Retirement Targets

yowza

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Jun 2, 2016
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My experience for men. For each kid you have add five years to your retirement age. Get married add 10-15.

Never experienced this, but if you get divorced, it appears you may never be able to retire.
Just gotta find a second wife who got a similar half from prior marriage.
 
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4theCYcle

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Jul 14, 2013
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It blows my mind you could retire at age 65 and have less then $100,000 saved. If you invested $50 a month for 45 years and got 5% interest you will have $100k.

Youngsters …. nothing beats TIME!!!
False, death beats time. Sorry, had to.

Regardless, it is crazy how I hear some adults in their 50's have hardly anything saved in retirement at times. I'm like how? Even a couple hundred bucks goes a long ways.
 

TitanClone

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Wife at 22 - "Hey coworker. What should I do in the 401k plan?"

Coworker - "Meh. You're too young to think about retirement!"

Wife - "OK!"

The ******* worst advice given. Sadly a true story. She didn't start a retirement savings until she met me. But even with bad info you can still make a rally.
The simplest advice I've seen over and over again is in order 1. Put the maximum your company will match into your 401k 2. Ensure you have a comfortable amount in savings 3. Max out a Roth IRA 4. Anything leftover either add to your 401k or a brokerage account
 

SayMyName

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Jan 28, 2017
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What age you plan on tapping out and jumping off this tread mill? You plan to work doing something else or hobby / volunteer stuff or hanging with family?
Turning 51 soon, hope to be out in the next 4-5 years barring any epic collapse in the markets before then. May consider consulting if it's on my own terms, otherwise I'd plan on some travel and health-related activities with my time. Income would not be the constraint, however health insurance with dependents is a primary factor.
 
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1SEIACLONE

Active Member
Jun 2, 2024
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False, death beats time. Sorry, had to.

Regardless, it is crazy how I hear some adults in their 50's have hardly anything saved in retirement at times. I'm like how? Even a couple hundred bucks goes a long ways.
Many come from poor families and living to pay check to pay check is the only way of life they know. Many do not have much education, going from job to job and the idea of saving for retirement is foreign concept for many. Its live for today, because I might not be around for tomorrow, so I am going to enjoy my life. That line of thinking was fine they could get factory jobs that had a pension, but those types of jobs are few and far between these days.
 

KnappShack

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May 26, 2008
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The simplest advice I've seen over and over again is in order 1. Put the maximum your company will match into your 401k 2. Ensure you have a comfortable amount in savings 3. Max out a Roth IRA 4. Anything leftover either add to your 401k or a brokerage account

My personal advice - be aggressive! Screw those target date options. I think my date wouldn't been about 1/3 of what my return was last year.

Invest. Be aggressive (especially when young). Invest more. Invest even more. Keep investing.
 
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dmclone

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Oct 20, 2006
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Many come from poor families and living to pay check to pay check is the only way of life they know. Many do not have much education, going from job to job and the idea of saving for retirement is foreign concept for many. Its live for today, because I might not be around for tomorrow, so I am going to enjoy my life. That line of thinking was fine they could get factory jobs that had a pension, but those types of jobs are few and far between these days.
You'd be surprised how many people with 6 figure incomes do such a piss poor job of saving.
 

LarryISU

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Feb 10, 2013
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When you are 34 time is still seemingly endless.

Did she fall in line with your thinking when you came along or has there been a number of battles over save vs spend? Was she a YOLO type always prior to you?
Not really YOLO, just didn't think long-term. She also had bought a baby grand piano from a friend before I came along and was paying the friend a little every month, no interest. When we decided to get married, she got cash from a credit card to pay off the friend. Somehow figured that would look better to me. When I saw the credit card bill, I couldn't believe it.
Anyway, we agreed early on I would handle all money and bills. She has never once asked about anything. Works perfectly!
 

1SEIACLONE

Active Member
Jun 2, 2024
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Ames Iowa
You'd be surprised how many people with 6 figure incomes do such a piss poor job of saving.
True live in a house way over what they need and can afford, new vehicles, changing phone every year, great vacations, they are all living for today and could care less about the future. Hell, maybe they figure they are going to get a nice inheritance when their parents pass.
 

dmclone

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Oct 20, 2006
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My personal advice - be aggressive! Screw those target date options. I think my date wouldn't been about 1/3 of what my return was last year.

Invest. Be aggressive (especially when young). Invest more. Invest even more. Keep investing.
I'm close to retirement and losing a couple years worth of salary during a bad week can bite. I tend to use target date options 10 years later. So if I plan on retiring in 2030, I'll use 2040 instead. I currently have about 1/2 in S&P 500 and 1/2 in the 2040 fund.

You're 100% right though. So far this year, my S&P500 return has been 14.41% and the 2040 has been 7.39%. Roughly 1/2 the return.
 
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TitanClone

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My personal advice - be aggressive! Screw those target date options. I think my date wouldn't been about 1/3 of what my return was last year.

Invest. Be aggressive (especially when young). Invest more. Invest even more. Keep investing.
Agreed. Hardly any of my 401k is in target date funds. Oracle Common Stock Fund (not just ORCL) became an option when they bought us and it's returned nearly 50% the past couple years, already at 34% YTD.
 

KnappShack

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May 26, 2008
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I'm close to retirement and losing a couple years worth of salary during a bad week can bite. I tend to use target date options 10 years later. So if I plan on retiring in 2030, I'll use 2040 instead. I currently have about 1/2 in S&P 500 and 1/2 in the 2040 fund.

You're 100% right though. So far this year, my S&P500 return has been 14.41% and the 2040 has been 7.39%. Roughly 1/2 the return.

Watching the numbers flash red is tough. It takes a bit of conviction and will power to keep from easing up

But the market can work wonders if an investor lets it work.

My wife is 7 years younger than me. She's an earner. In theory I won't need to touch my retirement funds until there's an RMD. We can make ends meet on her salary.

At this point I don't see a change in strategy for decades. But the ol' "we plan, God laughs" wildcard can change everything

(Of course everyone's situation is different. Stick with your own comfort level and don't swap everything because it's on here!)
 
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dmclone

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Oct 20, 2006
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Speaking about retirement, any suggestions on places to check out? Here are my must haves:

Warm
Low humidity
Somewhat affordable
Within an hour of a decent airport

So far we've checked out:

Palm Springs-Love it, too expensive
San Diego-Love it, WAY too expensive
Phoenix-Suburbs are nice, enjoyed our time there.
Tucson-Really liked Tucson. A little cooler than Phoenix, a lot smaller, a lot more relaxed.
Vegas-Been to Vegas a lot but never any of the suburbs.
St. George-Never been but looks nice
Albuquerque-Never been but my wife didn't seem to love it

I feel like I'm missing some smaller areas but the desert states don't seem to have as many options.

Other options?
 

Cyched

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May 8, 2009
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Speaking about retirement, any suggestions on places to check out? Here are my must haves:

Warm
Low humidity
Somewhat affordable
Within an hour of a decent airport

So far we've checked out:

Palm Springs-Love it, too expensive
San Diego-Love it, WAY too expensive
Phoenix-Suburbs are nice, enjoyed our time there.
Tucson-Really liked Tucson. A little cooler than Phoenix, a lot smaller, a lot more relaxed.
Vegas-Been to Vegas a lot but never any of the suburbs.
St. George-Never been but looks nice
Albuquerque-Never been but my wife didn't seem to love it

I feel like I'm missing some smaller areas but the desert states don't seem to have as many options.

Other options?

I’m far from retirement, but I’d probably think about Vegas when I get to that stage.

Warm. No income tax in NV. Once you’re out in the burbs it feels more like PHX, not like you’re going to be living on the Strip or Fremont St. Not as massive as PHX either.

Of course assuming they still have water in 30 years :cool:
 

yowza

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Jun 2, 2016
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Turning 51 soon, hope to be out in the next 4-5 years barring any epic collapse in the markets before then. May consider consulting if it's on my own terms, otherwise I'd plan on some travel and health-related activities with my time. Income would not be the constraint, however health insurance with dependents is a primary factor.
I am in same boat. Will be buying health coverage for family when time comes to exit (within 5 years or so). I'm not going by the 70% of current income rule or 80% as some might say. I want an income at or above what I currently have and I am not counting on SS even though it will likely pay in some amount by then when I reach age.

I go by the 4% rule, but I know realistically that will probably be a low number as I plan to leave a decent chunk in the market.
 

yowza

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Jun 2, 2016
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Agreed. Hardly any of my 401k is in target date funds. Oracle Common Stock Fund (not just ORCL) became an option when they bought us and it's returned nearly 50% the past couple years, already at 34% YTD.
Oracle had a damn good bump yesterday. The old lion roared.
 

yowza

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Jun 2, 2016
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I'm close to retirement and losing a couple years worth of salary during a bad week can bite. I tend to use target date options 10 years later. So if I plan on retiring in 2030, I'll use 2040 instead. I currently have about 1/2 in S&P 500 and 1/2 in the 2040 fund.

You're 100% right though. So far this year, my S&P500 return has been 14.41% and the 2040 has been 7.39%. Roughly 1/2 the return.
I look at about 3 times during the day and I need to stop it in paying that close attention to it. I watch the morning stuff on CNBC just to get the vibe for the day starting out. So informative in the mornings.
 

yowza

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Jun 2, 2016
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Nothing is wrong with working a little longer - if that's what you want to do. But not everyone wants to do that. So many people hate their jobs and it sucks their soul away. If you love your job and want to work, great. But making people work because healthcare insurance and costs are so insane is a crazy notion for the richest country in the world.

For me, I want to be fully financially secure by the time I'm 50 (I'm 42 now). So that if I love what I'm doing (I do now), I can keep working. But I'm nearing a decade of 50-65 hour work weeks that were fine in my 30s and early 40s but I know that I don't want to keep up that pace indefinitely. So I want an off ramp that I decide when to take, no one else. But healthcare costs will likely force me to work for many more years that I would have to.
50 to 65 hours sucks.
 

yowza

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Jun 2, 2016
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I started an HSA the first time I was offered. I figured instead of paying x amount of dollars to the insurance company I could pay half of that to the insurance company and the other half to myself. I rarely touched it until last year when I hit my max. Even then I had enough money in it that with the investments I have more in it than I did last August.
I can use HSA money to reimburse my Medicare payment if I so desire. It shouldn't even need to grow that aggressively in order to do that and keep growing.
The first year in it is the most unnerving. Once you get funds built up in the HSA that would cover a really bad health year (and then multiple years) the comfort level grows with it.
 

Cyched

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May 8, 2009
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The first year in it is the most unnerving. Once you get funds built up in the HSA that would cover a really bad health year (and then multiple years) the comfort level grows with it.

Do you keep all of it in the investment, or a portion in cash/stable fund?

I currently have mine set to keep one year deductible in cash, anything above that gets invested.