Late 40s. We have about 3.5X our gross HHI saved. Is that ok?

[Anonymous]

Anonymous wrote:I don't think the metric of multiples of income is very useful. Our income has tripled in the last five years, and there is no way we could have kept up with retirement savings if using the multiples metric. We won't need anywhere near 6x-10x this income in retirement.

I would estimate spending in retirement and then see how close you are to that being 3% of your portfolio. We have about 4X our current income, but are absolutely on track (late 40s).

I also use FireCalc to model scenarios, which I find much more useful.

This. A multiple is meaningless. Figure out how much you need to have saved/invested in order retire, assuming safe withdrawal rate and your anticipated income requirements at retirement. It takes math and work.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Multiple is not a good way to look at it. You need to look at future expenses and goals and net worth needed to pay expenses and achieve goals.

We’re early 40s. $750k HHI. $6.5 million net worth. $2 million in taxable investments. $3 million across retirement accounts - 401K, Roth IRA, HSA. $1 million in home equity. $600k in 529s for elementary school kids.

Hope is to retire early 50s with $10 million invested, enough money on top of the 10 million to pay remaining balance of $3 million in properties (will not pay off ahead of schedule), and private high school and college fully paid for.

Your first paragraph is accurate but why do you think your next two paragraphs are helpful to OP? They have nothing to do with the point in your first paragraph because you don’t even discuss your own expenses or metrics. Were you just looking for internet validation that your numbers are high?

The OP asked where others were at. The answer was provided…

OP didn't provide numbers, but their tone clearly suggested that they don't have the same financial situation as you. Nobody (and I mean nobody) GAF about the kind of details you provided. Your post is embarrassing.

You need to chill out. The post provided specific details that are directly relevant to
the discussion. Just because you don’t like the numbers doesn’t mean they are not relevant for people in their 40s tracking retirement savings/planning.

[Anonymous]

Eh, there are so many variables. We're late 40s with HHI $1.5M and we have $4M saved (not including real estate, which is another $2.5M). What can I say? Our income has steadily grown over time but really exploded in the last few years. We didn't always make the best investments. We also like to live large. Some people would say we're behind compared to our HHI, but I know relative to the majority of people, we have a lot of savings and we'd rather live well now, while we're raising our kids. Renovated our home so now it's gorgeous and we love it, take the kids on trips, tons of kids activities/enrichment, love to treat friends and family to stuff. Plus we both enjoy our work and plan to keep at it for a long time. So I feel fine about where we are. There's no one-size-fits-all formula for what you should have saved by what age.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Multiple is not a good way to look at it. You need to look at future expenses and goals and net worth needed to pay expenses and achieve goals.

We’re early 40s. $750k HHI. $6.5 million net worth. $2 million in taxable investments. $3 million across retirement accounts - 401K, Roth IRA, HSA. $1 million in home equity. $600k in 529s for elementary school kids.

Hope is to retire early 50s with $10 million invested, enough money on top of the 10 million to pay remaining balance of $3 million in properties (will not pay off ahead of schedule), and private high school and college fully paid for.

Your first paragraph is accurate but why do you think your next two paragraphs are helpful to OP? They have nothing to do with the point in your first paragraph because you don’t even discuss your own expenses or metrics. Were you just looking for internet validation that your numbers are high?

The OP asked where others were at. The answer was provided…

OP didn't provide numbers, but their tone clearly suggested that they don't have the same financial situation as you. Nobody (and I mean nobody) GAF about the kind of details you provided. Your post is embarrassing.

You need to chill out. The post provided specific details that are directly relevant to
the discussion. Just because you don’t like the numbers doesn’t mean they are not relevant for people in their 40s tracking retirement savings/planning.

DP. We have significantly more than you and I thought your post was inappropriate as well. I have tried to post specific metrics and plans that could help OP determine what they need, without feeling the need to post about my own situation. Posting your details does nothing to help someone with a fraction of what you have.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As always, it's all relative. Most of America retires with practically $0 saved. You're on a message board that obsesses about min-maxing retirement savings. You're in good shape.

Well retiring with basically $0 is not a fun way to live in "retirement" and I wouldnt' recommend it.

Most Americans also carry major debt. Also don't recommend that. Live within your means, if you cannot afford it don't buy it.

OP is not going into retirement with $0, yet most Americans do and somehow get along. In other words, OP is doing fine but has inadvertently provided content for this board to brag about their financial situations. Wash, rinse, repeat...

Yup, my parents get along on social security and medicare. I mean, I wouldn't recommend it. But they're not on the street. It's not like you see a lot of elderly living on the street anyway.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Multiple is not a good way to look at it. You need to look at future expenses and goals and net worth needed to pay expenses and achieve goals.

We’re early 40s. $750k HHI. $6.5 million net worth. $2 million in taxable investments. $3 million across retirement accounts - 401K, Roth IRA, HSA. $1 million in home equity. $600k in 529s for elementary school kids.

Hope is to retire early 50s with $10 million invested, enough money on top of the 10 million to pay remaining balance of $3 million in properties (will not pay off ahead of schedule), and private high school and college fully paid for.

Your first paragraph is accurate but why do you think your next two paragraphs are helpful to OP? They have nothing to do with the point in your first paragraph because you don’t even discuss your own expenses or metrics. Were you just looking for internet validation that your numbers are high?

The OP asked where others were at. The answer was provided…

OP didn't provide numbers, but their tone clearly suggested that they don't have the same financial situation as you. Nobody (and I mean nobody) GAF about the kind of details you provided. Your post is embarrassing.

You need to chill out. The post provided specific details that are directly relevant to
the discussion. Just because you don’t like the numbers doesn’t mean they are not relevant for people in their 40s tracking retirement savings/planning.

Different PP. Your post was obnoxious and useless. You didn’t provide your expenses (the metric you determined was relevant to this discussion). You just went on about high account balances that you hoped would get you a giant pat on the back.

But it’s not just you, PP. Too many desperate strivers on this board respond the same way you do to these posts. And you probably think those of us who tell you it’s embarrassing and not helpful in the context of OP’s post are jealous, but you would be wrong.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Multiple is not a good way to look at it. You need to look at future expenses and goals and net worth needed to pay expenses and achieve goals.

We’re early 40s. $750k HHI. $6.5 million net worth. $2 million in taxable investments. $3 million across retirement accounts - 401K, Roth IRA, HSA. $1 million in home equity. $600k in 529s for elementary school kids.

Hope is to retire early 50s with $10 million invested, enough money on top of the 10 million to pay remaining balance of $3 million in properties (will not pay off ahead of schedule), and private high school and college fully paid for.

Your first paragraph is accurate but why do you think your next two paragraphs are helpful to OP? They have nothing to do with the point in your first paragraph because you don’t even discuss your own expenses or metrics. Were you just looking for internet validation that your numbers are high?

The OP asked where others were at. The answer was provided…

OP didn't provide numbers, but their tone clearly suggested that they don't have the same financial situation as you. Nobody (and I mean nobody) GAF about the kind of details you provided. Your post is embarrassing.

You need to chill out. The post provided specific details that are directly relevant to
the discussion. Just because you don’t like the numbers doesn’t mean they are not relevant for people in their 40s tracking retirement savings/planning.

Different PP. Your post was obnoxious and useless. You didn’t provide your expenses (the metric you determined was relevant to this discussion). You just went on about high account balances that you hoped would get you a giant pat on the back.

But it’s not just you, PP. Too many desperate strivers on this board respond the same way you do to these posts. And you probably think those of us who tell you it’s embarrassing and not helpful in the context of OP’s post are jealous, but you would be wrong.

Another DP who agrees that the post was unhelpful and obnoxious.

[Anonymous]

You need to look at expenses and net worth. Not a multiple of HHI.

[Anonymous]

Anonymous wrote:We need some numbers. If you are lower to average in HHI income it’s impressive. But if you are higher income than you have a lot of work to do since social security likely does less of the heavy lifting for you in retirement as a percent of income.

why does it matter? i’m not the OP and our income swings wildly. ashanti’s we made double what we made last year, it we could make 25% of this years income next year. None of these silly comparisons make sense. I have an idea of what we need
o they in retirement and I just back into that

[Anonymous]

The multipliers are useful for the majority of people. They stop being useful when you make a lot more money than you spend.

[Anonymous]

Anonymous wrote:Eh, there are so many variables. We're late 40s with HHI $1.5M and we have $4M saved (not including real estate, which is another $2.5M). What can I say? Our income has steadily grown over time but really exploded in the last few years. We didn't always make the best investments. We also like to live large. Some people would say we're behind compared to our HHI, but I know relative to the majority of people, we have a lot of savings and we'd rather live well now, while we're raising our kids. Renovated our home so now it's gorgeous and we love it, take the kids on trips, tons of kids activities/enrichment, love to treat friends and family to stuff. Plus we both enjoy our work and plan to keep at it for a long time. So I feel fine about where we are. There's no one-size-fits-all formula for what you should have saved by what age.

You are fine, as long as you don't wish to continue living the exact same lifestyle in retirement. If you do, then you need to ramp up savings or you will fall short.

[Anonymous]

Anonymous wrote:Well DH and I save and invest separately - spender (him) and saver (me).

Early 40s - I have 15x my income saved and invested (excluding significant home equity and $600k in 529 plans). About 50% of that is separate property (pre-marriage investments that I kept separate) and the other 50% of technically marital property, but that's only relevant if we get a divorce - I control it as long as we are married, and it's part of my estate.

DH is older and only has 3x saved.

Story of a spender versus a saver.

Genuinely curious how marriages like this survive. What happens if DH looses his job at 50/55 and cannot easily find work equivalent to current job? What happens if at some point he needs to enter memory care/assisted living? But he has only enough left for 6 months? Do you spend down your savings? Do you manage with him at home (and stress yourself out to save the $$)?

[Anonymous]

Anonymous wrote:Between our 401ks, brokerage accounts, and cash, we have about 3.5X our current HHI in financial assets. Not including home equity.

On the one hand, I'm proud of what we've been able to accumulate. On the other hand, 3.5X doesn't seem like a huge multiple if we ever want to stop working.

Where are others at in their late 40s??

We are late 30s
HHI: ~350k (but that has almost doubled only in the last few years from what it was before)
Total savings/investments: 40k
401k: ~300k
No college savings currently. I know I know.
Current home equity: ~2 million
Projected pension value: @80k/yr
Non-mortgage debt: none

We are behind on savings.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Multiple is not a good way to look at it. You need to look at future expenses and goals and net worth needed to pay expenses and achieve goals.

We’re early 40s. $750k HHI. $6.5 million net worth. $2 million in taxable investments. $3 million across retirement accounts - 401K, Roth IRA, HSA. $1 million in home equity. $600k in 529s for elementary school kids.

Hope is to retire early 50s with $10 million invested, enough money on top of the 10 million to pay remaining balance of $3 million in properties (will not pay off ahead of schedule), and private high school and college fully paid for.

Your first paragraph is accurate but why do you think your next two paragraphs are helpful to OP? They have nothing to do with the point in your first paragraph because you don’t even discuss your own expenses or metrics. Were you just looking for internet validation that your numbers are high?

The OP asked where others were at. The answer was provided…

OP didn't provide numbers, but their tone clearly suggested that they don't have the same financial situation as you. Nobody (and I mean nobody) GAF about the kind of details you provided. Your post is embarrassing.

You need to chill out. The post provided specific details that are directly relevant to
the discussion. Just because you don’t like the numbers doesn’t mean they are not relevant for people in their 40s tracking retirement savings/planning.

Different PP. Your post was obnoxious and useless. You didn’t provide your expenses (the metric you determined was relevant to this discussion). You just went on about high account balances that you hoped would get you a giant pat on the back.

But it’s not just you, PP. Too many desperate strivers on this board respond the same way you do to these posts. And you probably think those of us who tell you it’s embarrassing and not helpful in the context of OP’s post are jealous, but you would be wrong.

Another DP who agrees that the post was unhelpful and obnoxious.

Make that 3 of us.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Well DH and I save and invest separately - spender (him) and saver (me).

Early 40s - I have 15x my income saved and invested (excluding significant home equity and $600k in 529 plans). About 50% of that is separate property (pre-marriage investments that I kept separate) and the other 50% of technically marital property, but that's only relevant if we get a divorce - I control it as long as we are married, and it's part of my estate.

DH is older and only has 3x saved.

Story of a spender versus a saver.

Whoa, 600k in 529s? I'm assuming you have 3 kids? I am also a saver but that's a very high number especially with your savings rate and investment property, you have many means of funding college for your kids.

It is weird to me how antagonistic you are towards your husband and the degree to which you keep your finances separate. My DH and I also have different financial personalities -- I'm more conservative and a saver, he's more risk taking and a spender. But we combine everything and I actually like how our tendencies balance each other out. We have way more total money saved/invested because of my influence -- I insist on high percentages of automatic savings and investing out of our income, and I don't allow lifestyle creep when we get raises, so the money builds up fast. But my husband's greater capacity for risk is why it's grown at a higher rate. I would have much more of our money in ordinary savings were it not for his influence, and we would have missed out on massive gains in recent years. Also he makes sure we actually enjoy life, take real vacations, and reminds me that there's no prize for living like a pauper. We balance each other out and both come out ahead.

600K in a 529 and you expect 3+ kids? Why? Currently you can expect to spend $40-50K per year for a moderate school, so $200K minimum per kid. But if they want to attend others, there are tons that cost much more. So why wouldn't you save for it? Also, what if your kid wants grad school/proofessional school? Those can cost $200-300K+. We just spent $370K+ for 4 years, and are looking at another $200K for just one kid. Good thing it's in the 529. The other kid was $160K total for 4 years but that was 6-8 years ago.