At what age will you retire and with how much?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m shocked at how much money everyone has saved for retirement! Good for all of you (seriously, not being sarcastic).

We’ll be retired in 8-10 years. As a married couple, we’ll have:

- $100k/year in taxable pensions
- Maybe $2M in retirement accounts (50% traditional, 50% Roth)
- A paid off house with around $700-900k in equity, depending on the market at retirement.
- Medicare + FEHB, which is surprisingly expensive

I thought this sounded really well off, but not compared to most of you!

GTFOH with this humblebrag. $100K in pensions alone is all you'll ever need. Even for high-net-worth individuals, the median amount spent in retirement is $70K (assuming a paid-off house) - your pensions alone give you that after taxes. [b]The extra $2M will likely never be touched and grow to a $16M inheritance for your kids.

Under what circumstances, swami? Market’s been shyte and we’re down 15% overall on an account that we’ve not touched since inception. Are you a Congressperson or Ray Dalio?

DP. Compound interest. Assuming a 7% annual compounded growth, $2M becomes
- $4M in 10 years
- $7.7M in 20
- $15M in 30

Only if you have a 100% stock portfolio.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m shocked at how much money everyone has saved for retirement! Good for all of you (seriously, not being sarcastic).

We’ll be retired in 8-10 years. As a married couple, we’ll have:

- $100k/year in taxable pensions
- Maybe $2M in retirement accounts (50% traditional, 50% Roth)
- A paid off house with around $700-900k in equity, depending on the market at retirement.
- Medicare + FEHB, which is surprisingly expensive

I thought this sounded really well off, but not compared to most of you!

GTFOH with this humblebrag. $100K in pensions alone is all you'll ever need. Even for high-net-worth individuals, the median amount spent in retirement is $70K (assuming a paid-off house) - your pensions alone give you that after taxes. [b]The extra $2M will likely never be touched and grow to a $16M inheritance for your kids.

Under what circumstances, swami? Market’s been shyte and we’re down 15% overall on an account that we’ve not touched since inception. Are you a Congressperson or Ray Dalio?

DP. Compound interest. Assuming a 7% annual compounded growth, $2M becomes
- $4M in 10 years
- $7.7M in 20
- $15M in 30

Only if you have a 100% stock portfolio.

A very very conservative approach is the 20-120 method you slowly move all stocks at 20 to all short Treasuries bonds or cash at 120.

That has been revised to the 40-140 approach you go from 100 percent stocks to cash from 40 to 140.

In retirement in both in good years sell stock and bad years sell bonds or cash.

Remember even at 52 you are 20 years out in 401k withdrawals starting.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:49 year old fed; spouse is 48 and isn’t in govt but makes less than me. We hit our first $1M around 8-9 years ago in retirement. We have at least $3.5M combined in 401k/403b accounts. At least $1M equity in house which will be paid off when oldest is a sophomore in college. I’ll have a pension at least 90K and we’ll both have social security. Hope to retire by 60 at the latest when I’d qualify for full health care and no reduction in pension as I’d have 30 years of service by then. No inheritances and I paid off a huge grad school loan debt for law school. How? We always maxed except one period when nanny expenses were really right with our mortgage etc. No new cars til paid off my grad school loans. Fingers crossed markets are ok 10 years out.

You must have bought your house in late 1990s/early 2000s.
How did you do that with low Fed/non-Fed newbie salaries, nanny costs, grad student loans needing repayment early on in your careers? Were you private sector pre-Fed? Something’s not adding up.

Also, what fed agency do you work for where you qualify for a 90k+ pension with 30 years in government?

+1 Yeah, I wonder if this poster will even reply, lol
Maybe financial reg agency? Are those pensions that high?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m shocked at how much money everyone has saved for retirement! Good for all of you (seriously, not being sarcastic).

We’ll be retired in 8-10 years. As a married couple, we’ll have:

- $100k/year in taxable pensions
- Maybe $2M in retirement accounts (50% traditional, 50% Roth)
- A paid off house with around $700-900k in equity, depending on the market at retirement.
- Medicare + FEHB, which is surprisingly expensive

I thought this sounded really well off, but not compared to most of you!

GTFOH with this humblebrag. $100K in pensions alone is all you'll ever need. Even for high-net-worth individuals, the median amount spent in retirement is $70K (assuming a paid-off house) - your pensions alone give you that after taxes. [b]The extra $2M will likely never be touched and grow to a $16M inheritance for your kids.

Under what circumstances, swami? Market’s been shyte and we’re down 15% overall on an account that we’ve not touched since inception. Are you a Congressperson or Ray Dalio?

DP. Compound interest. Assuming a 7% annual compounded growth, $2M becomes
- $4M in 10 years
- $7.7M in 20
- $15M in 30

This is not realistic

Thank you! Just ridiculous

How is this ridiculous? It's extremely consistent with all historical trends (maybe even a bit conservative). Are you just blinded by the fact we've had a down period over the last year (also very consistent with past historical trends).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:49 year old fed; spouse is 48 and isn’t in govt but makes less than me. We hit our first $1M around 8-9 years ago in retirement. We have at least $3.5M combined in 401k/403b accounts. At least $1M equity in house which will be paid off when oldest is a sophomore in college. I’ll have a pension at least 90K and we’ll both have social security. Hope to retire by 60 at the latest when I’d qualify for full health care and no reduction in pension as I’d have 30 years of service by then. No inheritances and I paid off a huge grad school loan debt for law school. How? We always maxed except one period when nanny expenses were really right with our mortgage etc. No new cars til paid off my grad school loans. Fingers crossed markets are ok 10 years out.

You must have bought your house in late 1990s/early 2000s.
How did you do that with low Fed/non-Fed newbie salaries, nanny costs, grad student loans needing repayment early on in your careers? Were you private sector pre-Fed? Something’s not adding up.

Also, what fed agency do you work for where you qualify for a 90k+ pension with 30 years in government?

+1 Yeah, I wonder if this poster will even reply, lol
Maybe financial reg agency? Are those pensions that high?

NP: I'd guess State Dept. The old foreign service pensions were really good - 2% of high-three per year of service, so doable if SES by the end of a 3-year career: https://rnet.state.gov/cri1.htm

[Anonymous]

Anonymous wrote:

Anonymous wrote:Include home equity amount in the total but indicate it in parentheses.

Retiring at age 54 this year. DH will be 61. (House entirely paid off & worth $700K.)

No debt. Kids all through college, that we covered. $3 million in retirement savings, $300,000 cash, and no pension (business owners).

very similar to us.

Will retire at 56 and 62. Hoping to hit $3mil in retirement savings, with about $300K in cash. We will have about 9 yrs left on our mortgage, but the PITI is like $1400, 2.5% rate, but the mortgage balance is like $150K. House is worth right now about $950k.

Kids will be in college, fully funded in state.

Also business owners. No inheritance. I might work PT off and on to fill my days when I'm not traveling. I want to travel 3 to 5 months out of the year. We have friends/family all over the world that we can stay with. We might even retire short term abroad - spouse is a dual citizen.

I am counting down the days.

[Anonymous]

Im a LNP and my DH is a surgeon. We love our jobs and don’t see retiring. We also ready do a lot of pro bono work and would really like to amp that up. Don’t really see selling our practice and just sitting around finding things to do with our time. If one of our kids goes into medicine and wants to prwcrice in our area they would help take over the practice.

Regardless we love our career and couldn’t see a life without it. Hopefully our mental fitness will allow for a career well into old age. I see so many patients who are old and are so mentally sharp and nearly every one of them still works.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:49 year old fed; spouse is 48 and isn’t in govt but makes less than me. We hit our first $1M around 8-9 years ago in retirement. We have at least $3.5M combined in 401k/403b accounts. At least $1M equity in house which will be paid off when oldest is a sophomore in college. I’ll have a pension at least 90K and we’ll both have social security. Hope to retire by 60 at the latest when I’d qualify for full health care and no reduction in pension as I’d have 30 years of service by then. No inheritances and I paid off a huge grad school loan debt for law school. How? We always maxed except one period when nanny expenses were really right with our mortgage etc. No new cars til paid off my grad school loans. Fingers crossed markets are ok 10 years out.

You must have bought your house in late 1990s/early 2000s.
How did you do that with low Fed/non-Fed newbie salaries, nanny costs, grad student loans needing repayment early on in your careers? Were you private sector pre-Fed? Something’s not adding up.

Also, what fed agency do you work for where you qualify for a 90k+ pension with 30 years in government?

+1 Yeah, I wonder if this poster will even reply, lol
Maybe financial reg agency? Are those pensions that high?

This was me. Yes, it’s a financial regulator. I took my current salary and projected a 2.5% raise over next decade. Once I did that I averaged the high three salary x .01x 30 and it’s at least 90K annually.

[Anonymous]

Hm, so were you in private industry before becoming a Fed? I’m assuming yes from your numbers. Thanks for posting in spite of your lack of candor.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m shocked at how much money everyone has saved for retirement! Good for all of you (seriously, not being sarcastic).

We’ll be retired in 8-10 years. As a married couple, we’ll have:

- $100k/year in taxable pensions
- Maybe $2M in retirement accounts (50% traditional, 50% Roth)
- A paid off house with around $700-900k in equity, depending on the market at retirement.
- Medicare + FEHB, which is surprisingly expensive

I thought this sounded really well off, but not compared to most of you!

GTFOH with this humblebrag. $100K in pensions alone is all you'll ever need. Even for high-net-worth individuals, the median amount spent in retirement is $70K (assuming a paid-off house) - your pensions alone give you that after taxes. [b]The extra $2M will likely never be touched and grow to a $16M inheritance for your kids.

Under what circumstances, swami? Market’s been shyte and we’re down 15% overall on an account that we’ve not touched since inception. Are you a Congressperson or Ray Dalio?

DP. Compound interest. Assuming a 7% annual compounded growth, $2M becomes
- $4M in 10 years
- $7.7M in 20
- $15M in 30

Only if you have a 100% stock portfolio.

A very very conservative approach is the 20-120 method you slowly move all stocks at 20 to all short Treasuries bonds or cash at 120.

That has been revised to the 40-140 approach you go from 100 percent stocks to cash from 40 to 140.

In retirement in both in good years sell stock and bad years sell bonds or cash.

Remember even at 52 you are 20 years out in 401k withdrawals starting.

No, you are eligible to withdraw at 59.5 yrs old. Who wants to wait until they are almost dead to start withdrawing?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m shocked at how much money everyone has saved for retirement! Good for all of you (seriously, not being sarcastic).

We’ll be retired in 8-10 years. As a married couple, we’ll have:

- $100k/year in taxable pensions
- Maybe $2M in retirement accounts (50% traditional, 50% Roth)
- A paid off house with around $700-900k in equity, depending on the market at retirement.
- Medicare + FEHB, which is surprisingly expensive

I thought this sounded really well off, but not compared to most of you!

GTFOH with this humblebrag. $100K in pensions alone is all you'll ever need. Even for high-net-worth individuals, the median amount spent in retirement is $70K (assuming a paid-off house) - your pensions alone give you that after taxes. [b]The extra $2M will likely never be touched and grow to a $16M inheritance for your kids.

Under what circumstances, swami? Market’s been shyte and we’re down 15% overall on an account that we’ve not touched since inception. Are you a Congressperson or Ray Dalio?

DP. Compound interest. Assuming a 7% annual compounded growth, $2M becomes
- $4M in 10 years
- $7.7M in 20
- $15M in 30

Only if you have a 100% stock portfolio.

A very very conservative approach is the 20-120 method you slowly move all stocks at 20 to all short Treasuries bonds or cash at 120.

That has been revised to the 40-140 approach you go from 100 percent stocks to cash from 40 to 140.

In retirement in both in good years sell stock and bad years sell bonds or cash.

Remember even at 52 you are 20 years out in 401k withdrawals starting.

No, you are eligible to withdraw at 59.5 yrs old. Who wants to wait until they are almost dead to start withdrawing?

I’m assuming they were talking about RMDs.

[Anonymous]

Anonymous wrote:Im a LNP and my DH is a surgeon. We love our jobs and don’t see retiring. We also ready do a lot of pro bono work and would really like to amp that up. Don’t really see selling our practice and just sitting around finding things to do with our time. If one of our kids goes into medicine and wants to prwcrice in our area they would help take over the practice.

Regardless we love our career and couldn’t see a life without it. Hopefully our mental fitness will allow for a career well into old age. I see so many patients who are old and are so mentally sharp and nearly every one of them still works.

See, it’s great that you’re in health care and want to keep working because what you do is so important. On behalf of humanity, thank you. But you don’t have to criticize the choice of those of us who have decided to retire early to justify your own decision not to. I assure you that there are plenty of the early retired out there, myself included, who have not descended into into blithering idiots simply because we no longer punch the clock.

[Anonymous]

Anonymous wrote:Hm, so were you in private industry before becoming a Fed? I’m assuming yes from your numbers. Thanks for posting in spite of your lack of candor.

Yes, I was in private practice, but only briefly (like 2.5 years total) so my 401K never got that big and my largest bonus was only like $9K (before taxes) back in the early 2000s. I took a huge pay cut when I entered the government but always maxed out except for a brief period when child care expenses were at their highest. My spouse came out of graduate school around same age as I did, but in a different field so makes less than me. The one attractive feature at spouse's company is an 11% match of the 403(b) plan. We just maxed out all we could and never sold. First $1M took about 13-15 years (can't quite remember) and then (just held through 2 major recessions, never sold) it compounded to $3.5M today. None of this is from an inheritance or huge bonus from private sector jobs.

Our two biggest expenses like most people in this area are housing and childcare followed by my significant grad school loans. I finally paid back all of my grad school loans in January 2021, and that was only after our largest child care expenses were behind us. I was 48 when I bought my first new car. Spouse has never owned a new one, still drives our 20+ Japanese care to and from the office.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Hm, so were you in private industry before becoming a Fed? I’m assuming yes from your numbers. Thanks for posting in spite of your lack of candor.

Yes, I was in private practice, but only briefly (like 2.5 years total) so my 401K never got that big and my largest bonus was only like $9K (before taxes) back in the early 2000s. I took a huge pay cut when I entered the government but always maxed out except for a brief period when child care expenses were at their highest. My spouse came out of graduate school around same age as I did, but in a different field so makes less than me. The one attractive feature at spouse's company is an 11% match of the 403(b) plan. We just maxed out all we could and never sold. First $1M took about 13-15 years (can't quite remember) and then (just held through 2 major recessions, never sold) it compounded to $3.5M today. None of this is from an inheritance or huge bonus from private sector jobs.

Our two biggest expenses like most people in this area are housing and childcare followed by my significant grad school loans. I finally paid back all of my grad school loans in January 2021, and that was only after our largest child care expenses were behind us. I was 48 when I bought my first new car. Spouse has never owned a new one, still drives our 20+ Japanese care to and from the office.

Sorry for the typos. Typing too fast on my phone.

[Anonymous]

Anonymous wrote:Include home equity amount in the total but indicate it in parentheses.

Too little, too late.