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They don't need to save a million. A nest egg of 624k will provide 25k per year at a 4% withdrawal rate. Add in their SS benefits, the fact that the kids are grown and the mortgage is gone, and they have more disposable income than they had when working.
Well, maybe you can tell some of these Investment Community folks the same thing then? I put my goal of having $1 million in a nest egg and they said with inflation, I would be SLEEPING on the streets.
Well, maybe you can tell some of these Investment Community folks the same thing then? I put my goal of having $1 million in a nest egg and they said with inflation, I would be SLEEPING on the streets.
If you are fine with a million then be fine with it. I don't get why you cry as much as you do because if other's opinions. A million isn't enough for me but if it is for you why would you care what I thought? I simply don't get it
If you are fine with a million then be fine with it. I don't get why you cry as much as you do because if other's opinions. A million isn't enough for me but if it is for you why would you care what I thought? I simply don't get it
Good question and I'm glad you asked this .
The reason I get upset with you guys bashing this "$1 million goal" is because 90% of the country will NOT have this amount saved. As we know, inflation in 25 - 30 years will eat this amount down, so $1 million today won't be $1 million in 25 - 30 years, but it will STILL be more than 90% of what the country has.
So if your goal is $7 million or $8 million, how about you share some details on how you plan to amass this? You said you and your wife bring in $200k a year and you are about the same age I am (I'm 32). So by age 65, you have 33 more years. You guys would need to be saving/investing $70,000 per year with a 6% CAGR over the next 33 years, to get to $7.7 million in total. What if you get a divorce? Doesn't that totally BLOW through your plan of $7.7 million in which based on your current income, you would need the contributions from your wife to amount to?
My issue is that anybody can have goals, but damn it, are they attainable? In your case of a $7 million goal, that's the TOP 1%, so you know that 99% of people will NOT be able to save that amount of money man. Our economic system isn't even setup for them to do that.
Usually if you have one person in a household, they track and measure those individuals based on the income of an individual income earner because there's no "household" that's applicable to the situation.
A hh can have only one earner even if it has multiple people, hh income simply tracks HH income, you could look up dual earner HH stats if you wanted to be more accurate
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You can indeed have a household of 4 people with only one person working/bringing in income, but even then, the numbers/expenses I provided would still be the same if the gross amounts are correct for the family of 4.
But the avg hh is 2.58 not 4
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What do you mean cost don't double? You have double the day care expenses, double the child care expenses, double the clothing, food, entertainment, insurance costs, etc. from having another child. What do you mean they don't double? Also the $12,500 number I provided (from my studies) was very low, some cities you have parents spending way more than that on daycare/child care for one child. Most studies say that it costs about $250,000 to raise a child from 0 - 18. That's almost $14,000 per year.
Cost don't just automatically double when you go from one to two kids. Daycare typically gives a discount for additional kids but food cost, transportation, housing, insurance and many others don't double
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Their savings rate should increase once the kids gets to 18 - 21, but in reality, will it? I mean with the economy, a lot of kids will stay home until they are 25, some of them will have kids and require their parents help support it, some of their parents will kick in and pay for worthless college degrees.
Should they save more? Sure. Will they? Not my concern. They should
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Maybe they can afford to put more than $10,000 away once the kids get into their early 20's, but you STILL won't have them reaching the basic $1 million goal that I have been preaching about on this Forum unless they do something to bring in more income such as start a business on the side, or they increase their take-home pay.
I would think on $70k a year gross, SS can't pay out more than $2,000 - $2,500 a month if that much.
On 70k FRA benefit for me would be 2058.00 a month and if my spouse didn't work she could get spousal benefits as well.
The reason I get upset with you guys bashing this "$1 million goal" is because 90% of the country will NOT have this amount saved. As we know, inflation in 25 - 30 years will eat this amount down, so $1 million today won't be $1 million in 25 - 30 years, but it will STILL be more than 90% of what the country has.
But if it's enough for you why would you be upset?
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So if your goal is $7 million or $8 million, how about you share some details on how you plan to amass this? You said you and your wife bring in $200k a year and you are about the same age I am (I'm 32). So by age 65, you have 33 more years. You guys would need to be saving/investing $70,000 per year with a 6% CAGR over the next 33 years, to get to $7.7 million in total. What if you get a divorce? Doesn't that totally BLOW through your plan of $7.7 million in which based on your current income, you would need the contributions from your wife to amount to?
My goal is 10mm and we are currently saving 100k annually +/-, if I get a divorce I won't need 10mm so I'd still be on track
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My issue is that anybody can have goals, but damn it, are they attainable? In your case of a $7 million goal, that's the TOP 1%, so you know that 99% of people will NOT be able to save that amount of money man. Our economic system isn't even setup for them to do that.
I'm ahead of schedule on my plan. I don't mind a goal of being ahead of 99%
But if it's enough for you why would you be upset?
Because I think my plan is a more realistic one for most people trying to get into the top 10% at retirement, where your goals and MathJak are more unrealistic for 99% of people.
So when you guys get up and say, "Blah, blah, $1 million is nothing you piker!" Other people might see that and not try as hard to even amass $1 million because understand, to amass $1 million is going to be very hard in and of itself.
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Originally Posted by Lowexpectations
My goal is 10mm and we are currently saving 100k annually +/-, if I get a divorce I won't need 10mm so I'd still be on track.....I'm ahead of schedule on my plan. I don't mind a goal of being ahead of 99%
It's easy for you to have this goal with what you have to play with. You currently have a $200k total gross take home in your early 30's, which means this is likely TO GROW over the years especially considering you and your wife are working professionals in specialized fields.
That right there puts you at a significant advantage over well over 95% of households in the country. As $200k right now, you guys are in the Top 5%. When you are in that high of a bracket, with a great network, great education, and you work within the financial industry THUS you are more knowledgable on investing than again the vast majority of the country......you have way more tools to play with.
So it's like, YOU can get up here and say your goal is $10 million by 65, but when you blow off someone's $1 million goal who doesn't have anywhere NEAR the level of tools/resources you have to play with, to me that's disingenuous as hell lol.
It's like Lebron James "roasting" someone who works at Walmart for driving a Honda when he drives a Bentley. For goodness sakes dude, you make more per quarter of a basketball game than what the Walmart employee makes in an entire year.
Last edited by jotucker99; 10-14-2015 at 12:34 PM..
Because I think my plan is a more realistic one for most people trying to get into the top 10% at retirement, where your goals and MathJak are more unrealistic for 99% of people.
So when you guys get up and say, "Blah, blah, $1 million is nothing you piker!" Other people might see that and not try as hard to even amass $1 million because understand, to amass $1 million is going to be very hard in and of itself.
It's easy for you to have this goal with what you have to play with. You currently have a $200k total gross take home in your early 30's, which means this is likely TO GROW over the years especially considering you and your wife are working professionals in specialized fields.
That right there puts you at a significant advantage over well over 95% of households in the country. As $200k right now, you guys are in the Top 5%. When you are in that high of a bracket, with a great network, great education, and you work within the financial industry THUS you are more knowledgable on investing than again the vast majority of the country......you have way more tools to play with.
So it's like, YOU can get up here and say your goal is $10 million by 65, but when you blow off someone's $1 million goal who doesn't have anywhere NEAR the level of tools/resources you have to play with, to me that's disingenuous as hell lol.
It's like Lebron James "roasting" someone who works at Walmart for driving a Honda when he drives a Bentley. For goodness sakes dude, you might more per quarter of a basketball game than what the Walmart employee makes in an entire year.
If I didn't make 200k my goal wouldn't be 10mm but understand my income to goal 50 times my current income(our gross is actually higher now but it's easier for math) and yours is 14-15 times your income. 15x70k=1.05mm. When my income was in the 70k my goal was 3mm, I'm all for over preparing and getting this race front end load so that I could stop working at 45, 50, 55 or whatever. If I make 200k now and save 100k a year I don't need 10mm at 67, especially given the amount of ss I will bring in the ss quick estimator puts us close to 60k annually at age 67
Well, maybe you can tell some of these Investment Community folks the same thing then? I put my goal of having $1 million in a nest egg and they said with inflation, I would be SLEEPING on the streets.
Always consider the source. Of course investment companies want you to invest as much as you possibly can. That is how they earn revenue.
The vast majority are not millionaires, and the vast majority do not sleep in the streets. Draw your own conclusions.
We have a goal for sure but if we dont hit then that is fine. There are a lot of outside factors that play into how much you will have when you are 65. My wife and I agreed that we will save X amount a month and adjust over time but we wont live like hermits in the process. We are trying to live soley on our salay and pay off all debt with hers and then save all of hers. Some months this wont be totally possible though. We will do our best.
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the ss quick estimator puts us close to 60k annually at age 67
