Networth as a multiple of your income
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Anonymous
uh, because you have a plan for your retirement? |
Anonymous
People who started their 23rd year with large student loan debts and no help from parents for a down payment. Must be nice. |
Anonymous
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1.3x
32 65 |
Anonymous
No help from parents here which is exactly why i worked all through college to pay cash as I went. That's why I did 2 years ad Northern VA community college and then transferred to UVA. I knew that in being financially on my own that I didn't have thr luxury to follow the same path as many of my peers. With community college, there really is no reason to carry around enormous debt loads. Back 12yrs ago when I bought my first house (2002) there was no need for anything more than a 3% down payment. I do feel terrible for 23yr olds today. Housing here is impossible. |
Anonymous
Well it is good people are not doing low down payment highly leveraged loans like you did; your gamble worked out but three years later you could have rued that gamble (esp since Virginia is a recourse state). The instate optiom worked well; I wish I had grown up in a state with an in-state university have as good as UVA, good choice |
Anonymous
How do you intend to have enough money to do so in just nine years? Or will you be living somewhere with a much lower cost of living? |
Anonymous
True, but housing was so much lower back then. My nice home cost 300k and I could have rented it for the cost of mortgage, so even in the event of catastrophe, we would have been fine, plus as 23, we rented the basement to a friend. Impossible now in today's world. |
Anonymous
This is why we are paying for college for our children. So, they do not start off adulthood in the hole. Saving for a down payment and their retirement will be on their own dime. I am grateful to my parents for doing the same. Once the fiirst generation does this and the next keeps it going, it is nice. That first generation does have to pinch a few more pennies to do so, but in the long run it is worth it. Going the CC and in state college route can also be helpful to reduce or eliminate the debt of that first generation. |
Anonymous
| For retirement age calculations, should it not be net worth as multiples of actual expenses at retirement? |
Anonymous
Low hi and bought a house before the bubble. |
Anonymous
We have the good fortune of making very high income, which is why the multiple is so low. Multiple of income type calculations probably makes a lot of sense for people who work a normal career, and etc. But it can be skewed for those with long/expensive schooling and where the earning potential and accumulation of wealth peaks in the 40's and 50's. I made a jump from being an employee to a small business owner. If I was calculating against the income of when we were W2 employees, the multiple would be closer to 30. |
Anonymous
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1. The ratio of your net worth to your HHI. E.g. is your net worth 5 times your HHI, or 0.2 times? Our net worth is 10 times our annual income
2. Your age 50. My spouse is 52. 3. Age at which you intend or hope to retire No idea! Maybe 65? I like to work. No burning desire to do something else with the 45 hours I spend working each week. |
Anonymous
Don't you track your financial progress? Do you step on the scale to track your weight? Same thing for financial matters. |
Anonymous
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6x
35 & 39 We would like to semi retire when the youngest finishes college (55 & 59). |
Anonymous
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~2x
37 45 Multiple of income is only relevant if one's standard of living requires a significant portion of the annual HHI. If one makes $2mm/year but only lives on $200K/year, then aiming for an arbitrary multiple of annual HHI will only distort the actual calculation of when accumulated savings are sufficient to fully fund retirement. |