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re: Here's how much money you should have saved at every age
Posted on 2/24/17 at 9:02 am to ItNeverRains
Posted on 2/24/17 at 9:02 am to ItNeverRains
my wife and i (mid 30's) are on pace for hitting these goals. We don't make a ton and we're saving %'s that aren't extreme. I don't think this is out of line if you start early and stick to the plan.
thinking back, at 30, we were ahead of our salaries at that time and at 35 we were double out salaries at that time (even though our salaries were higher).
thinking back, at 30, we were ahead of our salaries at that time and at 35 we were double out salaries at that time (even though our salaries were higher).
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Posted on 2/24/17 at 9:05 am to dabigfella
This is directed at people with white collar jobs, not people who make $10/hour. Like all retirement advice.
Posted on 2/24/17 at 9:11 am to TheIndulger
quote:
Like all retirement advice.
It seems like most retirement advice is also geared toward people with no kids, no private school tuition, no college debt and starting at $50K a year.
Posted on 2/24/17 at 9:16 am to stevengtiger
steve,also no car payments, travel budget, and discretionary spending that is optional
Posted on 2/24/17 at 9:17 am to Street Hawk
quote:
By age 30: Have the equivalent of your annual salary saved, Greene says. If you earn $50,000 a year, aim to have $50,000 in savings when you hit 30.
This isn't really helpful if you keep getting promotions/pay increases. But it's a guide so I understand the generalities.
If I jump from 75k to 150k to 200k from 27 to 30. Well, the math just isn't going to work out that way.
Posted on 2/24/17 at 9:21 am to stevengtiger
quote:
It seems like most retirement advice is also geared toward people with no kids, no private school tuition, no college debt and starting at $50K a year.
quote:
steve,also no car payments, travel budget, and discretionary spending that is optional
We have kids, private school tuition, starting jobs were $30k and $40k, we have car payments, travel, and spend on other "discretionary" stuff. And we're hitting these goals. Only thing not on your list was college debt.
Posted on 2/24/17 at 9:23 am to OneMoreTime
quote:
Well the goals only say you need 3x at 40, which is $150k. Saving 10% of your income with about 5.5% returns on that savings gets you there.
Your income is expected to grow as you age. There is no implication that the number to have saved at age 40 is $150k. It's 3X annual income which by that age should be well north of $50k a year with a normal career progression.
Posted on 2/24/17 at 9:26 am to Teddy Ruxpin
quote:
This isn't really helpful if you keep getting promotions/pay increases. But it's a guide so I understand the generalities.
If I jump from 75k to 150k to 200k from 27 to 30. Well, the math just isn't going to work out that way.
If you're at 200K by 30, retirement savings is the least of your probs.
Posted on 2/24/17 at 9:26 am to poochie
That is great! I don't think that it is not possible but there are plenty of factors that these "estimates" don't necessarily take into account.
If you are hitting these figures, you are probably in the top percentiles of savers in the country. I am close now but will be there by 40 and hoping to be there by 35. By 40, I should have the goals set up for the 50 year old. At least, that is what I am shooting for.
If you are hitting these figures, you are probably in the top percentiles of savers in the country. I am close now but will be there by 40 and hoping to be there by 35. By 40, I should have the goals set up for the 50 year old. At least, that is what I am shooting for.
Posted on 2/24/17 at 9:26 am to poochie
quote:
We have kids, private school tuition, starting jobs were $30k and $40k, we have car payments, travel, and spend on other "discretionary" stuff. And we're hitting these goals. Only thing not on your list was college debt.
you were able to put kids in private school, spent money on cars, travel and dinners out and save money while combining for $70k/year? Geez where do you live? Im assuming the private schools you're talking about aren't $20k/year and the homes aren't $300k+?
Posted on 2/24/17 at 9:31 am to dabigfella
Or had kids later in life. It would be damn hard to hit those figures getting out of school at 22-23 and having kids at 24. Now if you have your kids around 30, it wouldn't as hard, assuming salary increases throughout your 20's.
Posted on 2/24/17 at 9:32 am to dabigfella
Started at $70k which is what he asked. We have a nice but modest house that doesn't bleed us dry. And very few if any private schools outside of major cities in SLa cost $20k/year. And when we're getting in the meat of private school tuition years, our house will be paid off as will our one car note currently.
I'm just pointing out that if you stick to the plan and don't keep up with the jones's, this is a do'able path. this is not some kind of crazy path that makes you live in your mom's basement and eat potted meat for every meal and bike to work.
I'm just pointing out that if you stick to the plan and don't keep up with the jones's, this is a do'able path. this is not some kind of crazy path that makes you live in your mom's basement and eat potted meat for every meal and bike to work.
Posted on 2/24/17 at 9:36 am to dabigfella
quote:
you were able to put kids in private school, spent money on cars, travel and dinners out and save money while combining for $70k/year? Geez where do you live?
As much as some on these boards complain about private school tuition, no one seems to realize that this is also a discretionary expense. No one HAS to send their kids to private school. It's a choice. Some areas are worse than others obviously and private school makes sense but I don't understand people acting like it's mandatory.
And yes the guy probably doesn't live in LA or NYC. Not all areas have a high cost of living.
Posted on 2/24/17 at 9:45 am to ODP
quote:
If you're at 200K by 30, retirement savings is the least of your probs.
True. For the most part. I left that part out.
Posted on 2/24/17 at 9:54 am to dabigfella
Well said
Posted on 2/24/17 at 9:59 am to VABuckeye
quote:Well yeah and your savings rate should increase as well.
Your income is expected to grow as you age
Posted on 2/24/17 at 10:00 am to poochie
quote:
We have kids, private school tuition, starting jobs were $30k and $40k, we have car payments, travel, and spend on other "discretionary" stuff. And we're hitting these goals. Only thing not on your list was college debt.
OK so on $70k...
-20% conservatively for taxes/social security. So -$14k (I'm no tax expert)
-$12k mortgage (if $1000/month)
-$4800 car payments (if combined $400/month)
-$2400 car insurance (if combined $200/month)
-$2000 gas (combined vehicle gas for the year)
-$3600 health ins ($300/month)
-$3600 utilities (if $300/month for internet, tv, electric, sewer, gas)
-$1200 cell (if combined $100/month)
So that puts you at $26400 before you even go to the grocery store or eat. But you say you are "hitting those goals" including the saving 25% of gross in your 20's?
That's another -$17500 so now you're at $8900 left for the year for all groceries, eating out, travel, private school, discretionary spending, EVERYTHING. I just don't see how it's possible. I don't think my numbers used were outrageous either...
Posted on 2/24/17 at 10:15 am to Street Hawk
I mean. Every single person is going to have significantly different factors.
I'm currently doing about $14k into my 401k. I'm also putting $3k/month into a savings account. In December, I am going to totally deplete that account to make a yuuuge principal payment on our student loans. From there, I will re-direct that $3k + $1k of what I currently pay to kill those loans ASAP. (I have $20k in an emergency fund.)
My wife will also get an approximate $100,000 raise that we hopefully won't have to touch and can start accelerating our savings again.
That's the thing most people never consider about Doctors. My wife will be +/- 36 before she can even start what some would consider normal savings/retirement. She'll basically be about 13 years behind me and most others that enter the workforce right out of college. Fortunately she does have a 457 so she does something rather than nothing.
I'm currently doing about $14k into my 401k. I'm also putting $3k/month into a savings account. In December, I am going to totally deplete that account to make a yuuuge principal payment on our student loans. From there, I will re-direct that $3k + $1k of what I currently pay to kill those loans ASAP. (I have $20k in an emergency fund.)
My wife will also get an approximate $100,000 raise that we hopefully won't have to touch and can start accelerating our savings again.
That's the thing most people never consider about Doctors. My wife will be +/- 36 before she can even start what some would consider normal savings/retirement. She'll basically be about 13 years behind me and most others that enter the workforce right out of college. Fortunately she does have a 457 so she does something rather than nothing.
Posted on 2/24/17 at 10:16 am to PhiTiger1764
you are most certainly correct in you assume:
a) all those bills (at those values) were immediately required upon entering the work force
b) static salary
a) all those bills (at those values) were immediately required upon entering the work force
b) static salary
Posted on 2/24/17 at 10:26 am to Big Saint
quote:
No one HAS to send their kids to private school.
If you live in some cities like Houston yes it is fine, but in New Orleans you absolutely cannot send your kids to public schools thats not even realistically an option.
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