Is NW of 4M as a 50 yo good enough

[Anonymous]

Anonymous wrote:

Anonymous wrote:It's fine. Well more than fine but make sure you have enough to retire based on your current lifestyle and expenses.

And if you don't have any college savings besides the 4M and 3 kids plus counting your primary into your NW, ngl it would be tight for me personally.

Op here Thank you for posting a decent reply. I have seen lot of financial hardship growing up and worry about money and making ends meet. OOS college these days is 100k per year, so I am thinking it would be 1.2 mil for three kids (not considering inflation) even if 1-2 decide to go instate still it would be a dent in NW and retirement, we do want our kids to get good education, and we do have significant mortgage on our primary home. To top it my wife is feeling burned down and wants to quit working in 5 years.

NP. It sounds like you are including college savings into your NW. So we are talking more like $3m, including home equity. Can you give us a breakdown:
- $$ in retirement accounts (401(k) or TSP)
- $$ in after tax savings/brokerage accounts
- estimated value of the second home and the mortgage on that second home

Overall, you have more than most Americans. That being said, you may have a hard time maintaining your lifestyle.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It's fine. Well more than fine but make sure you have enough to retire based on your current lifestyle and expenses.

And if you don't have any college savings besides the 4M and 3 kids plus counting your primary into your NW, ngl it would be tight for me personally.

Op here Thank you for posting a decent reply. I have seen lot of financial hardship growing up and worry about money and making ends meet. OOS college these days is 100k per year, so I am thinking it would be 1.2 mil for three kids (not considering inflation) even if 1-2 decide to go instate still it would be a dent in NW and retirement, we do want our kids to get good education, and we do have significant mortgage on our primary home. To top it my wife is feeling burned down and wants to quit working in 5 years.

NP. It sounds like you are including college savings into your NW. So we are talking more like $3m, including home equity. Can you give us a breakdown:
- $$ in retirement accounts (401(k) or TSP)
- $$ in after tax savings/brokerage accounts
- estimated value of the second home and the mortgage on that second home

Overall, you have more than most Americans. That being said, you may have a hard time maintaining your lifestyle.

300K in college savings, 1.5 in 401 k both me and DW. 1.5 in home equities, rest in misc investments.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don’t know. We are 48 and have more and don’t feel comfortable enough to retire. Only 2 kids to put through college.

Please share your STATS and lifestyle.

Spend about $250k a year and save about the same.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don’t know. We are 48 and have more and don’t feel comfortable enough to retire. Only 2 kids to put through college.

Please share your STATS and lifestyle.

Spend about $250k a year and save about the same.

So how much is your NW, if you do'nt mind me asking.

[Anonymous]

Peak DCUM. And 100% tone deaf.

[Anonymous]

Here is what you need to figure out without DCUM:
1. What will you spend in retirement? Does that amount equal wife’s projected pension plus 1.5 million dollars invested at 80/20 for x years (how long you/she will work) and whatever you plan to put in it? Use the usg compound interest calculator and the rich dead or broke calculator to figure this out.
2. Do you plan to sell your home or live in it as retiree? Same for rental property. If you plan to keep both which do you live in and what can you make renting the other? Plug that number into point 1 to know your cash flow.
3. Count, or don’t count social security. When will you take it?
4. Assume none of your college fund will be left.
5. Check for how long your wife needs to work to draw pension at 62. She keeps fed healthcare in retirement.
6. TAXES!!!

If you live in a low cost area and make a handsome profit off your property maybe you can do this. But these steps will help you see whether it is enough. Avoid fancy math.

[Anonymous]

Anonymous wrote:We still have to put 3 kids to college and the NW includes our rental property and primary homes equity and our 401 k. My wife just joined as a fed at 47 yo. How are we doing financially?

It depends.
Do you plan to retire early? Do you have pensions? Do you plan to downsize, lot of NW is in your home..

[Anonymous]

Anonymous wrote:

Anonymous wrote:We still have to put 3 kids to college and the NW includes our rental property and primary homes equity and our 401 k. My wife just joined as a fed at 47 yo. How are we doing financially?

It depends.
Do you plan to retire early? Do you have pensions? Do you plan to downsize, lot of NW is in your home..

No pension for me. Which wife retiring with 5 years of service she will not have much pension as well. Also with her retiring early I can’t retire early. We plan to rent our basement or downsize.

[Anonymous]

It’s gonna be tight, OP, to support a $250k lifestyle with your net worth, especially considering it includes the house you live in. I’m retired with a net worth of $7 million, $5.2 million of which is in retirement and brokerage accounts, and we budget less than that.

[Anonymous]

Anonymous wrote:It’s gonna be tight, OP, to support a $250k lifestyle with your net worth, especially considering it includes the house you live in. I’m retired with a net worth of $7 million, $5.2 million of which is in retirement and brokerage accounts, and we budget less than that.

What age did you retire?

[Anonymous]

Do not spend 25% of your net worth on college. Given that much of your net worth is tied up in real estate, I’m guessing the 25% will put a huge dent in your liquid assets.

[Anonymous]

Depends. Do you like the taste of dog food?

[Anonymous]

A lot of people seem to be answering as if OP asked if he had enough to retire now. He isn’t asking that. He’s asking if he is doing okay for a 50ish year old whose wife plans to retire on 5 years but OP plans to work another 15 or so.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We still have to put 3 kids to college and the NW includes our rental property and primary homes equity and our 401 k. My wife just joined as a fed at 47 yo. How are we doing financially?

It depends.
Do you plan to retire early? Do you have pensions? Do you plan to downsize, lot of NW is in your home..

No pension for me. Which wife retiring with 5 years of service she will not have much pension as well. Also with her retiring early I can’t retire early. We plan to rent our basement or downsize.

Please don’t rent your basement or downsize so you can spend 1.2M on college. State school will be just fine and if they’re driven, it won’t matter. If they’re not driven, you’re wasting your money anyway. You have 3 kids so there will be trade offs. Maybe one can get some sort of scholarship?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don’t know. We are 48 and have more and don’t feel comfortable enough to retire. Only 2 kids to put through college.

Please share your STATS and lifestyle.

Spend about $250k a year and save about the same.

So how much is your NW, if you do'nt mind me asking.

Around 7m.