Looks like I need 6.2M to retire

[Anonymous]

And maintain current $250K income. Well, I only have 3.2 at 53 outside of home (no mortgage). What’s the best way to manage the next 10-15 years to meet this goal?

[Anonymous]

Anonymous wrote:And maintain current $250K income. Well, I only have 3.2 at 53 outside of home (no mortgage). What’s the best way to manage the next 10-15 years to meet this goal?

Spend a lot less than you make, try to make more, and invest the savings.

[Anonymous]

Do you really need to replace the full income? Consider how much of that income you are already saving. How much goes to expenses that will go away (kid stuff, college expenses, etc.). How much will you get in social security. If you are delaying SS for a while after you retire you'll need to think about what $$ you need during that delay period vs. what you need after.

[Anonymous]

Most of the difference will come from growth in your portfolio. Even at a not-unreasonable 8% growth rate the investment will double in nine years even if you add nothing else (Rule of 72)

[Anonymous]

Anonymous wrote:

Anonymous wrote:And maintain current $250K income. Well, I only have 3.2 at 53 outside of home (no mortgage). What’s the best way to manage the next 10-15 years to meet this goal?

Spend a lot less than you make, try to make more, and invest the savings.

This is 100% accurate!

Develop a budget for now and retirement. Figure out your base budget (things you must have and cannot live without), then add in level 1 "wants" and then Level 2 "wants" and so on. Decide what you can and cannot "live without".
Decide where you want to live in retirement and find a way to reduce housing costs. Do you really need to keep the 4 bedroom (or whatever) family home? Or can you find a 2 bedroom condo/something much smaller in a lower cost of living area that you would like to live in?

Either way, you need a budget and to increase your current savings and/or increase income.

Also, your 3.2M should become 6.4M in about 7 years if most is invested in stock market. (on average it takes 7 years to double investments).

[Anonymous]

Anonymous wrote:And maintain current $250K income. Well, I only have 3.2 at 53 outside of home (no mortgage). What’s the best way to manage the next 10-I15 years to meet this goal?

Humblebrag alert.

[Anonymous]

If you live on 250K now, which includes paying into SSI, taxes, 401Ks, etc., then you need to do your numbers based on taking that out. Calculate what you actual spend money on, what you will spend money on in the future.

Then set up an account at SSI and as the PP said, determine what you are projected to receive from SSI at the different ages you are eligible.

Example: We need 150K to live on, add in 30K (we have some tax free income) which puts us at 180K that we need to bring in. Then we subtract out 60K in SSI, 10K in a small pension, the 40K tax free bond interest, which leaves us with 70K that we have to cover with dividends, return on investments and/or drawdown the principal (which we want to avoid.)

Granted, we are just starting to look at what kind of income tax we'll be looking at when we hit the required minimum distribution age when we hit 72. Which we need to get figured out before we retire.

[Anonymous]

Anonymous wrote:Most of the difference will come from growth in your portfolio. Even at a not-unreasonable 8% growth rate the investment will double in nine years even if you add nothing else (Rule of 72)

What you have to watch out for is if indeed we do hit a difficult decade and pull in more like 3%/year.

[Anonymous]

Anonymous wrote:And maintain current $250K income. Well, I only have 3.2 at 53 outside of home (no mortgage). What’s the best way to manage the next 10-15 years to meet this goal?

are you including social security?

[Anonymous]

Is this a joke? Lol.

[Anonymous]

Anonymous wrote:And maintain current $250K income. Well, I only have 3.2 at 53 outside of home (no mortgage). What’s the best way to manage the next 10-15 years to meet this goal?

Tell your wife to start contributing to the family HHI. Put it all away.

Btw you will have 6.4 @ 60 if invested properly

[Anonymous]

I thought conventional wisdom says you need 10xs your income. So you need 2.5

[Anonymous]

Anonymous wrote:I thought conventional wisdom says you need 10xs your income. So you need 2.5

No, conventional wisdom is 30x your income, or less conservative, 25x your income.

[Anonymous]

Anonymous wrote:Is this a joke? Lol.

I say this all the time on this board. I have 50k and feel like a loser.

[Anonymous]

Anonymous wrote:And maintain current $250K income. Well, I only have 3.2 at 53 outside of home (no mortgage). What’s the best way to manage the next 10-15 years to meet this goal?

You need $6.2 in today's dollars or 10 years from now? If 10 years from now, all you have to is "Not touch" the$3.2M. It will automatically grow to about $6.4M in about 10 years thanks for market growth and compounding.