Anonymous wrote:Sorry, OP, the posters here tend to be very judgemental and rude. Let's talk numbers:

If you save 20% of your gross pay for the next 20 years and invest (and assuming the stock market returns roughly what is "normal"), you will have about $10M. This will give you around $400k of annual spending in addition to your pension. This needs to cover taxes and healthcare, gifts, and all your other living expenses. If that sounds about right, then you are on track.

What questions do you have? Comparing yourself to others is typically a fool's errand. You are you and finance is personal for a reason.

Anonymous wrote:

Anonymous wrote:DH and I are in our early 40s with young kid (finally out of daycare). We have spent our 30s paying off student loans and having young kids in daycare. Now just trying to catch up with savings, retirement, etc. Current HHI is around $650,000 (give or take a year depending on bonuses). Currently have around $1 million in savings/retirement and a pension worth $6700 per month upon retirement (at age 58). House equity is around $500,000 (just purchased but put large down payment down). We have some savings in 529 for kids but need to catch up. Just paid off $200,000+ in student loans in the past 10 years plus paying $48,000 per year on daycare.

Will we be able to do a big catch up in our 40s? Is that typically when net worth is gained?

Here's your Out of Touch Certificate from Humble Brag University.

Anonymous wrote:

Anonymous wrote:DH and I are in our early 40s with young kid (finally out of daycare). We have spent our 30s paying off student loans and having young kids in daycare. Now just trying to catch up with savings, retirement, etc. Current HHI is around $650,000 (give or take a year depending on bonuses). Currently have around $1 million in savings/retirement and a pension worth $6700 per month upon retirement (at age 58). House equity is around $500,000 (just purchased but put large down payment down). We have some savings in 529 for kids but need to catch up. Just paid off $200,000+ in student loans in the past 10 years plus paying $48,000 per year on daycare.

Will we be able to do a big catch up in our 40s? Is that typically when net worth is gained?

Here's your Out of Touch Certificate from Humble Brag University.

Anonymous wrote:DH and I are in our early 40s with young kid (finally out of daycare). We have spent our 30s paying off student loans and having young kids in daycare. Now just trying to catch up with savings, retirement, etc. Current HHI is around $650,000 (give or take a year depending on bonuses). Currently have around $1 million in savings/retirement and a pension worth $6700 per month upon retirement (at age 58). House equity is around $500,000 (just purchased but put large down payment down). We have some savings in 529 for kids but need to catch up. Just paid off $200,000+ in student loans in the past 10 years plus paying $48,000 per year on daycare.

Will we be able to do a big catch up in our 40s? Is that typically when net worth is gained?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:How can a person make that much and still be so stupid that they ask this on DCUM?

Never mind that. Who the heck told so many of you that 529 and 401k are good accounts. Question the motives of government and companies offering them. Nobody seems to understand what they give up putting money into those account.
Match and tax deduction do not make up for the long term loss of money and knowledge.

What long term loss of money? Our 529s have provided 20+ years of tax free growth, it was invested in excellent stock mutual funds until our kids turned 15/16, then we started pulling it back (it was fully funded already for 4 years at $90K and most of grad school by then) to prevent major losses. I will take the tax free benefits any day. And if we "overfund" oh well. It will continue to grow for our grandkids. One kid has been out of college for 5 years, their "left over $75K" is now $125K+ and there are no grandkids even yet.

Agree. We have hundreds of thousands in tax-free growth in 529 plans. The poster you are responding to is whack.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:That sounds like a great pension — what sector do you work in?

I wouldn't count on a pension 15+ years away, especially if private sector. Many things can happen.

I think OP is behind for their income, but it depends how much they want to spend.

OP - not the private sector. This is with the state. However agree it is hard to count on pensions nowadays.

And when I saw we are behind - I mean I see posts on here all the time with people being 45 years old and having $3 million in retirement. We are far from that. Also we were paying $2500 a month for student loans and $3500 a month for daycare for approximately a decade in case people were wondering where all of our money went. FWIW we didn't start making this much money until recently. Income has steadily gone up over the past decade.

Are you seriously measuring your wealth based on comments on an anonymous message board? Honestly, it does sound like you have a spending problem.

Anonymous wrote:With an income of $650,000, you should be able to pay as you go on college. 529 is great for the tax savings, but honestly, this post is ridiculous.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:That sounds like a great pension — what sector do you work in?

I wouldn't count on a pension 15+ years away, especially if private sector. Many things can happen.

I think OP is behind for their income, but it depends how much they want to spend.

OP - not the private sector. This is with the state. However agree it is hard to count on pensions nowadays.

And when I saw we are behind - I mean I see posts on here all the time with people being 45 years old and having $3 million in retirement. We are far from that. Also we were paying $2500 a month for student loans and $3500 a month for daycare for approximately a decade in case people were wondering where all of our money went. FWIW we didn't start making this much money until recently. Income has steadily gone up over the past decade.

Anonymous wrote:

Anonymous wrote:With an income of $650,000, you should be able to pay as you go on college. 529 is great for the tax savings, but honestly, this post is ridiculous.

+1