re: Here's how much money you should have saved at every age

quote:

---

These figures are pretty meaningless click bait.

---

These guidelines were published by various financial publications long before the internet existed.

quote:

---

How much someone needs to save is dependent on so many factors that it cannot be boiled down into a single number at each age. I know humans love single numbers that they can attach to but it just isn't that simple. Someone could have 3x at retirement and be fine while someone else might need 15x. There is a ton of variability here.

---

These were suggested as a minimum amount for most people to have a reasonable chance at financial security. There are always unique situations, but using these guidelines as a plan for investing will outperform the normal condition of having no plan every time.

And there's nothing wrong with that... while you're young. But as you get older, and really start your retirement planning, you'll have to look at how much money (or assets) you're likely to have at retirement, what sort of income it kicks off and how that meets with your expected expenses upon retirement.

I mean, two people with identical $1 million net worths and identical post retirement expenses are not in the same boat, if one mainly has rental property that kicks off $80K in net annual income and the other has equity and debt investments that only kick off $40K in dividends and interest. By the rule of thumb in the OP, it would seem that they are. But what several of us seem to be saying is that you can use the rule of thumb in the OP as just that: a rule of thumb. Just trying to point people in the right direction is how I took it.

I just hit a financial milestone in October- I've been saving faithfully since I was 18 and my Dad sat down with me and explained interest and sticking to budget. Up until recently when my sales career took off - I was making decent money but still saving 15%. Any bonus money I make is set aside.
I still buy used vehicles.

quote:

---

There is no respectable rental available in any city that's under $1,000 anymore. I own a slew of section 8 housing that fetches $900+ a month for $50k properties.

---

That's why you live with roommates it can save you an arm and a leg if you're single and in your 20's.I easily spend less than 1,000 a month, granted Houston is fairly cheap for a large metropolitan.

Why would someone down vote this?

do not focus on salary or income, focus on expenses and try to get 25 times expenses to retire. the best thing about saving isn't the money in an account but keeping expenses down and life style creep in check.

Well I'm 35 and I have about 1 year worth of salary in my 457b plan. I also have 4 kids. The killers are things like property taxes, my health insurance payments doubled while deductible went way up. shite breaks and has to be replaced, plumbing, a/c, doctor bills, kid's school shite, yes even in public schools we paying out the arse for random shite. I am lucky I'll also have a pension as I'm on the fire dept. I gross about 40k a year at fire dept, and about 20-25k a year doing windshields. Actually I don't even have a year worth in 457, I have about 30k in there. Not sure the point of my post now. Even on the windshield job, that's 20-25k before counting gas, insurance, and advertising. Supplies are already figured in though.

it all comes down to what your priorities are. Much of our lives is buying crap we don't need, with money we don't have to impress people we don't like. I know one thing, the lower my expenses are, the sooner I can retire or at least have more freedom.

I'm not going to make judgements on how other people spend money, but I think it is a reasonable comment to say that the US is obsessed with material goods.

I refuse to pinch pennies it every aspect of my life but I could easily tighten the belt of required. Savings are financial security - a safety blanket.

So you're saying that the average person on this board makes 35K? I would think more.