Reply to Does everyone on DCUM max out retirement?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]OP here. This thread has been very interesting. It's helpful to hear other perspectives on savings. To clarify, by maxing out, I mean contributing to the IRS limit, not the employer match. DH and I have always met the employer match, but have not yet met the IRS limit.

We started late because we both had student loans, low paying non-profit and govt. jobs, high housing costs, childcare, etc. We stretched to buy our house, then we stretched to keep that house when we bought a second house in a good school district and turned our first house into an investment property. During that time we weren't contributing much to our retirement accounts, investing in real estate that hopefully would help support us in retirement.

We are 50 years old now with one kid to put through college. According to Mint, our current net worth is around $1.4M if you count real estate (including our current home) and retirement accounts. DH will get a pension of around  $50K/year. Both houses will be paid off when we are 75.

Our long-term goals: 1) Retire from our jobs by 65; 2) stay in our house as long as we want; 3) remain healthy and active; 4) never burden our kid financially; and 5) help our kid as we are able (down payment on a house, emergency cushion).[/quote]

You are 15 years away from retirement with around 50% of you current HHI covered by pension and SS. You are currently saving 15% of your HHI into your 401k, so you at most need 85% of your HHI to maintain the same lifestyle. To cover the remaining 35%, you need about 1.5M in retirement savings (not including your house if you plan to live there). Unless all your net worth is tied up in your house, you are in very good shape.[/quote]

Thank you, this makes me feel much better! I also didn't count the employer match of around $10,000/year on top of the $28,000/year we are contributing. Whew![/quote]

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