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Old 01-14-2010, 09:46 AM
 
Location: Mount Laurel
4,106 posts, read 7,341,308 times
Reputation: 3346

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Quote:
Originally Posted by 8 SNAKE View Post
You have absolutely no way of knowing that, based on the scenario that you presented. For all we know, the person earning $150k/yr has been plowing a lot of his extra income into paying off his home. Or maybe he's a health care professional who hasn't been out of school all that long and is poised to increase his income substantially as he establishes a private practice.

I could list dozens more scenarios, but the point remains the same. You assume that one person is better off than the other, but there's no way of knowing.
No I don't know and it could very well be the scenerio you listed but the bottom line is this. Most financial planning for retirement is about predictions and assumptions. We all know that at retirement, we need replacement income. Usually at 60%-75% of your last year gross from work. This is necessary if one wants to continue with their lifestyle prior to retirement.

Professional having higher earnings WILL most likely live in a more expensive home, drive nicer car, etc.. in other words, higher monthly expense. The higher earning will require to have a lot more saved at retirement.

Yes, there are lots of different scenerios but I guess what I am trying to say is this. $200K is relative. To a person who makes $60K a year at age 40, chances of their salary changing over the next 25 years is not likely. $200K means that s/he could continue doing what they have been doing and will and should have enough for retirement. Now for the $150K/year earner, $200K isn't much and this person need to start putting a lot more away soon because at retirement, the amount need is much higher.

This is about the 401K account only. We are not talking about other source of income/assess.
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Old 01-14-2010, 10:54 AM
 
Location: Southwest Missouri
1,921 posts, read 5,364,002 times
Reputation: 910
I understand the point that you are attempting to make. I'm merely saying that the example you gave fails to adequately support your stance.
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Old 01-18-2010, 11:49 AM
 
Location: Sound Beach
2,157 posts, read 6,261,988 times
Reputation: 860
Behind the curve as well. 38 but only started TSP 5 years ago. Currently at 39K.
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Old 01-22-2010, 01:31 PM
 
Location: Central, NJ
2,183 posts, read 4,472,437 times
Reputation: 2504
Quote:
Originally Posted by usedtobeanyer View Post
I've always been very curious to see how I compare to others my age in terms of retirement savings. I don't feel great about how much I have saved considering how old I am but curious to compare to others who are willing to share.

I'm 41 and have about $130,000 currently in my 401k, with another $5,000 or so in an IRA.

What's troubling is that I've saved and contributed regularly for most of the last 15 years or so. I'm currently contributing 10% of my salary and getting a 5% match from employer, which comes out to roughly $15k/year. But obviously investments have not performed well in the last, well, decade...
I'm 40 and people our age have it tough. Every 8 years or so we've lost half of our 401Ks. There is absolutely no way I will ever have 1 million dollars in there. I have about what you have and a husband who accepts he will never retire. We are fortunate enough to own our home outright.
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Old 01-22-2010, 02:55 PM
SXN
 
350 posts, read 1,024,972 times
Reputation: 280
I'm 32 and have 38K in a 401k, 38K in a Roth IRA and 18k still waiting to be rolled over from an old employers plan. Like everyone else, my savings took a hit of about 30%, barely breaking even two weeks ago, but now the market this past week is starting to take chunks out of it again.

I'm not even sure it's worth saving anymore, with the massive amount of debt our gov't is accumulating I'm worried that inflation in 20-30 years is going to negate all my earnings.
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Old 01-22-2010, 03:05 PM
 
5,748 posts, read 10,026,035 times
Reputation: 4464
Sure you want to take that position? Your defeatism may come back to bite you big time.
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Old 01-22-2010, 03:14 PM
 
Location: Earth
1,420 posts, read 3,413,238 times
Reputation: 830
I halted contributions last year, but my company still throws in 2% every pay period. $175K at age 40. I think I have the right asset allocation since it's come all the way back from late 2008's tumble. Probably need to open up the spigot and start contributing again. Another $35k in my Roth at today's value, after the 2nd consecutive +200 point market slip.
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Old 01-22-2010, 03:24 PM
 
Location: Inwood, WV
69 posts, read 226,192 times
Reputation: 37
$12K in 401K, 21K in Roth IRA/32 Years old. I am so screwed, I did not start saving till later in life, and my field of employment is not a high paying one. I save and put away every cent a month I can, but you cannot substitute a higher salary where you can afford to put away the max every month. I have been working for the last 7 years putting my wife through school, and on 1 income, its hard to maximize savings. If only I had started earlier in life, I might be farther along.
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Old 01-22-2010, 03:48 PM
 
8,392 posts, read 12,464,450 times
Reputation: 7356
I stopped looking at 401k and IRA statements. Too depressing.
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Old 01-22-2010, 07:28 PM
 
Location: Socialist Republik of Amerika
6,212 posts, read 11,001,119 times
Reputation: 1094
Quote:
Originally Posted by Irish Eyes View Post
I'm 40 and people our age have it tough. Every 8 years or so we've lost half of our 401Ks. There is absolutely no way I will ever have 1 million dollars in there. I have about what you have and a husband who accepts he will never retire. We are fortunate enough to own our home outright.
That's because the Goldman's of the world can't stand for you to make more than 0 %

401 k's are a joke, they do nothing for you but delay the inevitable... complete reliance on Social welfare...
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