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re: Starting a retirement fund in your mid 30’s?

Posted on 8/7/20 at 6:10 am to
Posted by TorchtheFlyingTiger
1st coast
Member since Jan 2008
2136 posts
Posted on 8/7/20 at 6:10 am to
You've provided too little info to answer accurately.

Just getting company match probably wont get you to a comfortable retirement. Good rule of thumb is you need 25 times your spending at retirement (adjusted for inflation) minus any pension,SS etc... so if you are looking to replace $80k spending you would need 2 million to retire today. In 30 years you may need ~$168k to replicate that spending (assuming 2.5% inflation) $168k annual spend times 25 is $4.2 million. Cut annual spending or cover some of it with other income sources and you lower that number. Figure out your target and work back from there using conservative assumptions for inflation and returns.

I'd work towards maxing 401k and Roth contributions and if you get there eventually start investing in non retirement accounts and/or real estate.
Posted by DiamondDog
Louisiana
Member since Nov 2019
10606 posts
Posted on 8/7/20 at 6:49 am to
quote:

annual spend times 25 is $4.2 million.


The average person isn’t retiring a multimillionaire. They are just low fixed income
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