We have some money in Roth IRAs and a retirement plan through the Foreign Service (but that will be very small). The majority will be our real estate - 5 row-houses in DC that I hope to keep as rentals and use the monthly rental income from. Hopefully we can add a few more properties to the portfolio in the next 5 years.

TSP
FERS
IRA
Some non-retirement investments
Income from a family business

We will probably also move to a lower cost area.

In no particular order:

1) Pension
2) 401K/IRAs
3) other savings
4) Social security
5) ~500k from sale of house when we move to a lower cost area.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'll have $10M in my 401k. Why do I need anything else?

Because that $10M will actually be closer to $5M after taxes. You've deferred paying taxes on this money by putting it into a 401K or IRA...unless its a Roth but based on the amount you have in your 401K I'm guessing you don't qualify for a Roth.

First of all, no one is paying 50% tax rate. Second of all, $5 million after taxes is more than enough for anyone in retirement.

Are you being sarcastic? I've done the math and that is NOWHERE near enough for me.

Oh, DCUM. You never fail to make me laugh.

Anonymous wrote:

Anonymous wrote:I'll have $10M in my 401k. Why do I need anything else?

Because that $10M will actually be closer to $5M after taxes. You've deferred paying taxes on this money by putting it into a 401K or IRA...unless its a Roth but based on the amount you have in your 401K I'm guessing you don't qualify for a Roth.

This is actually not true. When you take a distribution rather than a lump sum, the average tax rate is much lower. And you don't have to pay SS tax on that.

401K/IRA - currently around $450K
Taxable investments - currently around $500K
Real estate investment property - will either sell or keep renting. Equity currently $250K after excluding selling costs and cap gains
Hopefully some SS (I'm 44)

If that's not enough I can also downsize to a smaller place and use some of my principal residence's equity to live on.

No pension and not counting on an inheritance, though the latter might happen.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'll have $10M in my 401k. Why do I need anything else?

Because that $10M will actually be closer to $5M after taxes. You've deferred paying taxes on this money by putting it into a 401K or IRA...unless its a Roth but based on the amount you have in your 401K I'm guessing you don't qualify for a Roth.

First of all, no one is paying 50% tax rate. Second of all, $5 million after taxes is more than enough for anyone in retirement.

Are you being sarcastic? I've done the math and that is NOWHERE near enough for me.

Anonymous wrote:I am confused as too why you consider the equity in your home as part of your retirement. You need a home in retirement and most people stay or move to equivalent price point.

I probably won't want nor need a 3,000 sq ft 5 bedroom. I'll be happy to move into a smaller place.

sorry meant to say $6M not $600K

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'll have $10M in my 401k. Why do I need anything else?

Because that $10M will actually be closer to $5M after taxes. You've deferred paying taxes on this money by putting it into a 401K or IRA...unless its a Roth but based on the amount you have in your 401K I'm guessing you don't qualify for a Roth.

First of all, no one is paying 50% tax rate. Second of all, $5 million after taxes is more than enough for anyone in retirement.

$600K instead of $500K ....

other PP was pretty close.

Anonymous wrote:Social Security is relatively fine. It's Medicare that is totally fucked.

And SS is relatively easy to fix. Medicare is so much more complicated.

Anonymous wrote:Social Security is relatively fine. It's Medicare that is totally fucked.

+1

Social Security is relatively fine. It's Medicare that is totally fucked.

Investments and 401(k).

Anonymous wrote:

Anonymous wrote:I'll have $10M in my 401k. Why do I need anything else?

Because that $10M will actually be closer to $5M after taxes. You've deferred paying taxes on this money by putting it into a 401K or IRA...unless its a Roth but based on the amount you have in your 401K I'm guessing you don't qualify for a Roth.

First of all, no one is paying 50% tax rate. Second of all, $5 million after taxes is more than enough for anyone in retirement.