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

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When I was 40 (DH was a few years younger). We had about 200K combined, I had about 10% more than him. 13 and a half years later we have about 1.8M combined, I still have about 10% more than him. We have always maxed and I have started the catch up contributions this year. We are both feds so have the 5% matching. I expect about 15 or so more years of contributions before we retire. I am hoping to be at 5-6M by the time we retire but time will tell.

Seems like overkill for your needs.

Not sure how so since I did not mention our needs or wants in retirement. The amount I put away in catch up I put into the TSP Roth and I plan to use that part for our younger child’s college if we need it. We put away about $60K/year in retirement including the catch up and matching. We have a 350K HHI and are not super savers outside retirement, although our only debt is mortgage debt.

I wasn't trying to criticize. Sorry if it came off that way. I am impressed.

It looks to me like you're on track to be able to afford higher spending in retirement than you currently do. Maybe that's the plan? $5-6M portfolio can allow something like $200-$240k draw in retirement. Plus with your (40?) years of service at a retirement age 68 (40+13+15), you'll have something like a $150k combined pension. (This makes the conservative assumption of no further salary increases). Add in a very conservative $50k per year in combined SS, and you're looking at a $400-$440k gross "income" in retirement. Yes, some of this will be taxed, but since you mention Roth accounts it's unclear how much. In any event, assuming you're paying off your mortgage by age 68, you're on target to have something like $100-150k in "extra" spending money in retirement. Extra in the sense that it is greater than your current spending levels (assuming rough current numbers of $350k gross, $100k tax, $60k saving, $40 mortgage (PI only, bc you'd still have TI in retirement). These are rough approximations.

Anyway, if I were in your shoes I'd probably plan to retire at 62 when first eligible for a pension. But different strokes and all that. And of course plenty of time to decide that later. Again, not meant as a criticism, you're obviously doing great! Keep on keepin' on

[Anonymous]

Anonymous wrote:

Anonymous wrote:At 40 we had a combined 330K, now in late 40s it's about 900k.

Wow hope to be in your position in a decade. So tell us -- what were you putting in? 18.5k each? Or was it up to the 55k with profit sharing? Any matching?

18.5K each. Combined matches add an extra about 8-12K/ total year (varied over jobs)--so roughly 47K contributions when we were perfect (but there was a job switch, unemployment blip during that time period so not quite perfect--but close . The market was, of course, unusually good in this time period. But looking at it, it seems we also roughly tripled our retirement net worth btwn 30 and 40. At 30, we had about 100k, regularly contributed though not always max--luckily even through 2008-2009--and had 330k at 40. Now at 48 we're on track to tripling by 50 if things don't fall apart. (at 20 we were both at zero--and not yet a union-- so I don't know how to calculate tripling from that . I think tripling gets harder the more money you have because the contributions are a smaller percentage of the whole--so I'm not guessing we will have 2.7 million at 60 --but we're shooting for 1.5 million from this source by the time we retire at 67 and calculators suggest we're on track to get more. May not be able to max out during our paying for kids college years and unexpected life has a way of happening so I'm aiming conservative.

NOTE: I realized that my numbers included our smallish old Roth IRAs (total under 100k) and less than 30k in a 457 we were briefly eligible for long ago (I just lump everything together since we have rollover IRAs from old 401ks etc. due to job switches etc). But we didn't contribute to either of those in the past decade.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Sorry PP here-- I googled and I think I answered my question above. There is both TSP and FERS, but you only get access to FERS if you stay in federal service until a minimum age like 60. So if you leave federal service before that age, you don't get that pension-- but you do get to take your TSP. Please correct me if I have that wrong.

You're wrong - you don't get the full benefit of the pension if you leave federal service before the minimum retirement age, but you still have access to FERS under "Deferred retirement":

Deferred Retirement
Refers to delayed payment of benefit until criteria are met, as follows:
If you leave Federal service before you meet the age and service requirements for an immediate retirement benefit, you may be eligible for deferred retirement benefits. To be eligible, you must have completed at least 5 years of creditable civilian service. You may receive benefits when you reach eligible age.

https://www.opm.gov/retirement-services/fers-information/eligibility/

Wow-- that is great to know! Thanks!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't understand how these high Numbers are possible for people under 35-40 in only a 401k, the max per year isn't enough to get over $1mm even if you were maxing out every year.... what am I missing?!

Think the same thing looking at these numbers. I too have maxed out to 18k since graduating law school at age 25. I too but it all in the S&P -- not in bonds etc. Yet 11 yrs into it, I'm struggling to reach 300k. Difference is -- I've never worked for any employer with a match until this past yr (it's just industry standard - not that I was with bad employers). I am just now realizing how quickly it grows if you have a generous match. People are posting on here with 5% matches or at companies where you get 12% put in automatically, whether you put in $1 or not. Those things in addition to putting in 18k yourself adds up fast. I hope to make up some ground in the next few yrs.

As another poster has explained, the “max” for 401(k)s is not 18k. Matches help, but it is really profit sharing which has a limit of of $55k for 2018 that allows people to really sock money away.

I hope you’re right. I didn’t max out in my 20s but now I’m contributing (with matching obv) 52k per year. I certainly hope it adds up.

It definitely does pay off. We put very little into 401(k)s in our 20s as we were paying off student loans. Were able to start shoveling around 50k per year into it in 2009 (which turned out to be great timing!) and it has exploded since then with the great stock market.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I don't understand how these high Numbers are possible for people under 35-40 in only a 401k, the max per year isn't enough to get over $1mm even if you were maxing out every year.... what am I missing?!

Think the same thing looking at these numbers. I too have maxed out to 18k since graduating law school at age 25. I too but it all in the S&P -- not in bonds etc. Yet 11 yrs into it, I'm struggling to reach 300k. Difference is -- I've never worked for any employer with a match until this past yr (it's just industry standard - not that I was with bad employers). I am just now realizing how quickly it grows if you have a generous match. People are posting on here with 5% matches or at companies where you get 12% put in automatically, whether you put in $1 or not. Those things in addition to putting in 18k yourself adds up fast. I hope to make up some ground in the next few yrs.

As another poster has explained, the “max” for 401(k)s is not 18k. Matches help, but it is really profit sharing which has a limit of of $55k for 2018 that allows people to really sock money away.

Depends on your job though -- if you have access to it, yeah the 55k max is great. Most W2 employees of a company don't get that, so 18.5k is it if you are also with a 0 match employer; and it's not even about a good or bad employer -- so much of this varies based on what industry you're in.

Oh absolutely! There is so much variation ; the patchwork quilt of laws about retirement savings have us being able to put $55k into a 401k and over $100k into a cash balance plan and some poor working stiff might only be able to put $5500 into an IRA.

[Anonymous]

It's not in a 401(k), but something my dad did for me really helped. When I was in my late teens/20s working summer jobs, my dad put money in an IRA for me (which you can do once you have taxable income). I didn't understand what he was doing back then, but now I really appreciate it. My parents weren't rich, but they stretched to do this because they knew it was valuable. It has grown tax free since then and is a nice little contribution to my current efforts to save for retirement. Time in the market is everything!

I am going to do the same for my kids when I can.

[Anonymous]

DH is 40. He's got about $600k

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When I was 40 (DH was a few years younger). We had about 200K combined, I had about 10% more than him. 13 and a half years later we have about 1.8M combined, I still have about 10% more than him. We have always maxed and I have started the catch up contributions this year. We are both feds so have the 5% matching. I expect about 15 or so more years of contributions before we retire. I am hoping to be at 5-6M by the time we retire but time will tell.

Seems like overkill for your needs.

Not sure how so since I did not mention our needs or wants in retirement. The amount I put away in catch up I put into the TSP Roth and I plan to use that part for our younger child’s college if we need it. We put away about $60K/year in retirement including the catch up and matching. We have a 350K HHI and are not super savers outside retirement, although our only debt is mortgage debt.

I wasn't trying to criticize. Sorry if it came off that way. I am impressed.

It looks to me like you're on track to be able to afford higher spending in retirement than you currently do. Maybe that's the plan? $5-6M portfolio can allow something like $200-$240k draw in retirement. Plus with your (40?) years of service at a retirement age 68 (40+13+15), you'll have something like a $150k combined pension. (This makes the conservative assumption of no further salary increases). Add in a very conservative $50k per year in combined SS, and you're looking at a $400-$440k gross "income" in retirement. Yes, some of this will be taxed, but since you mention Roth accounts it's unclear how much. In any event, assuming you're paying off your mortgage by age 68, you're on target to have something like $100-150k in "extra" spending money in retirement. Extra in the sense that it is greater than your current spending levels (assuming rough current numbers of $350k gross, $100k tax, $60k saving, $40 mortgage (PI only, bc you'd still have TI in retirement). These are rough approximations.

Anyway, if I were in your shoes I'd probably plan to retire at 62 when first eligible for a pension. But different strokes and all that. And of course plenty of time to decide that later. Again, not meant as a criticism, you're obviously doing great! Keep on keepin' on

If everything goes perfectly timing wise my youngest will graduate from college when I am almost 66, I have just added on a couple of years as a buffer as I cannot imagine retiring while still paying for college. Also, my husband is younger than me so we will likely retire at the same time. Your estimates are very close to mine for pensions and SS. Hopefully this will allow us to do some awesome traveling with and without our, by then, young adult children.

[Anonymous]

I am older than 40 but last job I started in 2006 and left in 2016 10.5 years all equities did max.

I have 625k in that account. Fasted ever to 500k around 9 years

I have four 401ks. One small pension

Wife one 401k and one small pension.

[Anonymous]

I'm 34 and DH is 35 we have about 700k in 401k. About about 50k in 529 (total with 4 kids). While this feels good we still don't own a house due to all of our saving.

[Anonymous]

Age 47, have about $650k total. Praying that'll double over the next 15 years so I'll have at least $1.3 million to retire on. Is that a realistic goal, as far as the market goes?

We do have a $750k home and only owe about $175k, so expect that'll be paid off and we won't have a mortgage - just property taxes & insurance.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:When I was 40 (DH was a few years younger). We had about 200K combined, I had about 10% more than him. 13 and a half years later we have about 1.8M combined, I still have about 10% more than him. We have always maxed and I have started the catch up contributions this year. We are both feds so have the 5% matching. I expect about 15 or so more years of contributions before we retire. I am hoping to be at 5-6M by the time we retire but time will tell.

Seems like overkill for your needs.

Not sure how so since I did not mention our needs or wants in retirement. The amount I put away in catch up I put into the TSP Roth and I plan to use that part for our younger child’s college if we need it. We put away about $60K/year in retirement including the catch up and matching. We have a 350K HHI and are not super savers outside retirement, although our only debt is mortgage debt.

I wasn't trying to criticize. Sorry if it came off that way. I am impressed.

It looks to me like you're on track to be able to afford higher spending in retirement than you currently do. Maybe that's the plan? $5-6M portfolio can allow something like $200-$240k draw in retirement. Plus with your (40?) years of service at a retirement age 68 (40+13+15), you'll have something like a $150k combined pension. (This makes the conservative assumption of no further salary increases). Add in a very conservative $50k per year in combined SS, and you're looking at a $400-$440k gross "income" in retirement. Yes, some of this will be taxed, but since you mention Roth accounts it's unclear how much. In any event, assuming you're paying off your mortgage by age 68, you're on target to have something like $100-150k in "extra" spending money in retirement. Extra in the sense that it is greater than your current spending levels (assuming rough current numbers of $350k gross, $100k tax, $60k saving, $40 mortgage (PI only, bc you'd still have TI in retirement). These are rough approximations.

Anyway, if I were in your shoes I'd probably plan to retire at 62 when first eligible for a pension. But different strokes and all that. And of course plenty of time to decide that later. Again, not meant as a criticism, you're obviously doing great! Keep on keepin' on

If everything goes perfectly timing wise my youngest will graduate from college when I am almost 66, I have just added on a couple of years as a buffer as I cannot imagine retiring while still paying for college. Also, my husband is younger than me so we will likely retire at the same time. Your estimates are very close to mine for pensions and SS. Hopefully this will allow us to do some awesome traveling with and without our, by then, young adult children.

Cheers, I am the PP you've been going back and forth with. I can relate, although I am about a decade "behind" you, and I think had our kids slightly younger than you. We're just about 40 with young kids. We're a one fed family but similar financials, and looking to maybe retire once our youngest graduates from college as well. I'll be 61 then and my wife will be 59. I guess I wouldn't have a problem, in your shoes, retiring while the kids were in college, assuming we had already saved and set aside enough $$ for college, but of course that's a big variable. For us it makes sense to keep working until I am closer to pension age anyway. But, if I was 62 with a kid still in college, I'd probably just retire as long as I had enough retirement and college money.

[Anonymous]

Anonymous wrote:I'm 34 and DH is 35 we have about 700k in 401k. About about 50k in 529 (total with 4 kids). While this feels good we still don't own a house due to all of our saving.

I'm feeling really behind. DH and I have maybe 100K total across retirement accounts, 35 and 37. We both had student loans with no family help. We do have a house in DC tho, that is already worth much more than we paid for it 3 years ago plus we were able to put 20% down because we got on the property ladder right after the housing bust. We just started maxing out this year. Before we were both only doing enough to get the max match (one private, one fed).

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm 34 and DH is 35 we have about 700k in 401k. About about 50k in 529 (total with 4 kids). While this feels good we still don't own a house due to all of our saving.

I'm feeling really behind. DH and I have maybe 100K total across retirement accounts, 35 and 37. We both had student loans with no family help. We do have a house in DC tho, that is already worth much more than we paid for it 3 years ago plus we were able to put 20% down because we got on the property ladder right after the housing bust. We just started maxing out this year. Before we were both only doing enough to get the max match (one private, one fed).

You're fine. You're probably not on track to retire early or anything, but if you max out for the next couple decades you'll have a big stack. If you're working another 30 years as a fed you'll also have a decent pension, plus SS. I wouldn't worry about being "behind", just focus on the future. You're doing far better than most.

[Anonymous]

35 and 37. Each have about $150 in our 401ks, for a total of $300,000. No other large savings, just small emergency funds and about $150,000 of home equity. Still paying off loans and trying to save for our own children to go to college.

Feels like a slow trudge up a giant mountain.