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Thread: do you feel on track for your retirement?

  1. Quis custodiet ipsos custodes?
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    #1

    do you feel on track for your retirement?

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    I looked at all my finances today, and with my IRA and my 401(k), if I retire at 65 I should have around $1.1 million or so. It sounds like a lot ... but I don't actually know how much money I "should" have either. More than likely I'll get an inheritance from my family too, but I'm not going to rely on that to live on either.

    I guess I need to talk to a professional, but for those of you who have all this planned out, how are you calculating how much you need for retirement?

    I'll admit, I feel a bit relieved when I saw that number. For some reason I've always felt like I got off to a late start with all this.
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    #2
    How did you calculate future growth? That's the part I always have trouble with as the markets are so wiggley sometimes.

    My dad, who is planning on retiring in a year or two, told me that you need enough to live on just the yearly dividends instead of the principle. So I guess he's assuming like 10% returns each year after he retires and wants to have 60K a year to live on, so he needs to have at least 600K saved. Does that make sense?
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    #3
    I feel like I have planned well. So far. I made it a goal to save as much as I can as young as I can when I don't have a family and bills to pay. My family is big on saving so I guess it just came naturally to me.
  4. Quis custodiet ipsos custodes?
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    #4
    Quote Originally Posted by rocket_lizz View Post
    How did you calculate future growth? That's the part I always have trouble with as the markets are so wiggley sometimes.

    My dad, who is planning on retiring in a year or two, told me that you need enough to live on just the yearly dividends instead of the principle. So I guess he's assuming like 10% returns each year after he retires and wants to have 60K a year to live on, so he needs to have at least 600K saved. Does that make sense?
    I was concerned about that too ... I went over it with a financial advisor I just didn't have time to ask about his exact methodology. My IRA is moderately aggressive too so I also worry about the markets.

    The advisor told me something about the rule of 4% and said that you should withdraw no more than 4% of your retirement savings the first year you're retired, and adjust for inflation after that. It's just when it comes to the question of say "how much money a year will you need to live on if you're not working?" it's really hard for me to think about that.

    I guess I probably just need to call them back when I have more time ...


    Also is your dad planning on leaving an inheritance or legacy behind? Because that changes a lot too ...
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    #5
    Quote Originally Posted by Tojai View Post
    I was concerned about that too ... I went over it with a financial advisor I just didn't have time to ask about his exact methodology. My IRA is moderately aggressive too so I also worry about the markets.

    The advisor told me something about the rule of 4% and said that you should withdraw no more than 4% of your retirement savings the first year you're retired, and adjust for inflation after that. It's just when it comes to the question of say "how much money a year will you need to live on if you're not working?" it's really hard for me to think about that.

    I guess I probably just need to call them back when I have more time ...


    Also is your dad planning on leaving an inheritance or legacy behind? Because that changes a lot too ...
    I just used a simple calculator on CNN and they said I need to be saving 5% more of my income So no idea. I feel like it's so difficult to determine how much you'll need per year until you are almost retired. Like what if Medicare is gone and we don't have a single payer health system yet? I can imagine that medical expenses may be ridiculous. TBH, I let my dad manage all my stuff because he's a magician with money He went from like 20K to over 500K in 15 years of aggressive investing because he realized late in life that he needed to save for retirement.

    As for inheritance, from what I've heard, he's leaving most of his $$ to my sister and I get the house. Which is fine with me, I want the house I think the house + land is worth about 350K right now, it will likely be a lot more in the future as it's partially arable land with a mississippi river view.
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    #6
    Quote Originally Posted by rocket_lizz View Post
    I just used a simple calculator on CNN and they said I need to be saving 5% more of my income So no idea. I feel like it's so difficult to determine how much you'll need per year until you are almost retired. Like what if Medicare is gone and we don't have a single payer health system yet? I can imagine that medical expenses may be ridiculous. TBH, I let my dad manage all my stuff because he's a magician with money He went from like 20K to over 500K in 15 years of aggressive investing because he realized late in life that he needed to save for retirement.

    As for inheritance, from what I've heard, he's leaving most of his $$ to my sister and I get the house. Which is fine with me, I want the house I think the house + land is worth about 350K right now, it will likely be a lot more in the future as it's partially arable land with a mississippi river view.
    Yeah it's so hard to think about 30 years in the future! And taht's what I was thinking too, like a million sounds like a lot now but I'm sure in 30 years it won't be worth what it is today, kwim? It's like there's so much uncertainty.

    That's awesome about your dad! Can he manage my stuff too?
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    #7
    I do NOT feel prepared for retirement, and DH and I are starting late. In a fwe months, we are going to start contributing 15% of our combined income into retirement to try to "catch up" because DH has saved nothing, and I have only saved 2% for like 3 years so far. Ideally, I would like to retire with over 2 mil, but I don't know if we will make that number.

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    #8
    I would like to retire with 2 million (4 million for DH and I together) in retirement. I am not even close to that, but I do have 35 years to get there. After DH and I sell our house, pay off one car and all our credit cards, live frugally for this next 3 year assignment, and increase the amount going into our retirement, I think we will be in better shape for retirement.
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    #9
    I'm looking to have at least 2 million, and I'm not saving anywhere near enough to accomplish that. But hopefully as my financial situation continues to improve, I'll be able to save more. I'm only 26, but I've thought about this rather extensively.
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    #10
    Generally, but I do have concerns about what the life expectancy will be for us. My great-grandparents as newlyweds certainly didn't plan on living to be 103 and 102. That part is kinda scary.
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