Mrs. Dinero
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100% about truth & justice. Always trying to give mercy a chance.
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Post by Mrs. Dinero on Oct 17, 2019 9:45:33 GMT -5
Using this rule of thumb:
In 30s: 1-2x salary 40s: 3-4x salary 50s: 6-7x salary 60s: 8-10x salary
Using this benchmark we are. I am constantly checking though. Biggest fear is missing out on compounding during our wealth building years. Also hoping we live long enough to enjoy the fruits of our labor. We do enjoy ourselves but also deny ourselves plenty of toys/extra trips.
Are you on track?
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steph08
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Post by steph08 on Oct 17, 2019 9:54:41 GMT -5
Based on that rule of thumb, yes, I'm on track. I'm 34 and have almost 2x my salary.
Doing some rough calculations using my current savings rate and 8% yearly growth, at 40, I'll have almost 4x. At 50, I'll have 10x. At 60, I'll have 24x.
A few years ago, I switched jobs and my salary has risen 40% since then - that threw off my figures for a while.
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bean29
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Post by bean29 on Oct 17, 2019 9:55:55 GMT -5
Absolutely not. But, we probably don't need that much anyways.
We have some investments that should start paying better (rentals). And DD is in her last year of school, and we have paid some debt off so we can snowball the remaining debt. We should be able to accumulate more saving in our last decade working than we did in the earlier years.
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justme
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Post by justme on Oct 17, 2019 10:07:58 GMT -5
I hit 1x in my early 30s. I'm almost 34 and will probably have around 1.4x my salary then - depending on what my raise is (and if I switch jobs). I'm actually earning more money than I put in - but I know most of that is due to the stock market doing good - my rate of return this year is currently over 17%!!! Currently about double what I'm putting in - which is a ridiculously nice feeling.
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ners
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Post by ners on Oct 17, 2019 10:10:33 GMT -5
No. Thus my name. Not enough retirement savings.
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resolution
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Post by resolution on Oct 17, 2019 10:11:50 GMT -5
I meet it if I count the value of my non-retirement assets, but I don't meet it if I just look at my IRA and 457 plan.
If you had asked this a few weeks ago I would have met it regardless of what I counted, but I had a birthday and now I am behind again.
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Wisconsin Beth
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Post by Wisconsin Beth on Oct 17, 2019 10:14:52 GMT -5
Sort of. I have about 5x my salary in my 457 plan. I'm 49.
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buystoys
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Post by buystoys on Oct 17, 2019 10:29:34 GMT -5
DH is in his 60's and we had less than 10X our annual salary when we retired. (We both were retired through disabilities.) We did have a bit more than 25X our expenses, though. I was saving a lot and DH worked sporadically, so our incomes weren't really good to use as a measure. I prefer the expenses side as a comparison. Having said that, his pension, his SSDI and my SSDI pay our regular bills. The IRA money is for large expenses, such as buying a rental property or doing major work on the house. When looking at retirement, we learned that it's also important to look at short and long term disability as a part of the picture.
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Tiny
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Post by Tiny on Oct 17, 2019 10:37:42 GMT -5
By that rule of thumb - yes I am on target for retirement (possibly early retirement). I'm mid 50's and have 8x my current salary saved for retirement (mostly due to the Great Recession - I had started scrapping together a Big Pile o'Money in the years right before it happened - and then continued to save big amounts each year as the markets slowly continued to rise). I have a game changer though. One thing I didn't realize was that I will have a pension, which I can take at 65 - and it will provide a substantial amount of money income. I can quit today and still get that money at 65. I will have to supplement it with my own money - just not as much as I was expecting to need. It also means I can take SS at my full retirement age or even later. My original retirement savings plan (from my late 30's) was that I would be financing my retirement nearly 100% and thus had to save/have more than a million before I could retire. Without the pension I would definitely have to continue my big savings and work the big salary/high stress job until I was 65 before retiring. The realization about the Pension changes that plan a bit. On the plus side, all that saving I did - seems to mean I might be able to either use retirement money at 59.5 without jeopardizing my actual long term retirement needs OR it means I don't need to keep saving at the same high levels I am now if I continue working past 59.5 (which means I might not need to work a high salary/high stress job). Unfortunately, I seem to be chained to employer health care
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giramomma
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Post by giramomma on Oct 17, 2019 10:50:15 GMT -5
Yes. At 44, we have 5x our gross HH income for retirement. That's excluding our pensions. If you add in the cash value of our pensions, then it's 6x. It's not what it is though. Our gross is low and I married up the SES ladder. And I'm hoping to retire by 60. I'm always in awe of MPL and what she's been able to accomplish.
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swamp
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Post by swamp on Oct 17, 2019 10:51:02 GMT -5
No. I'm still at work.
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azucena
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Post by azucena on Oct 17, 2019 10:54:47 GMT -5
DH and I are 40 and gross $200k. This was a good excuse to check retirement accounts which I haven't done since June. Current balance is $410k so right at 2x. Current projections show us hitting the 4x by 50, so I'd say we're on track. I'll also receive a pension which is currently valued at $1k/month, and I doubt we'll need $200k/yr in retirement which just goes to show that multiples of income can skew retirement planning.
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Gardening Grandma
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Post by Gardening Grandma on Oct 17, 2019 11:03:22 GMT -5
We retired in our late 50's. We did not have 6-7Xsalary. We're going on 11 years now in retirement and our net worth is the same as it was 11 years ago.
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Deleted
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Post by Deleted on Oct 17, 2019 11:15:40 GMT -5
39 and 3.5 times
At 34 I was at 5 times with half the account balance.
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obelisk
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Post by obelisk on Oct 17, 2019 11:45:09 GMT -5
Mid 50's with 20X salary. Contemplating early retirement. My moto has been invest early and often since it's not always going to be sunny days.
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tractor
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Post by tractor on Oct 17, 2019 13:43:43 GMT -5
Yes, maybe, depending on how the age ranges work. I have 4X at 49.
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raeoflyte
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Post by raeoflyte on Oct 17, 2019 13:49:35 GMT -5
No. Especially since I hit 40 in less than a month. I should catch up to this guideline by 45. I should check on dh's though and see how far off he is.
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pooks
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Post by pooks on Oct 17, 2019 13:56:12 GMT -5
According to those guidelines, it would seem we are on track.
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azucena
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Post by azucena on Oct 17, 2019 14:21:54 GMT -5
Mid 50's with 20X salary. Contemplating early retirement. My moto has been invest early and often since it's not always going to be sunny days.
Obelisk - I don't think I know much about you, but based on this stat, I think I'd like to. Would you care to share any details on how you've made this happen?
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obelisk
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Post by obelisk on Oct 17, 2019 14:49:34 GMT -5
Mid 50's with 20X salary. Contemplating early retirement. My moto has been invest early and often since it's not always going to be sunny days.
Obelisk - I don't think I know much about you, but based on this stat, I think I'd like to. Would you care to share any details on how you've made this happen?
Started working at 14, no parental help with education and money support. Undergrad in engineering while working 30 hrs/week. No student loan debt. Started investing in the SP 500 in my mid 20's. Always maxed out 401K. Lived below my means, delayed gratification when compared to coworkers and friends. Married in my mid 40's. One child. Stay at home spouse. The key for me is to have your investments growth exceed your salary. I made a conscientious decision when young and asked myself, which group of people do I want to emulate and started reading the financials in my local paper. The key is knowing when to let go of the purse strings and enjoy!!!!!!!!!!!
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NastyWoman
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Post by NastyWoman on Oct 17, 2019 14:52:23 GMT -5
Using this rule of thumb: In 30s: 1-2x salary 40s: 3-4x salary 50s: 6-7x salary 60s: 8-10x salary Using this benchmark we are. I am constantly checking though. Biggest fear is missing out on compounding during our wealth building years. Also hoping we live long enough to enjoy the fruits of our labor. We do enjoy ourselves but also deny ourselves plenty of toys/extra trips. Are you on track? According to that table, I might be close. However, based on my savings and my (over ten years worth) of tracking expenses, I am way ahead of what I need.
Income based tracking of how well you are prepared for retirement only works as a rough rule of thumb when younger IMO. As you near the endline, what your spending looks like should become the determining factor
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tskeeter
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Post by tskeeter on Oct 17, 2019 15:22:30 GMT -5
DH and I are 40 and gross $200k. This was a good excuse to check retirement accounts which I haven't done since June. Current balance is $410k so right at 2x. Current projections show us hitting the 4x by 50, so I'd say we're on track. I'll also receive a pension which is currently valued at $1k/month, and I doubt we'll need $200k/yr in retirement which just goes to show that multiples of income can skew retirement planning. One thing that can bite you in the backside in retirement is taxes. If you are fairly aggressive about contributing to 401K accounts, and the like, it is very likely that your income tax rate in retirement will be higher than when you were working (our effective federal income tax rate increased by nearly 85% after we retired).
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Tiny
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Post by Tiny on Oct 17, 2019 15:31:53 GMT -5
DH and I are 40 and gross $200k. This was a good excuse to check retirement accounts which I haven't done since June. Current balance is $410k so right at 2x. Current projections show us hitting the 4x by 50, so I'd say we're on track. I'll also receive a pension which is currently valued at $1k/month, and I doubt we'll need $200k/yr in retirement which just goes to show that multiples of income can skew retirement planning. One thing that can bite you in the backside in retirement is taxes. If you are fairly aggressive about contributing to 401K accounts, and the like, it is very likely that your income tax rate in retirement will be higher than when you were working (our effective federal income tax rate increased by nearly 85% after we retired). I second the taxes in retirement part of this. If you have an above median income income - and expect to end up with a large pre tax balance in your Retirement Account at retirement - you may wind up in the same or a higher tax bracket than while working. I was also saving under the assumption my "income" and therefore my tax rate would be much lower in retirement - but it's not looking that way. I am NOT complaining. It's a good problem to have. Just wanted to put a bug in the younger folks ears - that including Roth savings is not a bad idea - especially if you have other 'tax breaks' like kids or whatever married with kids get in the way of deductions. It's tougher for singles...
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thyme4change
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Post by thyme4change on Oct 17, 2019 16:22:35 GMT -5
We are probably on track, but we haven't paid for college yet. That's gonna hurt.
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Happy prose
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Post by Happy prose on Oct 17, 2019 18:30:15 GMT -5
Well I just turned 60, and have about 4x my salary, but I will get a pension. My pension will be 45% of my salary. So am I on track?
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Deleted
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Post by Deleted on Oct 17, 2019 18:44:01 GMT -5
Using that rule of thumb, absolutely not. But I’m working on it. If nothing changes in the next decade or so, I will get a pension and a few other retirement benefits that will help me out. Plus I’m working on a few other things that could potentially give me extra income in retirement and won’t require me working a “job”. Beyond that, all I got is hope and some prayers.
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haapai
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Post by haapai on Oct 17, 2019 19:30:41 GMT -5
No. By those benchmarks, I am not on track for retirement.
OTOH, those are probably the most generous and forgiving savings/retirement benchmarks that I have ever encountered. I've gotten used to hearing that I am 10 years behind in savings or have saved less than half of what I should have saved. These benchmarks have me within spitting distance of being on track.
I refuse to be comforted by this.
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Deleted
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Post by Deleted on Oct 17, 2019 20:00:51 GMT -5
One thing that can bite you in the backside in retirement is taxes. If you are fairly aggressive about contributing to 401K accounts, and the like, it is very likely that your income tax rate in retirement will be higher than when you were working (our effective federal income tax rate increased by nearly 85% after we retired). I second the taxes in retirement part of this. If you have an above median income income - and expect to end up with a large pre tax balance in your Retirement Account at retirement - you may wind up in the same or a higher tax bracket than while working. I was also saving under the assumption my "income" and therefore my tax rate would be much lower in retirement - but it's not looking that way. I am NOT complaining. It's a good problem to have. Just wanted to put a bug in the younger folks ears - that including Roth savings is not a bad idea - especially if you have other 'tax breaks' like kids or whatever married with kids get in the way of deductions. It's tougher for singles... I really wish I would of had access to the Roth 401k at the start of my career, as it was I got it 13 years in at about the time I deemed it no longer the better option tax bracket wise to my income.
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thyme4change
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Post by thyme4change on Oct 17, 2019 20:08:32 GMT -5
I've been at the point for awhile that however much money I have when I retire, that is what I will live on. If I had to retire today, I would still live an okay life. I'd have food and housing in a safe area, but I'd lack some of the finer things to which I have become accustomed.
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Deleted
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Post by Deleted on Oct 17, 2019 22:13:27 GMT -5
Based on that I'm ahead at 9X income at 50, but I'm not including child support in income and I don't make a lot, so it's not as impressive as it seems.
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