Are we really far behind on savings?

[Anonymous]

DH and I are in our early 40s with young kid (finally out of daycare). We have spent our 30s paying off student loans and having young kids in daycare. Now just trying to catch up with savings, retirement, etc. Current HHI is around $650,000 (give or take a year depending on bonuses). Currently have around $1 million in savings/retirement and a pension worth $6700 per month upon retirement (at age 58). House equity is around $500,000 (just purchased but put large down payment down). We have some savings in 529 for kids but need to catch up. Just paid off $200,000+ in student loans in the past 10 years plus paying $48,000 per year on daycare.

Will we be able to do a big catch up in our 40s? Is that typically when net worth is gained?

[Anonymous]

How much is “some savings in 529”? Is kid going to public school? Will this be your only child?

[Anonymous]

With an income of $650,000, you should be able to pay as you go on college. 529 is great for the tax savings, but honestly, this post is ridiculous.

[Anonymous]

Anonymous wrote:How much is “some savings in 529”? Is kid going to public school? Will this be your only child?

Stop it. They could have 4 kids and still be fine.

[Anonymous]

You are where you are. Keep at it, and you'll be fine.

FWIW We're ahead of you (we're 45) but we didn't have to pay off any student loans, so hard to compare. We've been able to save a lot in the last 5 years and expect our high income to last 7 more, before we take a step back.

Our investments are about 3 million and our house equity is about a million. We have about 500k for kids in 529s.

[Anonymous]

You are doing great, OP! Keep saving and you'll be fine.

[Anonymous]

Anonymous wrote:DH and I are in our early 40s with young kid (finally out of daycare). We have spent our 30s paying off student loans and having young kids in daycare. Now just trying to catch up with savings, retirement, etc. Current HHI is around $650,000 (give or take a year depending on bonuses). Currently have around $1 million in savings/retirement and a pension worth $6700 per month upon retirement (at age 58). House equity is around $500,000 (just purchased but put large down payment down). We have some savings in 529 for kids but need to catch up. Just paid off $200,000+ in student loans in the past 10 years plus paying $48,000 per year on daycare.

Will we be able to do a big catch up in our 40s? Is that typically when net worth is gained?

Here's your Out of Touch Certificate from Humble Brag University.

[Anonymous]

No, you better look for a studio apartment somewhere and start figuring out which cat food tastes the best.

[Anonymous]

I think you are fine. We have more a mid 40s with a lower HHI (1/2 of yours) but it's not going to get bigger (the HHI) so we can't commit more than we are now to savings. Just keep working on it.

[Anonymous]

Anonymous wrote:DH and I are in our early 40s with young kid (finally out of daycare). We have spent our 30s paying off student loans and having young kids in daycare. Now just trying to catch up with savings, retirement, etc. Current HHI is around $650,000 (give or take a year depending on bonuses). Currently have around $1 million in savings/retirement and a pension worth $6700 per month upon retirement (at age 58). House equity is around $500,000 (just purchased but put large down payment down). We have some savings in 529 for kids but need to catch up. Just paid off $200,000+ in student loans in the past 10 years plus paying $48,000 per year on daycare.

Will we be able to do a big catch up in our 40s? Is that typically when net worth is gained?

I’m so sorry you will only be able to afford eating cat food in retirement.

[Anonymous]

Is this another humble brag troll post? Come on, man.

[Anonymous]

Anonymous wrote:With an income of $650,000, you should be able to pay as you go on college. 529 is great for the tax savings, but honestly, this post is ridiculous.

+1

[Anonymous]

Sounds like you're in a good place to save as much as possible now, so congrats. How old are the kids, and how much is in their 529 plans? if they are young, I'd try to sock away as much as you can there to benefit from tax free gains. If they are closer to college age, I'd save in a brokerage account because you'll have more flexibility and the gains won't be that significant.

[Anonymous]

What gave you the impression you were behind? You are not behind.

[Anonymous]

That sounds like a great pension — what sector do you work in?