Do you think this is a good retirement savings rate | TigerDroppings.com

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Hammond Tiger Fan
Arizona State Fan
Hammond
Member since Oct 2007
12264 posts

Do you think this is a good retirement savings rate


If one would have $250,000 in retirement savings at age 40

By age 40, should one have acquired more in their 401K, Roth IRAs to retire comfortably fairly early, let's say age 60.







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elposter
Alabama Fan
Member since Dec 2010
7887 posts

re: Do you think this is a good retirement savings rate


Impossible to know without a lot more information. Most importantly how much do you make now and how much do expect to spend in retirement.

For some people $1,000,000 is enough for retirement. For some people $10,000,000 isn't enough.

I will say that $250,000 at age 40 is better than most people in the country but I'm not sure how it compares to your income bracket.






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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
15657 posts

re: Do you think this is a good retirement savings rate


I'll give you a link later as a guideline. I do not have it right now available to me on this computer.





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Hammond Tiger Fan
Arizona State Fan
Hammond
Member since Oct 2007
12264 posts

re: Do you think this is a good retirement savings rate


quote:

I'll give you a link later as a guideline. I do not have it right now available to me on this computer.


Thanks






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gatorsimz
Florida Fan
cafe risque
Member since Feb 2009
5380 posts

re: Do you think this is a good retirement savings rate


quote:

If one would have $250,000 in retirement savings at age 40 By age 40, should one have acquired more in their 401K, Roth IRAs to retire comfortably fairly early, let's say age 60


it depends on the indivdual and his or her income and lifestyle. you should contribute up to your 401k match and max out the Roth after.

so let's say i'm 25, I make $80,000 a year and I get a 10% match on my 401k. I'll contribute $8k to the 401k and $5500 towards the Roth. I'll have $16k total going towards the 401k and $21,500 overall going towards retirement. if i get an 8% return in each account i should have around $434k in my 401k and $149k in my Roth at age 40. so that's about 75% 401k - 25% Roth.

if your 401k match is lower your 401k percentage would be lower.

ETA: i misread your question 250k is good for 40 years old, good job. if you can get an 8% return a year until age 60 you have around $1.15 million



This post was edited on 1/31 at 1:07 pm


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Siderophore
LSU Fan
Member since Nov 2010
3334 posts

re: Do you think this is a good retirement savings rate


Go to sharebuilder and use their retirement planner.

You can't come to us with just an amount and ask if it's enough.

Requisite retirement funds will be different if you want to be a traveller or just sit on your porch.






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dewster
Maryland Fan
Tennessee
Member since Aug 2006
9047 posts

re: Do you think this is a good retirement savings rate


First, it's hard to say what will be needed. Everyone is different and absolutely no one can accurately predict inflation rates or market performance with certainty.

If I were retiring right now at 60 and expect to live into my 80s, $800,000 plus social security may be plenty.

Some people will need more. Some will need much less.



This post was edited on 1/31 at 1:19 pm


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matthew25
Ole Miss Fan
Member since Jun 2012
3367 posts

re: Do you think this is a good retirement savings rate


Article in USA Today 1/11 states: 75% of Americans nearing age 65 have less than $30,000 in retirement savings

Half of retirees will live in poverty and on food budget of $5 per day.

Only 50% of American adults have any retirement savings.

You are well on your way. If it doubles at a good rate according to the Rule of 72 (9% for 8 years, or 8% for 9 years, etc. etc.) and you keep adding more on the side - you should be OK for retirement at 67






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dewster
Maryland Fan
Tennessee
Member since Aug 2006
9047 posts

re: Do you think this is a good retirement savings rate


quote:


Only 50% of American adults have any retirement savings.


Hard to compare. Defined benefits were more common in those days.

Lets say this in 1975 and you are doing fairly well with a $12,000 per year salary...how prepared would you need to be if you were retiring in 2013 when it would take $50,000 per year to sustain that lifestyle?

That's a really big mountain to climb when you consider the hidden tax of inflation.

I'm afraid retirement for most people my age won't be in a coastal resort or in some posh retirement community where you have time and $$ for travel and hobbies. It's going to more closely resemble college life for some people, where you spent as little money as possible, rarely traveled, and eat crappy/cheap food. If you are lucky, you'll be able to afford to live near family.



This post was edited on 1/31 at 1:30 pm


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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
18534 posts

re: Do you think this is a good retirement savings rate


I hate trying to plan into the future so far because you never know when you're gonna get fired.

I've been working for a year so I just became 401k eligible at the age of 27 in January of this year. I have max withdrawals for that. I opened an HSA so I have $125 taken out every paycheck for that to equal the max $3,250 for the year. I maxed my ROTH during year 1 while I wasn't 401K eligible.

Apparently this puts me in the top half of the country already relying on above posts. Holy shite that is terrible news.



This post was edited on 1/31 at 1:32 pm


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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
15657 posts

re: Do you think this is a good retirement savings rate


quote:

Hammond Tiger Fan



I hope this helps as a guideline. Everyone's circumstances are different as we have discussed here ad infinitum. If you are a RE investor you can count the equity in homes and passive income from renters as well along with what you have in retirement accounts and cash.

LINK



This post was edited on 1/31 at 4:43 pm


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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
15657 posts

re: Do you think this is a good retirement savings rate


quote:

I hate trying to plan into the future so far because you never know when you're gonna get fired.



been through that many times as far as job loss. you are still very young though, time is on your side. It would be gravy if we could guarantee that nice salary for 40 years straight. but it is not that simple. not too mention debts accrued and life crises we go through other than job loss.







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