Is NW of 4M as a 50 yo good enough
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Anonymous
| Similar situation, but NW around $6M ($2M in retirement, rest in RE) with two kids going to college in the near future (expected to be full pay). We have two pensions, but don't feel comfortable to retire within 15 years. |
Anonymous
| You should have ten times that by now! You need to buy more lottery tickets! And I have heard crypto is where it’s at, man. |
Anonymous
| We will both be 50 next year and our net worth is just north of $7 million if you include home equity and college funds. My spouse is largely retired and moved to a part-time job making about $20,000 a year. I will look to downshift at 55 but intend to be employed to retain health insurance until closer to Medicare eligibility. I think the OP is on track but needs to keep saving and probably won’t be looking at retirement for age 60 if the kids choose to go to relatively expensive colleges. As the same goes, you can do anything you want, but not everything. Life is about choices and at these levels we have a lot of choices but not unlimited ones. |
Anonymous
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Enough of saving already, time to start investing. Too much money stuck in the house and in 401k earning who know how much.
Take some risk with $300k for next decade. |
Anonymous
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OP, you obviously have a solid NW. However, you're living above your means.
Your entire situation isn't clear (HHI, mortgage, etc.), but let's assume that it's a priority for your wife to retire at 52. It also sounds like you have three kids with some very expensive MS and HS years (sports and other activities become much pricier), plus college expenses. It might not be feasible for you to tell your kids they can go to OOS colleges. You also need more emergency savings if you even want to keep up the UMC lifestyle while your kids are in MS and HS and you want to pay even for State universities. What if your wife retires early then you lose your job? The economy is trending down. It could be hard for a late 50's unemployed female to find another job. Something needs to give. You either drastically cut your spending and pay for State schools, or you need a plan to earn more money. I'm in a similar situation but changed our spending to make it work. We're also around 50 and I retired early with a little over $5M NW. But first we saved, then we sold our home and paid cash for the next one with the proceeds from the sale (moved to a different area), and we told our three kids that we'd pay for State schools. If the worst case scenario happens and we no longer have DH's income, then it would be a little tight but doable. IMO it's better to work until you have enough for the wife to retire rather than picking a random 5 year target date and hoping it all works out. Try cutting current and future expenses and see what that retirement date would look like. You can do this, but you have to prioritize and make sacrifices. |
Anonymous
| If you’ve included college for 3 in your net worth, then with equity you are more like us, 3M net worth and you are doing fine but need to keep working for like 10 more years tbh. Unless you are expecting a windfall or inheritance. |
Anonymous
With only 300K in college savings, you should not be considering OOS/privates that are 80-100k+/year. You have three kids. Assume $35-40K/year for college (in-state or private with merit). I'd assume 150-200K/kid, so you are looking at having to pay $450-600K for the kids to attend college at a minimum (or you need to chase merit). I certainly would not be paying $400K per kid. |
Anonymous
+1 the OP cannot afford to spend $1.2M on college. In-state, private with merit or OOS with merit. You need to cap college at $30-40K/year per kid at MAX. And start saving more now/adjust lifestyle to save for college so you have the $450-600K you will need. |
Anonymous
This is probably correct although depending on your income and how far your kids are spaced apart you could potentially cash flow the rest of it. $2.2 million in retirement savings (excluding home equity here and college savings) at 50 should put you in pretty good shape provided you're not dipping into that for your kids college expenses. Another option is if you are willing to relocated in retirement you could take that $1.5 million equity and buy for cash a $700K house in a LCOL area if you wanted to pay for OOS. What is your HHI and how long do you want to work? |
Anonymous
If that have a "good income and could probably cash flow the rest of college" they should be saving for it now, assuming their lifestyle allows them to save it. If not, then I'd argue yes they should not be spending $80K+ per kid per year for college. That money would be better spent on their retirement. |
Anonymous
53 |
Anonymous
| Well considering that it will cost you about 3/4 of a million just to put the 3 kids through college...no. It's not enough. |
Anonymous
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If you actually have all of these investments, why are you asking random people on a board? Just use the tech tools on your brokerage’s site or, if that’s over your head, call them and pay a one time fee for them to give you legitimate advice.
The fact that you posted this question here is the only reason I doubt your story. |
Anonymous
I don't doubt OP's story. The DMV is filled with clueless rich people who live above their means. |
Anonymous
It’s more that I doubt the poster is aware of his assets and their valuations, not that he’s outright intentionally lying. The only reason I could see room for such ignorance is if the assets are tied up in less transparent investments, like a pension. |