What is your "magic number" for retirement?

[Anonymous]

Some of these numbers do seem very magical! 10 million sounds great!

[Anonymous]

Interesting to read all these varying plans. We have about $6.5m, both age 50. 2 kids still to finish hs (one private) and college (one def private, already known) About $400k saved in 529s. No pensions. Possible $4-5m inheritances but no guarantees. Elderly parents have current high care costs. Trying to stash as much away of HHI of $1m/yr now, to prepare for possible retirement in a few years. Will depend on layoffs beyond our control etc but would prefer to work until youngest goes to college in 3.5 years…

[Anonymous]

My magic number is $2 million in a brokerage account. My mom started with that and even with her ridiculous memory care expenses she hasn’t had to touch principle. That’s my goal, not sure I’ll get there though.

[Anonymous]

Anonymous wrote:My magic number is $2 million in a brokerage account. My mom started with that and even with her ridiculous memory care expenses she hasn’t had to touch principle. That’s my goal, not sure I’ll get there though.

Unfortunately inflation exists.

[Anonymous]

80% of your working salary isn't the rule.
80% of middle age expenses is the rule.

But some people grow more extravagant tastes as they age.

[Anonymous]

Anonymous wrote:10m is our number. We now have 15m. Retiring next month at 60 although I love my job and am paid well. A little nervous.

I can help you reach you target number! Call me.

[Anonymous]

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Anonymous wrote:We are around $3.5M net worth including home equity of $400k and another $400k in 529. Our HHI rose drastically in the last two years and we are now able to save $250k-$300k per year. Another 10 years to work, we are 44 and 47. So thinking retire with somewhere around $7M net worth after paying two kids college. We both are in tech, so no guarantee that we will continue to be consistently employed or with high HHI.

there's a lot more ageism in tech than in other industries.

We didn't feel ageism (in tech) until we hit our 50s.

Luckily, we saved a lot from our 30s, and so we are planning to retire in our late 50s, early 60s in a few years, with about $4 mil nw.

Maybe I’m too much of a noob at my very large tech company, but I just don’t see the ageism thing. There are plenty of colleagues still going strong in their late 50s and early 60s. Maybe my company’s culture is just that good or that aware of age discrimination? I have no idea. But I’m early 40s and more frequently than not, the youngest person in the room or on the call.

I think there is a difference between something like IBM, 3M or even Microsoft and places like Meta or Tesla or even Google.

Noob here again and I work for one of those companies. So is the former group or the latter group the one that’s discriminating based on age? LOL, I’m clearly clueless about this.

It's the IBMs, 3M, Microsoft type companies that don't have as much age discrimination as the hot, newer companies that try to run young and now lean. Though I was just thinking today that with all their job cuts, I wonder if they are getting older and slower and trying to fix that.

Referring to Google in the bolded.

Got it. I work for one of the former companies and this makes sense. Age discrimination has always seemed like something that goes against the nature of everything our chief executive stands for.

yep, google's layoff is about pivoting more resources to AI. Companies that survive on new tech need younger talent.

hahahahhaha. It's about clueless management following investor fads to juice the stock price.

[Anonymous]

Anonymous wrote:Our HHI were about $450 before we retired a little more than 2 years ago. Since everything is paid off, including all the rentals, our base annual expenses is about $85k. The rule of thumb of 70-80% of your salary is ridiculous.

You need to learn the term "owner's equivalent rent".

[Anonymous]

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Anonymous wrote:We are around $3.5M net worth including home equity of $400k and another $400k in 529. Our HHI rose drastically in the last two years and we are now able to save $250k-$300k per year. Another 10 years to work, we are 44 and 47. So thinking retire with somewhere around $7M net worth after paying two kids college. We both are in tech, so no guarantee that we will continue to be consistently employed or with high HHI.

there's a lot more ageism in tech than in other industries.

We didn't feel ageism (in tech) until we hit our 50s.

Luckily, we saved a lot from our 30s, and so we are planning to retire in our late 50s, early 60s in a few years, with about $4 mil nw.

Maybe I’m too much of a noob at my very large tech company, but I just don’t see the ageism thing. There are plenty of colleagues still going strong in their late 50s and early 60s. Maybe my company’s culture is just that good or that aware of age discrimination? I have no idea. But I’m early 40s and more frequently than not, the youngest person in the room or on the call.

I think there is a difference between something like IBM, 3M or even Microsoft and places like Meta or Tesla or even Google.

Noob here again and I work for one of those companies. So is the former group or the latter group the one that’s discriminating based on age? LOL, I’m clearly clueless about this.

It's the IBMs, 3M, Microsoft type companies that don't have as much age discrimination as the hot, newer companies that try to run young and now lean. Though I was just thinking today that with all their job cuts, I wonder if they are getting older and slower and trying to fix that.

Referring to Google in the bolded.

Got it. I work for one of the former companies and this makes sense. Age discrimination has always seemed like something that goes against the nature of everything our chief executive stands for.

yep, google's layoff is about pivoting more resources to AI. Companies that survive on new tech need younger talent.

hahahahhaha. It's about clueless management following investor fads to juice the stock price.

there may be some of that, but if you look at the areas that are still growing, you will see that they are heavily investing in AI.

[Anonymous]

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Anonymous wrote:My "I'd walk away without another thought" number is $10M (single, no kids, 50s).

I won't get to 10M absent some kind of windfall, but will likely retire with $3-4M TSP, $1M other, fed pension in the 150-200 range, $1M house paid off.

How are you getting a Fed pension of $150-200k? Are you dual Feds?

Never mind, saw you are single. How are you getting $150-200K pension? Doctor?

I also wonder how you are getting 150-200K pension?

Some private companies still need offer pensions.

Yeah but PP mentioned a TSP account.

Which, not that I am reading about a single TSP with $3-4M, I am realizing PP is trolling.

Can’t 2 Feds do that?

1 fed, independent agency, advanced degree, very long tenure (at top of wage scale now), max tax deferred TSP contributions nearly all in equities for the whole time. TSP now nearing 3M. If retiring at 62, the internal pension calculator puts the pension in the 150-200 range. No, I'm not going to post my statements and W2. But it's possible and I am definitely not the only person in my agency in this situation.

What is an independent agency? Also, the all equities strategy is risky for those not early in their careers. 60/40 is the norm and I wouldn’t break too much with that unless I was very comfortable with risk.

Basically, this person is at an agency that is not on the GS scale and has its own pension plan and version of TSP.

I posted earlier. Am likely at the same agency but longer tenure and greater age. My TSP is considerably larger. All equities for decades but a year ago put 15% into governments and am still questioning why I bothered. Pension is effectively a huge bond portfolio. Am near retirement and switched to including a percentage of governments for dealing with RMDs when they come.

I am also at one of those agencies and I still don’t understand how one person is getting a $150-200k pension. Or has a $3-4M TSP in their 50s.

I am 45 and am no where near that. I am at the top of the scale and will have 35 years at 62. My pension (today’s dollars) is $95K. My TSP is $1.3M with a 10% match.

Only thing I can guess is that this is Fed Reserve Board or CFPB at the top of the scale with 38-40 years?

No, you can do this at your garden variety agency. My DH started working for them while getting his grad degree, so he has almost 40 years in service and he has always maxed his contributions to the tsp. They look at your high 3, so if you have been successful, you will do well.

NP. My pension will be 50K and my spouse’s will be 150k. Spouse is an executive at one of the agencies you named and has spent their career in government.

[Anonymous]

Our number was $10M. We’ve already exceeded it. We have about $6M in Roth IRAs but can’t touch that for another 16 years, $4M in our 401Ks/Roth 401Ks, and about $5.5 in a taxable brokerage account. One child in private college completely paid for and the other child a junior in HS. Untouched 529 worth about $450K. House and a rental property paid off. We don’t want to just retire we want to retire well. First thing we will do is pick up and leave the DMV in the rear view mirror permanently.

[Anonymous]

Anonymous wrote:Our number was $10M. We’ve already exceeded it. We have about $6M in Roth IRAs but can’t touch that for another 16 years, $4M in our 401Ks/Roth 401Ks, and about $5.5 in a taxable brokerage account. One child in private college completely paid for and the other child a junior in HS. Untouched 529 worth about $450K. House and a rental property paid off. We don’t want to just retire we want to retire well. First thing we will do is pick up and leave the DMV in the rear view mirror permanently.

$6M in Roths is quite an achievement. At today’s interest rates you could easily make $300K/yr in very safe completely tax free income when you reach 59 1/2. How did you get a high Roth balance?

[Anonymous]

We started contributing the max possible to our Roths as soon as we had earned income. Kept doing this every year and then took advantage of the Backdoor Roth method when our incomes exceeded the max income limits (wish Congress would just eliminate these income limits). From there is was just good/lucky stock buys (and sells) in the Roths and taxable brokerage accounts such as AAPL, ISRG, AZO, HZNP, TSLA and last but certainly not least NVDA. We’ve had a few duds but nothing compared to the winners.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My magic number is $2 million in a brokerage account. My mom started with that and even with her ridiculous memory care expenses she hasn’t had to touch principle. That’s my goal, not sure I’ll get there though.

Unfortunately inflation exists.

Inflation lifts all boats.. costs, revenue, profits and stock prices alike.

[Anonymous]

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Anonymous wrote:We are around $3.5M net worth including home equity of $400k and another $400k in 529. Our HHI rose drastically in the last two years and we are now able to save $250k-$300k per year. Another 10 years to work, we are 44 and 47. So thinking retire with somewhere around $7M net worth after paying two kids college. We both are in tech, so no guarantee that we will continue to be consistently employed or with high HHI.

there's a lot more ageism in tech than in other industries.

We didn't feel ageism (in tech) until we hit our 50s.

Luckily, we saved a lot from our 30s, and so we are planning to retire in our late 50s, early 60s in a few years, with about $4 mil nw.

Maybe I’m too much of a noob at my very large tech company, but I just don’t see the ageism thing. There are plenty of colleagues still going strong in their late 50s and early 60s. Maybe my company’s culture is just that good or that aware of age discrimination? I have no idea. But I’m early 40s and more frequently than not, the youngest person in the room or on the call.

I think there is a difference between something like IBM, 3M or even Microsoft and places like Meta or Tesla or even Google.

Noob here again and I work for one of those companies. So is the former group or the latter group the one that’s discriminating based on age? LOL, I’m clearly clueless about this.

It's the IBMs, 3M, Microsoft type companies that don't have as much age discrimination as the hot, newer companies that try to run young and now lean. Though I was just thinking today that with all their job cuts, I wonder if they are getting older and slower and trying to fix that.

Referring to Google in the bolded.

Got it. I work for one of the former companies and this makes sense. Age discrimination has always seemed like something that goes against the nature of everything our chief executive stands for.

yep, google's layoff is about pivoting more resources to AI. Companies that survive on new tech need younger talent.

hahahahhaha. It's about clueless management following investor fads to juice the stock price.

hahahahahaha. Thinking you know more than people that run multi-billion dollar companies. You must also think you know better than Jerome Powell on how to manage the Fed.