Reply to Late 40s. We have about 3.5X our gross HHI saved. Is that ok?

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Reply to "Late 40s. We have about 3.5X our gross HHI saved. Is that ok?"

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[quote=Anonymous]How you calculate it can vary based on how close you are to retirement. If you are within 15 years of retirement, I agree with PPs that it makes more sense to estimate how much you need and then figure out how much you should have invested in order to draw down your required retirement income at a sustainable rate.

However, going by multiples of income is totally fine if you are younger and retirement is still way off. Estimating your financial needs in retirement is really hard until 45-50, IMO. But it was around that time that certain things clicked into place, including having college funding fully figured out, and getting a better sense of what our housing needs would be.

Finances when you are 35 or 40 are very different from what they will be in retirement. At that age, a significant portion of my income was going to mortgage and childcare, plus we were saving aggressively in order to trade up to a larger house and lay the groundwork for college savings.

There's also a point at which your retirement investments start accelerating more rapidly. It felt like it took us a really long time to get the first 200k in 401k money. But then we hit 500k much faster than I anticipated. Now I don't even think about those accounts. We make out employer match and actually focus more on other investments outside 401ks at the point.

I'm just in a much different headspace at 48 than I was 10 years ago, and I don't think I could have realistically estimated my retirement financial picture at that age. Whereas now it's very clear.[/quote]

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