What is your number for amount saved to retire and associated age to retire?
40 replies (most recent on top)
2.5 then on to something else
@37c wise words
@3sq good analysis but some of the risks aren’t addressed. Withdrawal rate is high, there is no discussion of market risk, and assumption of SS continuing as it is today, with no reductions, and until full retirement age. Also her version of early retirement is 55-57, that’s not early for most EM employees.
If you haven’t hit the magic 15/55 you’ll need to find your own health insurance as well, it’s not cheap and it’s not very good.
If you’re realistic about what you REALLY spend every month I bet it’s higher than you thought.
“You’ll probably never need more than $5M - Here’s why”
https://youtu.be/0zE_0w9-nd4
Chat GPT Answer for Retirement
The amount of money you need for retirement varies based on your desired lifestyle, current savings, and expected income sources, but a common guideline is to aim for 10-12 times your annual salary saved by retirement age.
Factors Influencing Retirement Savings
Desired Lifestyle: The lifestyle you wish to maintain during retirement significantly impacts how much you need. Consider your expected annual expenses, including housing, healthcare, travel, and leisure activities.
Retirement Age: The age at which you plan to retire affects how long your savings need to last. The earlier you retire, the more savings you will need to cover a longer retirement period.
Current Savings and Contributions: Your existing savings, along with how much you can contribute to your retirement accounts, will determine your total retirement fund. Starting early allows for more significant growth through compound interest.
Income Sources: Consider all potential income sources during retirement, including Social Security, pensions, and investment income. The more income you have, the less you need to rely solely on your savings.
General Guidelines
10-12 Times Your Salary: A common rule of thumb is to aim to have saved 10-12 times your annual salary by the time you retire. For example, if you earn £40,000 a year, you should aim for a retirement savings pot of £400,000 to £480,000.
Retirement Living Standards: According to Pensions UK, there are three retirement living standards (minimum, moderate, and comfortable) that reflect the annual expenditure required to achieve each standard. For a comfortable retirement, you may need around £20,000 to £30,000 per year, depending on your circumstances.
Pension Calculators: Tools like pension calculators can help you estimate how much you need to save based on your current situation and retirement goals. These calculators consider factors like your age, current savings, and expected retirement income.
Conclusion
Ultimately, the amount you need for retirement is highly individual. It's essential to assess your financial situation, desired lifestyle, and retirement goals to create a personalized savings plan. Consulting with a financial advisor can also provide tailored advice to help you reach your retirement objectives.
@3bt I guess it depends on your definitions of lean vs fat retirement. To me, ~$3M (today’s dollars) + paid off mortgage - the fact you’re no longer saving for retirement solidly in the fat category, and I think most FIRE people outside of this bubble would agree. I have a super car, a nice daily, and other expensive habits, and this amount will still be plenty for me.
Black swan events are largely covered by insurance for health and natural disasters, and by asset allocation and flexibility of spending for market crashes. Market is down 50%? Don’t go on that expensive vacation till your portfolio recovers.
Personal finance is personal, and you do you … but for the people saying their passive income is already more than their salary at XOM, seriously what are you still doing here?!? Find something fulling to do with your time … none of us have enough time left on this rock, and going through the ranking process one more time isn’t a good use of your remaining years. Deuces.
@37c depends if you want a lean retirement full of cost cutting and worrying about money, or you want a fat retirement with much less worry and doing more or less what you want when you want.
I dont know how to account for potential black swan events, such as runaway inflation or a major personal health issue, in the lean retirement option. At least with the fat retirement you’ve got a fighting chance to come out on the other side with enough left to not have to go back to work when you’re really old.
To each their own.
@37c this is the best comment here. Im at 2.5M (not from USA) and retiring in my mid 40s, CL26, never made more than 150K in my 19 years in EM. thank goodness for HC10 retrenchment. More than half my life is already gone, and I value my healthy years much more than money. I don’t want to retire at 60 and die in just a few years, with millions in the bank, oh no what a sad ending
I’m just d-mbfounded that so many people want $5M+ for retirement?!? If you have a paid off mortgage, and you’re no longer saving for retirement, using the 4% rule, you’ll have plenty with FAR less than that.
I mean, it’s everyone’s personal decision, and you decide what your expenses are mostly, but GD you’re trading valuable healthy years of your life to amass money you’ll likely never spend. For those on here in their 30’s and 40’s who are already multimillionaires, you’ll really should be seriously considering leaving this stressful toxic company. For everyone else, Google Coast FIRE.
$5M here also. Hit it last year, deciding how early I want to retire, want to be sure $5M is truly enough for my projected lifespan before i “peace out” of here.
5m
Retired at 61 MPT CL28. Lived very well through the years and saved/invested with 2MM target, wound up with 3 MM plus pension. More than enough. Since retirement, net worth had steadily increased and I'm continually asked to consult based on my experience. My hourly rate reflects my last base salary and it's a blast being able to pick and choose. I target half-time working over the year. I've also been able to tell people who are toxic to f off, I don't need them. Very enjoyable position to be in. Moral of the story is to develop some real skills always in demand. The positive effects from that increase over time. Good luck
@g5 Not having kids makes everything easier.
@c7 BS dude
cL27, 35 - goal is $10M by 55. Right around $2M now… will see how the market does.
Doing this would be very difficult on one income with a family. The harsh reality is you need two well paying jobs or no kids.
@em I know how it works, that’s why I was commenting about it :) Unfortunately, as someone in controllers, I started in the mid 60’s for salary. It took me many years for 20% of my salary to even reach the IRS limits and to begin contributing to the after-tax account. I had to contribute outside of EMs 401k in a standard taxable account to achieve the savings rate I wanted. I was emailing our benefits team when I was 1 year in trying to figure out why we have an arbitrary 20% cap.
You can contribute 20% of your pay check and get the 7% company match. Once you reach the pretax limit of $25,000, contributions auto converts into after-tax. Once a year, I do the after-tax $$$ into Roth conversion. I generally keep the after tax in cash until i do the Roth conversion. If you have a savvy financial advisor, you can then actually when withdraw the Roth portion from Voya and roll it out to any outside Roth with more investment options. I've contributed anywhere from 10 to 20% of paycheck over the years. I just turned 40 and I do have $2million in Voya. It's very doable
@eb lol. Spot on.
@e5 That’s not how I read their comment.
I think you’d benefit from increasing your level of financial literacy.
$3,000,000 @ 57
@ea it IS basic math. That IS the S&P500 return over the period.
I’m guessing you’re a plant guy, huh?
@e9 I don’t struggle with basic math. You can only choose certain funds to invest your company 401K and none of them have returns like you are saying. I’m sure some gullible people might believe you though.
@e5 I think you just can’t do compound interest calculations. Running max contributions (pre-tax) plus the company match, if they started during the ‘08 financial crisis puts them at nearly 2.5M using just the S&P 500 index.
I’m guessing your struggle to do basic math is probably impeding your ability to financially plan as well!
@e5 the max you can contribute is not 25k a year. This year it is $70k. You just need to do a Roth conversion of after-tax spend to your Roth 401k (mega backdoor roth). Also, I don’t see where the person said they are 40 years old. They only mentioned they wanted to have a certain amount by 45.
They said they maxed out all pretax they could and went all in on Exxon, which had a 300% return.
The bigger hurdle would be the 20% limit Exxon has for 401k contributions.
@d5 the person commenting implied they had millions before 40 just by contributing to the company 401K. I say BS because you can only put in around $25K a year. Now if they invest separately from their company 401K then yes it could be possible with some luck.
@ct What if I told you….
That you could invest your earnings in any way that you wanted?
Some of you need to learn what money is, and more importantly, what it isn’t.
My plan is to retire from corporate America around the age of 40. Hoping to have $2-2.5m in equities/cash at that point in time (currently around $800k in investments and $100k in cash) with a little less than a decade to go. 2 paid off rentals that bring in $2k a month each with total equity of ~$450k.
When leave corporate America, hoping to find a job that I can earn enough to live on each year that I truly enjoy doing (also assuming my house will be paid off and kids college funded).
Then as I work another 15 years are so, assuming a 8% growth rate of my original $2-2.5 million that I’m not touching, would like to be sitting on $6.5m - $8m in investments (give or take whatever I’ll be pulling out for college if my kids go to school).
That’s my high level plan. If I can leave here and earn more, maybe I can cut that time a bit shorter.
@bx Making your first million is the tough part. Once you do that, it gets easier.
Honestly, you can become a millionaire just by sticking with a decently-paid corporate job, saving, contributing to your 401k, and paying off your mortgage early. It’s not rocket science.
Why TF am I getting downvoted? OP asked a question and I gave a reasonable on-topic answer.
Are y’all jealous or something? Maybe try staying married to the same spouse instead of getting divorced 2-3 times, or buy one less pick-up truck, and you’ll have a bit of success too.
@cn I call BS on your numbers. The max 401K contribution for anyone under 50 or 55 is $25K a year so there’s no way you have millions in yours unless you are talking about a separate one from the company 401K.
@c7 whoa cowboy. That’s too aggressive of an assumption… There’s a reason 4% rule exists.
I’ve already posted this before… why are we making this thread complicated? OP wants to know investment numbers and ages… Not random investment advice. Share or STFU.
@c8 , don’t be pissy just because someone is doing better than you. Others are doing better than me, I’m sure.
I put all the pretax money I can in the savings plan (a huge break with me going all in with XOM during COVID); thats about $3M.
All expat extras have been banked in standard investable assets… that’s around another $4M.
By the time I hit 45, I’ll have $1-3M more, pending on the returns.
Share what your plans are! Knowledge is power here… we are all corporate slaves, might as well help each other out.
Based on current projection at 60, will have 6 million in retirement, including pension, and 4 millions saving.
@be wow that's amazing, please tell us poor peasant how much you save every year and how much your annual % growth?
A certified financial advisor should be able to provide you with a 12 to 15% return on your lump sum individual retirement account. Do the math on the annual income you would like to have at a 12 to 15% return on your investment.
Upstream, expat, non-exec, and I don’t pi-s away my money.
Learn to play the system better.
All these answers are bullsh-t. There is no way you can retire with ten millions unless you are a VP or above, your spouse makes a lot of money, you won the lottery or you are an investor better than Warren Buffet. Please, stop lying. These posts must be from HR.
@b7 don’t make a simple survey so hard… everyone knows there are variables.
I am targeting $8-$10M with an early exit at age 45.
How much you have saved is only part of the equation.
How is that money invested? How much is it earning for you?
And how much are you spending on a monthly/annual basis?
If you live lean it doesn’t take much. If you want to buy a new German luxury car every three years and eat out all the time and waste money it takes a lot.
@OP $10M in assets and liquidity. Currently own three homes and paying down the mortgage on my fourth. I make more in passive income than I do actually working. Goal is to retire at 50 and move OCONUS.