Late 40s. We have about 3.5X our gross HHI saved. Is that ok?

[Anonymous]

Between our 401ks, brokerage accounts, and cash, we have about 3.5X our current HHI in financial assets. Not including home equity.

On the one hand, I'm proud of what we've been able to accumulate. On the other hand, 3.5X doesn't seem like a huge multiple if we ever want to stop working.

Where are others at in their late 40s??

[Anonymous]

No. Very bad.

[Anonymous]

Why are you not including home equity?

[Anonymous]

We need some numbers. If you are lower to average in HHI income it’s impressive. But if you are higher income than you have a lot of work to do since social security likely does less of the heavy lifting for you in retirement as a percent of income.

[Anonymous]

I think it’s ok. We are 47 and have about 4 times without home equity and college savings. Our income dramatically increased the past few years, and we have saved a ton as it did.

[Anonymous]

See the eldercare thread and how expensive it is to have care if you want to stay in your own home.

[Anonymous]

I agree raw numbers would be helpful here. For the sake of comparison, here are ours (one kid, late 40s, both work but one spouse is currently PT):

HHI: 160k
Total savings/investments (excluding 529): 520k
529: 30k
Current home equity: @400k
Projected pension value: @80k/yr
Non-mortgage debt: none

We feel behind on college savings but still have time. We should be mortgage-free by the time college costs arrive which will allow us to cash flow some costs. We also expect HHI to hit 200-250k when PT spouse returns to FT.

We don't feel wealthy but do feel on track to retire by early 60s with decent options and be able to maintain current lifestyle even if costs continue to rise.

[Anonymous]

As always, it's all relative. Most of America retires with practically $0 saved. You're on a message board that obsesses about min-maxing retirement savings. You're in good shape.

[Anonymous]

This is not enough.

[Anonymous]

It’s hard OP. We are early 40s with three kids. HHI is 400K. We have about $350K saved so far for kids college across 529’s and personal investment accounts (I know not enough). Then between 401k and stocks/cash we have about $1.7 million saved. No mortgage on a house worth $1.6 probably? I think we are doing ok except for college but I do expect some grandparent help. We want to retire in a much cheaper cost of living.

[Anonymous]

Anonymous wrote:It’s hard OP. We are early 40s with three kids. HHI is 400K. We have about $350K saved so far for kids college across 529’s and personal investment accounts (I know not enough). Then between 401k and stocks/cash we have about $1.7 million saved. No mortgage on a house worth $1.6 probably? I think we are doing ok except for college but I do expect some grandparent help. We want to retire in a much cheaper cost of living.

Your situation is nothing like OP’s tbh.

[Anonymous]

I'm retired at 48, because getting out of workforce is what I wanted from the get go.
There is no 401k (not the best account), retirement home is paid, income is passive. Took 30 years to turn earned income into passive income. At least now I know how it's done and could do it in 10 years.
3.5x is not a whole lot between 2 people in late 40s, but you should be fine by 62.

[Anonymous]

I don't think the metric of multiples of income is very useful. Our income has tripled in the last five years, and there is no way we could have kept up with retirement savings if using the multiples metric. We won't need anywhere near 6x-10x this income in retirement.

I would estimate spending in retirement and then see how close you are to that being 3% of your portfolio. We have about 4X our current income, but are absolutely on track (late 40s).

I also use FireCalc to model scenarios, which I find much more useful.

[Anonymous]

HHI isn't your living expenses, OP

[Anonymous]

Anonymous wrote:I don't think the metric of multiples of income is very useful. Our income has tripled in the last five years, and there is no way we could have kept up with retirement savings if using the multiples metric. We won't need anywhere near 6x-10x this income in retirement.

I would estimate spending in retirement and then see how close you are to that being 3% of your portfolio. We have about 4X our current income, but are absolutely on track (late 40s).

I also use FireCalc to model scenarios, which I find much more useful.

Agree. We are similar