What is your HHI and how much do you save?

[Anonymous]

live alone income 100k saved about $500 a month..

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:530k HHI

Not saving much outside of retirement and 529s

Retirement is around 100k into 401ks + 120k deferred comp.

We spend a lot maintaining our house and enjoying our life. My parents will pass a large brokerage account to me when they die and I find it sad they didn’t enjoy the money when they were young. I’m not interested in skipping vacations and wearing bad clothes so my kids can inherit my money.

Totally agree. I’m the poster above with 500k cash comp. My parents pinched pennies their whole lives. They inherited a lot from my grandparents, adding to their brokerage accounts, but never leading them to spend more. Now in retirement they still don’t spend and act like replacing a 50 year old chair would lead them to financial ruin. Now they’re aging quickly and rapidly losing the opportunity to use their money.

It’s pathological.

My goal is to bring some balance between now and later, because later may never come.

This. it is pathological. I’m so sick and tired of hearing about how I parents with a 4 million net worth can’t afford to install a new fence. Or my dad stealing my newspaper every day because he doesn’t want to spend money subscribing to the WSJ.

What’s sad is I’ll inherit all of the money. I save properly for retirement and college is already funded. I’ll be purchasing an apartment in NY, Porsche panorama, large boat and putting $250k into an account for each child as a down payment fund. I have no interest in dying with an enormous brokerage account. I want to enjoy ski trips, a safari with my family, new boobs etc.

Do you feel any obligation to your kids to pass on at least as much as was given to you? Why is it that you get the Porsche (Panamera, btw), the yacht, and the NY pied a terre, while they get a generous, but comparatively meager $250k down payment?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:530k HHI

Not saving much outside of retirement and 529s

Retirement is around 100k into 401ks + 120k deferred comp.

We spend a lot maintaining our house and enjoying our life. My parents will pass a large brokerage account to me when they die and I find it sad they didn’t enjoy the money when they were young. I’m not interested in skipping vacations and wearing bad clothes so my kids can inherit my money.

Totally agree. I’m the poster above with 500k cash comp. My parents pinched pennies their whole lives. They inherited a lot from my grandparents, adding to their brokerage accounts, but never leading them to spend more. Now in retirement they still don’t spend and act like replacing a 50 year old chair would lead them to financial ruin. Now they’re aging quickly and rapidly losing the opportunity to use their money.

It’s pathological.

My goal is to bring some balance between now and later, because later may never come.

This. it is pathological. I’m so sick and tired of hearing about how I parents with a 4 million net worth can’t afford to install a new fence. Or my dad stealing my newspaper every day because he doesn’t want to spend money subscribing to the WSJ.

What’s sad is I’ll inherit all of the money. I save properly for retirement and college is already funded. I’ll be purchasing an apartment in NY, Porsche panorama, large boat and putting $250k into an account for each child as a down payment fund. I have no interest in dying with an enormous brokerage account. I want to enjoy ski trips, a safari with my family, new boobs etc.

I know this might be strange, but hear me out: some people actually don't feel the compulsion to change the boobs that God gave them, so saving is a default option for excess money.

Your parents saving 4 million for retirement is not outrageous pathological hoarding of assets. 4 million generates an annual income of 140-160k--which is plenty to live on in retirement, but not a wild spending spree. The thing that is hard is that in order to not be in danger of outliving your assets, you do have to manage them. If your investments do really well and you don't get a major illness or need a long-term medical stay, you might end up passing a lot on to your heirs. But if you retire into a more down market time, inflation is higher etc. one spouse going needing long-term care can deplete a lot of it. It sometimes becomes pathological, but if your parents are spending over 100k a year on their 4 million, they are probably just being appropriately prudent.

They don’t spend principle. The money distributed from retirement accounts gets put in CDs. They have a paid off house and live off of 50-60k a year in social security and pensions. Sorry but I think it’s weird to be trying to hoard money and increase net worth in retirement.

If someone owns a private family business, like a farm, for example, is it weird to you that they would keep the farm operating and generating profits that they can live on in retirement, while planning to pass the farm on to their heirs? Or is the only non-pathological option to slowly sell off acreage every year and find material possessions to spend the money on?

It's no different for those of us who prioritize any sort of investment ownership and growth. It doesn't matter if it's a farm, a collection of rental properties, or a portfolio of stock holdings.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:530k HHI

Not saving much outside of retirement and 529s

Retirement is around 100k into 401ks + 120k deferred comp.

We spend a lot maintaining our house and enjoying our life. My parents will pass a large brokerage account to me when they die and I find it sad they didn’t enjoy the money when they were young. I’m not interested in skipping vacations and wearing bad clothes so my kids can inherit my money.

Totally agree. I’m the poster above with 500k cash comp. My parents pinched pennies their whole lives. They inherited a lot from my grandparents, adding to their brokerage accounts, but never leading them to spend more. Now in retirement they still don’t spend and act like replacing a 50 year old chair would lead them to financial ruin. Now they’re aging quickly and rapidly losing the opportunity to use their money.

It’s pathological.

My goal is to bring some balance between now and later, because later may never come.

This. it is pathological. I’m so sick and tired of hearing about how I parents with a 4 million net worth can’t afford to install a new fence. Or my dad stealing my newspaper every day because he doesn’t want to spend money subscribing to the WSJ.

What’s sad is I’ll inherit all of the money. I save properly for retirement and college is already funded. I’ll be purchasing an apartment in NY, Porsche panorama, large boat and putting $250k into an account for each child as a down payment fund. I have no interest in dying with an enormous brokerage account. I want to enjoy ski trips, a safari with my family, new boobs etc.

I know this might be strange, but hear me out: some people actually don't feel the compulsion to change the boobs that God gave them, so saving is a default option for excess money.

Your parents saving 4 million for retirement is not outrageous pathological hoarding of assets. 4 million generates an annual income of 140-160k--which is plenty to live on in retirement, but not a wild spending spree. The thing that is hard is that in order to not be in danger of outliving your assets, you do have to manage them. If your investments do really well and you don't get a major illness or need a long-term medical stay, you might end up passing a lot on to your heirs. But if you retire into a more down market time, inflation is higher etc. one spouse going needing long-term care can deplete a lot of it. It sometimes becomes pathological, but if your parents are spending over 100k a year on their 4 million, they are probably just being appropriately prudent.

They don’t spend principle. The money distributed from retirement accounts gets put in CDs. They have a paid off house and live off of 50-60k a year in social security and pensions. Sorry but I think it’s weird to be trying to hoard money and increase net worth in retirement.

If someone owns a private family business, like a farm, for example, is it weird to you that they would keep the farm operating and generating profits that they can live on in retirement, while planning to pass the farm on to their heirs? Or is the only non-pathological option to slowly sell off acreage every year and find material possessions to spend the money on?

It's no different for those of us who prioritize any sort of investment ownership and growth. It doesn't matter if it's a farm, a collection of rental properties, or a portfolio of stock holdings.

Lol it most certainly does matter. A farm produces something of real value to customers that the owner is actively involved in, and perhaps built with their own blood sweat and tears. Anyone can buy a stock portfolio. The fact you see it as analogous points toward the PP's allegation of pathology

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:530k HHI

Not saving much outside of retirement and 529s

Retirement is around 100k into 401ks + 120k deferred comp.

We spend a lot maintaining our house and enjoying our life. My parents will pass a large brokerage account to me when they die and I find it sad they didn’t enjoy the money when they were young. I’m not interested in skipping vacations and wearing bad clothes so my kids can inherit my money.

Totally agree. I’m the poster above with 500k cash comp. My parents pinched pennies their whole lives. They inherited a lot from my grandparents, adding to their brokerage accounts, but never leading them to spend more. Now in retirement they still don’t spend and act like replacing a 50 year old chair would lead them to financial ruin. Now they’re aging quickly and rapidly losing the opportunity to use their money.

It’s pathological.

My goal is to bring some balance between now and later, because later may never come.

This. it is pathological. I’m so sick and tired of hearing about how I parents with a 4 million net worth can’t afford to install a new fence. Or my dad stealing my newspaper every day because he doesn’t want to spend money subscribing to the WSJ.

What’s sad is I’ll inherit all of the money. I save properly for retirement and college is already funded. I’ll be purchasing an apartment in NY, Porsche panorama, large boat and putting $250k into an account for each child as a down payment fund. I have no interest in dying with an enormous brokerage account. I want to enjoy ski trips, a safari with my family, new boobs etc.

I know this might be strange, but hear me out: some people actually don't feel the compulsion to change the boobs that God gave them, so saving is a default option for excess money.

Your parents saving 4 million for retirement is not outrageous pathological hoarding of assets. 4 million generates an annual income of 140-160k--which is plenty to live on in retirement, but not a wild spending spree. The thing that is hard is that in order to not be in danger of outliving your assets, you do have to manage them. If your investments do really well and you don't get a major illness or need a long-term medical stay, you might end up passing a lot on to your heirs. But if you retire into a more down market time, inflation is higher etc. one spouse going needing long-term care can deplete a lot of it. It sometimes becomes pathological, but if your parents are spending over 100k a year on their 4 million, they are probably just being appropriately prudent.

They don’t spend principle. The money distributed from retirement accounts gets put in CDs. They have a paid off house and live off of 50-60k a year in social security and pensions. Sorry but I think it’s weird to be trying to hoard money and increase net worth in retirement.

If someone owns a private family business, like a farm, for example, is it weird to you that they would keep the farm operating and generating profits that they can live on in retirement, while planning to pass the farm on to their heirs? Or is the only non-pathological option to slowly sell off acreage every year and find material possessions to spend the money on?

It's no different for those of us who prioritize any sort of investment ownership and growth. It doesn't matter if it's a farm, a collection of rental properties, or a portfolio of stock holdings.

Lol it most certainly does matter. A farm produces something of real value to customers that the owner is actively involved in, and perhaps built with their own blood sweat and tears. Anyone can buy a stock portfolio. The fact you see it as analogous points toward the PP's allegation of pathology

The owner may be actively involved, or she may not. Or there is a wide range in between, especially as owners age. Publicly traded companies likewise produce things of real value to customers, else they wouldn't have customers and earnings and profits. Sure, anyone can buy a stock portfolio, just like anyone can buy a farm, or rental properties.

Do you have any other weird comments, or is that it?

[Anonymous]

Anonymous wrote:I don't understand how people are say, in their 40s, with roughly a $200k income (assume didn't earn that the whole time) and have multiple millions of dollars in investments....? Were you able to max 401ks or something from day 1 at age 21?

Even if you max your 401k from age 21, it would take 20+ years to get to "multiple millions" with compounded interest

We have less income than that (170K) and probably 2 million net worth. But it's not all in our retirement accounts. Some of that is buying a house and the house going up in value and also paying down the mortgage. Some of that is inheritance. 700K is in retirement funds. Which is the right number for us at this point since there will be a federal government pension. We max TSP contributions and the non-full-time spouse does gig work and puts 6K in retirement every year. 500K came from an inheritance but came when the stock market was about to tank so it's only gone down.

Basically if you start saving a lot early, buy a home early, (marry early, obviously) and earn 120K at least before you're out of your 30s, the money really adds up.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I don't understand how people are say, in their 40s, with roughly a $200k income (assume didn't earn that the whole time) and have multiple millions of dollars in investments....? Were you able to max 401ks or something from day 1 at age 21?

Even if you max your 401k from age 21, it would take 20+ years to get to "multiple millions" with compounded interest

We have less income than that (170K) and probably 2 million net worth. But it's not all in our retirement accounts. Some of that is buying a house and the house going up in value and also paying down the mortgage. Some of that is inheritance. 700K is in retirement funds. Which is the right number for us at this point since there will be a federal government pension. We max TSP contributions and the non-full-time spouse does gig work and puts 6K in retirement every year. 500K came from an inheritance but came when the stock market was about to tank so it's only gone down.

Basically if you start saving a lot early, buy a home early, (marry early, obviously) and earn 120K at least before you're out of your 30s, the money really adds up.

I wish people would just lead with this. People in their 40s with relatively low incomes who have millions in the bank have family money. They often didn't pay student loans, had help with down payments, access to family funds and/or trusts. You need to have money to make money. It's as simple as that.

There are VERY FEW people who actually come from nothing and make something of themselves.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:530k HHI

Not saving much outside of retirement and 529s

Retirement is around 100k into 401ks + 120k deferred comp.

We spend a lot maintaining our house and enjoying our life. My parents will pass a large brokerage account to me when they die and I find it sad they didn’t enjoy the money when they were young. I’m not interested in skipping vacations and wearing bad clothes so my kids can inherit my money.

Totally agree. I’m the poster above with 500k cash comp. My parents pinched pennies their whole lives. They inherited a lot from my grandparents, adding to their brokerage accounts, but never leading them to spend more. Now in retirement they still don’t spend and act like replacing a 50 year old chair would lead them to financial ruin. Now they’re aging quickly and rapidly losing the opportunity to use their money.

It’s pathological.

My goal is to bring some balance between now and later, because later may never come.

This. it is pathological. I’m so sick and tired of hearing about how I parents with a 4 million net worth can’t afford to install a new fence. Or my dad stealing my newspaper every day because he doesn’t want to spend money subscribing to the WSJ.

What’s sad is I’ll inherit all of the money. I save properly for retirement and college is already funded. I’ll be purchasing an apartment in NY, Porsche panorama, large boat and putting $250k into an account for each child as a down payment fund. I have no interest in dying with an enormous brokerage account. I want to enjoy ski trips, a safari with my family, new boobs etc.

I know this might be strange, but hear me out: some people actually don't feel the compulsion to change the boobs that God gave them, so saving is a default option for excess money.

Your parents saving 4 million for retirement is not outrageous pathological hoarding of assets. 4 million generates an annual income of 140-160k--which is plenty to live on in retirement, but not a wild spending spree. The thing that is hard is that in order to not be in danger of outliving your assets, you do have to manage them. If your investments do really well and you don't get a major illness or need a long-term medical stay, you might end up passing a lot on to your heirs. But if you retire into a more down market time, inflation is higher etc. one spouse going needing long-term care can deplete a lot of it. It sometimes becomes pathological, but if your parents are spending over 100k a year on their 4 million, they are probably just being appropriately prudent.

They don’t spend principle. The money distributed from retirement accounts gets put in CDs. They have a paid off house and live off of 50-60k a year in social security and pensions. Sorry but I think it’s weird to be trying to hoard money and increase net worth in retirement.

If someone owns a private family business, like a farm, for example, is it weird to you that they would keep the farm operating and generating profits that they can live on in retirement, while planning to pass the farm on to their heirs? Or is the only non-pathological option to slowly sell off acreage every year and find material possessions to spend the money on?

It's no different for those of us who prioritize any sort of investment ownership and growth. It doesn't matter if it's a farm, a collection of rental properties, or a portfolio of stock holdings.

Lol it most certainly does matter. A farm produces something of real value to customers that the owner is actively involved in, and perhaps built with their own blood sweat and tears. Anyone can buy a stock portfolio. The fact you see it as analogous points toward the PP's allegation of pathology

When my kids, grandkids, great grandkids, etc. can do whatever they want in life due to my accumulated assets, I won.

We have structured trusts for each generation that will allow them to have a massive safety net. Anyone who thinks that is bad is either jealous or
"pathological."

I did my job as a parent. To raise my kids and protect them indefinitely.

[Anonymous]

Anonymous wrote:We make 360k and save 3k per month.

Is the 3K/mo outside of IRA/401?

[Anonymous]

Our savings into direct deposit monthly is 8k/mo. That’s long term savings. We then have short term savings which isn’t really savings, but budget for trips, home upgrades and other non essential luxuries.

We make probably 450k/yr but even that’s hard to pin down.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Amen, as they say, seize the day! "e plurubus unum"

E pluribus unum translates to “out of many, one”

Carpe diem translates to seize the day

Didn't realize I was in french class! lol! I was making a comment on finances

This person has to be a troll - no one is this stupid.

"E pluribus unum" means "seize the day" in French - LOL!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't understand how people are say, in their 40s, with roughly a $200k income (assume didn't earn that the whole time) and have multiple millions of dollars in investments....? Were you able to max 401ks or something from day 1 at age 21?

Even if you max your 401k from age 21, it would take 20+ years to get to "multiple millions" with compounded interest

"Were you able to max 401ks or something from day 1 at age 21?"

Married at 23, and then...yes.

"it would take 20+ years to get to "multiple millions" with compounded interest"

Correct.

Well dang, hats off to you. Got till my 30s before even starting a 401k or accruing much savings at all (and then.... kids and daycare).

This is why 20 somethings need to learn the importance of starting early. My kid has been maxing their Roth since Age 17 and now out of college, at least 15% into their 401k as well. They are quickly realizing that if they were to stop "retirement savings" at age 30, they will still have over $4M at retirement. Obviously they won't stop, but the compounding advantage is HUGE. Now when they marry and start having kids, they wont have to worry as much about retirement---they can focus on college savings and living life with the kids. Sure they could have spent it all and not saved, but they are frugal and understand the advantages of early investing.

I love this.

You really think your kids are saving due to virtue and not generational wealth.

When I was 17 I was saving every penny for college tuition. Worked all through college to pay for tuition, housing, and food. When I was in my early 20s I managed to scrape together a $5k emergency fund living like a pauper. I didn’t have any wiggle room for investments.

Your kids have that money because YOU have money.

+1. And most of the PPs are forgetting to say that they didn't have student loans or had gifts/help from parents for down payments or other. I didn't start saving really until mid 30s because I spent the majority of my late 20s-30s paying off my student debt and trying to be rent. The student debt KILLED me, as it took a huge chunk of my paycheck and I thought that I was being responsible by paying it off. Fast fwd a decade and I'm pissed that I paid the loan.
Once that was paid, we aggressively saved for a down payment - and paid wedding debt. We are late savers and I don't know how anyone can save early when you don't have parental help.

I rolled my eyes at the commenter being snarky and condescending about her 17 year old putting away money in her ROTH IRA. Her child is the exception not the rule.

Your experience is the REALITY for most Americans. So, don't feel bad.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't understand how people are say, in their 40s, with roughly a $200k income (assume didn't earn that the whole time) and have multiple millions of dollars in investments....? Were you able to max 401ks or something from day 1 at age 21?

Even if you max your 401k from age 21, it would take 20+ years to get to "multiple millions" with compounded interest

"Were you able to max 401ks or something from day 1 at age 21?"

Married at 23, and then...yes.

"it would take 20+ years to get to "multiple millions" with compounded interest"

Correct.

Well dang, hats off to you. Got till my 30s before even starting a 401k or accruing much savings at all (and then.... kids and daycare).

This is why 20 somethings need to learn the importance of starting early. My kid has been maxing their Roth since Age 17 and now out of college, at least 15% into their 401k as well. They are quickly realizing that if they were to stop "retirement savings" at age 30, they will still have over $4M at retirement. Obviously they won't stop, but the compounding advantage is HUGE. Now when they marry and start having kids, they wont have to worry as much about retirement---they can focus on college savings and living life with the kids. Sure they could have spent it all and not saved, but they are frugal and understand the advantages of early investing.

Sure. I honestly was clueless in my 20s. Raised by a single parent who didn't graduate highschool, but I went to college and got a first job earning $30k and literally had no idea what I was doing. My mom didn't even bother to file taxes on her barebones income.

Folks like me are not uncommon. I think it's great that 401k enrollment is now automatic as it will help those of us who release didn't have a clue and took awhile to figure it out. I felt rich having $20k savings (and that's it) by my late 20s along with a paid off car and minimal loans. The tiny amount of savings I put into a retirement account, I wound up completely withdrawing to do a down payment on a $200k fixer upper house with my spouse in 2010. After purchase fees, our equity was less than one percent and we fixed it up with most of the rest of my $20k savings to a slightly more livable condition, albeit using family and never doing permits and probably illegal work.

I agree with the poster that people don't realize how much simply having knowledgeable family who can help in any way - through paying even half your college tuition, helping you get a car, and most importantly, TEACHING you about saving (what to prioritize) and interest rates, etc helps people get ahead. I'm now trying to do this for my couple teen/young adult nephews who, like me, are growing up with a single, uneducated parent who earns minimum wage.

I am a big proponent of making basic financial education mandatory in public schools. I don't know why school districts don't. Forget home ec.

You don't know why? It's because public schools' primary function is to indoctrinate your kids into left-wing ideologies. Saving and investing and personal responsibility are too "capitalist" and could promote independent thinking.

Oh god. shut up.

Why aren't republicans promoting mandatory personal finance education in both public and private schools then?

[Anonymous]

Anonymous wrote:FWIW, it's also important to keep things in perspective.

One of my colleagues found out about a terminal stage IV cancer diagnosis in her late 50s. Someone who had lived conservatively and done everything by the book, to a tee, seemed relatively healthy for age, and thought she just had GERD till imaging said otherwise.

When she told us, one of her first comments after relaying the facts of the matter were, with voice trembling with tears:

"All those of years of saving so much in my 401k... for what??"

Reminds me of the 33 year old on the today show this morning who was diagnosed with ALS.

She said that she didn't think her life would take this trajectory. She is know she's going to die young and will not marry or have kids.

She is also disabled and her ALS is progressing pretty quick.

Nothing is guaranteed in life.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't understand how people are say, in their 40s, with roughly a $200k income (assume didn't earn that the whole time) and have multiple millions of dollars in investments....? Were you able to max 401ks or something from day 1 at age 21?

Even if you max your 401k from age 21, it would take 20+ years to get to "multiple millions" with compounded interest

We have less income than that (170K) and probably 2 million net worth. But it's not all in our retirement accounts. Some of that is buying a house and the house going up in value and also paying down the mortgage. Some of that is inheritance. 700K is in retirement funds. Which is the right number for us at this point since there will be a federal government pension. We max TSP contributions and the non-full-time spouse does gig work and puts 6K in retirement every year. 500K came from an inheritance but came when the stock market was about to tank so it's only gone down.

Basically if you start saving a lot early, buy a home early, (marry early, obviously) and earn 120K at least before you're out of your 30s, the money really adds up.

I wish people would just lead with this. People in their 40s with relatively low incomes who have millions in the bank have family money. They often didn't pay student loans, had help with down payments, access to family funds and/or trusts. You need to have money to make money. It's as simple as that.

There are VERY FEW people who actually come from nothing and make something of themselves.

+1000