How Much Do You Have Saved?

[BillD1953]

I learned long ago...maybe 35-40 yrs ago......that there are three components to generating wealth....two of the three components are "free".

1.
2.
3.

Any guesses?

Back to the question of age and "net worth.

IMO, best to have a net asset amount that will generate enough cash flow income from years 65-85 (if you live long enough) to maintain the standard of living you achieved over a lifetime.....and that includes wasting $dough$ buying these or other fine automobiles.

Back to my question??? any takers???

[RABAUKE]

I've been lucky and worked hard as has my wife. I am very thankful for my defined benefit pension.

[SakhirM4]

Originally Posted by Lobb

Isn't this looking at things the wrong way round?

Surely you start with what income you need in retirement?

My own situation was I wanted £3,000 ($4000) net income per month. Last year, at age 53 I achieved this and was able to retire. I have a mortgage free property and circa £600k ($800k) in tax free savings.

Never really thought about my net worth. Always asked the question "can I afford to do the things I want to do in retirement".

I agree. I was a little older - I retired at 64, but I have a zero debt (no mortgage, no car payment, no loans, no credit cards) and have $300k in the bank and investments and a $100k annual pension. I don't need $2.5 million and wouldn't know what to do with it. I have more than I need now.

I wanted to be able to retire at a point where I could pay for something without going into debt. If the house needed a new roof, I could pay for it cash; if I needed a new car, I could pay for it cash; etc., etc. That's where I am with what I have. I don't need to be a millionaire to be happy.

[SakhirM4]

Originally Posted by BillD1953

I learned long ago...maybe 35-40 yrs ago......that there are three components to generating wealth....two of the three components are "free".

1.
2.
3.

Any guesses?

Back to the question of age and "net worth.

IMO, best to have a net asset amount that will generate enough cash flow income from years 65-85 (if you live long enough) to maintain the standard of living you achieved over a lifetime.....and that includes wasting $dough$ buying these or other fine automobiles.

Back to my question??? any takers???

1. Work ethic
2. Motivation
3. Income

[qba335i]

Originally Posted by SakhirM4

I agree. I was a little older - I retired at 64, but I have a zero debt (no mortgage, no car payment, no loans, no credit cards) and have $300k in the bank and investments and a $100k annual pension. I don't need $2.5 million and wouldn't know what to do with it. I have more than I need now.

I wanted to be able to retire at a point where I could pay for something without going into debt. If the house needed a new roof, I could pay for it cash; if I needed a new car, I could pay for it cash; etc., etc. That's where I am with what I have. I don't need to be a millionaire to be happy.

That 100k annual pension is comparable to a 2-3M portfolio.

[BayMoWe335]

Originally Posted by NemesisX

https://www.joshuakennon.com/1821745...00000-or-more/

1,821,745 households in the United States have investment portfolios worth $3M or more. This group contains:

893,344 households with $3,000,000 to $5,000,000
679,242 households with $5,000,000 to $10,000,000, and
249,159 households with $10,000,000+

There are approximately 125 million households in the U.S.

Thus, having investments valued at $3M puts you in the top 1.4% of all households. By that standard, I'd say it's unreasonable to expect the average person to accumulate $2.5M by age 60.

That’s the point of this thread though. The average person gets average results because they don’t want to take the steps necessary to have a couple mil saved at 60-65.

I’m not at a computer now, but saving a relatively small $/week starting at 22 should make you a millionaire, maybe more by 62.

[Xtabi]

Originally Posted by radix

Yeah, I'm fortunate that my employer has a pretty good 401k program. I save 25% a month.

Sounds similar to mine. My wife and I max out our 401k every year. We put in $18k our employer dumps in $9k.

This year I believe they upped it to $9,500 for 2018.

I also dump 8% of each check into my ESPP. At a 10% discount. Part of our bonus each year is paid via stock too.

The stock pays a great dividend and is up 350% since I joined the company

Can't beat free $!

I also very closely follow the other items on your list.

[kscarrol]

Originally Posted by SakhirM4

1. Work ethic
2. Motivation
3. Income

I was going with...

1. the right sperm/egg
2. hard work
3. Powerball?

[gatorfast]

Having kids is probably the single biggest factor to saving or not saving.

[PoorLurker]

Originally Posted by Bimmer Nerd

Thats a pretty big jump from 25-30......120K in 5 years ?

120k in 5 years......comes out to $2000 of savings a month, little unrealistic no ? I dont know many people that put away 2K after all the house/bills/car payments/other expenses are paid.

$2,000/mo increase in net worth isn't too much if the person owns property and invests as well. 25-30 is where the income starts to really ramp up.

Originally Posted by duyh

25 - 5,000,000,000.00
27 - 6,900,000,000.00
30 - retire

You must be heavily vested in crypto currency

Originally Posted by SakhirM4

and a $100k annual pension.

anyone know a good pension / net worth equivalent calculator? Always curious. I have a friend who gets around the same each year. I wonder what it would be in terms of a portfolio that he spent until it became $0.

All I know is when I do those retirement calculators, I will have enough in excess to buy a pretty nice car. With that said, I pretty much live paycheck to paycheck.

@OP - based on your posts, I figure you would have higher numbers for your expectations.

Plus is this household or individual?

[UncleWede]

I remember long ago going to a retirement class. I could retire when I had 4.5mil



still working. . .

[ASAP]

99% of the people that I know that have millions saved up have no idea what to do with and are usually still working... a sad reality when people have no idea how to balance life..

My recommendations-
1) put in your 401k whatever your company matches
2) have savings to last you 6-8 months
3) have some proooerty ownership

dont worry about numbers or whatever else anyone says... bcuz its usually utter bullshit, remember to enjoy your life...

the big problem is the people that go out and blow every last $$ they make... this usually entails going out to eat everynight, buying useless shit, driving a "payment" car and have random ass subscriptions to shit they dont need

[kprocivic]

I don't save shoot. I have about 50k in my retirement/pension, and about 60k in student loans. 30k in car debt and 6k in cc debt. Spend this shit while I'm able to. I will save money when I mature, 31 and still immature as ever.

[PoorLurker]

Originally Posted by ASAP

99% of the people that I know that have millions saved up have no idea what to do with and are usually still working... a sad reality when people have no idea how to balance life..

this usually entails going out to eat everynight, buying useless shit, driving a "payment" car and have random ass subscriptions to shit they dont need

First, some of those millionaires share a different mindset. Work is not to accumulate money to retire. It is to accumulate points in a game or to use it as leverage in some other facet in life.

Second part sounds like my household... eating out all the time, buying useless stuff, having two car payments, a gym and massage membership that never gets used, etc..

[NemesisX]

Originally Posted by PoorLurker

$2,000/mo increase in net worth isn't too much if the person owns property and invests as well. 25-30 is where the income starts to really ramp up.



You must be heavily vested in crypto currency




anyone know a good pension / net worth equivalent calculator? Always curious. I have a friend who gets around the same each year. I wonder what it would be in terms of a portfolio that he spent until it became $0.

All I know is when I do those retirement calculators, I will have enough in excess to buy a pretty nice car. With that said, I pretty much live paycheck to paycheck.

@OP - based on your posts, I figure you would have higher numbers for your expectations.

Plus is this household or individual?

A $100k/year pension and a $2.5M net worth aren't exactly the same, though. A $2.5M nest egg will comfortably and reliably provide around $100k/year (inflation adjusted) in income without touching the principal in perpetuity. The millionaire is still left with $2.5M to pass on to heirs, while the person with the pension isn't.

The $100k/year pension is 100% immune to dips in the stock market but vulnerable to inflation, whereas the nest egg at a 4% withdrawal rate is perhaps only 95-99%+ guaranteed to provide $100k/year (inflation adjusted) in perpetuity and may occasionally require dipping into the principal to maintain $100k/year.

The $2.5M nest egg can, in theory, be converted to 100% guaranteed income via an annuity and therefore is more flexible.

[NemesisX]

Originally Posted by BayMoWe335

That’s the point of this thread though. The average person gets average results because they don’t want to take the steps necessary to have a couple mil saved at 60-65.

I’m not at a computer now, but saving a relatively small $/week starting at 22 should make you a millionaire, maybe more by 62.

Yeah that's the coolest fact about compound interest. Small amounts of money can go a long, long way.

$10/day into the market will make you a millionaire from 22 to 67. $100/day (average) will get you $10 million, placing you well within the top 1 percent.

How much income would it take to reliably, consistently, and comfortably invest $100/day? I honestly think people should be able to do it once they hit $150k/year or $200k/year in come, and yet most people who make this much don't end up anywhere near $10 million.

[DETRoadster]

Originally Posted by kprocivic

I don't save shoot. I have about 50k in my retirement/pension, and about 60k in student loans. 30k in car debt and 6k in cc debt. Spend this shit while I'm able to. I will save money when I mature, 31 and still immature as ever.

Stories like this frighten me as that could easily have been me. It was the road I was headed down right after college. Then a buddy introduced me to the concept of compounding interest and buying a house instead of renting. I got into the habit of building that nest egg and resisted impulsive purchases. I'm on track to retire at 55 (12 years from now) and enjoy life to the fullest.

[Hawkeye]

Your early numbers are WAY too high. Student loans, buying a house, and starting a family make liabilities pretty high. Having even 25k more in assets than in liabilities at 25 is a major stretch IMO. It would be a lot less linear and more of an exponential growth, not just x2.5 every 10 years.

[aozer]

I’m 29. Have about 55k in the bank (need to start investing some of it) and 30k in my 401k and 5k in my employee stock purchase plan at a 15% discount.

I’ve only been working for a little over a year as I just finished grad school about 1.5 years ago and have no debt or student loans.

[CTinline-six]

I'm lucky that I was able to graduate college with zero debt. I also worked hard and saved and was able to buy my vehicles with cash.

Obviously if your income is not more than your expenses you will have an issue, but I think a lot of it has to do with financial sensibility. I have friends who make way more than I do income wise, but they are in debt up to their eyeballs because they buy stuff they can't afford and don't keep track of their spending.

I think the younger generation and the "YOLO" mentality has a lot to do with why people are in debt. I had friends in college who would buy new vehicles they couldn't afford and go on vacations to other countries on a whim. Meanwhile they have 10s of thousands in credit card debt and need money for gas.

I read an article a few months ago that said most Americans wouldn't be able to come up with $1000 cash within a day. Sounds about right.

[minn19]

$1.37

[kscarrol]

Originally Posted by minn19

$1.37

Take a dollar and buy a Mega Millions lottery ticket...