Fidelity says at 50 years old.

September 25, 2018, 11:03 AM

old rugged cross

You should have 6 times your annual salary in your 401k to be able to retire at 67. 7x at 55.

That is pretty vague as it does not address many other aspects.

Just food for thought to share.

September 25, 2018, 11:10 AM

Georgeair

Great news. Well, other than I just took a 20% cut to annual salary.....

September 25, 2018, 11:13 AM

ffips

Here's to hoping they are wrong! If they are right then it would seem retirement at 67 is not an option for me.

September 25, 2018, 11:25 AM

vinnybass

quote:
Originally posted by ffips:
Here's to hoping they are wrong! If they are right then it would seem retirement at 67 is not an option for me.

I took that to mean, to retire at age 55 on 67.7% of your yearly income. Did I read it incorrectly?

September 25, 2018, 11:27 AM

Loaded Round

I don't buy into that.

As has been said there are too many other things to consider. Add to that...at 50 most people are just getting into their peak earning years. A lot can happen between 50 and 67.

Our daughter is graduating from college in December. I'm 55. The next 10 years, we should have more money to invest than ever before in our lives. Way more

September 25, 2018, 11:28 AM

old rugged cross

I do not think so Vinny. It simply means to be on track to retire at 67 years old you need to have 7x times your annual salary in your 401k at 55 years of age.

September 25, 2018, 11:30 AM

old rugged cross

LR, the reality is that it is time (years) more than it is money contributed at a later age that really makes the difference. Later is better than never though.

September 25, 2018, 11:30 AM

radioman

Too many factors. Pensions, Social Security, debt, expenses like what you expect to pay in rent/mortgage.

no one size fits all.

September 25, 2018, 11:31 AM

Georgeair

quote:
Originally posted by vinnybass:
quote:
Originally posted by ffips:
Here's to hoping they are wrong! If they are right then it would seem retirement at 67 is not an option for me.

I took that to mean, to retire at age 55 on 67.7% of your yearly income. Did I read it incorrectly?

No.

7X at 55 for same result. The period after 67 is a period, not a decimal.

All these fear tactics to make folks freak out are crazy. Many folks neither need or expect to retire at their full pre-retirement income, depending on how they plan.

For example, if you plan to have a house paid for and will be living somewhat more conservatively in retirement, and at lesser tax rate, then 60-80% of income is probably plenty to get you through 90+ years. Also, most of us will travel/buy way less at 80 than we will at 65 so that trend line is positive. Well, other than potential medical expenses.

September 25, 2018, 11:35 AM

MNSIG

I also think you need to base it on anticipated spending, not current salary. If you are hitting it hard and saving half of your income now, you don't need to replace that amount later.

Of course, if you spend nearly every penny, you need it all.

September 25, 2018, 11:38 AM

vinnybass

Wow! I wonder how they figured that. As was mentioned, there are many variables to consider. I'm 60 & I figure to have made more between 55 & 65 than any other ten year period. Also I'm debt-free for the last ten years & have saved the difference.

September 25, 2018, 11:44 AM

old rugged cross

All this article was addressing is what should be in your 401k at a given age. Nothing else. Nothing about how much you will need per year at retirement over 25 years etc.

Simple at age 50 your 401k balance should be 6x your current annual income. At 55 7x.

Simple math.

At age 50 today. If your annual income is $50k your 401k balance today should be $300k.

If at age 55 it should $350k if you are making $50k this year.

I just thought it was interesting.

Obviously it is a Theory that can be accepted or declined in your particular situation.

I think if you have 2x or 3x you are not doing great. If you have 10x then really great. If zero, well then you have serious issues.

It is a bit like the old 4% rule we have discussed here some.

September 25, 2018, 12:08 PM

CoolRich59

quote:
Originally posted by Loaded Round:
I don't buy into that.

Not me either. One thing I've learned in the last year is that you can't depend on 'one size fits all' formulas when it comes to retirement. Even though I had an expensive financial advisor, I also figured out that they had a vested interest in telling me I didn't have enough money to retire because at that point I would no longer need a financial advisor.

So, I fired them, took control of my finances and learned I already had enough money to retire. I retired 2 months later.

There are some great retirement websites out there, including some very reliable retirement calculators. This is too important of a topic to not invest quality time doing some research and reading.

Some retirement sites I like:

-- https://www.caniretireyet.com/

-- http://www.early-retirement.org/forums/

-- https://www.bogleheads.org/

A couple of retirement calculators I like:

-- https://firecalc.com/

-- https://www.flexibleretirementplanner.com/wp/

_____________________________________________________________________
“Civilization is not inherited; it has to be learned and earned by each generation anew; if the transmission should be interrupted for one century, civilization would die, and we should be savages again." - Will Durant

September 25, 2018, 12:19 PM

MNSIG

quote:
Originally posted by CoolRich59: One thing I've learned in the last year is that you can't depend on 'one size fits all' formulas when it comes to retirement. Even though I had an expensive financial advisor, I also figured out that they had a vested interest in telling me I didn't have enough money to retire because at that point I would no longer need a financial advisor.

I paid to have a fee for service CFP run the numbers to double check my calculations. I was actually being a bit too conservative in terms of estimated taxes in retirement. If the market can return 5%, I should be there at 59.

September 25, 2018, 12:25 PM

BigSwede

Fake news. Social Security will be there for me and take care of my needs

September 25, 2018, 12:38 PM

craglawnmanor

quote:
Originally posted by BigSwede:
Fake news. Social Security will be there for me and take care of my needs

That's the spirit!!

September 25, 2018, 12:40 PM

Yanert98

Thank you for those links!

September 25, 2018, 02:06 PM

smlsig

quote:
Originally posted by old rugged cross:
All this article was addressing is what should be in your 401k at a given age. Nothing else. Nothing about how much you will need per year at retirement over 25 years etc.

Simple at age 50 your 401k balance should be 6x your current annual income. At 55 7x.

Simple math.

At age 50 today. If your annual income is $50k your 401k balance today should be $300k.

If at age 55 it should $350k if you are making $50k this year.

I just thought it was interesting.

Obviously it is a Theory that can be accepted or declined in your particular situation.

I think if you have 2x or 3x you are not doing great. If you have 10x then really great. If zero, well then you have serious issues.

It is a bit like the old 4% rule we have discussed here some.

Agreed.
It's just a quick statement to provoke thought as to where you are or roughly should be.
No more or less....

September 25, 2018, 02:30 PM

Rey HRH

It's just a thumb rule for a quick and dirty check.

Here's the link to the actual article.

"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.

September 25, 2018, 03:02 PM

VBVAGUY

Is that GROSS Salary or after taxes and subtraction of my current contribution to my 401K x 6 ? If GROSS I am off. However if after taxes, etc then I am pretty close. God Bless