Anonymous wrote:How do you factor in a pension? I expect to receive something like $3K a month. How do you value that in your total retirement?

I don't usually include in NW calculations but you can, if you want to include, put an estimated value. I use 2500/month = .5 million.

$450k in retirement savings
$100k equity in house, have another 25 years to pay though
No college savings

How do you factor in a pension? I expect to receive something like $3K a month. How do you value that in your total retirement?

I am 51 and was expecting to be super depressed after reading this thread, but I actually feel somewhat better.

Anonymous wrote:I'm 48. I have a pension (I'm a teacher). Outside of that, I have around $100k in a 403b. My child is 18 and starting college in the fall. Single parent. Less than $10k in savings which is going toward college expenses.

But your pension is the same as having 25x the annual pension salary in a retirement account. So if your pension is 30k/yr it's as if you had 750k more in your 403b.

OP, for planning purposes your question is useless. It’s much more helpful for you to consider when you want to retire and your budget. Those really determine the wealth you need to retire. A fancy, long retirement costs more than a middle-class, short retirement. Of course, maybe you just want to compare bank accounts, but there’s always someone with more.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Ages 49/48
$1M tax-deferred
$600k Roth
$750k home equity (paid off townhome)
$175k college (one kid)

SS estimate for both of us $4,500/mo.

It is really odd seeing so many posters like PP above who have nothing saved outside of tax advantaged vehicles.

What does that mean?

Why is it odd? A balance of Roth and Traditional is all you need to manage your tax burden in retirement. There are plenty of strategies for withdrawing penalty free early if you want to retire early.

Anonymous wrote:

Anonymous wrote:Ages 49/48
$1M tax-deferred
$600k Roth
$750k home equity (paid off townhome)
$175k college (one kid)

SS estimate for both of us $4,500/mo.

It is really odd seeing so many posters like PP above who have nothing saved outside of tax advantaged vehicles.

What does that mean?

$0

50 and 51. 2.3 million in 401ks, $500,000 in savings, $80,000 in ibonds, $150,000in brokerage. $700,000 in house, $200,000 in law firm. We need a financial advisor to help me let go of and invest the $500,000 in savings. That number will be $700k be the end of the year.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is a very depressing thread.

Why???

Because these figures are eye popping to average Americans??

-dp

Yeah, I was pretty proud of what I'd saved, but after reading this thread what I've done feels inadequate. That's DC though.

10M.

I'm 48. I have a pension (I'm a teacher). Outside of that, I have around $100k in a 403b. My child is 18 and starting college in the fall. Single parent. Less than $10k in savings which is going toward college expenses.

We have about 70K in Roth IRAs, about 500K in 401Ks and SEP IRAs, and live in a duplex worth about $650K with less than 200K on the mortgage. The rental income on the other half brings in about 2000/month.

I just started a job with a decent 401K match (never had a match before), so hoping that with catch-up contributions and working till 65 and social security we'll be fine. We're not big spenders but live in a high tax/high cost city.

Anonymous wrote:

Anonymous wrote:This is a very depressing thread.

Why???

Because these figures are eye popping to average Americans??

-dp