Well, how much do you have in your 401K and how old are you?

Quote


















Almost 58
IRA/401K - $1.7 million
After tax investments/savings - $3.3 million
Home value - $1.5 million (really jumped this year)

Total Net Worth - $6.5 million

We originally bought our home for $650K. Was planning to downsize when I turn 65, but thinking about selling now in a hot market.
 


















anonymous said:
That 2.5 million is really about 2 million after the Fed gets it's cut. I always subtract minimum 20% off the number to really see the net money. I don't have quite a million yet in my 401K, but we have a pension that's worth net 1.8K over a 35 year span.
Click to expand...
2 million is $80K a year in retirement using the 4% rule.
 












anonymous said:
That 2.5 million is really about 2 million after the Fed gets it's cut. I always subtract minimum 20% off the number to really see the net money. I don't have quite a million yet in my 401K, but we have a pension that's worth net 1.8K over a 35 year span.
Click to expand...


It is not as simple as just cutting it 20%. You are only withdrawing a small percentage at a time, with the majority continues to grow on a pretax basis. It is better to run a long term calculation that looks at the growth of the account, the project distributions and then a few scenarios on tax impact. My father has been taking out just the RMDs and, at the age of 86, has 3x the balance in his account compared to when he actually retired.
 






anonymous said:
It is not as simple as just cutting it 20%. You are only withdrawing a small percentage at a time, with the majority continues to grow on a pretax basis. It is better to run a long term calculation that looks at the growth of the account, the project distributions and then a few scenarios on tax impact. My father has been taking out just the RMDs and, at the age of 86, has 3x the balance in his account compared to when he actually retired.
Click to expand...
Yes, you are talking about Monte Carlo simulations. Firecalc does this well. www.firecalc.com
 






Just ran the numbers. I can pull down $250K/year until age 87, which an age I am unlikely to reach, based on family history.

Zero debt, but still can’t find the courage to pull the trigger.
 






anonymous said:
Just ran the numbers. I can pull down $250K/year until age 87, which an age I am unlikely to reach, based on family history.

Zero debt, but still can’t find the courage to pull the trigger.
Click to expand...
I assume you are including Social security, or pension, or spouses numbers as well. Otherwise, if you are talking pure investments only, you would need 6.2 million to pull that a year.
 






anonymous said:
Almost 58
IRA/401K - $1.7 million
After tax investments/savings - $3.3 million
Home value - $1.5 million (really jumped this year)

Total Net Worth - $6.5 million

We originally bought our home for $650K. Was planning to downsize when I turn 65, but thinking about selling now in a hot market.
Click to expand...


You are doing GREAT!! I am 61 and have about 5.8 million. No kids, house worth $750 and am retiring in next year.

Do you have children? Did you inherit a lot? Anyway, great job. I'd pull the trigger no later than 60 if I was you. You won't outlive your money.

I have been very conservative with my investments--thus older and a bit less.
 






anonymous said:
61
no kids
no mortgage
will have $1100 pension
close to 5 million total saved in ira/etc.

want to retire, but don't know if I'd be bored out of my mind.

I think I totally have enough to live on but with property taxes, etc. I think I'll spend about 8 or 9 k a month. I still think I can live on that forever but am risk averse and want to put everything in stable funds due to uncertainties. Thoughts?
Click to expand...

I am right where you are!!!
 






Thinking I am going to retire early. 54 years old. Guaranteed 5K net income every month forever. $750K invested in retirement vehicles 70/30 S&P 500, 110K very conservative stable fund, 200K cash to live on till
59 1/2, no debt of any kind. Paid off 500K mortgage and kid married off and self sufficient.
 






Spouse and self both 54
401ks/IRAs $2.4M
Taxable $1.6M
House paid off and worth $420k
Modest pension at 65 of $7k/yr
Combined S.S. at 66 projected $64k/yr, though I figure a 60% haircut in calcs
Kids college saved in 529s

Both retired in Jan 2021, will likely work part time in 2023 as fly fishing guide. Wife plans to substitute teach at some point. Lived on half our salaries for 30 plus years, basically
 






anonymous said:
You are doing GREAT!! I am 61 and have about 5.8 million. No kids, house worth $750 and am retiring in next year.

Do you have children? Did you inherit a lot? Anyway, great job. I'd pull the trigger no later than 60 if I was you. You won't outlive your money.

I have been very conservative with my investments--thus older and a bit less.
Click to expand...

We have 4 children. 1 in high school, 1 in college and the other 2 are grown and on their own. We have not inherited anything. I have asked my parents to leave our portion of their estate to our kids as my wife and I will not need it. My father-in-law is still alive, but won't leave much (nor do we need it). I think about retirement from time to time, but still haven't decided when I will pull the trigger.

I am somewhat on the conservative side with investments with a current 60/40 allocation.
 












Age - 57 (29 yrs with the same company)
$2.6 mil in 401k
$400,000 current value in company stock
$350,000 cash/stocks
$1.9 mil in pension
$4 mil in trust upon the death of my remaining parent (not figuring into retirement numbers as parent is healthy and could always change their mind and leave it to the SPCA)
$240,000 in college loans I promised to pay off for kids. Will pay off once stock hits a strike price I have in mind but no later than prior to retirement
wife only worked a few yrs prior to the kids coming along then was stay at home mom
Wanting to get out in 2 yrs as I will qualify for retirement with no reduction in pension
Also planning on getting out of the NE to a more tax-friendly and climate friendly state
 












Top Bottom
Back
Quote