Financial gurus what are your thoughts? And how are you tracking toward this (or some other) goal?
Financial gurus what are your thoughts? And how are you tracking toward this (or some other) goal?
I’m screwed then
What do they say you can include to get to that number?
Savings?
Retirement?
529?
Mutual Funds?
Stocks?
Home equity?
Vhfhcjvbh wrote:
I’m screwed then
This assumes several things: retirement age 67, planning age through 93. The replacement annual income target is defined as 45% of preretirement annual income and assumes no pension income.
So, overall a pretty depressing thought. I was hoping to retire early, live longer, and enjoy 100% of my preretirement income.
Are these the same people who think an engagement ring should be a few month’s salary? Lol
More please wrote:
What do they say you can include to get to that number?
Savings?
Retirement?
529?
Mutual Funds?
Stocks?
Home equity?
Assumed age-based asset allocations consistent with the equity glide path of a typical target date retirement fund, a 15% savings rate, a 1.5% constant real wage growth.
More please wrote:
What do they say you can include to get to that number?
Savings?
Retirement?
529?
Mutual Funds?
Stocks?
Home equity?
Good question- probably includes all of the above. If so, I'm doing ok.
If you're a middle-class earner, start putting away 300/month pretax (peanuts) from 25-55 at 8%, you'll have 440k which amounts to about 7x. If you manage to save more than 3600/year (not hard) then it's bonus.
That is a pretty good rule of thumb. However, the reality for many people is that some of your best earning years are from your late forties to early sixties. And for many, from your twenties to forties is when it is the most difficult to save due to dealing with student loans, buying a home and having children. So, a lot of people have to play catch up in their 50s. But that is not necessarily a bad thing because home values generally take off after 20 years and most people are paying off mortgages in their late 50s to early 60s. So, putting off buying a home or just renting would leave you to the ravages of the real estate markets as a renter or with a mortgage note to pay in retirement.
More please wrote:
What do they say you can include to get to that number?
Savings?
Retirement?
529?
Mutual Funds?
Stocks?
Home equity?
i don't think they generally count home equity in your primary residence.
but everything else above counts.
529 typically not included as well.
agreed
529 is your kids money now, not yours
i don't like how so many systems include that in Investments.
while not common, UTMA accounts also shouldn't count, same reason.
trying to close the gap wrote:
So, overall a pretty depressing thought. I was hoping to retire early, live longer, and enjoy 100% of my preretirement income.
No need for 100% of your income. First if you're currently saving, you can eliminate that portion of your income. If you saving 20%, then you're only using 80% of your pre-retirement income. Second, if you pay off your house, that's another pretty big chunk you don't need. Third, social security will add another decent percentage.
Don't be depressed
kinda wrote:
More please wrote:
What do they say you can include to get to that number?
Savings?
Retirement?
529?
Mutual Funds?
Stocks?
Home equity?
i don't think they generally count home equity in your primary residence.
but everything else above counts.
Any liquid pre-tax investment accounts, combined with 401k, and IRA.
Retirement guides generally are based on a retirement 4% draw rate on these liquid accounts. Assuming a 4% draw rate, you don't erode your original principal in those accounts.
poor joe wrote:
Financial gurus what are your thoughts? And how are you tracking toward this (or some other) goal?
In assets or cash saved?
Am I living in the twilight zone? The Boston Marathon weather was terrible!
Des Linden: "The entire sport" has changed since she first started running Boston.
Matt Choi was drinking beer halfway through the Boston Marathon
Is there a rule against attaching a helium balloon to yourself while running a road race?
How rare is it to run a sub 5 minute mile AND bench press 225?
2024 College Track & Field Open Coaching Positions Discussion