What's your "number"?

[Anonymous]

Anonymous wrote:We'll probably sell our house. We can't pay off the mortgage before we retire because we bought it in our late 40s and the mortgage is too high to pay when we aren't working. We'll probably sell and downsize.

If the above is true you can't afford your house NOW. The sooner you realize that the more secure your retirement will be.

[Anonymous]

Anonymous wrote:Poor by DCUM standards, above average by the rest of US. HHI of around $110K. Late 30s/early 40s. Expect to need 2M and part tuition for 2 kids. Currently have $500K not including value of house.

This is us, too, but only 1 kid.

[Anonymous]

$22M in today's dollars. Figuring some funds are tax free that should give $1m per year post taxes, plus $2m house in dc and nyc and a place on the world cruise ship. That should cover a chef, housekeeper, home upkeep and spending money to travel and eAt very well.

[Anonymous]

I feel way richer when they ask this question over at Mr. Money Mustache...

[Anonymous]

Anonymous wrote:

Anonymous wrote:We'll probably sell our house. We can't pay off the mortgage before we retire because we bought it in our late 40s and the mortgage is too high to pay when we aren't working. We'll probably sell and downsize.

If the above is true you can't afford your house NOW. The sooner you realize that the more secure your retirement will be.

Could you explain?

Also, if we sell now we will lose money after closing costs and other fees and we won't have enough to buy another houses. Don't many people downsize when their kids move out and get a smaller house or condo? We need to own our house long enough to gain equity and appreciation.

[Anonymous]

We have 1.5 M saved now 40's and need a min of 3M when kid expenses are done.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We'll probably sell our house. We can't pay off the mortgage before we retire because we bought it in our late 40s and the mortgage is too high to pay when we aren't working. We'll probably sell and downsize.

If the above is true you can't afford your house NOW. The sooner you realize that the more secure your retirement will be.

Could you explain?

Also, if we sell now we will lose money after closing costs and other fees and we won't have enough to buy another houses. Don't many people downsize when their kids move out and get a smaller house or condo? We need to own our house long enough to gain equity and appreciation.

Not the PP, but in my experience you are part of a growing population. Until recently, everyone I know planned to have their house paid off by the time of retirement, usually by shorter term mortgages. But, recently, I'm hearing of people who will have a mortgage into retirement. That seems like a huge financial burden when your income is reduced. I think that's what PP is talking about.

[Anonymous]

We expect to have $4-5 million plus about $100k/year (in today's dollars) from pensions. This does not include college, house should be paid off.

[Anonymous]

I think more of how to get major needs covered vs. money saved. We are saving but, for example, DH stayed in a federal government job for a few years longer than he preferred so that he could retire with a government pension - small one but it includes government healthcare participation for both of us for life. That's a big relief (and potentially unknown cost). For college we have locked in Virginia prepaid contracts since DCs were small and bought some years from the independent 529, plus 529s for other expenses. We already bought and redid the home we will retire in, to be paid off shortly. Principal residence will be paid off to live in or sell free and clear. Won't need much cash if housing and healthcare covered but should have $3-4 m

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Can someone provide some advice on how to save that much? We're 35 and have a HHI of 350. We just started contributing to our 401Ks this year. How do we save 5 million by 65? Thanks.

Save $100k a year. Invest wisely. You should hit $5mm in 30 years unless markets do nothing for the whole period.

Invest in the market? Mutual funds/etfs? Or in other things?

Yes to all. You should probably go with a diversified basket of index funds - mostly US equities, but with a chunk of international and emerging markets indexes.

Interesting. So when people talk about what they have saved for retirement, it's 401K + extra money they pump into the market, and this is how they get to 5 million? I'm assuming you can't count your house - you have to live somewhere so presumably you arent going to sell it in retirement until possibly the very end of life if you go into a home.

Depends. We have a 5 bedroom house - we won't need, nor want, something this large in retirement. My vision is a pied a terre in Europe and something like a townhouse here. So I count a portion of my house as retirement.

[Anonymous]

Anonymous wrote:I think more of how to get major needs covered vs. money saved. We are saving but, for example, DH stayed in a federal government job for a few years longer than he preferred so that he could retire with a government pension - small one but it includes government healthcare participation for both of us for life. That's a big relief (and potentially unknown cost). For college we have locked in Virginia prepaid contracts since DCs were small and bought some years from the independent 529, plus 529s for other expenses. We already bought and redid the home we will retire in, to be paid off shortly. Principal residence will be paid off to live in or sell free and clear. Won't need much cash if housing and healthcare covered but should have $3-4 m

Curious, how do you get government health insurance in retirement for both of you?

[Anonymous]

What will you all be doing in retirement that you need so much money? Just curious? We have a HHI of $300k but can't imagine we'd need such large sums of money for day to day expenses in retirement. We will pay off the mortgage before we retire and own a rental property we 'll probably sell. With no mortgage payment, what will you do with all the money??? I'd like to do some traveling but not that much.

[Anonymous]

Anonymous wrote:What will you all be doing in retirement that you need so much money? Just curious? We have a HHI of $300k but can't imagine we'd need such large sums of money for day to day expenses in retirement. We will pay off the mortgage before we retire and own a rental property we 'll probably sell. With no mortgage payment, what will you do with all the money??? I'd like to do some traveling but not that much.

I'm one of the posters who said 10-12 mil. We plan on living in NYC, 2-3 mil apt which we will pay for in cash. Coops and condos have maintenance fees/taxes. We want an apt with carrying costs under 3k/month not including utilities. We have one child to send through private school, ~45k a year for high school and middle school. College is already funded in a 529 but we may have to help for grad school.

We will be retiring to Manhattan so it really depends on the area you want to retire to. We don't plan on traveling much either.

[Anonymous]

Anonymous wrote:What will you all be doing in retirement that you need so much money? Just curious? We have a HHI of $300k but can't imagine we'd need such large sums of money for day to day expenses in retirement. We will pay off the mortgage before we retire and own a rental property we 'll probably sell. With no mortgage payment, what will you do with all the money??? I'd like to do some traveling but not that much.

+1. We are also at $300k. I actually think ~$100k a year in retirement will be just fine (in today's dollars). House paid off, no debts, etc. I look at akin to life pre kids - $100k a year was plenty then.

[Anonymous]

Anonymous wrote:

Anonymous wrote:What will you all be doing in retirement that you need so much money? Just curious? We have a HHI of $300k but can't imagine we'd need such large sums of money for day to day expenses in retirement. We will pay off the mortgage before we retire and own a rental property we 'll probably sell. With no mortgage payment, what will you do with all the money??? I'd like to do some traveling but not that much.

+1. We are also at $300k. I actually think ~$100k a year in retirement will be just fine (in today's dollars). House paid off, no debts, etc. I look at akin to life pre kids - $100k a year was plenty then.

how much will you need to have when you retire then if you're planning on 100k/year?