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Do you think this is a good retirement savings rate
Posted on 1/31/13 at 11:43 am
Posted on 1/31/13 at 11:43 am
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.
By age 40, should one have acquired more in their 401K, Roth IRAs to retire comfortably fairly early, let's say age 60.
7
Posted on 1/31/13 at 12:03 pm to Hammond Tiger Fan
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.
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.
Posted on 1/31/13 at 12:06 pm to Hammond Tiger Fan
I'll give you a link later as a guideline. I do not have it right now available to me on this computer.
Posted on 1/31/13 at 12:29 pm to Fat Bastard
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
Posted on 1/31/13 at 1:04 pm to Hammond Tiger Fan
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 millionThis post was edited on 1/31/13 at 1:07 pm
Posted on 1/31/13 at 1:06 pm to Hammond Tiger Fan
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.
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.
Posted on 1/31/13 at 1:15 pm to Hammond Tiger Fan
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.
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 1/31/13 at 1:19 pm
Posted on 1/31/13 at 1:18 pm to gatorsimz
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
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
Posted on 1/31/13 at 1:25 pm to matthew25
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 1/31/13 at 1:30 pm
Posted on 1/31/13 at 1:31 pm to Hammond Tiger Fan
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.
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 1/31/13 at 1:32 pm
Posted on 1/31/13 at 4:36 pm to Hammond Tiger Fan
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 1/31/13 at 4:43 pm
Posted on 1/31/13 at 4:41 pm to Teddy Ruxpin
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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