How much do people have saved for retirement?

[Anonymous]

we have ~1M in 401k, 100k in roth, but own 3 homes and will not need the equity from our primary home (probably will have 1M in equity) to buy our retirement home so all those profits will be pocketed.

We are 43, but do not plan on working past 59, but won't take social security until age 67, but we both have been working non stop since age 23 so we will both get full benefits, assuming nothing stops us in our tracks.

Your DH has been holding the bag for many years. I'd take his lead on this one.

[Anonymous]

Anonymous wrote:This is a dumb question. On dcum, it turns into a pissing match and everyone on here seems to have $1+ million by late 20s/30s, which is an absolute farce.

Median numbers are easily searchable. Your avg American has way less than $200k by their 40s.

Yes, but your average American has not graduated college and your average American does not have a white-collar job.

It's foolish to feel better about you situation because Barbie in a trailer park does not have any savings.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is a dumb question. On dcum, it turns into a pissing match and everyone on here seems to have $1+ million by late 20s/30s, which is an absolute farce.

Median numbers are easily searchable. Your avg American has way less than $200k by their 40s.

Not in this area. OP will struggle with what she has.

Except you'd have to be a moron to stay in this area during retirement.

We plan to stay here. We like DMV area. We got money saved for that purpose. I suppose you can move to somewhere south or midwest where COL is cheaper but we are not.

[Anonymous]

Honestly the wild card is housing. If you have paid off housing, most other retirement expenses aren't that high (relatively speaking) in the DMV. Healthcare costs are pretty much the same everywhere (usually higher in rural areas). DC has high income, but not property taxes (flipped from FL/TX).

Basically if you own your house outright, I'd stay in DC. It looks like you have saved enough to do so.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is a dumb question. On dcum, it turns into a pissing match and everyone on here seems to have $1+ million by late 20s/30s, which is an absolute farce.

Median numbers are easily searchable. Your avg American has way less than $200k by their 40s.

Not in this area. OP will struggle with what she has.

Except you'd have to be a moron to stay in this area during retirement.

Why? If your house is already paid for when you retire, your housing expense will be limited to taxes + utilities. Not much different than anywhere else, considering there are many parts of the country with property tax rates higher than DC metro. Most retirees aren't heading out to the pricey trendy bars and restaurants. If you can afford it, DC is a great place to be a retiree - tons of free cultural activities that you can take advantage of when you have time on your hands.

There are states where there are 0% taxes on retirement account withdrawals or 0% income taxes. Plus done states have other perks like reduced property taxes, lower rates for insurance on basically everything, and much lower cost of living overall. Paying 0% income tax on 401k income is huge amounts of money to consider. It isn't worth it at all to stay in this region in retirement to pay 3x sticker price on everything just to have access to amenities and a job market you no longer need.

[Anonymous]

Anonymous wrote:We have almost 400k in 401k, 50k in Roth, two paid houses in nice areas from inheritances, my pension (I'm a gs15) and we're almost 30 years away from retirement. Kids have enough for college and possibly some grad school. We have more than enough.

How old will you be at retirement?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is a dumb question. On dcum, it turns into a pissing match and everyone on here seems to have $1+ million by late 20s/30s, which is an absolute farce.

Median numbers are easily searchable. Your avg American has way less than $200k by their 40s.

Not in this area. OP will struggle with what she has.

Except you'd have to be a moron to stay in this area during retirement.

Why? If your house is already paid for when you retire, your housing expense will be limited to taxes + utilities. Not much different than anywhere else, considering there are many parts of the country with property tax rates higher than DC metro. Most retirees aren't heading out to the pricey trendy bars and restaurants. If you can afford it, DC is a great place to be a retiree - tons of free cultural activities that you can take advantage of when you have time on your hands.

There are states where there are 0% taxes on retirement account withdrawals or 0% income taxes. Plus done states have other perks like reduced property taxes, lower rates for insurance on basically everything, and much lower cost of living overall. Paying 0% income tax on 401k income is huge amounts of money to consider. It isn't worth it at all to stay in this region in retirement to pay 3x sticker price on everything just to have access to amenities and a job market you no longer need.

DC does offer a property tax break for seniors. Obviously not enough to offset all the other high taxes but it is something.

[Anonymous]

Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
This is a dumb question. On dcum, it turns into a pissing match and everyone on here seems to have $1+ million by late 20s/30s, which is an absolute farce.

Median numbers are easily searchable. Your avg American has way less than $200k by their 40s.


Not in this area. OP will struggle with what she has.


Except you'd have to be a moron to stay in this area during retirement.

Why? If your house is already paid for when you retire, your housing expense will be limited to taxes + utilities. Not much different than anywhere else, considering there are many parts of the country with property tax rates higher than DC metro. Most retirees aren't heading out to the pricey trendy bars and restaurants. If you can afford it, DC is a great place to be a retiree - tons of free cultural activities that you can take advantage of when you have time on your hands.



There are states where there are 0% taxes on retirement account withdrawals or 0% income taxes. Plus done states have other perks like reduced property taxes, lower rates for insurance on basically everything, and much lower cost of living overall. Paying 0% income tax on 401k income is huge amounts of money to consider. It isn't worth it at all to stay in this region in retirement to pay 3x sticker price on everything just to have access to amenities and a job market you no longer need.

Fairfax County has reduced property taxes for seniors at certain income levels (it phases in). In general, if you have lower taxes in an area you will have fewer amenities as well. Maybe you don't use those amenities, but there are many amenities for seniors in these areas as well (for example the rec centers and programming for seniors there and through our senior centers, OLLI at GMU, etc.). Health care is top notch here as compared to lower income areas. Many people also have children and grandchildren near them if they stay. I think you are overstating it when you say 3x sticker price on everything. This area is pretty good if you have your house paid off and you want to be active as a senior citizen. There is a lot going on here.

[Anonymous]

I’m team DH here. We’re 40, and have just over $1M as a household. I have $600k, she has $400k plus a fed pension as a GS 15.

One thing to think about is high the stock market is right now. If it fell 30%, everyone’s 401k balances would be significantly lower.

[Anonymous]

You had enough now you don’t. Why, interest rates are very low and stock prices very high. As recently as 2011 you could get 5 percent investment grade Munis and up to a few months ago three percent investment grade Munis, we also had decent. CD yields up to early March 2020 and treasury rates.

So on a typical 60/40 stock bond portfolio a 65 year old has to start retirement you 40 is broken, but stocks are all time highs which means dividend income is low. Add in the 401k is taxable income it won’t last long.

Ironically my stock broker when I used to have one starting at 35 years of age he took 1/2 his bonus and bought a 30 year non callable Investment grade muni z-coupon bond. He is laddering years 65 to 85.

[Anonymous]

They actually have plenty in the 401k. The problem is two fold a large mortgage at start of retirement and no investments that generate, interest, dividends or rent payments outside of retirement.

I have roughy same 401k amount and age. But I have enough cash, bonds, stock and a paid off rental property. I plan On living off cash and maturing bonds first then started RMD on 401k only when forced to and slowly start selling stock. Your amount if 401k is not issue it is you are touch it so soon at retirement

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is a dumb question. On dcum, it turns into a pissing match and everyone on here seems to have $1+ million by late 20s/30s, which is an absolute farce.

Median numbers are easily searchable. Your avg American has way less than $200k by their 40s.

Yes, but your average American has not graduated college and your average American does not have a white-collar job.

It's foolish to feel better about you situation because Barbie in a trailer park does not have any savings.

+1 The average American is overweight, poor, etc

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is a dumb question. On dcum, it turns into a pissing match and everyone on here seems to have $1+ million by late 20s/30s, which is an absolute farce.

Median numbers are easily searchable. Your avg American has way less than $200k by their 40s.

Yes, but your average American has not graduated college and your average American does not have a white-collar job.

It's foolish to feel better about you situation because Barbie in a trailer park does not have any savings.

+1 The average American is overweight, poor, etc

I know what you are trying to say but that just sounds so idiotic. But your pt is well taken.

[Anonymous]

I always feel that DCUM oversaves

I don't get why people need over 100k in retirement. For most people SS almost gets you halfway there. And SS isn't going away, the age might go up and benefits might slightly decrease but most people should be expecting at least 2500 a month if they are working

Main point being 1-3 million retirement account fund at age 60-65 is plenty.

Some realistic benchmarks 1 million at 55

500k at 45

250k at 35

[Anonymous]

Anonymous wrote:DCUM is crazy about this. Normal people would feel like you do - and would feel that, with over $1 million in retirement savings and another 10 years to go, of course you can travel and buy a couch.

On DCUM they'll tell you to move into a garden apartment rental and eat only rice and beans until you hit $11 million, then maybe you can get takeout pizza once a year.

Don't come on here asking the 1%er's when you can retire. It will never be enough....