So much anxiety about retirement

[Anonymous]

drip… drip… drip… come on OP

[Anonymous]

You only take 150k from your small business. Im assuming that’s bc you continue to grow it. Is it profitable? Can you sell it at retirement for good money?

[Anonymous]

Anonymous wrote:$500 a month into the market the last 25 years gave me the 2 million I need for retirement.
I preferred condo over a house even with children.
I also didn't contribute much into 529 because that money grew so much faster in etfs/stocks I picked.
Being consistent, taking more risks in the market that most people rather than luck and timing. There were so many stocks that doubles this year. I'm have two and both doubled. It was obvious that they would as they went down so much.
I do pay play the market, I pay attention though.
Your $125k would have been $500k somewhere else and in something else easily if not million.

You win for the shittiest financial advice of the month, lol. 2M with 500 a month for 25 years implies around 15% return every year.
Even Bernie Madoff did not produce that.

[Anonymous]

Does your spouse work, OP? If not, that’s the first step. If spouse works with you in the business, it’s time to think about one of you working for an employer and receiving W2 wages, a retirement match and subsidized health insurance.

[Anonymous]

Anonymous wrote:I am 50

I’m about the same age and worry about these things too. But I figure I’ll have another 10-15 years of work ahead of me and can keep improving my position. You’ll get past the college paying years (I have two in right now) and then things will pick up. Just slow and steady. You’ll advance.

One thing: you didn’t say much about the business. If you’re putting enough effort into that, presumably it will represent a reasonably valuable asset?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am 50

I’m about the same age and worry about these things too. But I figure I’ll have another 10-15 years of work ahead of me and can keep improving my position. You’ll get past the college paying years (I have two in right now) and then things will pick up. Just slow and steady. You’ll advance.

One thing: you didn’t say much about the business. If you’re putting enough effort into that, presumably it will represent a reasonably valuable asset?

So yes there is money in the business and it could be substantial— but you do hear horror stories about people losing everything so I am afraid

[Anonymous]

Anonymous wrote:You only take 150k from your small business. Im assuming that’s bc you continue to grow it. Is it profitable? Can you sell it at retirement for good money?

NP.

I have an LLC, just me and my spouse. We contribute the max to our 401k Individual as the employer and employee. We've been doing that for *years*, and managed to save $2mil+. We are in our 50s. Our business income is usually between $350K to $400K.

After self employment taxes, 401k contribution, and other business expenses, our actual income, not including income tax, is closer to $180K. We are able to contribute to our kids' college accounts and cover our expenses with that income without a problem.

Op's issue is that you have 4 kids. We have 2.

Unfortunately, when filling out FAFSA for college, you have to report business income, and FAFSA will no longer look at how many kids are in college at the same time. That will hit you hard.

I don't know what your actual business income is, but you or your spouse may need to find a "regular" job to pay for health insurance, which is expensive to pay as a small business owner (I know because we have it), and to contribute to a retirement account.

There are pros and cons to being a small business owner, but paying the self employment tax, your own health insurance, not having paid time off, and not having the employer retirement contribution are big cons.

The US actually doesn't make being a small business owner that easy financially. If you hit it big, it's great. If not, it's a struggle.

[Anonymous]

You are doing fine. Keep saving and manage expenses as much as possible. All these DCUM self-reported millionaires skew perceptions tremendously.

Maybe you need to live on a stricter budget when you get older, it’s not the end of the world. I wouldn’t sacrifice big now based on what *might * happen later. Be balanced and prudent and don’t spend irresponsibly and you’ll be fine.

[Anonymous]

Most people on this site don't post so you really don't know how they doing financially. The ones that do, like on Facebook and Instagram and at your college reunion, are successful. The fact that you have a house with $700k in equity, $125k in college savings and $400k in savings with at least 15 more years to work means you are doing better than most Americans.