Birthdays haven't meant much to me since I turned 21, maybe 18. I don't smoke or drink, so once I hit the driving age and later the voting age, getting older was just another digit added to an ever-increasing number.
Turning 30, not as exciting as I thought
- Thread starter 2PiR
- Start date
Not as exciting?
After 18, every birthday is just the same old shit.
Except maybe 21 in the USA.
After 18, every birthday is just the same old shit.
Except maybe 21 in the USA.
*Fist bump*
A *lot* of people can't afford to save for retirement, unfortunately. In fact, I'm not sure some people in this thread realize that this is talking about retirement account savings, not money you have lying around in a bank account.
But those who can and choose not to are being silly and myopic.
If you make $40k/yr (which is a little higher than the median individual income in the US), save 10% of your income every year starting at age 25 through 65, assume a modest average return of 6%, at 3% inflation, and average 2% salary increase per year, that works out to $810,000. And that's before an employer match.
Let's assume an employer match, such that you're putting 10% and your employer is putting 5%, for an effective savings rate of 15% of yearly income per year. Now it works out to $1.19M. If you want 70% of your pre-retirement income during retirement, then this is about $60k more than you'll need if you were to live to 85. And that's without taking Social Security into account, and assumes you won't implement a variable rate withdrawal strategy.
Here's a handy calculator to play around with the numbers.
Last edited:
Whenever I do estimates on how much I might have when I retire, what I wonder the most about now is how much it'll cost to get by in 2050. Assuming my wife and I are still together and alive I like to hope that just 50k a year would be enough for us for at least 15-20 years
I'm assuming at this point we don't have a mortgage or any kind of loans to pay off. It's just paying for bills, taxes, food, and still being able to go on trips once in a while or buying something we want.
I'm assuming at this point we don't have a mortgage or any kind of loans to pay off. It's just paying for bills, taxes, food, and still being able to go on trips once in a while or buying something we want.
Assume 3% average inflation, or 4% if you want to be conservative.
The calculator I linked above takes inflation into account. Most (all?) retirement calculators do. So the numbers you're getting are already in 2050 dollars. Here's a good explanation.
So 50k by 2050 would be like 20k in today's money. Well damn, that's a tough one lol. No wonder 1 million is often used as the magic number for people retiring around my age. Welp, I guess life in 2050 will just be the bare minimum. Utility bills, taxes, internet, and a few streaming services. Guess I'm gonna have to hold off on the latest mid range Nvidia GPU.
After retirement, just give me another solid 10 years. I don't need to live till my 90's lol.
Consider talking to a fiduciary financial advisor if it's a little overwhelming to figure out.
Second this. My wife and I went through a financial advisor mostly because we are not great with what to do with the money we save. My mom always taught me that whenever i get a raise, to just use whatever % i got and increase my 401k/savings by that same %. You can already live well enough with what you currently make, so save the rest for the future. Then because we're dumb with money, we learned just "saving" it doesn't help, you're actually losing money. So we found a financial advisor to help us allocate stuff into ROTH IRAs/Mutual funds, etc to help prepare for the future. With most recently helping us figure out a good college fund for our first child. Definitely worth it imo if you're like us and need some hand holding for this kind of stuff.
Yup. Nothing wrong with getting help from a professional. I'll probably do the same myself when my wife and I's finances get more complicated.
Well look at Mr. Money Bags here :pThe equivalent of my salary? Bruh I have $400 in my savings account
