Age, income, and amount saved for retirement?

[Anonymous]

We’re in our early sixties and have been retired for nearly a decade. When we retired our net worth was about 4.0 million. Now it’s $7.5 million thanks to the market, real estate appreciation and our spending habits.

After all this time we finally sat down with a financial advisor. She ran the numbers and told us we have a 99+ chance of a successful retirement into our 90s with a shit ton of money left over. Also advised that we take social now rather than wait and that we don’t look into long term care insurance because we don’t need it.

It was a very reassuring meeting even if it did confirm everything that I already knew/thought.

[Anonymous]

Anonymous wrote:We’re in our early sixties and have been retired for nearly a decade. When we retired our net worth was about 4.0 million. Now it’s $7.5 million thanks to the market, real estate appreciation and our spending habits.

After all this time we finally sat down with a financial advisor. She ran the numbers and told us we have a 99+ chance of a successful retirement into our 90s with a shit ton of money left over. Also advised that we take social now rather than wait and that we don’t look into long term care insurance because we don’t need it.

It was a very reassuring meeting even if it did confirm everything that I already knew/thought.

Thanks for sharing. Reassuring indeed. We have about the same, one retired (59) and the other will work for a few more years. We still have two kids in college so want to make sure that's completed.

Do you mind sharing your expenditure profile? How much do you spend every year? travel? Number of homes? Mortgage? etc. Thanks!

[Anonymous]

36, 450k hhi, 560k in 401k

[Anonymous]

Anonymous wrote:

Anonymous wrote:We’re in our early sixties and have been retired for nearly a decade. When we retired our net worth was about 4.0 million. Now it’s $7.5 million thanks to the market, real estate appreciation and our spending habits.

After all this time we finally sat down with a financial advisor. She ran the numbers and told us we have a 99+ chance of a successful retirement into our 90s with a shit ton of money left over. Also advised that we take social now rather than wait and that we don’t look into long term care insurance because we don’t need it.

It was a very reassuring meeting even if it did confirm everything that I already knew/thought.

Thanks for sharing. Reassuring indeed. We have about the same, one retired (59) and the other will work for a few more years. We still have two kids in college so want to make sure that's completed.

Do you mind sharing your expenditure profile? How much do you spend every year? travel? Number of homes? Mortgage? etc. Thanks!

Sure (with minor name changes to protect the innocent ha ha).

We spend about $250 to $280 k a year, but it’s a little complicated because it includes about $50k of expenses relating to two rental properties that we own. We bring in about $70k a year on the properties. We track our expenses pretty closely with an app; last year our negative cash flow was $180k and the year before it was $220k (thanks to a one time tax hit on something I’m not gonna get into). The bottom line is that those are the amounts that we actually ended up taking out of our accounts.

We own three homes - our primary residence where we have about 60 to 70 percent equity and a very low interest rate mortgage that we’re not paying off, a second home with no mortgage, and a third that’s a rental property with another very low interest loan and about 50 percent equity. Combined our mortgage payments are $4200 for principal and interest, the majority being principal so we don’t really consider all of this money to be an “expense” - yes it’s a cash flow issue but we’re mostly paying ourselves.

We plan on selling the rental property within the next year or so and investing the proceeds (probably around $400k) in our brokerage account. We don’t like being landlords and are only doing it to help a close relative temporarily.

We spend about $40k a year on travel, and this is the amount (adjusted upwards for inflation each year) that we told the advisor we wanted to continue spending well into our 70s.

We have about $25k a year in medical expenses including premiums. Premiums will drop
considerably once Medicare kicks in.

Our kids are long out of college and all of that was paid for long ago.

Basically the advisor calculated that, based on our current spending, we need about $220k a year. With the rental property sold and the money added to our brokerage account, we’ll have somewhere in the neighborhood of $5.5 to $5.7 million in accounts to draw down from. (Our remaining net worth is in the primary residence and second home, which we won’t be selling so we won’t be drawing down from either of them).

Taking social security early would bring us in about $47k a year combined. We’ll still be collecting about $30k a year in rents on the rental property we won’t be selling (our English basement). Taking $77k from $220 leaves us with a shortfall of $143k a year, which we’d have to make up for by drawing on our accounts. That’s about 2.5 percent of their current value, well below the so called 4 percent rule. That’s how she came up with 99 percent plus, and in fact she advises that we can actually spend considerably more than we do if we want to. She is comfortable with a probability of success of 85 to 90 percent, and so are we.

[Anonymous]

42/42

875k HHI (recently increased)

$1.4m Taxable Investments/Cash
$1.8m Retirement Accounts
$950k Equity
$415K 529s

[Anonymous]

48/52 yo couple
HHI from working: $0
Passive annual income from various investments: $1.5M in 2023. Estimate about $1.4M in 2024
529: $450K (superfunded when children were born) but using 9/11 GI Bill for one child already in 3rd year of college from spouse military service. 2nd child is a senior in HS.
Pension: $90K/yr
Two rental properties that bring in about $45K in annual free cash flow. Combined value is about $1M with low mortgage balances Looking to sell these as we have no desire to be landlords anymore.

Assets that are producing return but we can’t touch yet:
401K & Roth TSP: $2.3M (Maxed contribution almost every year we were working)
Roth IRAs: $2.1M - direct and then Backdoor contributions while we were working. Invested in individual stocks only. Not contributing anymore since we don’t have earned income.

Live in a modest house in NoVA valued around $1.6M with low mortgage balance and low mortgage rate.

[Anonymous]

Anonymous wrote:We’re in our early sixties and have been retired for nearly a decade. When we retired our net worth was about 4.0 million. Now it’s $7.5 million thanks to the market, real estate appreciation and our spending habits.

After all this time we finally sat down with a financial advisor. She ran the numbers and told us we have a 99+ chance of a successful retirement into our 90s with a shit ton of money left over. Also advised that we take social now rather than wait and that we don’t look into long term care insurance because we don’t need it.

It was a very reassuring meeting even if it did confirm everything that I already knew/thought.

Wow so this really does happen in practice. I posted earlier in this thread that I am retiring in 15 months. I am 64. I didn't post net worth, but it's $12 million, and our financial advisor also told us we have plenty of money and will leave more than we started with if we keep our current spending habits. One complication is I still have a kid in high school (private), but that shouldn't e a problem for the next two years and her college tuition is already funded in the 529. I could actually retire this year, but they asked me to stay one more year. The money I would leave behind by retiring today is about $1.5 million, so I think I can handle another year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We’re in our early sixties and have been retired for nearly a decade. When we retired our net worth was about 4.0 million. Now it’s $7.5 million thanks to the market, real estate appreciation and our spending habits.

After all this time we finally sat down with a financial advisor. She ran the numbers and told us we have a 99+ chance of a successful retirement into our 90s with a shit ton of money left over. Also advised that we take social now rather than wait and that we don’t look into long term care insurance because we don’t need it.

It was a very reassuring meeting even if it did confirm everything that I already knew/thought.

Wow so this really does happen in practice. I posted earlier in this thread that I am retiring in 15 months. I am 64. I didn't post net worth, but it's $12 million, and our financial advisor also told us we have plenty of money and will leave more than we started with if we keep our current spending habits. One complication is I still have a kid in high school (private), but that shouldn't e a problem for the next two years and her college tuition is already funded in the 529. I could actually retire this year, but they asked me to stay one more year. The money I would leave behind by retiring today is about $1.5 million, so I think I can handle another year.

PP, this is similar to us. Age 56, HHI $500k, and one HS kid still at home with a fat 529 account waiting to be used. We're at $11M investable assets, another $3M in real estate. Waiting to retire after we send the baby to college. Anticipating a $300k annual spend and being able to leave a large amount to kids down the road.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We’re in our early sixties and have been retired for nearly a decade. When we retired our net worth was about 4.0 million. Now it’s $7.5 million thanks to the market, real estate appreciation and our spending habits.

After all this time we finally sat down with a financial advisor. She ran the numbers and told us we have a 99+ chance of a successful retirement into our 90s with a shit ton of money left over. Also advised that we take social now rather than wait and that we don’t look into long term care insurance because we don’t need it.

It was a very reassuring meeting even if it did confirm everything that I already knew/thought.

Thanks for sharing. Reassuring indeed. We have about the same, one retired (59) and the other will work for a few more years. We still have two kids in college so want to make sure that's completed.

Do you mind sharing your expenditure profile? How much do you spend every year? travel? Number of homes? Mortgage? etc. Thanks!

Sure (with minor name changes to protect the innocent ha ha).

We spend about $250 to $280 k a year, but it’s a little complicated because it includes about $50k of expenses relating to two rental properties that we own. We bring in about $70k a year on the properties. We track our expenses pretty closely with an app; last year our negative cash flow was $180k and the year before it was $220k (thanks to a one time tax hit on something I’m not gonna get into). The bottom line is that those are the amounts that we actually ended up taking out of our accounts.

We own three homes - our primary residence where we have about 60 to 70 percent equity and a very low interest rate mortgage that we’re not paying off, a second home with no mortgage, and a third that’s a rental property with another very low interest loan and about 50 percent equity. Combined our mortgage payments are $4200 for principal and interest, the majority being principal so we don’t really consider all of this money to be an “expense” - yes it’s a cash flow issue but we’re mostly paying ourselves.

We plan on selling the rental property within the next year or so and investing the proceeds (probably around $400k) in our brokerage account. We don’t like being landlords and are only doing it to help a close relative temporarily.

We spend about $40k a year on travel, and this is the amount (adjusted upwards for inflation each year) that we told the advisor we wanted to continue spending well into our 70s.

We have about $25k a year in medical expenses including premiums. Premiums will drop
considerably once Medicare kicks in.

Our kids are long out of college and all of that was paid for long ago.

Basically the advisor calculated that, based on our current spending, we need about $220k a year. With the rental property sold and the money added to our brokerage account, we’ll have somewhere in the neighborhood of $5.5 to $5.7 million in accounts to draw down from. (Our remaining net worth is in the primary residence and second home, which we won’t be selling so we won’t be drawing down from either of them).

Taking social security early would bring us in about $47k a year combined. We’ll still be collecting about $30k a year in rents on the rental property we won’t be selling (our English basement). Taking $77k from $220 leaves us with a shortfall of $143k a year, which we’d have to make up for by drawing on our accounts. That’s about 2.5 percent of their current value, well below the so called 4 percent rule. That’s how she came up with 99 percent plus, and in fact she advises that we can actually spend considerably more than we do if we want to. She is comfortable with a probability of success of 85 to 90 percent, and so are we.

Thanks for the deets! We have a smaller 'footprint' than you. One house, about 300K mortgage, low rate ($3K/m payment) so will keep the mortgage in retirement. No rentals or vacation properties. Hoping DW will retire in about 4-5 years when DC2 will be a senior in college. Our NW (excluding house) should reach $10M by then (we hope). $250K should be more than enough even considering increased travel and private healthcare (We spend far less now).

[Anonymous]

I will answer honestly because we're proud of the fact that we are both first gen college grads, first home owners, and probably the first in both our families to ever have savings or retirement funds.

Me: 33yo, $90k income, $55k saved for retirement
DH: 34yo, $110k income, $80k saved for retirement

Our incomes are relatively new within the last 18 months so hoping to have more saved shortly. We also have $110k equity in our home based on sheer luck buying when we were 25yo at 2.75% mortgage rate.

[Anonymous]

Anonymous wrote:I will answer honestly because we're proud of the fact that we are both first gen college grads, first home owners, and probably the first in both our families to ever have savings or retirement funds.

Me: 33yo, $90k income, $55k saved for retirement
DH: 34yo, $110k income, $80k saved for retirement

Our incomes are relatively new within the last 18 months so hoping to have more saved shortly. We also have $110k equity in our home based on sheer luck buying when we were 25yo at 2.75% mortgage rate.

I'm the poster right above you (10:45). If I recall, my tax return from when i was 36 had a total income of $170K. We are immigrants, had zero inheritances and all the money we have (about $7m now 59/54) is through earnings/savings/investments. And we'd just bought our house at a 6.75% 30 year rate! We only had enough cash to put 5% down and that too by cashing in some stock. You are way ahead!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We’re in our early sixties and have been retired for nearly a decade. When we retired our net worth was about 4.0 million. Now it’s $7.5 million thanks to the market, real estate appreciation and our spending habits.

After all this time we finally sat down with a financial advisor. She ran the numbers and told us we have a 99+ chance of a successful retirement into our 90s with a shit ton of money left over. Also advised that we take social now rather than wait and that we don’t look into long term care insurance because we don’t need it.

It was a very reassuring meeting even if it did confirm everything that I already knew/thought.

Thanks for sharing. Reassuring indeed. We have about the same, one retired (59) and the other will work for a few more years. We still have two kids in college so want to make sure that's completed.

Do you mind sharing your expenditure profile? How much do you spend every year? travel? Number of homes? Mortgage? etc. Thanks!

Sure (with minor name changes to protect the innocent ha ha).

We spend about $250 to $280 k a year, but it’s a little complicated because it includes about $50k of expenses relating to two rental properties that we own. We bring in about $70k a year on the properties. We track our expenses pretty closely with an app; last year our negative cash flow was $180k and the year before it was $220k (thanks to a one time tax hit on something I’m not gonna get into). The bottom line is that those are the amounts that we actually ended up taking out of our accounts.

We own three homes - our primary residence where we have about 60 to 70 percent equity and a very low interest rate mortgage that we’re not paying off, a second home with no mortgage, and a third that’s a rental property with another very low interest loan and about 50 percent equity. Combined our mortgage payments are $4200 for principal and interest, the majority being principal so we don’t really consider all of this money to be an “expense” - yes it’s a cash flow issue but we’re mostly paying ourselves.

We plan on selling the rental property within the next year or so and investing the proceeds (probably around $400k) in our brokerage account. We don’t like being landlords and are only doing it to help a close relative temporarily.

We spend about $40k a year on travel, and this is the amount (adjusted upwards for inflation each year) that we told the advisor we wanted to continue spending well into our 70s.

We have about $25k a year in medical expenses including premiums. Premiums will drop
considerably once Medicare kicks in.

Our kids are long out of college and all of that was paid for long ago.

Basically the advisor calculated that, based on our current spending, we need about $220k a year. With the rental property sold and the money added to our brokerage account, we’ll have somewhere in the neighborhood of $5.5 to $5.7 million in accounts to draw down from. (Our remaining net worth is in the primary residence and second home, which we won’t be selling so we won’t be drawing down from either of them).

Taking social security early would bring us in about $47k a year combined. We’ll still be collecting about $30k a year in rents on the rental property we won’t be selling (our English basement). Taking $77k from $220 leaves us with a shortfall of $143k a year, which we’d have to make up for by drawing on our accounts. That’s about 2.5 percent of their current value, well below the so called 4 percent rule. That’s how she came up with 99 percent plus, and in fact she advises that we can actually spend considerably more than we do if we want to. She is comfortable with a probability of success of 85 to 90 percent, and so are we.

DP. Thank you for the details. We are very similar in details. 5.5MM in brokerage and retirement accounts. Does your 220K yearly spend include income tax?

[Anonymous]

Mid 50’s, 600k hhi, 4m brokerage, 3m 401k’s, 800k home equity

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We’re in our early sixties and have been retired for nearly a decade. When we retired our net worth was about 4.0 million. Now it’s $7.5 million thanks to the market, real estate appreciation and our spending habits.

After all this time we finally sat down with a financial advisor. She ran the numbers and told us we have a 99+ chance of a successful retirement into our 90s with a shit ton of money left over. Also advised that we take social now rather than wait and that we don’t look into long term care insurance because we don’t need it.

It was a very reassuring meeting even if it did confirm everything that I already knew/thought.

Thanks for sharing. Reassuring indeed. We have about the same, one retired (59) and the other will work for a few more years. We still have two kids in college so want to make sure that's completed.

Do you mind sharing your expenditure profile? How much do you spend every year? travel? Number of homes? Mortgage? etc. Thanks!

Sure (with minor name changes to protect the innocent ha ha).

We spend about $250 to $280 k a year, but it’s a little complicated because it includes about $50k of expenses relating to two rental properties that we own. We bring in about $70k a year on the properties. We track our expenses pretty closely with an app; last year our negative cash flow was $180k and the year before it was $220k (thanks to a one time tax hit on something I’m not gonna get into). The bottom line is that those are the amounts that we actually ended up taking out of our accounts.

We own three homes - our primary residence where we have about 60 to 70 percent equity and a very low interest rate mortgage that we’re not paying off, a second home with no mortgage, and a third that’s a rental property with another very low interest loan and about 50 percent equity. Combined our mortgage payments are $4200 for principal and interest, the majority being principal so we don’t really consider all of this money to be an “expense” - yes it’s a cash flow issue but we’re mostly paying ourselves.

We plan on selling the rental property within the next year or so and investing the proceeds (probably around $400k) in our brokerage account. We don’t like being landlords and are only doing it to help a close relative temporarily.

We spend about $40k a year on travel, and this is the amount (adjusted upwards for inflation each year) that we told the advisor we wanted to continue spending well into our 70s.

We have about $25k a year in medical expenses including premiums. Premiums will drop
considerably once Medicare kicks in.

Our kids are long out of college and all of that was paid for long ago.

Basically the advisor calculated that, based on our current spending, we need about $220k a year. With the rental property sold and the money added to our brokerage account, we’ll have somewhere in the neighborhood of $5.5 to $5.7 million in accounts to draw down from. (Our remaining net worth is in the primary residence and second home, which we won’t be selling so we won’t be drawing down from either of them).

Taking social security early would bring us in about $47k a year combined. We’ll still be collecting about $30k a year in rents on the rental property we won’t be selling (our English basement). Taking $77k from $220 leaves us with a shortfall of $143k a year, which we’d have to make up for by drawing on our accounts. That’s about 2.5 percent of their current value, well below the so called 4 percent rule. That’s how she came up with 99 percent plus, and in fact she advises that we can actually spend considerably more than we do if we want to. She is comfortable with a probability of success of 85 to 90 percent, and so are we.

DP. Thank you for the details. We are very similar in details. 5.5MM in brokerage and retirement accounts. Does your 220K yearly spend include income tax?

Yes, it does, and the projections that our advisor provided take future RMDs into account as well.

By the way, and to each their own, but when I see a poster with $12 million say they’d be walking away from $1.5 million by retiring this year so they’re gonna work for another I just smile. I could have phoned it in for the last decade for at least a million a year but I didn’t let that stop me. A good friend let it stop him, he’s two years younger than me, and now has Stage 4 cancer. No thanks. There’s always more money to be made, but there’s never more time.

[Anonymous]

58
210 + bonus
$1,900,000 in 401(k), other funds saved in taxable accounts that could be used for retirement