Tell me how much you have saved in your 401K at age 40.

[Anonymous]

Anonymous wrote:

Anonymous wrote:"Saving" money is vulgar. I have, however, created a series of income streams that will result in myself, my spouse, my children, my grandchildren, and my great grandchildren never having to work.

I did this shortly after turning 39.

I don't understand this mentality. What's wrong with them working? What will they do instead? I bet they'll be using all that inherited wealth to snort blow and other drugs, and be partying alcoholics. I can't think of a worse legacy to leave.

Don't take the bait. PP just wants someone to ask how he created a "series of income streams".

[Anonymous]

Feeling really behind after reading through this - I'm 40 with 230k saved and DH is 39 with 130k (he has no match). Neither of us make huge salaries, but we're at a pretty comfortable level now (120k and 100k) although we have a lot of childcare expenses and student loans to pay down. We've always saved for retirement at about 10% but had lower salaries for a long time (DH only started making in the 90k range in the past 3 years, before then he was no higher than 55k for many years) so were not able to max out. Trying to finish paying off student loans and will increase contributions to 18k in the next few years, but seems impossible to catch up to others on this board after making so little in our 20s and early 30s. Impressed by others here who have been saving so diligently for so long, and regretting not trying to make more money or live on less when we were younger.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Question -- My spouse is also a federal employee (GS-15). HOw do you arrive at $70K annually upon retiring at age 60? (I thought you get about 30% of your highest salary after 30 years. Is your gross $210,000?) I confess I'm not that knowledgeable about the federal employee retirement system. Thanks.

I got this figure from OPM's calculator. I've attempted to confirm it based off information on OPM's website. My spouse is currently a GS-14 step 8 (will be a step 10 at retirement) and will have 35 years of federal service upon retirement. I projected high three as the last three years and assumed salary will increase 1% each year. When I take that average of the projected high 3 and multiply by 35% I get about $60K. According to OPM's calculator it comes out at $52K in current dollars and $77K in future inflated dollars.

[Anonymous]

At age 40...175k, after saving since I was 25.

[Anonymous]

400K in my husbands, $75k in mine (I retired at 31).

[Anonymous]

Me (age 39): 375k
Husband (43): 400k

[Anonymous]

55: 4,345

[Anonymous]

Age 40.
250K in 401.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Me (48 y/o): $962k (401k + IRAs)
Spouse (47 y/o): $562k (401k + IRAs)
Spouse is a Fed (GS-14 w/22 yrs in) with FERS retirement which should come out to about $70k annually upon retiring around age 60.

$460k in non-retirement savings
$210k total in 529s for 2 kids starting college in 2022 and 2025
Mortgage will be paid off in 3 years

Lol. Fed = job for life.

Your spouse will have 35 years of service at age 60, which at the top of the GS-14 steps ($145k) would give a $50k pension I believe. I think if (s)he worked until age 62, that goes up to $59k pension. If (s)he makes it to GS15-10 fo the high-3 (though query whether that's going to happen for someone who is 22 years in and a GS14), and works until 62 (not age 60), it's a $65k pension.

So, I can see reasonable range for your spouse's pension to be between $50k-65k, depending on the factors above. But, (s)he can't get to $70k unless (s)he both makes a GS15-10 for high-3 AND works until age 65.

[Anonymous]

Ugh....reading this makes me so nervous.

I'm 45 and only have $200k in my IRA and another $40k in my current 401k.

My husband (age 50) has about the same amounts in his IRA and 401k.

We are so behind! I'm waiting for the day when our DC goes to kindergarten - freeing up $1k+ per month that can be invested.

[Anonymous]

40 dh: 200k
40 dw: 140k

[Anonymous]

I'm math challenged. Is there a simple-ish way to get a sense of how much we will likely have at retirement based on what we have now?

If I'm 45 and have $230K saved now.

[Anonymous]

Anonymous wrote:I'm math challenged. Is there a simple-ish way to get a sense of how much we will likely have at retirement based on what we have now?

If I'm 45 and have $230K saved now.

What is the 230k invested in now? How much are you adding to the pot each year?

If I assume you've invested it all in diversified U.S. stocks, and add $0 additional to it, based on historical performance in 20 years you should have something like $750k-900k in 2017 dollars (ie, the nominal amount will be some bigger number but it'll be worth what 750k-900k is worth today).

If you're invested more conservatively, maybe something like $500k-600k is reasonable.

[Anonymous]

Anonymous wrote:I'm math challenged. Is there a simple-ish way to get a sense of how much we will likely have at retirement based on what we have now?

If I'm 45 and have $230K saved now.

230000*1.06^20 = $737,641

That assumes that you take your current 230k, contribute nothing further (so obviously a VERY conservative investment), invest in mostly stocks and assume a 6% growth rate (which I consider a bit high but usually when a financial advisor does this for you like Fidelity, they assume 7%), and you keep it invested for 20 more years -- i.e. until age 65.

You can play with this formula yourself to see what it would come out to at a 5% rate (multipler = 1.05) or 10% (1.10 multiplier). You can add to it by running separate formulas -- like if you were planning to put in 18k next yr -- you'd then separately do 18000*1.06^19 -- and add that to the preceding results. (That 18k only has 19 yrs to grow bc you're a yr closer to retirement).

[Anonymous]

PP here

I have $200k in a Vanguard IRA and the $30 in my company 401k (that does a safe harbor match)

I'm maxing out what I can contribute to the 401k each year and plan to do so for the next 20 years. The IRA I rolled over from former 401K accounts and haven't put anything into since, but I can see myself adding to it in the future once our DC is in public school.