One million saved…can I stop now?

[Anonymous]

Anonymous wrote:

Anonymous wrote:On track to have 1 million in my retirement savings at age 50. Can I stop contributing (but would still work) once I reach age 50? Will that be enough for me and my spouse if I stop working at 65?

We are in the same boat (1 million in retirement) at age 45. We will still have 10% of salary saved for retirement, but I'm thinking that, since we will have a federal pension and the employer will be making contributions, we'll scale back our contribution. I really want to pay off our mortgage and once that's done we'll save for retirement again. Our main income went down because we really needed to get out of the federal government and it was in a policy area that is very hard to find employment in.

Though, logically, I'm not sure that we really need to with 1 million in at 45, FERS from 20 years of working, a paid off mortgage and relatively low expenses. But, we're all here on DCUM Money and Finances because we are overly cautious and anxious about money, so, like the rest of you I don't think we would have the chutzpah to actually scale back contributions even if logic said it would be okay.

Is the federal pension already fully earned? Because otherwise, unfortunately nothing in this environment is guaranteed. But paying off your mortgage when you have a lot in retirement and a pension most likely can be a good plan. That is savings as well, and once mortgage is paid off, then you can continue to save the mortgage payment as well

[Anonymous]

Anonymous wrote:A million dollars is $100k for 10 years. That is not rich for this area.

If you can live on $50k a year, you can make it for 20 years.

If you can live off that million and Social Security when you can draw, go for it.

Hint: you likely cannot. Healthcare will cost you, and I wouldn't count on SS until you are 70 at rate we are going, and even then, you might not have as much as you expect.
Who will take care of you in old age? Not sure how you'd afford a facility for very long on that.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This question depends on your monthly spend. If you live in a low cost of living area with a paid off house and a very frugal lifestyle that could be plenty. If you still have a mortgage, or live in a high cost of living area, or have expensive tastes that won’t be enough.

However, unless you have excellent LTC insurance, you likely need more than that for LTC. Not unusual to end up in Assisted living/nursing care/memory care for more than 1 year, and those typically cost $10-15K/month. $1M plus SS is nowhere near enough for any of that, even with low cost of living/being frugal.

$15k a month gets you a few hours a day of care. When you need 24 hour care it will go up to about $250-$275k a year.

Lol, so you're going to give up literally a decade or more, in the prime of your life, to save up extra millions for slightly nicer accommodations in your mid-80s (which you may never need and of which you would likely never be aware, given your deterioration)? Truly baffling that people think this is a good trade. I'm retiring in 2-3 years at 45-46, will live a modest lifestyle enjoying all my days, and will gladly live in a Medicaid nursing home if that's what's required at age 86.

FYI, a neighbor just passed away after two years in an expensive nursing home (and 1-2 years of six-figure in-home care before that). His life was still as crappy as you might expect for someone who needs these things.

Or you can work until 50/55 and have a much nicer life. But start enjoying life (if you are not already) while still working. take those trips you want, do whatever with your kids or spouse you are dreaming of. I'm willing to work a few more years to enjoy life more. Because $50K/year is not much to live on in a HCOLA like DCUM. Sure I could go to Nebraska or Iowa and live on $50K, but then I'd be living in Iowa or Nebraska and that isn't my definition of "quality of life".

[Anonymous]

Not enough information to solve.

How much do you spend per year? What do you expect to spend per year in retirement? Do you have any large expenses coming between now and then? Do you have any other income sources (now or in retirement (Social Security, Railroad Retirement, pension, inheritance, etc.))? What is the tax basis for the $1m saved (is it in a tax-deferred account, or something else?)? Do you expect tax rates to go up or down? How is that $1m invested? What is your risk tolerance? What is your and your spouse's life expectancy? Do you want to have any money left over to donate or leave to heirs?

OP needs to do the math on this. Depending upon the answers to the above, $1m may be more than enough or it may be way too low.

[Anonymous]

I’d keep saving.

Maybe dial down the contributions if you have other life priorities. But I’d at least aim for 15% total, your contribution and match.

You only get one chance to save for retirement. Don’t waste it.

[Anonymous]

Anonymous wrote:I’d keep saving.

Maybe dial down the contributions if you have other life priorities. But I’d at least aim for 15% total, your contribution and match.

You only get one chance to save for retirement. Don’t waste it.

+1

You never know when you will "majorly decline" in your old age. You could be 85+ and still living in Independent living in a facility. I know 75 yo who actively travel (able to walk 3-4 miles a day and up/down stairs, etc). It would suck to be that age and stuck "doing nothing" because you have no $.
So find a happy medium of living more now but still saving for the future

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This question depends on your monthly spend. If you live in a low cost of living area with a paid off house and a very frugal lifestyle that could be plenty. If you still have a mortgage, or live in a high cost of living area, or have expensive tastes that won’t be enough.

However, unless you have excellent LTC insurance, you likely need more than that for LTC. Not unusual to end up in Assisted living/nursing care/memory care for more than 1 year, and those typically cost $10-15K/month. $1M plus SS is nowhere near enough for any of that, even with low cost of living/being frugal.

$15k a month gets you a few hours a day of care. When you need 24 hour care it will go up to about $250-$275k a year.

$10-15K is the cost of assisted living/memory care/nursing care at a good facility, not 24 hour care in your home. So $120-180K/year. If you have the money, sure stay home and have round the clock care, but that is out for most people. A facility at $120K/year is the more likely solution

It's depressing we are working and saving so we can spend $10-$15k a month for assisted living and to make a billion-dollar company like Sunrise even richer.

[Anonymous]

I'd keep saving, OP.

Also, since you are in the age group that gets fired and not rehired quickly, I'd make sure you have a lot in a cash cushion.

[Anonymous]

Anonymous wrote:No.

Are you going to kick it on the beach or golf for 35 years?

Your SS full retirement age is 67.

I hope you are better at money than you are at reading. OP said they would keep working but wants to stop saving.

[Anonymous]

The OP isn’t planning to retire with $1m. He/She has that now and is asking if it is OK to stop contributing. The $1m will continue to grow, likely reaching $4m by age 65. That is the number to focus on.

[Anonymous]

hahaha!


NO.

[Anonymous]

If that one million is the only money you and your spouse have, no, don't stop, unless you want to move to a really low cost of living area, and are prepared to forgo nursing homes and other eldercare expenses.

I have 5M, and don't think it's nearly enough, because I know how much eldercare costs. Also, I want to leave generational wealth to my children if at all possible!

[Anonymous]

Anonymous wrote:The OP isn’t planning to retire with $1m. He/She has that now and is asking if it is OK to stop contributing. The $1m will continue to grow, likely reaching $4m by age 65. That is the number to focus on.

It’s shocking how few posters read the actual OP.

I wouldn’t stop saving at $1M personally, but most posters didn’t even answer the correct question. OP isn’t trying to stop working now.

[Anonymous]

I would not stop. I am 54, have $1.4 mil saved (spouse has $1.6mil saved at 60, retired due to ageism). You never know if you will get laid off and not be able to find another job at your age.

Private health insurance is super expensive. That's the only reason why I am working now.

When you are 62 and have $2mil, you might be able to self insurance (but who knows what will happen to ACA then). Our plan is to buy private insurance if we have to, but if ACA is gone, or it becomes prohibitively expensive, we plan on moving to my spouse's home country in Europe where private medical care is way cheaper than here.

So, I would keep going.

[Anonymous]

Anonymous wrote:If that one million is the only money you and your spouse have, no, don't stop, unless you want to move to a really low cost of living area, and are prepared to forgo nursing homes and other eldercare expenses.

I have 5M, and don't think it's nearly enough, because I know how much eldercare costs. Also, I want to leave generational wealth to my children if at all possible!

$5mil is enough for all that, unless you are planning to live lavishly in retirement and leave $$ to your kids.