I am 52 and I am behind -- looking into future things do not look bright. I am trying to save more but I just think I am getting too old to catch up.
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Conventional wisdom to fund a 30ish year retirement is to have savings of ~25X your anticipated annual expenses during retirement (in today's dollars). AKA the 4% rule.
Assumes you're invested in a mix of stocks and bonds and includes increased spend in nominal money year on year due to inflation. Plenty of Monte Carlo calculators out there too help figure out how much you need to save and account for stuff like tax rates, social security, variable inflation etc.
Assuming you want to live a comfortable (but not extravagant) middle class lifestyle in the US, $4-5M in savings means you're most likely set for life at any age, but you can potentially do fine with much less.
I’m very curious on what being on track actually means as I assume it’s different for many. What’s the number needed to live comfortable after retirement? Is pension and $2M 401k enough for most? Or do you need more? It’s always going to vary by lifestyle, but I know early in my career I couldn’t save as much and I feel like I’m constantly playing catch up to retire with the number I mentioned above.
The starting salary at XOM ~10 years ago was higher than it was in 2020. Perhaps 15 years ago it was lower but I don't think these assumptions are far off. Starting pay has languished for years.
Hi OP, I personally find it difficult to compete with the straight-A students on "investable assets" here at the XOM Layoff board. My therapist and I have talked about this issue on a number of occasions. He recommended I lower my standards to something more achievable, and challenged me to find other resources to compare myself to. The first I have found is on FidelityNetBenefits. Input your age and current salary range into the peer comparison and it tells you what the average, minimum and top savers have in their 401Ks. Finally, there are also a number of online "Net Worth" comparison calculators that evaluate the number you give them vs the database for the United States. Good luck, and I am giving thanks for the humility shown in your post.
I'm worth alot more if I was 6 feet under.
Don't tell my partner.
57 yo...YEP!!!
Which turned out to be $413MM 🤣🤣
@puz+1dSt0f9r - Or his father gave him a small loan of a million dollars.
@gos+1dSt0f9r 3M in Zimbabwean Dollar?
Or quit his job at EM to be full time fiction writer.
I maintain detailed records. We are dual career engineers at XOM, in late 30’s with 1 expat assign, we are close to $1.8
So the guy who is $3 million in mid 30’s should quit his job and invest full time.
Problem with that math is $100k starting salary today is like $55k back when this person would have started. If he invested 100% of his salary, he’d get to the $3M in that timeframe, but gotta eat.
I’m not ragging on him … if that’s what he’s done, awesome for him and his family. But it appears that would have required copious luck on investments and real estate, an insane salary (maybe a crazy expat schedule), hipo spouse, etc. $3M by mid thirties is not just “playing it smart”.
One potential path to 3M by mid-30s which is aggressive but achievable: start off making 100k and saving 25k per year. Put ~100% of incremental raises into savings (e.g., if you make 110k next year, you would save 35k). Invest in the broad US stock market which has been ripping at ~10% growth annually or better recently (not an expectation of long run returns). These parameters would get you to ~2.5M by mid-30s, and a total comp of ~250k in the most recent year. This may not be achievable for everyone, but it is possible without insane assumptions.
@gos+1dSt0f9r - 3 million by mid 30s? Assuming you started your career at 22, you would of had to make an average of ~$230k/year for 13 years. Technical track here is paid poorly and has few positions. So either you got lucky with an investment, a high CL, or I’m calling BS.
@vre+1dSt0f9r no, because work is just a source of money to fund what I want to do with my life, which coincidentally has nothing to do with work
@emj+1dSt0f9r Nearly the entire market has had 100% returns since the crash, XOM wasn’t anything special there
Would the large Middle East O&G operators have something equivalent to a 401k, pension etc? Anyone in the know of the job scene over there?
At 52, max out 20% contributions and $500 per mont catch up allowed.
Read books like investment for dummies.
People on here talk bad about EM stock but I jumped back into EM stock when it was in the 30’s and have 40+% Rate of Return for this year for my entire savings account. Buy low and sell high.
Seriously? Slamming those who had the foresight, intelligence and ability to recognize the benefits of delayed vs immediate gratification? Those who lived below their means, avoided debt like the plague, banked it and slammed it into simple, no brainer index funds and now have the ability to peace out on their own terms? That is who is being called out and ridiculed? Cool, I wish them well and hope they continue to eat cake for breakfast, lunch and summer for a very long time whilst the rest keep slogging away, at a job and trolling layoff.com 👿
Is this what they mean when they talk about the American Dream?
"On Track".
When you're standing on the edge of a cliff in southern Patagonia.
And the guide is looking at his phone, saying 'Izquierda, pensa me' or something similar.
And the albatross is so beautiful floating out there.
Then - and only then - you will know you are on the right track.
@gos+1dSt0f9r - Mid 30s and 3mm, how? Does that include your spouses investments? I’m late 20s and have always been extremely frugal, hit all max contributions since 22, at best I’ll be at $1mm by early to mid 30s.
Late 20s, right under 300k invested. Wife has about 500k net worth. Hoping to be at some of the other poster’s levels but their age.
Well. money is not without value at this point.
But I agree with an earlier poster -
no more than 10% of your 401K should be in XOM coupons.
This company is full of meaningless money making monkeys. Do you ever look back at your wasted life and think how great it would have been to be part of something more meaningful instead of $$$$s and toxic EM culture?
If you're still employed with XOM, check out https://exxonmobil.eynavigate.com. You'll want to set up an account (if you haven't already), sign in, and schedule an appointment with one of their financial planners. Doesn't cost anything, and they've been able to help me out quite a bit. Good luck.
These numbers are readily attainable for many US employees who've saved and invested for a while. I'm mid 30s, technical track with $3M+ invested. I drive an old car, I live in a modest house, I wear clothes and shoes until they wear out, and I don't have the latest gadgets. In exchange, I've become less and less reliant on my job to meet my financial needs, and that's a good place to be.
Maybe check out Dave Ramsey
Hello fake gazilionaires!
Graduated 2.5 years ago, have $190k saved so far and all debt paid off. YOLO’d a lot of stuff early 2021 and got lucky, now just in SP500 for the next 30 years unless I see something stupid going on again. Never would have gone all in on risky stuff if I wasn’t single with no kids or anything though.
In late 30s, between myself and spouse at about $2M invested. Not sweating retirement.
Not quite 400, $3M saved... US-payroll, so assuming the company forces me out pre-official-retirement.
I was 45 yo when I started saving seriously for retirement. Once I started saving I maxed out my take out and lived below my means. I’m now 70 yo and a multi millionaire due to my savings and investment skills. And, I no longer live below my means. You can do it but it takes discipline. Don’t give up.
Manage your VOYA account 401K regularly, cowperson.
For example - all the Matching in the past was put into a 'General' account and it is all XOM stock. Move it to a more stable choice - Cap Growth for example.
Minimize XOM across the board.
That will help.