Can we retire yet?

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married couple two kids, both 44. wife stay at home. 270,000 saved in 401k (less after prez tweets), 120K owed on 230,000 home. 22,000 in savings account. We will retire when we have a million hopefully by time we are 50.
 






Bro, you got a ways to go. I recently hit 50 and I will tell ya there’s no way you are gonna retire, given where you are currently.

Max that 401k, 529, Roth’s (if you qualify). Payoff the mortgage. Live below your means. When the kids are old enough, your wife needs to work part time at the very least.

Doing all that, which I have done, you will still feel like you cannot forgo health insurance and income when you hit 50.

I’ve got over 1 million in retirement accounts, 400k in investments, a paid off house, fully funded college and I’m still in the rat race.
 












I’ve done a lot of research on FIRE (Financial Independence Retire Early) and the above is not close. The funny thing about this growing financial plan is that most who think it’s amazing and think it’ll happen for them have never been through a financial meltdown along with sustained stagnation. A million is not a lot of money. Take 4% of a million and that’s 40k to spend for the year...minus taxes. Have a market meltdown for -30% and that 40k is even lower. Add in 10 years of low growth in market (with no contributions) and that turns the 20k and a full time job at age 64.

A million is great when the market grows at 10% every year. But downturns and stagnation happens (aka 1970s). If anyone is gonna call it at age 50 better have zero debt, $1 million in cash/liquid investments and a 401k ready to tap at 59 worth in excess of 2.5 million. That 401k is worthless until you’re 59 unless you’re ready to pay added taxes due to penalties.

It can be done but they’ll need to be a lot more cash focused on the end goal for that to happen.
 






anonymous said:
married couple two kids, both 44. wife stay at home. 270,000 saved in 401k (less after prez tweets), 120K owed on 230,000 home. 22,000 in savings account. We will retire when we have a million hopefully by time we are 50.
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You may need guidance with your investments if you have less (after prez tweets, as you commented) cause the market is rocking and you should be up SIGNIFICANTLY.
 






anonymous said:
I’ve done a lot of research on FIRE (Financial Independence Retire Early) and the above is not close. The funny thing about this growing financial plan is that most who think it’s amazing and think it’ll happen for them have never been through a financial meltdown along with sustained stagnation. A million is not a lot of money. Take 4% of a million and that’s 40k to spend for the year...minus taxes. Have a market meltdown for -30% and that 40k is even lower. Add in 10 years of low growth in market (with no contributions) and that turns the 20k and a full time job at age 64.

A million is great when the market grows at 10% every year. But downturns and stagnation happens (aka 1970s). If anyone is gonna call it at age 50 better have zero debt, $1 million in cash/liquid investments and a 401k ready to tap at 59 worth in excess of 2.5 million. That 401k is worthless until you’re 59 unless you’re ready to pay added taxes due to penalties.

It can be done but they’ll need to be a lot more cash focused on the end goal for that to happen.
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You will need more than a million. Get help with your planning. Diversify. Use the ROTH option in your 401k to lower your tax burden. If you plan to retire pre medicare consider the newer health savings accounts that allow you to put money aside for medical. Look at some of the newer guaranteed income options. As we move to a new company- take a 401k rollout to a private firm, not with your employer (takeada or novartis), you will have so many more options of how to invest your money. If theres an option to buy a long term health policy- do it. It will help with your elder care.
Pay cash for vehicles. Do not carry finance charges- wasted money.
 






























anonymous said:
Bro, you got a ways to go. I recently hit 50 and I will tell ya there’s no way you are gonna retire, given where you are currently.

Max that 401k, 529, Roth’s (if you qualify). Payoff the mortgage. Live below your means. When the kids are old enough, your wife needs to work part time at the very least.

Doing all that, which I have done, you will still feel like you cannot forgo health insurance and income when you hit 50.

I’ve got over 1 million in retirement accounts, 400k in investments, a paid off house, fully funded college and I’m still in the rat race.
Click to expand...


Poor baby. You can’t be serious?!? I think you are doing pretty well. Sheesh!
 






No one really cares when you retire. What you have and what you dont are so variable to where you live and how you live and even how you invested what you have.
A person with a million in Roth is in a different place than as person with a million in realestate and is different than a million in a charitable trust and is different than a million in annuities. A paid off big house uses more gas, electric, water, and maintenance than s smaller home. Living in some parts of the country offer lower taxes, some with lower living expenses. Some people are quite healthy and spend little healthcare dollars, others have many Rxs, doc visits, & hospital stays. Some take financial care of elderly parents or loser kids who can cut the cord. Some are careful budgeters, others are not. So when it comes down to it, someone with a million and a mortgage can have more disposable income than someone with double that snd a paid off house.
Lots of bragging and even more lying!
 












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