5M?
38 replies (most recent on top)
Actually, that number got a little closer today with the +3,51 stock jump! I am over represented by wf stock in my portfolio, so today was a smiley day for me!
2 million split between JEPI and JEPQ. 9% dividend yield paid monthly would replace my salary.
I agree with the comment above “STFU” to all entitled jerks flaunting their wealth here on a mostly layoff related site. People are struggling. Single parents even, who’ll never have any of that but an RV in nomad land -maybe.
I’m seriously considering moving to another country since I will always be in a tenuous position here in this country. I’m in my 40’s, make around $200k, have been putting money away in my 401k diligently for my entire career, drive a no nonsense used car, send my children to public school and so on and even then, I feel I will always be worried about money and won’t have enough. Maybe $5MM would do it? I don’t know, but I do know my money will go much further abroad. My husband can get his citizenship to a southern European country, so we are exploring that as an option. They have basic healthcare coverage for all and I can buy a home for $100-$150k. We have nothing like that here.
Divide your acceptable salary or annual budget by 4% and that's a good ball park.
When I say 3 mil, I mean if I was handed that much cash right now. Not how much I’d need to get in a 401k. If I won a 6 mil lottery (I’ve never once played) and had 3 mil after taxes, that would probably be enough. I could pay off my mortgage and student loans and I’d still have about 2.6 mil left. Without those payments in a normal month I’m spending 2.5-3k at most unless I splurge on something. Conservatively I could earn about 6500 a month on average, worst case scenario, parking that 2.6 mil in an index fund. So even with capital gains tax my returns are significantly greater than my expenses. That extra would hopefully offset increases in cost of living down the road.
A bit under 2M did it for me. I’m nowhere near as well off as many here, but I’m fine. Don’t miss WF one little bit!
3 million generates $97,500 (3.25% withdrawal rate assuming 80/20 stocks and bonds). Pretty good amount for most areas of the US and some overseas locations.
Nobody who have retired should be 80% in stocks.
@vrq+1r06UgBA
Someone started out with a fat wallet. OR they are lying. Do the math.
Max out the HSA every year people, it's one of the very few places to shelter your money from being taxed now or later. You can never have to much in there.
Or have an alternate backup. Make a plan for retirement to downsize, move, change your mentality. In retirement flip from accumulation to reduction of possessions.
ha! Reading the comments here...wait till retirement begins...shocker...income tax on deferred assets payable as they are withdrawn, medicare premiums, IRMAA for medicare premiums, taxes on social security. Check out Rule of 72 to try and forecast the retirement balance and RMD schedule. What is required might be more than what has been estimated. Try and place funds in 401K Roth, paying the taxes today. With gov't deficit, income taxes probably going up.
I'm sure whatever the projection on your Empower 401K dashboard shows you is going to work out fine.
I’ll never be comfortable until my income (both from my principal and other sources) is such that I don’t have to deplete the principal. So yeah, $5 million is a sort of bare minimum I’d like to reach, optimally more. I’m 45 with about $2 mi, with a target retirement of 60.
As a single person in my 30s with no kids, I could probably maintained my current lifestyle indefinitely with 3 mil. If I wanted to have a family, 5-6 would probably do it.
After seeing all the numbers bandied about here, I am beginning to feel insecure in my retirement.............................
I have some money put away, but nothing like the numbers you'all are putting out there, where do you live? california?
I have a federal pension and a military reserve pension, can never be cut or eliminated as it’s the law of the land.
After reading the answers, I need 5 million or more.
Not sure this is enough. 10MM only allows about 500k/yr perpetual income for all eternity. I think at least double that is needed, no?
Everyone needs FU money saved to leave a bad situation.
That said, 25-33X annual expenses is a retirement number. Only you know what you spend.
Min 10M to maintain today’s lifestyle.
Are people listing their number per individual or per couple? Are kids factored in?
I don’t think private insurers can drop you for pre existing conditions anymore. That’s part of the affordable care act. Even w full control, trump couldn’t get rid of Obama care. I think it’s here to stay and an option for early insurance. My goal is to retire in my 50s and not planning on this holding me back. Lots of fire boards discuss this.
$2-3M, presuming I have no mortgage.
Find a job w/pension. Rare.
And, yes, pensions can be cut or eliminated. Dicey situation.
The reality for most people is to have a decent retirement is to get a government job with a pension out of college. Work 20-25 years to fully vest in that pension, then retire and move into the private sector for the next 20-25 years and pack away in a 401K with as much as any increased salary allows.
Or double dip getting another government job in a different pension system for another 20 years.
@afh+1r06UgBA
Private insurers can drop you or disqualify you for coverage get-go. Half the politicians want to abolish Obamacare. I wish either option could be considered reliable for the future. I’m a Negative Nancy, but 20 years from now I expect to be putting in my dentures and putting on my Depends before enjoying my in-office collaborations at the water cooler.
You can buy Obamacare or insurance through a private provider if you retire early
Good question. Compare to other parts of world, you had enough to retire years ago. For American standard, you will likely never have enough, unless you are the 1%.
People also like to ask questions about how much these 1% leave behind when they die. the answer is , they left them all.
Your net worth doesn’t really matter because healthcare costs are insane. Cancer treatments for uninsured could easily exceed $250,000 a year. Most of us are Americans (or Indians) and can’t rely on government healthcare. Unless you are extremely rich, you need to work until Medicare eligibility (if that even exists if the future).
3 million generates $97,500 (3.25% withdrawal rate assuming 80/20 stocks and bonds). Pretty good amount for most areas of the US and some overseas locations.
I have a read a lot from early retirement now/ big erns website and I think his math shows that 3.25% is more reliable than 4%.
Impossible to answer without more information.
Maybe you're getting your information from Empower?? The calculators on their site are pure Trash. Inaccurate and misleading. I find it unfathomable how a company that is one of the largest retirement plan providers, can have such poor estimation tools.
Whatever it is, most will never come close to reaching it (401Ks are The Big Lie).
Those who do reach it don't deserve it. They also don't get into heaven for how they've reached it.
FU you elite jerks coming to a layoff site bragging about your wealth! Most of the workers here are just worried about making it day-by-day once their severance runs out. Most of us work our tails off but don’t have your privilege or luck. STFU!
5000?? or do you mean 5mm?
Whatever it is, I think it needs to be 18% higher.
We have about 4m but with the cost of living increasing so rapidly and my husband and I being late 30s it doesn’t feel like nearly enough to retire. 10m would be comfortable.
Yes. 5M in index funds will give you a 4% draw and you’ll never run out of money.