Reply to Did you inherit a large amount of money (>$2 million) mid-career?

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[quote=Anonymous][quote=Anonymous]
To be super specific:

Investments / Retirement: $1.625 million
Home Equity: $250-300k
529s: $100k
Savings: $50k

The home equity could be a paid-off townhouse in NC.  The college fund could with 15 more years of compounding get us a long way to state college for two.  The investment accounts could throw off $65k per year according to the 4% rule (per Mr. Money Mustache and others).

Our current expenses are $60k living expenses, $40k mortgage, $10 preschool.  So the reality is living in the DC area we could only cover half our expenses and would soon be broke.  But if we eliminated the mortgage and preschool (soon enough) we could live off less than $65k.  Our budget includes a lot of frivolous spending as-is.  But things would be tight, in perpetuity.

[b]By contrast, in ten years (mid 40s) assume $50k in extra savings per year plus 5% real returns, compounded = $3.25 million per bankrate.com.  [/b]Interestingly, if I knocked that down to a government job and only saved $25k the difference is not that dramatic.  Ditto in terms of getting salary increases unless it's big.  Basically we just need to not **** things up.

Of course I could lose my job before then.

Or die.[/quote]

Is this for real?  I’m currently contributing 51k per year to retirement and it’s a slog.  I’d love if it actually amounted to something.  Now I feel like I’m treading water.  [/quote]

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