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| Green grass and high tides  |
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. "Practice like you want to play in the game" | ||
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thin skin can't win |
Great news. Well, other than I just took a 20% cut to annual salary.....  You only have integrity once. - imprezaguy02 | |||
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| Eating elephants one bite at a time  |
Here's to hoping they are wrong! If they are right then it would seem retirement at 67 is not an option for me. | |||
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is circumspective |
I took that to mean, to retire at age 55 on 67.7% of your yearly income. Did I read it incorrectly? "We're all travelers in this world. From the sweet grass to the packing house. Birth 'til death. We travel between the eternities." | |||
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| Member |
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  | |||
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| Green grass and high tides |
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. "Practice like you want to play in the game" | |||
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| Green grass and high tides |
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. "Practice like you want to play in the game" | |||
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| Ignored facts still exist |
Too many factors. Pensions, Social Security, debt, expenses like what you expect to pay in rent/mortgage. no one size fits all. . | |||
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| thin skin can't win |
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. You only have integrity once. - imprezaguy02 | |||
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| Member |
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. | |||
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| is circumspective |
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. "We're all travelers in this world. From the sweet grass to the packing house. Birth 'til death. We travel between the eternities." | |||
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| Green grass and high tides |
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. "Practice like you want to play in the game" | |||
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| Eschew Obfuscation |
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/ _____________________________________________________________________ “One of the common failings among honorable people is a failure to appreciate how thoroughly dishonorable some other people can be, and how dangerous it is to trust them.” – Thomas Sowell | |||
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| Member |
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. | |||
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| No, not like Bill Clinton  |
Fake news. Social Security will be there for me and take care of my needs | |||
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| It's not easy being me |
That's the spirit!!   _______________________________________ Flammable, Inflammable, or Nonflammable....... Hell, either it Flams or it doesn't!! (George Carlin) | |||
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| You don’t fix faith, River. It fixes you.  |
Thank you for those links! ---------------------------------- "If you are not prepared to use force to defend civilization, then be prepared to accept barbarism.." - Thomas Sowell | |||
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| As Extraordinary as Everyone Else  |
Agreed. It's just a quick statement to provoke thought as to where you are or roughly should be. No more or less.... ------------------ Eddie Our Founding Fathers were men who understood that the right thing is not necessarily the written thing. -kkina | |||
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His Royal Hiney |
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. | |||
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| Member |
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 "Always legally conceal carry. At the right place and time, one person can make a positive difference." | |||
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