40 years Old Financial Calculators Fail Us Thread For Good Savers

[Anonymous]

Anonymous wrote:I find it hard to believe that a calculator says you need to save 75% or more of your take-home income to retire. That's quite contradictory in itself since it assumes you are able to live just fine on the 20% left. (Assuming $220k income, 30% total taxes which may be low, $10k/month is 76% of take-home.)

Since most of the retirement assets are in tax deferral accounts, I'll be paying taxes when I withdraw so it is the same.

[Anonymous]

Anonymous wrote:Dude, if you have that much money, go to a financial advisor and ask the question instead of playing around with online calculators and posting here.

The fact that I don't go to a financial advisor is specifically one of the reasons why I have saved well. I don't need some moron telling me that I need to buy the hot new load fund. On this website all I loose in some time and I act as my own filter.

[Anonymous]

lose above not loose

[Anonymous]

Dude, if you have that much money, go to a financial advisor and ask the question instead of playing around with online calculators and posting here.


The fact that I don't go to a financial advisor is specifically one of the reasons why I have saved well. I don't need some moron telling me that I need to buy the hot new load fund. On this website all I loose in some time and I act as my own filter.

Um, as someone who actually has a financial advisor, that is not at all what one does for you. I suspect your real reason for posting was to either brag or create controversy.

[Anonymous]

I'm not retiring until at least age 72.

[Anonymous]

Anonymous wrote:

Dude, if you have that much money, go to a financial advisor and ask the question instead of playing around with online calculators and posting here.


The fact that I don't go to a financial advisor is specifically one of the reasons why I have saved well. I don't need some moron telling me that I need to buy the hot new load fund. On this website all I lose is some time and I act as my own filter.

Um, as someone who actually has a financial advisor, that is not at all what one does for you. I suspect your real reason for posting was to either brag or create controversy.

Ok please enlighten me as to what your financial advisor does to help you? Let me take a guess asset allocation...which based on my age (110-40) is 70 percent stock 30 percent bonds. Within the 70 percent, 70 percent large cap, 20 midcap , and 10 small cap/ international. If he's using calculators for college/ retirement , they are probably not too different from what I can get online. How does he charge you? 1 percent fee on 1.6 million is 16k per year. Seriously look at your statements and see how many loaded funds you are in.

I realize that the online calculators are oversimplified and wanted to talk this out on this forum which is what this forum is for discussing things related to money finances. I know I could create a schedule myself too estimating earnings and interest.

[Anonymous]

I just went to Firecalc.com, and plugged in that you will retire in 15 years, between now and then you will save $40k a year for retirement, you currently have $1.4 mil saved for retirement purposes, SS income for each spouse at $35k starting age 70, and you will save $40k a year between now and when you retire. It gives you a 100 percent chance of success.

Given the above data, you can retire in 2026 with a 100 percent chance of not outliving your savings.

[Anonymous]

Above - meant that you will live on a present-value income of $140k a year.

[Anonymous]

Anonymous wrote:Above - meant that you will live on a present-value income of $140k a year.

Thanks. PP I will look at the one you recommended the other one recommended earlier.

[Anonymous]

Anonymous wrote:I just went to Firecalc.com, and plugged in that you will retire in 15 years, between now and then you will save $40k a year for retirement, you currently have $1.4 mil saved for retirement purposes, SS income for each spouse at $35k starting age 70, and you will save $40k a year between now and when you retire. It gives you a 100 percent chance of success.

Given the above data, you can retire in 2026 with a 100 percent chance of not outliving your savings.

OP here -I just went to the site. It looks great. Thanks for the tip!

[Anonymous]

Anonymous wrote:

Anonymous wrote:Yeah, I have noticed this about those calculators too. Right now ours says we need to save $10 million for retirement and that we are off-track because at our current savings rate we'll have only $8 million. That just seems insane. I wonder if they assume that you won't make any changes in lifestyle???

I think that's exactly what they assume. I don't know about you, but is fully intend to live somewhere with a much lower cost of living when we're both retired.

But what if all your children live here? We're 48 and 50 and I could definitely see staying here in retirement if the kids are here.

[Anonymous]

Anonymous wrote:I'm not retiring until at least age 72.

What do you do? I'm only 48 and I can't imagine working past 63. Then again, I've been working 60 to 80 hours a week for the past 23 years.

[Anonymous]

Anonymous wrote:House bought before bubble.. paid 300k. We've always maxed out our 401k's and have also done IRA's. College savings has a lot of appreciation too. We are like 90 plus percent stocks.

Wait how did you buy a 300k house right out of college? Or is your spouse older than 40?

We make about the same and save max 401k and some iRA savings but no where near 1m, still puzzled b/c the 200k housing doesn't explain the 600k gap I see between your M+ savings and our more pedestrian savings! Did you double down in 2009 crash?

[Anonymous]

Anonymous wrote:

Anonymous wrote:House bought before bubble.. paid 300k. We've always maxed out our 401k's and have also done IRA's. College savings has a lot of appreciation too. We are like 90 plus percent stocks.

Wait how did you buy a 300k house right out of college? Or is your spouse older than 40?

We make about the same and save max 401k and some iRA savings but no where near 1m, still puzzled b/c the 200k housing doesn't explain the 600k gap I see between your M+ savings and our more pedestrian savings! Did you double down in 2009 crash?

Spouse is a few years older. We bought when I was in my late 20's. When I say max 401k/ IRA I am saying 50 to 60k a year (includes generous company match) plus appreciation based on our current income. We have always maxed 401k to max allowed by plan plus IRA (non-deductible). We didn't double down in 2009 but didn't cut our retirement savings. I will admit at the time it was hard. Market returns this year alone represented 230k in appreciation. Compounded interest and index funds are wonderful.