have about 270K in retirement accounts, I try to get in 35-40K a year (this includes roth ira and company match) I cant do much more. I did the math if I put in 40K over the next 30 years at a 9% return i should have 9-10 mln by 58. That would probably be worth 3 mkn today.
What do you guys think. Im not married, no kids, make 135K base, between my house equity and savings and investments my NW is ~420K
I will be married hopefully in the next yar and half only want two kids
😂😂😂😂😂
Lots of silly geese on this Layoff site.
You ain't working for EM for more than 10 years, friendo.
And do brush up on your understanding investments.
Maybe somewhere else?
Use ChatGPT for this question OP. If you can’t do simple time value of money calculations nor read Wall Street journal nor understand basic finance investing and managing risk to your personal comfort withETFs and bond funds … don’t listen to lots of input on a layoff site. Just sayin … lots of smart people on here .. but also lots of re--rds.
Max out your tax advantaged accounts then go to a post tax vanguard account. There's a freedom that comes with being able to leave the company at any moment on your own terms.
Max out your 492K and Roth savings options with Company. Then start buying stocks and accumulate a nice portfolio with z good mix. Get a good financial advisor ASAP. Your generation should not only count on the three legged stool for retirement (pension, SS and 401K), but quickly learn how to invest properly in the stock market. Do it right and in thirty years you'll be thrilled. Don't just spend your extra cash on high living,that's BS in the end. Good luck and God Bless.
@OP Any reason you want to wait so long to retire?
Use the 4% rule. Or be a bit more conservative and use 3%. This has been a well documented and studied methodology with quite a bit of research and already factors in average historic inflation. Of course there are critics, but it’s a good start.
Concept being, whatever amount you need per year to retire on, this should represent a 4% of your retirement portfolio the first year you retire. If you think you need $100k a year, you will need $2.5M in retirement accounts (quick math: can multiply per year needs by 25 for same result). The amount YOU need for retirement is going to vary wildly depending on the lifestyle you want, whether you assume a paid off house, whether you still need to pay for college, if your still receiving a pension, etc.
My family is simple and lives on less than $50k a year. Means my retirement number is lower than Mr. Jones that spends $200k a year.
Your salary will double in 10 years or so. A stagnant analysis makes no sense. At higher incomes you can easily sock away 80k/year or more. A 7% snp 500 return would include inflation. Long term, more inflation will just raise snp higher. Simple math shows w those adjustments you can easily retire by 55, probably by 45 if you care to. Even w kids.
Corporate consultants are telling employees today that people that are 28 years old will work for 10 to 12 companies over a 30-year span. The probability of working for ExxonMobil until you are 58 years old with 30 years of employment is zero percent in 2025.
Plan accordingly.
Take inflation into account by using 4%/6%/8%, use current dollar amounts, run your numbers until you have 25x your annual spend rate. Just be consistent on tax- if you spend $100k after tax you need $2.5M after tax, if you spend $100k after tax that is essentially $130k pre-tax earnings, so you’ll need $3.2M pre-taxed savings in today’s dollars.
The rates above are “Real” market returns which subtract out inflation.
All of that will take care of itself with your current behavior- you need to focus on making it at Exxon for 30 more years. Many many more hazards await that endeavor than your finance questions.
Why can’t people just answer the question?
Typical retirees today are finishing in the 3 to 4 M$ range for the 401k. You can double that for inflation by the time you get there, so target 6 to 8 M$.
9% return assumption is too high. Run your numbers and 7% and maybe a low case at 5%.
Something no one pays attention but brokerage fees matter. Vanguard is great but our own 401k Equity Units only cost .0025% and Vanguards best is .02% annually. That makes ours more competitive for compound interest. Put 90% in equity units, 10% in stock for the dividend and let it ride. Pay in enough to have after tax each year and move that after tax into the Roth via the mega back door at the end of each year. This is the money you can live off of for the first few years with no penalty. This is the way for our 401k and Vanguard ETFs are the way with outside money.
Keep it simple. Vanguard index funds.
@OP I believe you are single. I also believe you will remain forever. Who comes to layoff site and asks about financial planning 30 years out ? You, the not yet great IC
Pick a few growth Vanguard ETF's, put money in constantly, re balance every 5 years.....you will be fine.
As long as the Pension is still around, most of us should be good just with that.
If I were you I’d be more concerned about whether you even have the tools to make it in ExxonMobil until age 58.
Not the place for this discussion… also, if you think you’ll have $9-10M by retirement age then why are you even asking?