How much do you save?

[Anonymous]

Anonymous wrote:

Anonymous wrote:Financial independence to me was when we had our Expenses x 30. So we went on 200,000 x 30 = 6,000,000 + house

30 chosen, for 30 years?

Presumably expenses x 30 = 3.33% annual withdrawal rate which has basically(?) a 100% success rate over a 50 year time period

[Anonymous]

Anonymous wrote:

Anonymous wrote:We have a high HHI (~1m) and save a fair amount (~40%) but I am wondering if this is on par with what we should be saving. I know people say on here that the 10x salary saved for retirement is for middle class salaries not 1%, but what is a good measure then? When do you have financial independence?

How did we get to this point in this country??? We hear about a looming retirement crisis and yet some people are comfortably putting a way 40% WOW.

If my HHI were $1 million, I could very easily save 40 percent, too; that would still leave me spending almost twice what my actual HHI is.

[Anonymous]

Anonymous wrote:If your expenses are 240k/yr, back of the napkin math is about $6million in investments to support those expenses during a normal retirement.

Sounds like you’re at/close to that depending on how much of your NW is house/529s. Once you do drill down, you’ll have clearer decisions on savings and what it might be for (leaving an estate? Second home?) beyond just “retirement at the same expense level.”

You failed to account for taxes. To net $240K, depending on where you live you need to make something around $350k. Which means you need $8.75M. Now that is decreased by social security when you get there. But to retire more that mildly before social security collecting age if one spends $240k annually, one needs $8.75M to do so.

[Anonymous]

Ah good point! I count taxes as an expense in my one planning, but I don’t think OP did. And of course depends on tax treatment of accounts if Roth, HSA are in play.

[Anonymous]

We don't save a dime. My husband is 61 and retired; I work full time and make $250,000 a year. My husband has a pension.

When we were both working, and paying childcare and a mortgage and saving for college, we saved about 15% including employer match.

We became financially independent when we calculated the odds of both of us living into our 90s with 99% chance of having enough funds to support ourselves.

[Anonymous]

OP back- yes I haven’t accounted for taxes. That’s $7m net worth including house worth $1.3ish with a 300ish mortgage left. And about $500k in 529s.

[Anonymous]

If you make $1m/year and live in a house only worth $1.3m, you probably don't really live a 1% type of lifestyle. That is a good thing when you think about how much you'll want in retirement.

Did you just start making this much money? How long do you think you'll be making in that range? If it isn't too long, aggressively saving is smart.

[Anonymous]

Op… We don’t. The only thing we ball out on is travel, however that is heavily subsided by miles from work. In retirement we’d need to spend a lot more to continue at the level and more often.

Income has increased steadily over last decade but only reached this level in the last two years, and who knows how long it lasts…

We make roughly equal and I’d like to retire in the next 4 years. Husband might last longer but he is in tech so job security isn’t guaranteed.