I've always had in my head that retirement is the time where I'm going to say a big FU to some of my friends and family who blew their money and never saved for retirement. My luck I'll probably die in a car crash on my last day of work and they'll say "Well you can't take it with you to the grave".
Retirement thread
- Thread starter CloneGuy8
- Start date
This threads only helps reaffirm my decision to stick with the Army thing for 20 years (less than 3 to go). Receive a pension starting at the age of 58 and free health care. Up until recently, I hadn't saved a penny for retirement, so this just helps as opposed to "putting me ahead".
1 - you have saved a lot more than most people based on your age. that could either be to very strict savings guidelines or a higher income.
2 - people are nosy and when you post something you know is "better than average" it's calling attention to you situation. since people have noticed it, see Point 1.
3 - people are curious by nature. i was unaware there were such strict message board rules.
you could always try asking them for better options. Maybe you'll have more luck than I.
1 - how do you know that based on my post? You have no idea what my out of pocket maximum is, and whether or not when my HSA reaches that point if it is $100 or $10,000. Or whether I have contributed to an HSA at the expense of other financial issues.
2 - See point #1 about having no clue whether that is better than average or not.
3 - I think it's odd to say you are curious about someone's income.
i quoted the wrong post. i thought yours was the one about having 220k saved up at age 33. carry on
That makes more sense now. Sorry to get defensive I was just confused about where my post came off as being "better than average" which I would have worried to look "braggy" and I didn't want that.
Sorry for the derailment, folks.
Really surprised more people haven't mentioned HSA's. max it out every year and pay medical expenses out of pocket - best account out there because it is tax free in, tax free out, and tax free growth.
Assuming HSA's survive Washington....
Assuming HSA's survive Washington....
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I don't fully trust it. According to them, I can retire at 58 but I sure don't plan to. I would rather leave a legacy for the kids (whole different debate on that one-spend it or leave it?). And don't bring that into this discussion, maybe Angie can use it for a Friday OT topic.
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Found an article that VERY BASELINE lists the following guidelines. The nice thing about these are they are based on your income, assuming you live at or close to your income and only save a little and thus are easily adaptable to anyone (they are actually geared toward people at or below average income levels).
Age 35 you should have approx. 1X annual household income in retirement savings
Age 40 = 2X in retirement
Age 45 = 3X
Age 50 = 4X
Age 55 = 5X
Age 60 = 6X
Age 63 = 7X
Age 67 = 8X
You can see it assumes your nest egg grows and thus compounds quicker just before retirement. These amounts won't let you travel the world in retirement (especially if you are at $50k or less annual income) but will let you continue to live at level you have earned in working. This is pretty much backed up by the industry standard of 8-10X income at retirement.
Age 35 you should have approx. 1X annual household income in retirement savings
Age 40 = 2X in retirement
Age 45 = 3X
Age 50 = 4X
Age 55 = 5X
Age 60 = 6X
Age 63 = 7X
Age 67 = 8X
You can see it assumes your nest egg grows and thus compounds quicker just before retirement. These amounts won't let you travel the world in retirement (especially if you are at $50k or less annual income) but will let you continue to live at level you have earned in working. This is pretty much backed up by the industry standard of 8-10X income at retirement.
I've only been investing in my retirement for 3 years or so, really wish I had been more focused on this a few years earlier though, could've had some nice market returns if I got in then. 28 and debt free with about 22k in my accounts thus far. Feel like a little behind fortunately I have a small bit of farmland that I'll inherit in the future.
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I'm not sure what it is, but I'm having a hard time talking myself into maxing my HSA out right now. I know they're awesome and I know I should, but I'm only doing $100/month right now. Need to stop blowing money on coke i guess.
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I'm 36, have 220k in my personal 401k. Max out my allowable contribution, employer matches another 3%. Wife is 38 and has about 120k in her 401k. She defers 10% and employer matches 5%. We put 250/month into a Roth that has about 12k in it and max out our 2 kids Iowa 529's. I want to double that Roth but I'm in the middle of refi down to a 15 year on the house so need to wait a few months to adjust. I also own rental property I could sell for about 140k that I owe 88k on and 9 years left on the mortgage. I think we'll be ok.
Question is, in 30 years what's 5-6 million really worth and will I have enough energy to blow through it!?
I don't think you'd be able to do it until you'd leave your job(s) and transferred your 401k's to IRA's, but given your large balances in the taxable accounts, small balances in your ROTHs, likely solid income, and early pay off date of your home; I foresee "back door ROTH" conversions and Traditional to ROTH conversions in your future.
Also, you will.
Good work. 
$68,000 is a solid start in your young 30s, better than most people. I also got going on this in my 20's, but I'd rather not say how much I have in there because I doubt people would believe how much I have in there with my 4 accounts. I have the option of an early retirement, but I am a complete workaholic. The wife may partially sway my decision on this one.
Lots of good advice in this thread, especially the first couple pages. I'd like to emphasize one big thing:
Young people - in your 20s - save NOW. Compound interest is the best investment you will ever make. The other questions like 401k vs Roth, which stock fund, etc -- those are important, but time trumps them.
Seriously, if you put $5k per year away from age 22-30, and make a reasonable 8%, it turns into over $1M.
I think of it this way - because of the time factor multiple:
Spending $1 in your 20s is like spending $20.
Spending $1 in your 30s is like spending $10.
Spending $1 in your 40s is more like spending $5.
Spending $1 in your 50s is like spending $2.
I saved a lot in my 20s and 30s, but will be spending a LOT MORE in my 50s and 60s.
Young people - in your 20s - save NOW. Compound interest is the best investment you will ever make. The other questions like 401k vs Roth, which stock fund, etc -- those are important, but time trumps them.
Seriously, if you put $5k per year away from age 22-30, and make a reasonable 8%, it turns into over $1M.
I think of it this way - because of the time factor multiple:
Spending $1 in your 20s is like spending $20.
Spending $1 in your 30s is like spending $10.
Spending $1 in your 40s is more like spending $5.
Spending $1 in your 50s is like spending $2.
I saved a lot in my 20s and 30s, but will be spending a LOT MORE in my 50s and 60s.
Your article is probably a good gauge and easy to understand but somewhat simplistic and linear. It is probably aimed at the average middle class retirement investor.
About 5 years ago, JPMorgan Asset Management published an informative “Guide to Retirement” which contained an age-based benchmark. The JPMorgan model shows different retirement savings levels needed at age 65 for the following salaries:
$50,000 – 5.7x salary
$75,000 – 7.1x
$100,000 – 8.6x
$150,000 – 11.6x
$200,000 – 13.2x
$250,000 – 14.1x
$300,000 – 15.0x
$400,000 – 16.6x
I presume the increased savings required for the higher salaries reflect the higher standard of living to be maintained and the decreased impact of social security for highly compensated individuals.
Here is a link to a recent version of the Retirement Guide:
https://www.jpmorganfunds.com/cm/Sa...RL=gtrbrowseslides&pagename=jpmfVanityWrapper
I do not believe the current version provides an estimated retirement savings analysis based on age and income. Too bad. It would be interesting to see if the multipliers changed over 5 years, especially with increased healthcare costs and people living longer.
I would be curious how many actually have one. I can only get access at work if I switch to the high deductible plan.
I don't think anyone can get one unless they have a high deductible plan.