If you’re over 50…how much have you saved? How much is stashed and saved and how much expected from pension or lump sum? Are you close to being ready for retirement? How much is not enough to continue putting up with the B$#@!S&#@%#?
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The extra savings can make a huge difference when it comes to real estate. Some markets are just expensive and being able to spend $3-5 million on the right place without worrying about it is worth it for some.
In my case - retired @50 with ~3MM in liquid portfolio. Small family, saved enough in 529. I rarely have spent >100K/yr, even when I was working in SR. I often am not sure what I to do with additional 50K/year, but typically making airlines / resorts/restaurants rich. Anyway, that didn't make me stay and deal with the BS of the rat race & glory hogs. If you are budget conscious and have some life skills, you really don't need 15MM or 600K/year for your retirement unless you are looking for a ritzy life style. I prefer not being too old to travel and spend enormous amount of time with kids and the wife!
Disclaimer: I still work part time just to keep my brains humming. But I have taken and left jobs as and when I wish depending on how long I am traveling with family.
Everyon's situation is different. It's not so much about how much money you have, but how you have it invested. Best advice is to line up a good financial advisor at least 5 years before you plan to retire, and follow their advice (diversified portfolio, steady income stream). Worst mistake is thinking you can manage this all by yourself. Before then, max out your 401k contributions as best as you can. We did those, took the package in 2020 (pre-65), and are now enjoying life. We DON'T spend our days fretting over the stock market.
@2bwz, you shouldn't be depressed and worried simply because you are honest and not making up tall tales like others on this site and you care for your elderly parents. Also you are in the top 10%, so that's not too shabby.
Everyone has some sh-t going on. A social media post is just a small sliver of their life.
I have to admit that this thread has left me feeling depressed and worried about the future. I used to be a disciplined saver with ambition for a comfortable retirement. Now I’m not so sure.
My scenario is much more modest than everyone else’s.
Age 55
$1.3MM 401(k)
$100M Investments & cash
Estimated CVX lump sum $720M
For the past several years, I had to drop my 401(k) contributions to just 2% to have enough cash flow to pay for my parents’ care. I am still paying into that and will be for the foreseeable future. I worry about whether I’ll have enough for my own care someday. Can’t even dream of early retirement in my situation. Count your blessings if you and your loved ones are healthy.
200K / year is more than enough anywhere in US outside California and NYC
That's true @1ntm with the effects of Bidenomics and Bidenflation the safe number keeps going up and up to be able to even survive, not even to mention having a comfortable or luxurious retirement.
“8 to 9mm but worried with what I will do with my time”. Keep working then. I know plenty of people who have more than enough money but like working and some have stated they are “institutionalized” and so what. You do what’s right for you!!!
It depends on how many kids you still have to support, do you have additional financial obligations? Do you need to support close family members? Are you dual income or single? What kind of life style you have [always buying new thing and expensive taste or can live on a modest source of income without too much spending]? What are your hobbies and plans for the retirement? I would say in most places [except California and NYC] , net $100k per year should be good enough for decent retirement life [unless you have kids in med or law school]. Maybe 55 is an ideal age to enjoy a good 15 years of healthy life and then get ready for major decline.
I can remember when $5 million seemed like enough, then it inched up to $10 million for most retirees. With the inflation surge it is understandable people are hoping to get closer to $15 million invested before pulling the plug.
“55 and 53, current investments $13.7 mm”
What PSG are you?
55 and 53, current investments $13.7 mm, paid off very modest home & (older) vehicles. no desire to keep up with the jone's, latest trends, etc.
We will retire whenever we are ready. Currently no rush and both enjoy what we do (dinks)
“49 and 45, current $6 mil
Retire, 52 and 52 goal $8-9 mil”
As I get closer I am more worried about what I will do with rest of my life. I am worried about addictions (of various kinds) if I have so much time on my hands.
49 and 45, current $6 mil
Retire, 52 and 52 goal $8-9 mil
Retired at 50. 2nd best decision ever. This was enabled by my best decision ever…no kids
By the time you are 40, your individual net worth (mostly savings plus real estate plus pension lump sum) should be 10 times lifetime gross earnings. By 50 it should be 20 times. Age 55, maybe 25 times.
It would be interesting to see what people current status is and what their goal is.
Goal: 50 & 55 yr with ~5M to 7M
Current:
40 and 45
$3.8m total asset no debts
$1m house
$1.4M 401k
Rest in stocks and cash
Agree. You could also move to River Oaks in Houston it Manhattan in NYC. If you want to choose to live in a very expensive city as part of your retirement you will need to work longer and or save more. For the average person they will probable move away from the expensive city unless their is some strong draw to keep them there
Annual safe withdrawal rate for a 30 year retirement is ~4%, or 25x assets. Some years higher, some lower depending on market performance.
@ocb+1nzW5JcD:
That’s a decent rule of thumb but it also depends on where you retire. $5MM in retirement savings earning you $200k per year in California is not as good as if you’re in some less expensive state.
How do you figure that $5mil earns $200k a year?
My aim is 52 (49 right now) in D&C grade 25. No chance of making it to 26.
I think we can all agree $5M is enough. That will generate $200k per year if you can’t make it on that you’re not going to make it.
If your thrifty and or going to start / do something else part time then it’s probable more like $2M
But this varies a lot per person.
Never heard anyone who retired say they regretted not working longer.
But I’ve often heard “I wish I’d gone sooner…”