Did you have 3x salary in retirement by 40?

[Anonymous]

I’m almost there age wise, short money wise. I likely will have ~2.5 at 40 but not 3. I feel behind.

For context, I’ve also had significant wage growth over the last 10 years. Started at 90K and now at 260. I max out but don’t feel like I can get there.

How about you?

[Anonymous]

At 40, I had 2 times saved. At 43 I have 3.7 times saved. Like you, I’ve had a big salary bump the last 10 years. Current income $320,000.

The key is realizing it doesn’t matter how much of your salary you have saved - it’s how many times your expenses.

Rule of thumb is to have 25x your expenses saved by retirement, as that supports the 4% rule. If you include social security and pensions, you may need less saved. Anything extra would be for fun money.

[Anonymous]

Our HHI is quite variable but roughly averages $400k a year. By 40 we had $3M, but we live on $12k/month ($144k/year) which is how we are able to save so much.

[Anonymous]

We are 40 and have 2x our salary saved. We got a late start due to medical school but feel good about where we are now.

[Anonymous]

Anonymous wrote:I’m almost there age wise, short money wise. I likely will have ~2.5 at 40 but not 3. I feel behind.

For context, I’ve also had significant wage growth over the last 10 years. Started at 90K and now at 260. I max out but don’t feel like I can get there.

How about you?

Do you Mega Backdoor Roth? x2?
I doubt it, but would be impressed if you do

[Anonymous]

We never had a formula or target. We just worked hard and saved aggressively. Sometimes when you use a standard formula you end up underachieving what you are truly capable of.

[Anonymous]

We had nearly 10 times at 40. Very high income at the time (and consistently very high for the previous 15 years)

[Anonymous]

Yes. Because 3 times $0 is $0.

So, I actually have millions times my salary in retirement. 🤔

[Anonymous]

More than 3x. Probably like 6x.

[Anonymous]

You need to worry about expenses. Salary doesn’t matter much when it comes to saving and investing for retirement.

The most important thing is starting early. The second most important is saving enough and keeping expenses low.

[Anonymous]

I don’t know what I had at 40, but at 43 I have 4.3x.

[Anonymous]

We are mid-40s. We have about 2X our current salaries in retirement accounts.

Our HHI has been on an upward trajectory so i think that's why we don't have 3X our current income.

[Anonymous]

I think I was close at 40. Still at about 3x today though at 50…

[Anonymous]

Somewhere between 3-3.5x income at 40.

[Anonymous]

If your salary was way lower, then of course you will be low. Because 3x90 is way different from 3x260. Just keep saving now that you’re able and you’ll probably catch up by 50.