Retirement Targets

[CycloneDaddy]

These threads always intrigue me. I'm 50, upper middle-class, and started to work with a CPA/Financial Advisor when I was 33. At that time it was recommended to have $2 million in savings at retirement and probably now closer to $3 million in today's money. What are your goals for retirement savings at your current age? I often ask myself if we are saving too much and not enjoying life to the fullest at our age or we're doing the right thing for retirement? I think I've figured out that there is no magical answer to that question.

I feel you, how much is enough is a tough question and only you can answer it. I do know I would rather have to much then not enough.

Im mid 40’s and ponder a lot about if my retirement is going to be any different if I save an extra million(s). The more I think about it I dont think it will so Im planning to leave Corp hell at 50 and work at a golf course.

 

[bos]

I feel you, how much is enough is a tough question and only you can answer it. I do know I would rather have to much then not enough.

Im mid 40’s and ponder a lot about if my retirement is going to be any different if I save an extra million(s). The more I think about it I dont think it will so Im planning to leave Corp hell at 50 and work at a golf course.

Really comes down to lifestyle and spending expectations. I plan to work after I “soft retire” from my career. Just in something less stressful that hopefully still has bennies. Hell I was reading Lowe’s offers full benefits and a stock purchase plan for part timers. That’s pretty nice.

 

[cyputz]

Interesting point on some retirement calculations - pensions. Government (state/local), etc...

 

[jsb]

These threads always intrigue me. I'm 50, upper middle-class, and started to work with a CPA/Financial Advisor when I was 33. At that time it was recommended to have $2 million in savings at retirement and probably now closer to $3 million in today's money. What are your goals for retirement savings at your current age? I often ask myself if we are saving too much and not enjoying life to the fullest at our age or we're doing the right thing for retirement? I think I've figured out that there is no magical answer to that question.

Right now everything I’ve read says you should have 3x your salary at age 40. I’m right there. I think I’ll need 6x by 50.

If I stay at my current job I’ll get a small pension of maybe $1000 per month.

 

[cyfanbr]

Late 20s here and don’t have a number in mind yet. For now just doing company match on 401(k), maxing IRA and HSA, and then putting every penny that is left after living expenses (including vacation fund) into a retirement account. Pretty much maximizing savings while we are young and don’t have kids yet.

 

[ISUATC]

Really comes down to lifestyle and spending expectations. I plan to work after I “soft retire” from my career. Just in something less stressful that hopefully still has bennies. Hell I was reading Lowe’s offers full benefits and a stock purchase plan for part timers. That’s pretty nice.

I was furloughed for five months and came back to work part-time until I lost my job in December to a reorg. I'm contemplating trying to find a "soft retirement" job now instead of going back to the corporate world. I just don't know what that would be. I would really like to find something that I can enjoy and not even think about retirement until retirement age.

 

[MisterO]

I’m in mid-40’s and in a position to retire today but I still enjoy working and our kids still have about 10 years before they’re out of the house.

So...I plan on keep doing what I’m doing for another 10 and selling my business and my rental properties when my kids leave the house. I have no idea what I’ll do then- probably Central Iowa from May to Halloween and warm places the other half of the year.

I do get a little nervous listening to the left and their plans for things like a ‘wealth tax’ and ambiguous terms like paying a ‘fair share’...concepts that are fluid and will likely target many posters on this thread who aren’t super rich, but have been diligent and have worked hard. Doesn’t seem right to me.

 

[ISUATC]

Late 20s here and don’t have a number in mind yet. For now just doing company match on 401(k), maxing IRA and HSA, and then putting every penny that is left after living expenses (including vacation fund) into a retirement account. Pretty much maximizing savings while we are young and don’t have kids yet.

You're on the right track. Nice work!

 

[MisterO]

My best advice to folks starting out and planning their retirement: channel your inner Dave Ramsey and avoid debt, develop a budget, and be intentional and be intense. You’ll get there...don’t forget to enjoy the journey.

 

[Gunnerclone]

I’m in mid-40’s and in a position to retire today but I still enjoy working and our kids still have about 10 years before they’re out of the house.

So...I plan on keep doing what I’m doing for another 10 and selling my business and my rental properties when my kids leave the house. I have no idea what I’ll do then- probably Central Iowa from May to Halloween and warm places the other half of the year.

I do get a little nervous listening to the left and their plans for things like a ‘wealth tax’ and ambiguous terms like paying a ‘fair share’...concepts that are fluid and will likely target many posters on this thread who aren’t super rich, but have been diligent and have worked hard. Doesn’t seem right to me.

I’d hate to give that tax money to my kids too. ******* leeches.

 

[bos]

I was furloughed for five months and came back to work part-time until I lost my job in December to a reorg. I'm contemplating trying to find a "soft retirement" job now instead of going back to the corporate world. I just don't know what that would be. I would really like to find something that I can enjoy and not even think about retirement until retirement age.

i don’t know what you do for a living, is it something you feel you could jump back into if you decided down the road if soft retirement isn’t for you? After working behind a desk for so long, I wouldn’t mind a more physical job outside. Would love to run/work a summer resort or if somewhere warm, do it all year.

 

[MisterO]

I’d hate to give that tax money to my kids too. ******* leeches.

Sorry you feel that way about your kids. I’d much rather give it to my kids than pay it to taxes.

If you’re against giving your money to your kids- write a check to the IRS right now so those ‘leeches’ don’t get your money. Problem solved.

 

[SEIOWA CLONE]

Been having the exact same thoughts. For a long time thinking I would work until I was 70. As people have died, some in their 60s, you know I want to be sure the family is set if I go early, but maybe chasing things to get to absolute certainty isn't the best way to go. I am going for 100% income replacement, which I know most would say that is too high, but would be nice just to be able to park the car and make the same $ from investments until I take the eternal dirt nap.

My wife and I should be at 100% when we both retire in 2 years, between our IPERS and SS, the problem for us like many is the gap years between 62 and 65 when we can start drawing Medicare.
My wife will go at the end of the year, but can stay on her insurance program, but she is paying for it, I have to go another 2 years, and then I have to figure something about insurance. We are considering putting me on her plan this fall, that way I could get a cheaper rate than I would get if I have to purchase on my own. We have not run the numbers yet, plan to do so this fall.

We were talking to friends of ours a couple of weeks ago, I stated we have about 10 to 12 years to get our bucket list of places we want to see before we are to old or crippled not to do it. It shocked them, but all of us are in our upper 50's, and we are not getting any younger.

 

[cycloneworld]

Really comes down to lifestyle and spending expectations. I plan to work after I “soft retire” from my career. Just in something less stressful that hopefully still has bennies. Hell I was reading Lowe’s offers full benefits and a stock purchase plan for part timers. That’s pretty nice.

Ive read a lot about FIRE and a common theme is figuring out what you are retiring TO. When you are at a good or high paying but stressful job, there is a tendency to want to do mindless, no stress work. But it’s still work. And why trade a high paying job for a low paying one if it’s still “work”? No right answer but definitely something to ponder.

I’ve started making a list of things I’d want to do and learn if I wasn’t putting in 55-60 hours per week of higher stress work. But I’m definitely not sure what I’d do with those 55 hours per week EVERY week just yet. But I’m working to figure it out.

 

[bos]

Ive read a lot about FIRE and a common theme is figuring out what you are retiring TO. When you are at a good or high paying but stressful job, there is a tendency to want to do mindless, no stress work. But it’s still work. And why trade a high paying job for a low paying one if it’s still “work”? No right answer but definitely something to ponder.

I’ve started making a list of things I’d want to do and learn if I wasn’t putting in 55-60 hours per week of higher stress work. But I’m definitely not sure what I’d do with those 55 hours per week EVERY week just yet. But I’m working to figure it out.

My thought is a part time gig for fun. If it stops being fun, I don’t need it and can move on. It’s the financial independence I hope to earn long before that part time gig. We are almost there, just need to keep this going long enough to make sure the kids are are educated, employed, and independent.

 

[MisterO]

A quick side question- are many of you actively saving for your kids’ college? My wife and I don’t have a dedicated fund. We plan to help them if need be, but haven’t saved for that part. Anybody else doing that or are we missing something...?

I have several reasons:
1. No one paid for my college and it forced me to be more cautious in my college choices and taking on debt.
2. College isn’t the end all. Many people make 6 figures without college.
3. I want my kids invested in their education, not just going because it’s paid for.
4. It’s hard to value things that are free.

 

[BCClone]

A quick side question- are many of you actively saving for your kids’ college? My wife and I don’t have a dedicated fund. We plan to help them if need be, but haven’t saved for that part. Anybody else doing that or are we missing something...?

I have several reasons:
1. No one paid for my college and it forced me to be more cautious in my college choices and taking on debt.
2. College isn’t the end all. Many people make 6 figures without college.
3. I want my kids invested in their education, not just going because it’s paid for.
4. It’s hard to value things that are free.

I saved in outside mutual funds.

 

[MisterO]

My thought is a part time gig for fun. If it stops being fun, I don’t need it and can move on. It’s the financial independence I hope to earn long before that part time gig. We are almost there, just need to keep this going long enough to make sure the kids are are educated, employed, and independent.

Exactly- I’ve thought about a golf course job or maybe getting one of those little ice cream carts and rolling around the beach selling ice cream. Finding something that is both work and fun is tricky. Once it gets fun, I don’t want to work anymore....

 

[NWICY]

I always have a used vehicle inspected thoroughly and use that to negotiate. Also I always pull the car fax. I know someone could say well I changed the oil myself, and maybe I accept that if I know the person and know they are meticulous.

Hey I've got my little piece of paper in the glove box that shows when I did my oil changes .

 

[MuskieCy]

Late 20s here and don’t have a number in mind yet. For now just doing company match on 401(k), maxing IRA and HSA, and then putting every penny that is left after living expenses (including vacation fund) into a retirement account. Pretty much maximizing savings while we are young and don’t have kids yet.

Pound a Roth as hard as you can. Requires discipline, but all growth for 30+ years is tax free.