Retirement Targets
- Thread starter yowza
- Start date
That is for Medicare, we can continue on my wife's policy with the city until we reach age 65, so I am good until then before I have to purchase the supplement.
Wife and I both took career paths where we were tied to high cost of living areas and didn’t make much money until our mid-late 30s.
Now we have high incomes but also two kids and still in a high cost of living area. Luckily we have great retirement benefits at work and bonus structures that make it fairly easy to save. We like our work and it’s not physically stressful so we plan to work to mid or late 60s and retire with a nest egg that provides enough interest to never run out.
On the other hand, basically every male in my extended family has had a heart attack before age 60, so that may throw a wrench in the plans…
Now we have high incomes but also two kids and still in a high cost of living area. Luckily we have great retirement benefits at work and bonus structures that make it fairly easy to save. We like our work and it’s not physically stressful so we plan to work to mid or late 60s and retire with a nest egg that provides enough interest to never run out.
On the other hand, basically every male in my extended family has had a heart attack before age 60, so that may throw a wrench in the plans…
Easiest way to increase is if you get a 3% raise, increase it by that amount. If you do roth, figure out how much the after tax is and put that in. Basically flat line your income and put it to retirement.
Yeah.. I’ll start to adjust here. I just googled and it states that 3mm would pay 60-150k on interest only. Large range there.. it’s interesting to think about.. there must be a lot of people that have a lot of money stashed away or there are a lot of people living on the bare minimum in retirement.
Not sure how old your parents are/were. Mine were 40 when I was born, and I'm 51. So they grew up through the great depression, wars, farm crisis and everything. When my mom was on the farm, she could literally live on a grand a month. Everything was paid for so all she needed was food, heat and a little gas money. She had farm ground and a few small investments to go with the SS, but she was very content saving money and not spending.
When you hit 65, your house should be paid off, so there is a savings, you shouldn't need to put anything towards retirement so there is savings, you will have medicare, so insurance goes down. Social security is available so you get probably a grand or so there each month. Your clothing budget probably drops since you don't need everyday and work clothes. Basically there are cost savings out there.
Also your tax rates decrease so there is more savings.
I did this for around 5 years till I got to the % that maxed out my 401k.
He is taking his hypocritical rear on vacation with his 13% mutual fund returns.
My 99 year mother is paying 570 a month for Medicare and in assisted living. She is about broke. Good health for 99. Still sharp. That is what scares me. I cant pay 4,900.00 a month in retirement when I am old. Pay attention to this thread kids.
Don't know that I've seen this thread for whatever reason..
As for Medicare...There really is no supplemental insurance much anymore now that Medicare Advantage is available.. My Dad switched to this last year.. Doesn't pay anything for it.
If he goes into hospital he has to pay $300 per day but after 4 days it is 100% coverage then..
It is like $200 per exam like X ray or MRI etc outside hospital setting..
Other than that everything else is mostly paid for.
As for Retirement...
Looking at average Retirement portfolio isn't a good comparison as to wheere you might stand vs others...Bc
Most advisors would tell you to look at Median # by age...
It is pretty low honestly.
Here is Median for each age group for 401k (Fidelity)
20-29: $14,000
30-39: $51,000
40-49: $120,000
50-59: $206,000
Not that anyone asked for advice...but I try to choose funds that also pay dividend.. Long term it has def added to my wealth.
Max it out every year if you can... Most cannot max out the maximum allowed but if you put in at least 10% a month with a matching contribution by the time you are 60 you shouldn't have to worry about $$ in retirement..
Last thing...Every article and advisors says you need30+ years of retirement..
Doubtful...years 60-80...how many 85 year olds do you see splurging and taking 2 trips a year to Europe?
If you are even alive at that point.
As for Medicare...There really is no supplemental insurance much anymore now that Medicare Advantage is available.. My Dad switched to this last year.. Doesn't pay anything for it.
If he goes into hospital he has to pay $300 per day but after 4 days it is 100% coverage then..
It is like $200 per exam like X ray or MRI etc outside hospital setting..
Other than that everything else is mostly paid for.
As for Retirement...
Looking at average Retirement portfolio isn't a good comparison as to wheere you might stand vs others...Bc
Most advisors would tell you to look at Median # by age...
It is pretty low honestly.
Here is Median for each age group for 401k (Fidelity)
20-29: $14,000
30-39: $51,000
40-49: $120,000
50-59: $206,000
Not that anyone asked for advice...but I try to choose funds that also pay dividend.. Long term it has def added to my wealth.
Max it out every year if you can... Most cannot max out the maximum allowed but if you put in at least 10% a month with a matching contribution by the time you are 60 you shouldn't have to worry about $$ in retirement..
Last thing...Every article and advisors says you need30+ years of retirement..
Doubtful...years 60-80...how many 85 year olds do you see splurging and taking 2 trips a year to Europe?
If you are even alive at that point.
Retirement to under 60’s means trips, relaxed lifestyle & no financial stress. Retirement to 70+ folks means downsizing, healthcare costs, less travel (been there done that & effort to travel reality sets in). Retirement to 75+ folks focuses on out of control health care costs, no home maintenance & ownership cost opportunities ie. Town House communities, assisted living, memory care, nursing homes, senior care etc. and the reality of out living your investment returns as these costs continue to out pace inflation. Point is: it doesn’t take much to retire and enjoy an active travel based lifestyle but as the years roll by it will take a boatload of cash if either you or your spouse have to go to a facility and most people do. Managing your finances after you retire is as important as building your wealth during your working careers. I speak as a 73 year old retired senior who has traveled extensively and has seen this scenario play out extensively.
Everyone started where you are, and the great thing is you realize it when a person should realize it if they want to get to the end with some savings. I know it may not seem like it now, but even doing a little and investing will add up over 30 years.
Yeah, I don't think the bolded is true at all. Happens to some unfortunate people, sure, but certainly not "most".
What happens to the sick old people who can't afford that care? Are there subsidized places, or do they just let them die a slow painful death on the streets? Obviously having funds for a cush fancy facility would be great, but that's a risk each person should balance for themselves imo. And to say "most" people end up in a facility just seems false.
According to CDC, only 30% of males, 45% of females live to 85 (pg 3). Table is # alive at age (per 100,000 births). 1 out of 4 males die by 65. Financial advisors like to tell everyone to plan to age 100. That is playing it ultra-safe plus garners them more funds and higher commissions. I am planning to age 92 as there is no way I make it to 100. Probably be lucky to make 80 (less than 50% of us do!).
You are full of "fun" information today.
I just upped my 401k to 8% today (w/company matching up to 6%). I do have some money in there… Just can’t pinpoint what I should have at 36 and where I need to be at 65.
6% is a nice match. My employer only matches 3%
The important part is you have the 401(k) going. It's really slow and hard to imagine it will ever go up but it will.
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