Looks like I need 6.2M to retire

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I thought conventional wisdom says you need 10xs your income. So you need 2.5

No, conventional wisdom is 30x your income, or less conservative, 25x your income.

I really would like to know how people think you need an income from your investments of $250k when retired. What on earth do you think you will be spending it on? That's our current household income with 2 kids, including saving a significant amount for retirement, kids college, and the random costs associated with kids. In 15 years we will have none of those costs/needs.

I'm not the PP you're responding to, but do you possibly think that everyone's expenses are the same as yours? There is a huge list of variables in how/where people live. Property taxes alone vary from state to state, not to mention even zip code to zip code. Auto/house/umbrella insurance vary. Healthcare costs and insurance vary. Cost of living varies. And if you have more than one house, much of that list is doubled.

I have two high end cars, very expensive to insure.
We have expensive jewelry that is expensive to insure.
We live in an area that has high home owner insurance rates.
We have an HOA.

Am I complaining? No. I am just saying that it might cost you 45K to live, but it costs me a great deal more than that before I ever even think about taking a trip. So my NW at retirement needs to support what *I* spend.

+1000

We know what we want in retirement and beyond. We have planned for it, we are lucky to have more than enough and even with high end of life care costs, the kids and grandkids will get plenty. The grandkids will have fully funded college and grad school, the kids will get a downpayment for a home (not sure the amount yet). But we know what things cost and have planned for it. I don't want to live retirement "just barely getting by with minimal whatever". I want to enjoy it. And now, we don't have to work until we are 70 to get it. We were there in our early 50s and will be retiring by mid 50s.
But yes, we plan to spend and enjoy life in retirement (just like we did while working).

[Anonymous]

Why do you need to maintain your current income when you will no longer be contributing to SS and you will be able to draw down?

[Anonymous]

Anonymous wrote:And maintain current $250K income. Well, I only have 3.2 at 53 outside of home (no mortgage). What’s the best way to manage the next 10-15 years to meet this goal?

how does one come this far in life and need to crowd source these questions?

your money will double in 10 years if you do absolutely nothing . 🤦🏻‍♀️

[Anonymous]

Anonymous wrote:

Anonymous wrote:And maintain current $250K income. Well, I only have 3.2 at 53 outside of home (no mortgage). What’s the best way to manage the next 10-15 years to meet this goal?

how does one come this far in life and need to crowd source these questions?

your money will double in 10 years if you do absolutely nothing . 🤦🏻‍♀️

Ugh...it's comments like these that make me wonder when we will have the next era of horrible stock market performance.

Tell that to the folks that put their money in the stock market in 1965, only for the market to drop 70% through 1982.

[Anonymous]

I think the average person near retirement has way more money than they think they have.

I have no money. But I started adding up my none money and it adds up.

I have a few 401Ks some from old companies They are 2 million. My wife has not worked in years but she has an old 401k worth one million I found, also found a old 100K cash balance pension, 400K in old stock grants, 300k in CDs that are rolling, and old brokerage account for 120k and another old brokerage account with 1.5 million, a left over 529 with 70K and some old Ibonds worth 20K. I even realized my 4 paid off cars are worth over 100k.

People should add up their lost money. Throw in home equity which is at least one million most people you should be fine even if you retire penniless.

[Anonymous]

Anonymous wrote:I think the average person near retirement has way more money than they think they have.

I have no money. But I started adding up my none money and it adds up.

I have a few 401Ks some from old companies They are 2 million. My wife has not worked in years but she has an old 401k worth one million I found, also found a old 100K cash balance pension, 400K in old stock grants, 300k in CDs that are rolling, and old brokerage account for 120k and another old brokerage account with 1.5 million, a left over 529 with 70K and some old Ibonds worth 20K. I even realized my 4 paid off cars are worth over 100k.

People should add up their lost money. Throw in home equity which is at least one million most people you should be fine even if you retire penniless.

We dont have "lost money" to add up, because we keep track of all the old 401Ks and anything else.

Only thing we have to track down is one of us has a pension from our first company (barely made the 5 year cutoff). That company has changed hands at least 6 times now (new owners/names). So when we hit 65, might track it down, but not going to spend much time and energy for what is likely to be under $25K.

Otherwise, we don't have lost money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Most of the difference will come from growth in your portfolio. Even at a not-unreasonable 8% growth rate the investment will double in nine years even if you add nothing else (Rule of 72)

What you have to watch out for is if indeed we do hit a difficult decade and pull in more like 3%/year.

I think it was Goldman that just predicted we'd be more in the 3% range, in part because the recent growth of the indices has been heavily driven by a handful of companies who are predicted to slow down significantly.

[Anonymous]

Anonymous wrote:I think the average person near retirement has way more money than they think they have.

I have no money. But I started adding up my none money and it adds up.

I have a few 401Ks some from old companies They are 2 million. My wife has not worked in years but she has an old 401k worth one million I found, also found a old 100K cash balance pension, 400K in old stock grants, 300k in CDs that are rolling, and old brokerage account for 120k and another old brokerage account with 1.5 million, a left over 529 with 70K and some old Ibonds worth 20K. I even realized my 4 paid off cars are worth over 100k.

People should add up their lost money. Throw in home equity which is at least one million most people you should be fine even if you retire penniless.

Who loses millions of dollars? I keep track of all my accounts. Once a quarter I do an update of our net worth. At least once a year our financial advisor looks at our assets to see if we need to rebalance. I know how much my houses are worth - Redfin and zillow send me updates about once a week.

[Anonymous]

Save $50k a year for ten years and invest wisely and you'll be fine. One thing that we found was that in retirement our expenses went up because we are enjoying life. Free time is expensive!

[Anonymous]

Retirement planning is based on expenses, not income. Putting aside healthcare and LTC, I find it hard believe that you would need $250k per year in retirement.

[Anonymous]

Anonymous wrote:I think the average person near retirement has way more money than they think they have.

I have no money. But I started adding up my none money and it adds up.

I have a few 401Ks some from old companies They are 2 million. My wife has not worked in years but she has an old 401k worth one million I found, also found a old 100K cash balance pension, 400K in old stock grants, 300k in CDs that are rolling, and old brokerage account for 120k and another old brokerage account with 1.5 million, a left over 529 with 70K and some old Ibonds worth 20K. I even realized my 4 paid off cars are worth over 100k.

People should add up their lost money. Throw in home equity which is at least one million most people you should be fine even if you retire penniless.

[Anonymous]

Do you need 250k? Isn’t that how much you spend now? You want to match spending not income.

[Anonymous]

Anonymous wrote:I think the average person near retirement has way more money than they think they have.

I have no money. But I started adding up my none money and it adds up.

I have a few 401Ks some from old companies They are 2 million. My wife has not worked in years but she has an old 401k worth one million I found, also found a old 100K cash balance pension, 400K in old stock grants, 300k in CDs that are rolling, and old brokerage account for 120k and another old brokerage account with 1.5 million, a left over 529 with 70K and some old Ibonds worth 20K. I even realized my 4 paid off cars are worth over 100k.

People should add up their lost money. Throw in home equity which is at least one million most people you should be fine even if you retire penniless.

Whut? You think you have no money and woops, actually you found $6+ million in the couch? You think everyone probably has $6 million in their couches, they just need to find it? Who are you, Trump's pick for treasury secretary?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:And maintain current $250K income. Well, I only have 3.2 at 53 outside of home (no mortgage). What’s the best way to manage the next 10-15 years to meet this goal?

how does one come this far in life and need to crowd source these questions?

your money will double in 10 years if you do absolutely nothing . 🤦🏻‍♀️

Ugh...it's comments like these that make me wonder when we will have the next era of horrible stock market performance.

Tell that to the folks that put their money in the stock market in 1965, only for the market to drop 70% through 1982.

yea and by 1986 it had doubled from 1982, 1995 doubled again from 86, 2 year later in 98 it doubled again.

you have good years and bad years. I’ve been investing since 1999 and my annual growth and dividends from stocks now outpace my w2 wage slave income and I’m 49yrs old.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:And maintain current $250K income. Well, I only have 3.2 at 53 outside of home (no mortgage). What’s the best way to manage the next 10-15 years to meet this goal?

Spend a lot less than you make, try to make more, and invest the savings.

This is 100% accurate!

Develop a budget for now and retirement. Figure out your base budget (things you must have and cannot live without), then add in level 1 "wants" and then Level 2 "wants" and so on. Decide what you can and cannot "live without".
Decide where you want to live in retirement and find a way to reduce housing costs. Do you really need to keep the 4 bedroom (or whatever) family home? Or can you find a 2 bedroom condo/something much smaller in a lower cost of living area that you would like to live in?

Either way, you need a budget and to increase your current savings and/or increase income.

Also, your 3.2M should become 6.4M in about 7 years if most is invested in stock market. (on average it takes 7 years to double investments).

You are making her sound poor. And banking on stock market always going up and nothing happening.