Post # 1
Hello hive –
I’ve been reading the boards for over a year now and I’m always thoroughly impressed with the sound financial advice that bees seem to offer. I’ve seen countless posts where bees discourage going into any sort of debt to pay for a ring or wedding. Compared to the general population the hive members seems to ‘have their heads on straight’.
So as a self proclaimed lover of all things finance/budget/money I’d like to post the following question: will you be ready for retirment? are you a big saver/investor? I’ve been socking away a good chunk of money since I started my grown up job 6 years ago but it’s hard to know if I’m on track. For simplicity of the poll please select your age category and then the amount you (you only, not your spouse/significant other) have in savings/retirement.
Post # 3
@linzeelou: You might need to change your poll…the options are less than 20, or 20 to 25.
Post # 4
That’s tough to say. DH and I have quite a bit in savings, but we consider it to be joint. I have nothing specifically designated as retirement savings though, as I’ve always been a student. I would probably be paying more in taxes taking it out if I had been sticking some into the little amount of RRSP contribution room that I have.
Also, most of our savings will go to a house, but that allows us to pay down a mortgage faster so we can stick more into retirement savings when we are older and in a higher tax bracket.
Post # 5
Hopefully we will be ready, we are contributing the max to our 401ks and Roth IRAs!
Post # 6
We’ll be ready. We plan on retiring at 65, but slowing down 5-8 years before that.
Post # 7
@DeathByDesign: I’m impressed you know that! For DH and I it’s way too soon to have that figured out.
Post # 8
I am a teacher, so I will most likely get a pension when I retire. Unless, of course, they change legislation. In addition, 7.5% of my paycheck goes into the retirement account set up by the state, which they match after you’ve been in the system for five years.
Next year, when I am more stable in my job (just moved and started a new one), I will set up another account to ensure I have enough to retire.
My fiance has money from his family, but I want to make my own, too!
Post # 9
FI and I have a very aggressive goal to retire early – as in 45-50. We already have nearly $400k in retirement as of today (yes, that is together). We are 33 and 35 years old.
48.9% of our income currently goes to 5 different retirement accounts that we are maxing out (two ROTHs, two 457bs, HSA) – just recently. On top of that, our work puts in 14.2% of each of our salaries into a 401a as part of our benefits package. Our goal is to max out a 6th retirement account 403b starting next year.
The money that goes towards these accounts all comes from one account.
We have a plan to pay down the house also in 8 years. We are also figuring out what it costs to live on a year to year basis as well. We took some free retirement classes through our work and that was pretty helpful.
Post # 10
I’ve read some where that you need 800k-1 mil to retire at the age of 65 if you live until 90. This always worries me because what if I live longer!!! LOL. So no, I don’t think I’ll ever feel ready to retire. Of course this number is so arbitrary since everyone’s situation is different.
Post # 11
@yellowshoe: I don’t think it’s as cut and dry as that.
In the retirement seminar I attended, the lecturer did a very average scenario of the wife having $75k in her account and the husband having $456k in his account. He showed us this laddering method where you only take out a chunk at a time – the chunk you need for the next 5 years and the rest keeps growing in place. Then you move on to the next 5 years.
You put different chunks in different rates too. ie. the chunk you will need for ages 85-90 can go in a more aggressive account since you won’t touch it for another 20 years and it has time to grow even more.
Basically this very average couple had about $4M by the end of their projected lives earning about $75k per year each year of their retirement. I was stunned and delighted.
Post # 12
@sienna76: umm..right…that’s why my last sentence says “Of course this number is so arbitrary since everyone’s situation is different.”
Post # 13
We put in 10% of our salaries into our retirement plans. Work also gives us another 5% each. Hopefully it’s enough? I think it all depends on the market. Besides, we have a good 40 years to go…..
Post # 14
DH and I view our retirement money together and at 24 and 25, we currently have ~$55K in retirement money saved away. We both feel this is a really good start and believe in starting early so that money have more time to compound and grow.
I’m sure we’ll be plenty “ready” to retire before that day comes.
Post # 15
@yellowshoe: Yes, I completely realize everyone had different scenarios. I wanted to demonstrate how I saw the calculations for half a million at age 65 for two people go much further than one would think.
Post # 16
@sienna76: you are getting a GREAT contribution from your employer… that’s awesome. Can you get 2 IRAs?