Retirement Savings -- Countup

[Keshet]

Retirement savings as of today: $725k. Also have a paid off home as part of retirement planning.

[LivingAlmostLarge]

we hit $1 million retirement savings.

[disneysteve]

we hit $1 million retirement savings.

Congrats! That's awesome!

[Scallywag]

In our mid / late 40s with a grand total of 600K total to our names. Renting, with a high schooler & a spl needs tween.

I am scared to death that we may not make it with these numbers, barring a lottery.

My calculations show that we need at least 3 million (after taxes) in retirement + a paid for house, as our son will likely live with us for the rest of our lives, and this would be required to take care of him.

I don't know how we could pull this off, in the MAX 25 years left remaining of our working lives. God help our son (and us).

[cypher1]

Last checked at 276K for retirement savings, age 38. Not sure of the number I need for retirement so I say between 750K-1mil for goal.

[Nutria]

My retirement accounts (mostly IRA&401k, and some taxable) just hit $438K.

[riverwed070707]

Year end total $197.841. Up from $153,765 Jan. 1, 2019. I'm 33.

[Nutria]

Year end total $197.841. Up from $153,765 Jan. 1, 2019. I'm 33.

I wish I was that disciplined when I was 33...

[riverwed070707]

I wish I was that disciplined when I was 33...

Honestly just a good market year! Contributions were $16k, $6k of which came from my company. Rest was growth. I did start my 401k early and have always contributed but I’m far from maxing out

[Nutria]

Honestly just a good market year! Contributions were $16k, $6k of which came from my company.

I contributed probably $2200 when I was 33.

[Petunia 100]

In our mid / late 40s with have a grand total 600K total to our names. Renting, with a high schooler & a spl needs tween.

I am scared to death that we may not make it with these numbers, barring a lottery.

My calculations show that we need at least 3 million (after taxes) in retirement + a paid for house, as our son will likely live with us for the rest of our lives, and this would be required to take care of him.

I don't know how we could pull this off, in the MAX 25 years left remaining of our working lives. God help our son (and us).

Is the 600k all invested or does that include cash savings?

Using the rule of 72, if you earn 7% on your money it will double roughly every 10 years. Your money could double twice (to 1.2m then to 2.4m) plus be on its way to doubling again in 25 years. This is not counting new money.

I think you have a decent shot at getting there.

[Scallywag]

Is the 600k all invested or does that include cash savings?

Using the rule of 72, if you earn 7% on your money it will double roughly every 10 years. Your money could double twice (to 1.2m then to 2.4m) plus be on its way to doubling again in 25 years. This is not counting new money.

I think you have a decent shot at getting there.

Thank you. You've given me some hope. Not all is invested. We have around $50K in cash. I also should not count the 50K in my daughter's Coverdell. So, our total assets are $550K which includes:

$50K in cash

$150K in mutual funds

$350K in stocks.

The $50K in Coverdell is all in stocks - this concerns me, so thinking of moving it all to index funds.

No house, and rents that keep going up each year. My daughter graduates high school in 2021 so I am very worried / afraid.

If I did get 7% on our investments every year from now until 2045, then yes, we could get to 1 million by 2030, 2 million by 2040 & 3 million by 2045. This would be AWESOME & on target, if only we could also have a PAID for house by then!

Where could I invest where I could get 7% a year for the next 25 years? I am thinking of moving another $150K from the stocks into mutual funds - would that help? Please advice!

[disneysteve]

Where could I invest where I could get 7% a year for the next 25 years?

Obviously none of us has a crystal ball but the stock market has beat that over the long term. With a 25-year timeline, a well-diversified portfolio of domestic and international stock index funds can certainly be expected to return 7%. Keep it simple A Total US Stock index fund and a Total International Stock index fund.

[Scallywag]

Obviously none of us has a crystal ball but the stock market has beat that over the long term. With a 25-year timeline, a well-diversified portfolio of domestic and international stock index funds can certainly be expected to return 7%. Keep it simple A Total US Stock index fund and a Total International Stock index fund.

Any particular index funds you could suggest, Steve? I understand you're not giving me investment advice but would like to know which funds you suggest I research further? TIA. Much appreciated as I want to move most of my individual stocks to mutual funds or ETFs, esp that Coverdell!

[LivingAlmostLarge]

Thank you. You've given me some hope. Not all is invested. We have around $50K in cash. I also should not count the 50K in my daughter's Coverdell. So, our total assets are $550K which includes:

$50K in cash

$150K in mutual funds

$350K in stocks.

The $50K in Coverdell is all in stocks - this concerns me, so thinking of moving it all to index funds.

No house, and rents that keep going up each year. My daughter graduates high school in 2021 so I am very worried / afraid.

If I did get 7% on our investments every year from now until 2045, then yes, we could get to 1 million by 2030, 2 million by 2040 & 3 million by 2045. This would be AWESOME & on target, if only we could also have a PAID for house by then!

Where could I invest where I could get 7% a year for the next 25 years? I am thinking of moving another $150K from the stocks into mutual funds - would that help? Please advice!

What is going on with the Coverdell? I have my kiddos in VTI which underperforms the SP but I like the more stability and mine graduate 2028 and 2030. So I would seriously consider mitigating risk right now if you have one graduating in 2021. I think the market extremely hot and it's possibly a 10-15% pull back this year or next. I am already planning on shifting in 2024 and 2028 into a 70/30 or 60/40 portfolio knowing that i can ride it out until 2034 to need the money at the latest.

I absolutely would count the $50k for college. You saved it and now there is $50k less loans. I would look at keeping things simple and trying to build the lazy man 3 ETF portfolio. VTI, BND, and VXUS. I would do something super simple 60% VTI, 20% VXUS, and 20% BND. And then I would decrease annually VXUS and VTI and increase BND

If you have time read intelligent asset allocation by william bernstein that will explain the efficient frontier. Brilliant and what I think the basis of diversifying. However I don't think most people have the time or energy to properly build their portfolio. I do it myself personally with ETFs because I don't have the time to pick stocks and efficiently build my model. However last year we did around 35% total portfolio carrying a bond weight of about 15% to show you what the diversification can do.

i'm currently rebalancing for the year. I also am limited by my DH's 401k and start from there and build our my portfolio individually for tax maximizations. But I KISS for kids coverdell and UGMA. VTI all the way right now. They are going whole hog 100% stock and I should do the S and P but I want to do something less risky at 100% stock investment. I don't need it to bear huge fruit but just some