Can we go back to the "Median Boomer Retirement Account $144,000" thread? That one made me feel better about myself than this thread.
Retirement Targets
- Thread starter yowza
- Start date
If you aren't quite up to what people here are stating you are in the same boat as many people.
I am currently 41 and am doing my retirement planning with target age of 65 as the goal but hoping I am in a position where I can consider it at age 60. Unless something drastically changes over the next 20 years with my financial situation I think it's realistic that I could afford to retire between 60-65.
One of our financial advisors plugs all our stuff into some program that comes back with a success rate where it takes all the goals we have set for what we will need to do financially between now and after retirement for expenses like college, new cars, home improvements, and retirement goals etc. amongst things and it tests that against like a 1000 best and worst case scenarios and right now we come back with over 80% success rate. He's actually concerned that we could have too much set away for retirement by that point with our current inputs where we'd have some tax issues with having to pull out of our 401k but I don't know how much of that is him trying to sell us his Roth IRA plans too. Going to pay tax on it 1 way or another either with it going in or coming out of a retirement fund and at least with my employer 401k I am getting a dollar for dollar match up to 6% of my paycheck which I wouldn't be getting if I cut back on 401k contributions and put that into a 3rd party Roth instead. So honestly am a bit confused with his logic because even with taxing the 401k distributions later I can't imagine that all the matching contributions and growth over the years from that is going to be worse than throwing it in to a Roth now instead. Need to do some research on it and I have another financial guy I do business with that provides a lot of the same type of advice that probably would give me his opinion on it too.
One of our financial advisors plugs all our stuff into some program that comes back with a success rate where it takes all the goals we have set for what we will need to do financially between now and after retirement for expenses like college, new cars, home improvements, and retirement goals etc. amongst things and it tests that against like a 1000 best and worst case scenarios and right now we come back with over 80% success rate. He's actually concerned that we could have too much set away for retirement by that point with our current inputs where we'd have some tax issues with having to pull out of our 401k but I don't know how much of that is him trying to sell us his Roth IRA plans too. Going to pay tax on it 1 way or another either with it going in or coming out of a retirement fund and at least with my employer 401k I am getting a dollar for dollar match up to 6% of my paycheck which I wouldn't be getting if I cut back on 401k contributions and put that into a 3rd party Roth instead. So honestly am a bit confused with his logic because even with taxing the 401k distributions later I can't imagine that all the matching contributions and growth over the years from that is going to be worse than throwing it in to a Roth now instead. Need to do some research on it and I have another financial guy I do business with that provides a lot of the same type of advice that probably would give me his opinion on it too.
Employers can do Roths also. Best to check to see if that is an option, if so you would have the best of both worlds. Being blunt, a Roth is the way to go hands down on any unmatched funds. The gain is to be exempt from taxes (saying to be, because with government you cant guarantee much) so you have a large portion of your retirement fund free and clear. Also, do you project your tax rate to be higher or lower when you retire? I have a hard time believing we don't have higher taxes in the next 10-20 years.
Yeah we are going to see what our options are with employer Roth plans if possible too. I guess at the moment where we stand financially I'd rather have the problem of worrying about paying more taxes than not being able to retire and having concerns with our financial well being. Fortunately we are far enough out right now we can adjust our retirement planning to optimize things.
I'm in decent shape. According to T Rowe Price you should have at least 11x your salary. I have close to 10x right now.
Yo, you need any new friends??? Haha, kidding...sort of. I mean, if you need a photographer at all, I'd be your guy.
Jokes aside, good for you. Sometimes you either call it dumb luck, or you were just smart and took a heck of a nice risk. But, if you've done that well over the years and mitigated your risk nicely, then I commend you. Not everyone wants to do that. That's a heck of a plan and will be a nice nest egg. I would advise you, if you haven't done some things that you expect to be there and do at 55, you still may want to spend some money now just in case something bad were to happen such as traveling (when ready). I'm not saying something will, but health wise, you never know.
I can't get any good numbers on how much it will cost me to trade my wife in for a newer model when I retire. I am getting the feeling that may force me to have 3X what is recommended. Maybe I can find a rich, new one and it will just even out.
Looking on target to retire in 9 years (55) with no debt with > $3 Mil. Barring huge health issues or a major sustained market collapse, there shouldn't be any reason that we can't enjoy a good retirement without living like misers. A good chunk of that will be left alone so it keeps working for us.
I'm shooting for January 2026. I'll be 55 this month, divorced 12 years ago which set me back, remarried a few years later. Because of the industry I'm in 401ks weren't available until the late 90s. Instead we had a defined benefit plan. When that ended I rolled over the meager balance into my 401k. 401k is now just over 900k. In my role as a key employee my employer set up a split $ life insurance plan that will pay out 100k/year for 20 years tax free beginning in 2026. The job is easy and the pay is good at this point, but after 30 years I'm looking forward to stepping away. It's funny that I never used to think much about retirement, but once I hit 50 it's like a switch got flipped.
I'm hoping to set up an arrangement as a "consultant" for my employer for a couple of years after I retire at a reduced salary...I'm thinking $50k ish, and have them cover my/spouse's health care until Medicare eligible.
I was able to lock in 3.25% for 30 years on our mortgage a few years ago-instead of prepaying I have the extra transferred into a mutual fund so that I can pay off at retirement. (Or draw out of the mutual fund and continue to earn on the spread.)
I've worked with my financial advisor on this-we're good to go.
My dad died at age 74 after several years of health problems, so I want to make sure I have time to enjoy retirement while I'm relatively healthy.
I'm hoping to set up an arrangement as a "consultant" for my employer for a couple of years after I retire at a reduced salary...I'm thinking $50k ish, and have them cover my/spouse's health care until Medicare eligible.
I was able to lock in 3.25% for 30 years on our mortgage a few years ago-instead of prepaying I have the extra transferred into a mutual fund so that I can pay off at retirement. (Or draw out of the mutual fund and continue to earn on the spread.)
I've worked with my financial advisor on this-we're good to go.
My dad died at age 74 after several years of health problems, so I want to make sure I have time to enjoy retirement while I'm relatively healthy.
No and not even close. After the first five years of marriage I had plenty of extra time to do retirement planning as "other activities" went to near zero.
And make sure to get the health check ups, even the embarrassing ones. They can extend your life. A lot of stuff they can treat if caught early on.
You got an annuity that will pay $100k per year for 20 years starting in 2026? That is gold my friend.
Plus nearly a MM in the bank. He won't need to touch that thing if he works a bit here and there.
I turn 64 next week, but was recently diagnosed with a terminal lung condition. Kinda put a damper on retirement planning, but I still have the vixen to worry about. I think she'll be more than fine, since she inherited a bit of farm ground from her family.
And you people with $2.5-3 million already....what in the hell do you need Social Security for? Pocket change?
And you people with $2.5-3 million already....what in the hell do you need Social Security for? Pocket change?
Sorry to hear that brother. I hope there is a miracle for you my friend. Have some fun with the time you got. I am sure you have to be very careful with this COVID crap right now.
