Stressing about retirement. My situation

[Willamette City]

It's probably already been said, but take advantage of every employer option for retirement and particularly pay attention to any match you might get like a 6%/6% match. That and add up very quickly. I averaged about 7% returns on my investments and was happy with that. Some years it's 20% plus, other years your lucky to break even. Look at your time horizon. Enough time can fix a host of problems, even a recession.


Good luck!

[arwenmark]

I think such stressing is how Ebenezer Scrooge started!

[NSHL10]

Originally Posted by Mcdman88

First off I have to stress about something because that's just me. So right now it's retirement. My current situation

34 yrs old
Saving 1950.00 a month
Current worth in retirement accounts 136,000

I haven't been saving like this for long and won't be able to save like this forever due to other financial things that will arise. But if I can save like this for another 3 years. Then change to only saving 450 a month until I'm 60 my estimated worth will be 1.3 million. It's hard to know how much income I will need at 60-death. Is this something to stress over or just keep savings and figure it out in 26 years? I'm not sure why I worry about this so much but I do. I also have a pension that will give me 500 a month starting at 55 yrs old. What is your thoughts on the net worth I'll have and should I try an boost my savings or keep it the same as it is now? Like I said I know I can't do this forever as my younguns get older but also understa d the power of compound interest when you are young. I wish I would have done this 10 yrs ago. Thoughts?

First things first. Retirement is far away. You had more important immediate thi gs to be concerned about. How is curtailing the drinking going? What did you decide with going self employed and paying health Insurance or staying with the stressful job?

[StealthRabbit]

Originally Posted by Mcdman88

First off I have to stress about something because that's just me. So right now it's retirement. My current situation

34 yrs old
Saving 1950.00 a month
Current worth in retirement accounts 136,000

...I can save like this for another 3 years. Then change to only saving 450 a month until I'm 60 my estimated worth will be 1.3 million. ... I'm not sure why I worry about this so much but I do. I also have a pension that will give me 500 a month starting at 55 yrs old. ... Thoughts?

Don't stress, don't worry, enjoy your days (and family) (stuff may happen , but not usually what you plan)

According to your plan...
= $200k in 3 yrs + $6k / yr @ 7% growth = $2m in 28 yrs

Step up your earnings to 8% = ~$2.5m

Or... up your savings rate 100% / month to get to the same place (Time is on your side... find better returns NOW !)

$2.5m should get you an equivalent $80k retirement in 30 yrs (@2% inflation)
Will take $3.5m if 3% inflation

Step back and have fun (While you are able

Keep saving (as possible)

alternative... REPLACE your wage income with an inflation protected business or investment income stream and retire tomorrow.

[galaxyhi]

McDman88:

Stressing, obsessing, or just plain worry wort, stop it.

Just keep doibg what you are doing.

I've started over twice in my life after a good start.
I was off to the races in my early 20s, i had two full timr JOBS, enjoyed my vacations, my toys and saved half inr jobs pay at least. I WORKED HARD, but played hard too, abd saved nicely. Then late 20s i got very ill, and the 1990 recession hit me. Had surgery

In my 30 s i was,doing ok with one job, sa.ved again but late 30s for example spent 8 months total out of a rolling 12 month period in the hospital. Cant hold a job that way. Had multiple surgeries. Again went through all i had saved and actually ended up HOMELESS, living under a bridge next to the RR tracks.

At age 40, just after i met my OH, who had just come out of bankruptcy, i was finally approved for SSDI. SSDI and my OH s onr job paid bills, abd allowed us to save.
Recently, after 14 years, my SSDI doesnt quite pay tge bills like it used to. So in ok health, (after a total of 21 surgeries. And more to come), i have gone back to work part time, allowed.

So we have in 15 years bought a house, have 2 paid for cars, obe bought brand new in cash, have savings.

Long point is, sh**t may happen but just keep saving. At one point due to cut backs in hours, i could only save $0.25/hr worked, but i still saved something, anything to sdd to savings. Hopegulky this winter thst wont happen.
Save somethibg always. And monitor it at 40, 50 snd 60. Then decide about your retirement.

Save what you can, be consistent and DON'T worry.
Just monitor it periodically, and allow for roadblocks!

If you get derailed like i did, start over again ASAP.

We,wont have any $2m portfolio. But shoukd be comfortable, eveb if we have to work longer.

Best to you

[Not in Kansas any more]

Personally, I would ensure that you have a fully owned and well maintained home before you retire. If you want to move to a more retirement friendly area again ensure that after moving you are mortgage free. Once this has been sorted then Max out retirement accounts etc

[reneeh63]

If he was stressing for real he'd have come back to comment...

[Ron61]

Originally Posted by Mcdman88

First off I have to stress about something because that's just me. So right now it's retirement. My current situation

34 yrs old
Saving 1950.00 a month
Current worth in retirement accounts 136,000

I haven't been saving like this for long and won't be able to save like this forever due to other financial things that will arise. But if I can save like this for another 3 years. Then change to only saving 450 a month until I'm 60 my estimated worth will be 1.3 million. It's hard to know how much income I will need at 60-death. Is this something to stress over or just keep savings and figure it out in 26 years? I'm not sure why I worry about this so much but I do. I also have a pension that will give me 500 a month starting at 55 yrs old. What is your thoughts on the net worth I'll have and should I try an boost my savings or keep it the same as it is now? Like I said I know I can't do this forever as my younguns get older but also understa d the power of compound interest when you are young. I wish I would have done this 10 yrs ago. Thoughts?

You’re off to a good start so keep it up. One thing I would strongly advise against is counting on Social Security income in retirement. With instability of our government, and the very real likelihood that this will continue regardless of which party controls the circus in D.C., I believe SS will be bankrupt long before you retire. If you save and invest from the perspective of your pension and personal investments alone are what you will have to live on, you will be a wise man at retirement.

[k7baixo]

Originally Posted by reneeh63

If he was stressing for real he'd have come back to comment...

Well, Last Activity: 09-09-2018 04:48 PM.

He didn’t bother the read many of the posts. Hopefully, he didn’t fall off the wagon.