Do I Need to Save More for Retirement?

[Anonymous]

Anonymous wrote:My mom’s care has cost about $400,000 over the past two years. Don’t discount the cost of elder care.

And that was all out of pocket? No medicare, no social security, no anything else?

[Anonymous]

Anonymous wrote:Age 44, HHI $290k, $1.2M in 401k, $250,000 in brokerage, $500,000 equity in house with 20 years left on mortgage.

I think we could maybe ease off retirement and enjoy ourselves more rather than driving around 20 year old used cars.

how much of a burden is 401k? cutting that out after taxes won’t put much back in your pocket in the grand scheme of things.

[Anonymous]

Anonymous wrote:Try asking ChatGPT

Stop outsourcing your brain!

[Anonymous]

Anonymous wrote:I'd do some research about how much in retirement you need to have your desired monthly income. If you want to be able to spend $200k+/yr, you're not anywhere near how much money you would need. Swap your 20 yr old used cars for 2 yr old used cars and keep on saving. The 2008 financial crisis happened when I was in my late 30s and it seemed like my retirement savings didn't increase over what I had in 2007 for almost 10 yrs...point being that we're overdue for a prolonged downturn and you need a financial cushion to be ready for it.

They are actually quite near to 200k a year in retirement when you crunch the numbers.

They currently have 1.5 million. Let's say they want to retire in 20 years at the age of 64.

Even if they stop saving right now, that 1.5 million will grow to 4.8 million (assuming a conservative 6% return). That would mean 192k a year in retirement if they withdraw 4%. This doesn't even factor in social security, which could add around 70k based on their current earnings.

In total, they would be very close to the 290k they are earning now. That's without any additional savings at all.

Anyone who claims they are behind is a fool.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'd do some research about how much in retirement you need to have your desired monthly income. If you want to be able to spend $200k+/yr, you're not anywhere near how much money you would need. Swap your 20 yr old used cars for 2 yr old used cars and keep on saving. The 2008 financial crisis happened when I was in my late 30s and it seemed like my retirement savings didn't increase over what I had in 2007 for almost 10 yrs...point being that we're overdue for a prolonged downturn and you need a financial cushion to be ready for it.

They are actually quite near to 200k a year in retirement when you crunch the numbers.

They currently have 1.5 million. Let's say they want to retire in 20 years at the age of 64.

Even if they stop saving right now, that 1.5 million will grow to 4.8 million (assuming a conservative 6% return). That would mean 192k a year in retirement if they withdraw 4%. This doesn't even factor in social security, which could add around 70k based on their current earnings.

In total, they would be very close to the 290k they are earning now. That's without any additional savings at all.

Anyone who claims they are behind is a fool.

Are your numbers in today's dollars or then year dollars?? Maybe a donut would cost $25 by then.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'd do some research about how much in retirement you need to have your desired monthly income. If you want to be able to spend $200k+/yr, you're not anywhere near how much money you would need. Swap your 20 yr old used cars for 2 yr old used cars and keep on saving. The 2008 financial crisis happened when I was in my late 30s and it seemed like my retirement savings didn't increase over what I had in 2007 for almost 10 yrs...point being that we're overdue for a prolonged downturn and you need a financial cushion to be ready for it.

They are actually quite near to 200k a year in retirement when you crunch the numbers.

They currently have 1.5 million. Let's say they want to retire in 20 years at the age of 64.

Even if they stop saving right now, that 1.5 million will grow to 4.8 million (assuming a conservative 6% return). That would mean 192k a year in retirement if they withdraw 4%. This doesn't even factor in social security, which could add around 70k based on their current earnings.

In total, they would be very close to the 290k they are earning now. That's without any additional savings at all.

Anyone who claims they are behind is a fool.

Their issue is their brokerage account wouldn't hold them over long in the event of job loss, disability, or early retirement, so while they can coast on their retirement savings, they have a long way to go with their brokerage account.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Make hay while the sun shines. You don't know if you'll still have your jobs in a year or 10. I would save a lot more in your brokerage account, as $250k is not much for a 44-year-old.

This. We are also 44 and our retirement accounts + taxable is $6M. DH is still working probably another 8-10 years before retiring.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'd do some research about how much in retirement you need to have your desired monthly income. If you want to be able to spend $200k+/yr, you're not anywhere near how much money you would need. Swap your 20 yr old used cars for 2 yr old used cars and keep on saving. The 2008 financial crisis happened when I was in my late 30s and it seemed like my retirement savings didn't increase over what I had in 2007 for almost 10 yrs...point being that we're overdue for a prolonged downturn and you need a financial cushion to be ready for it.

They are actually quite near to 200k a year in retirement when you crunch the numbers.

They currently have 1.5 million. Let's say they want to retire in 20 years at the age of 64.

Even if they stop saving right now, that 1.5 million will grow to 4.8 million (assuming a conservative 6% return). That would mean 192k a year in retirement if they withdraw 4%. This doesn't even factor in social security, which could add around 70k based on their current earnings.

In total, they would be very close to the 290k they are earning now. That's without any additional savings at all.

Anyone who claims they are behind is a fool.

Are your numbers in today's dollars or then year dollars?? Maybe a donut would cost $25 by then.

The numbers are in today's dollars. The 6% return used in the calculations is an inflation adjusted return. Even if you take an inflation adjusted return of 5%, they still end up with 4 million.

[Anonymous]

Anonymous wrote:

Anonymous wrote:My mom’s care has cost about $400,000 over the past two years. Don’t discount the cost of elder care.

And that was all out of pocket? No medicare, no social security, no anything else?

Medicare doesn't pay for assisted living. Social security is income that you can use toward assisted living. $400k for two years actually sounds fairly reasonable.

[Anonymous]

Anonymous wrote:DCUM is obsessed with being forced to self-pay for the most luxurious memory care facility in the country for years.

lol

[Anonymous]

I tell my kids to save 5% for retirement and 25% for future nursing home bills.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I'd do some research about how much in retirement you need to have your desired monthly income. If you want to be able to spend $200k+/yr, you're not anywhere near how much money you would need. Swap your 20 yr old used cars for 2 yr old used cars and keep on saving. The 2008 financial crisis happened when I was in my late 30s and it seemed like my retirement savings didn't increase over what I had in 2007 for almost 10 yrs...point being that we're overdue for a prolonged downturn and you need a financial cushion to be ready for it.

They are actually quite near to 200k a year in retirement when you crunch the numbers.

They currently have 1.5 million. Let's say they want to retire in 20 years at the age of 64.

Even if they stop saving right now, that 1.5 million will grow to 4.8 million (assuming a conservative 6% return). That would mean 192k a year in retirement if they withdraw 4%. This doesn't even factor in social security, which could add around 70k based on their current earnings.

In total, they would be very close to the 290k they are earning now. That's without any additional savings at all.

Anyone who claims they are behind is a fool.

Are your numbers in today's dollars or then year dollars?? Maybe a donut would cost $25 by then.

The numbers are in today's dollars. The 6% return used in the calculations is an inflation adjusted return. Even if you take an inflation adjusted return of 5%, they still end up with 4 million.

Right. So many posters on this forum are so dense

[Anonymous]

Anonymous wrote:

Anonymous wrote:Mid 40s and 1.5 NW (excluding home) is nothing to brag about. I'd try to save it aggressively. I actually think you are somewhat behind.

Behind what? What do you think you're going to be doing in retirement at 75, 85, 90+ years old?

DP: Traveling like my 85yo parents and aunts and uncles do.

[Anonymous]

My SIL's parents pay $18,000 per month for their nursing home.

[Anonymous]

You are fine to buy the car. People have a messed up mentality about retirement. In your 80s you will be sitting in your living room unable to travel. Enjoy your funds now and you will still be fine.