cost all in?

We were lucky. My former employer let us stay on the company group plan and pay the full premium. It's about $1300 a month. Our total health care costs are about $25k a year for premiums and out of pocket expenses combined. A good portion is deductible because it's more than 7.5 percent of our gross income. It's our single biggest expense but very doable.

That is eye-opening.

It sure is. And we're both healthy. But it's also worth noting that it can't get much higher than this either. We hit the deductibles every year, and that's that. And for further context, we draw down about $200k a year to live on, and our federal taxes most years are zero. So $25k is, again, pretty doable.

That's about what DW and I will pay for healthcare when we retire from teaching. I've never been quite sure how to figure net worth. We are both at the top of the scale so salaries will not increase much (if at all) over the next couple years. If we were at that stage today pensions would provide each of us ~75k/year. I have read varying opinions on this board in the past on whether or not pension should be figured into net worth.

Currently home equity is probably about $400-450k.

Small 403b with current value of $140k.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Late 50s and retired for a half dozen years or so. Net worth as of today: $7.3 million. $4.1 million in retirement accounts, $1.4 million in brokerage/savings accounts, $1.8 million in home equity. Kids have all graduated college already.

What do you do for healthcare and how much does it cost all in?

We were lucky. My former employer let us stay on the company group plan and pay the full premium. It's about $1300 a month. Our total health care costs are about $25k a year for premiums and out of pocket expenses combined. A good portion is deductible because it's more than 7.5 percent of our gross income. It's our single biggest expense but very doable.

That is eye-opening.

It sure is. And we're both healthy. But it's also worth noting that it can't get much higher than this either. We hit the deductibles every year, and that's that. And for further context, we draw down about $200k a year to live on, and our federal taxes most years are zero. So $25k is, again, pretty doable.

That's about what DW and I will pay for healthcare when we retire from teaching. I've never been quite sure how to figure net worth. We are both at the top of the scale so salaries will not increase much (if at all) over the next couple years. If we were at that stage today pensions would provide each of us ~75k/year. I have read varying opinions on this board in the past on whether or not pension should be figured into net worth.

Currently home equity is probably about $400-450k.

Small 403b with current value of $140k.

PP, are you saying you will make $150k as a retired couple? That would be excellent.

[Anonymous]

Both 51. NW 7.8M at end of 2020.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Late 50s and retired for a half dozen years or so. Net worth as of today: $7.3 million. $4.1 million in retirement accounts, $1.4 million in brokerage/savings accounts, $1.8 million in home equity. Kids have all graduated college already.

What do you do for healthcare and how much does it cost all in?

We were lucky. My former employer let us stay on the company group plan and pay the full premium. It's about $1300 a month. Our total health care costs are about $25k a year for premiums and out of pocket expenses combined. A good portion is deductible because it's more than 7.5 percent of our gross income. It's our single biggest expense but very doable.

That is eye-opening.

It sure is. And we're both healthy. But it's also worth noting that it can't get much higher than this either. We hit the deductibles every year, and that's that. And for further context, we draw down about $200k a year to live on, and our federal taxes most years are zero. So $25k is, again, pretty doable.

That's about what DW and I will pay for healthcare when we retire from teaching. I've never been quite sure how to figure net worth. We are both at the top of the scale so salaries will not increase much (if at all) over the next couple years. If we were at that stage today pensions would provide each of us ~75k/year. I have read varying opinions on this board in the past on whether or not pension should be figured into net worth.

Currently home equity is probably about $400-450k.

Small 403b with current value of $140k.

PP, are you saying you will make $150k as a retired couple? That would be excellent.

Yes. The state pension will provide just over 50% of our highest 3 (or maybe 5 years’ now?) salary and the local pension an additional ~25%.

[Anonymous]

Seriously starting to worry since you all have such high numbers. At 55 and 47, we have $220k income and $1.4M net worth that includes retirement, brokerage, home equity, and 529. Will have $100k pension (pretax). My greatest worry is elder care because the costs are astronomical.

[Anonymous]

Anonymous wrote:Seriously starting to worry since you all have such high numbers. At 55 and 47, we have $220k income and $1.4M net worth that includes retirement, brokerage, home equity, and 529. Will have $100k pension (pretax). My greatest worry is elder care because the costs are astronomical.

PP, you have a $100,000 pension!! Relax, you have nothing to worry about.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Seriously starting to worry since you all have such high numbers. At 55 and 47, we have $220k income and $1.4M net worth that includes retirement, brokerage, home equity, and 529. Will have $100k pension (pretax). My greatest worry is elder care because the costs are astronomical.

PP, you have a $100,000 pension!! Relax, you have nothing to worry about.

But the entire thing can be easily consumed by elder care. I’m seeing it now with my parents.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Seriously starting to worry since you all have such high numbers. At 55 and 47, we have $220k income and $1.4M net worth that includes retirement, brokerage, home equity, and 529. Will have $100k pension (pretax). My greatest worry is elder care because the costs are astronomical.

PP, you have a $100,000 pension!! Relax, you have nothing to worry about.

But the entire thing can be easily consumed by elder care. I’m seeing it now with my parents.

True true

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Seriously starting to worry since you all have such high numbers. At 55 and 47, we have $220k income and $1.4M net worth that includes retirement, brokerage, home equity, and 529. Will have $100k pension (pretax). My greatest worry is elder care because the costs are astronomical.

PP, you have a $100,000 pension!! Relax, you have nothing to worry about.

But the entire thing can be easily consumed by elder care. I’m seeing it now with my parents.

Not for the first 20 years!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Seriously starting to worry since you all have such high numbers. At 55 and 47, we have $220k income and $1.4M net worth that includes retirement, brokerage, home equity, and 529. Will have $100k pension (pretax). My greatest worry is elder care because the costs are astronomical.

PP, you have a $100,000 pension!! Relax, you have nothing to worry about.

But the entire thing can be easily consumed by elder care. I’m seeing it now with my parents.

Not for the first 20 years!

Sadly, a lot of people need care starting in their late 60s or early 70s.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Late 50s and retired for a half dozen years or so. Net worth as of today: $7.3 million. $4.1 million in retirement accounts, $1.4 million in brokerage/savings accounts, $1.8 million in home equity. Kids have all graduated college already.

What do you do for healthcare and how much does it cost all in?

We were lucky. My former employer let us stay on the company group plan and pay the full premium. It's about $1300 a month. Our total health care costs are about $25k a year for premiums and out of pocket expenses combined. A good portion is deductible because it's more than 7.5 percent of our gross income. It's our single biggest expense but very doable.

That is eye-opening.

It sure is. And we're both healthy. But it's also worth noting that it can't get much higher than this either. We hit the deductibles every year, and that's that. And for further context, we draw down about $200k a year to live on, and our federal taxes most years are zero. So $25k is, again, pretty doable.

Could you provide some thoughts on the 200K$ expense during retirement? What do you spend it on? I estimated around $180K$ per year but I was told this estimate may be too low.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Late 50s and retired for a half dozen years or so. Net worth as of today: $7.3 million. $4.1 million in retirement accounts, $1.4 million in brokerage/savings accounts, $1.8 million in home equity. Kids have all graduated college already.

What do you do for healthcare and how much does it cost all in?

We were lucky. My former employer let us stay on the company group plan and pay the full premium. It's about $1300 a month. Our total health care costs are about $25k a year for premiums and out of pocket expenses combined. A good portion is deductible because it's more than 7.5 percent of our gross income. It's our single biggest expense but very doable.

That is eye-opening.

It sure is. And we're both healthy. But it's also worth noting that it can't get much higher than this either. We hit the deductibles every year, and that's that. And for further context, we draw down about $200k a year to live on, and our federal taxes most years are zero. So $25k is, again, pretty doable.

Could you provide some thoughts on the 200K$ expense during retirement? What do you spend it on? I estimated around $180K$ per year but I was told this estimate may be too low.

I'm curious too. Thanks!