Networth as a multiple of your income

[Anonymous]

21x
45&55
ASAP, but big expenses are on horizon

[Anonymous]

5x
Age 52
When I am no longer employable

[Anonymous]

Anonymous wrote:~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.

Most people spend everything they don't put away for retirement though.

[Anonymous]

Anonymous wrote:

Anonymous wrote:~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.

Most people spend everything they don't put away for retirement though.

Maybe in the real world, but not on DCUM. If you are maxing 2 401ks, IRAs, and saving for college, that's a big chunk of cash you are not going to need in retirement.

[Anonymous]

Anonymous wrote:

Anonymous wrote:~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.

Most people spend everything they don't put away for retirement though.

That is a big problem.

[Anonymous]

Why? We only live once might as well enjoy it. If kids are set for life why not by the sports car, use the netjets card, lease the skybox, etc.

[Anonymous]

Anonymous wrote:Why? We only live once might as well enjoy it. If kids are set for life why not by the sports car, use the netjets card, lease the skybox, etc.

You do not think it is a problem that people fail to save for retirement?

[Anonymous]

Age 39

Hope to retire in late 50s/early 60s

Total networth is 5x income
Total investments (401k, IRA, etc.) is about 4.5x income

[Anonymous]

3X
36 year old
plan to retire in mid-60s

[Anonymous]

Anonymous wrote:

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.

+1

We live on a fraction of our HHI.

That said, our numbers are:

3.5x
33
ASAP

[Anonymous]

About 1.5x (not including vested pension and 529 savings)
Ages 30/35
Late 50s/early 60s I hope?

Once we finish paying student loans and daycare, we'll be able to squirrel away a lot more money.

[Anonymous]

This is an arbitrary measurement.

Right now we are at 3X but our HHI is much larger and we are saving a lot more than we were 5-7 years ago. Back then we were probably more like 5X but had a lot less money in the bank.

As somebody said above, you need to size this off of your projected income needs in retirement. When we do that, we are more like 10X, currently in our early 40s.

[Anonymous]

Just so we're all in the same page: Does HHI include your mortgaged primary house? E.g. I have a $500,000 house but owe $350,000 on it still. Would that be considered only $150,000 towards my HHI? Also assuming 401K account counts towards HHI?

[Anonymous]

Anonymous wrote:

Anonymous wrote:2x
40
Don't know. Want to be able to retire at 55 or so.

I don't know how on earth some of these multiples are possible unless people had a windfall (maybe in real estate) or a big inheritance.

we're at about 14 times. Includes an inheritance (not huge), and significant home equity. In 40s so had the benefit of years of investing. But we also currently have a relatively low HHI (for dcum not for the real world), so our overall number is probably lower than most here.

We are 37 and only have 1x but our HHI is 800k. We had a lot of grad school and med school debt so it took a while to pay off. No help from parents. We actually help out our elderly parents financially. Hoping to catch up on retirement.

[Anonymous]

Our net worth is about 8X our gross income, but it is 20X our annual spending.