How much have you saved for retirement?

[KrisM]

I've been working on our financial plan lately and have been running numbers every which way and reading advice, opinions, etc. Anyway, I know this group tends to lean towards a higher than average income and a lower than average debt, based on previous polls.

income: http://www.windsorpeak.com/vbulletin/showthread.php?t=377011&highlight=poll+income
debt: http://www.windsorpeak.com/vbulletin/showthread.php?t=363583&highlight=poll+debt

So, I wondered how we're doing saving for retirement. I know this will vary hugely based on age, so, there are options for 'age 34 and under' and 'age 35 and over'.
Include anything earmarked for retirement - 401k, 403b, Roth, traditional IRA, regular mutual funds, etc.

[Melaine]

$0. We are age 30 and under, which makes me feel only a little better about it.

[lil_acorn]

do we include general investments too since the 401k would have an annual investment cap?

[KrisM]

do we include general investments too since the 401k would have an annual investment cap?

I would, unless you're using them for college savings or for major projects or something. For example, I'm not including our money that's earmarked for our emergency fund.

[citymama]

I voted 35 and over, $100K-250K. That is me personally. I have no idea how much DH has saved! Our finances are pooled but I've never asked about the status of his retirement accounts.


$0. We are age 30 and under, which makes me feel only a little better about it.

The best advice I got at 24 was: put money into your 401K now. Compound interest works in your favor.

[eh613c]

I wanted to be a SAHM so I maximized my 401k and Roth IRA. I also managed to put a little savings. I sacrificed a lot but it's worth it.

[mommylamb]

:ROTFLMAO:I just realized that I voted that I'm over 354 years old...

[egoldber]

What about equity in your home?

[KrisM]

:ROTFLMAO:I just realized that I voted that I'm over 354 years old...

And you look great!

I can't seem to edit the poll choices. If someone knows how, let me know!

[KrisM]

What about equity in your home?

If you plan to sell it and seriously downsize, I'd include it. But, if you're living there, it won't be generating income, so I wouldn't include it then.

[boolady]

Is this supposed to include your spouse's retirement savings, assuming that it will still be your spouse when you retire, or are you looking for an individual number?

ETA: I'm going to vote for DH and me together, only it's a bit misleading, because I know what I've contributed to my pension, but it's not what the actual benefit will be, obviously, and I've only been contributing (though at 9.5%) for 8 years.

[KrisM]

I voted 35 and over, $100K-250K. That is me personally. I have no idea how much DH has saved! Our finances are pooled but I've never asked about the status of his retirement accounts.



The best advice I got at 24 was: put money into your 401K now. Compound interest works in your favor.

Yes to this! I am 40 now and haven't put anything in what was my 401k in 6.5 years. I put 15% in from 26-33 years old though and have $160,000 now. It's nearly doubled since I left to be a SAHM in 2004.

[elliput]

And you look great!

I can't seem to edit the poll choices. If someone knows how, let me know!
This seem to be only a mod function. :)

[JBaxter]

We have all our investments through one broker except DH's 401K I was going as a couple because... whats his is mine and whats mine is his.

[Pennylane]

I am so glad to see this poll! My dh and I have been talking about this a lot lately.

I think we have a lot saved, over 500k, but when I do the quiz that tells me how much we'll need to retire I get depressed!

Ann

[egoldber]

But, if you're living there, it won't be generating income, so I wouldn't include it then

Well, I'm living in it now, but I think of the equity as an asset. It's also our largest single asset. We would plan to downsize and move once we retire. Hopefully close to at least one kid.

And yes, what about spouse? We married right after college so all of our assets are joint. I guess we each have 401K things, but I think those are community property? (Should I know this? :o )

[citymama]

:ROTFLMAO:I just realized that I voted that I'm over 354 years old...

i hope you've been saving a LOT for your retirement, Methuselah!

[KrisM]

Is this supposed to include your spouse's retirement savings, assuming that it will still be your spouse when you retire, or are you looking for an individual number?

Good question. I'm thinking about it as a household savings, but I'm a SAHM, so our money pretty much has to be joint. Do you expect to split things after retirement or will you be independent about when it happens?

[boolady]

Good question. I'm thinking about it as a household savings, but I'm a SAHM, so our money pretty much has to be joint. Do you expect to split things after retirement or will you be independent about when it happens?

I went back and voted for what both of us have saved together, because I'd like to think we'll be pooling what we've got.

[KrisM]

Well, I'm living in it now, but I think of the equity as an asset. It's also our largest single asset. We would plan to downsize and move once we retire. Hopefully close to at least one kid.

And yes, what about spouse? We married right after college so all of our assets are joint. I guess we each have 401K things, but I think those are community property? (Should I know this? :o )

I don't know what to include then. Probably include the equity, if you're expecting to use it for retirement?

Apparently, I hadn't given this poll enough thought! Yikes. Great questions. more things for me to think about!

For us, we don't really plan on moving. We'll pay off our house in about 8 years, which is just under age 50 and before kids go to college. I'm not counting the equity, since we'll live here then.

[momof2girls]

I wanted to be a SAHM so I maximized my 401k and Roth IRA. I also managed to put a little savings. I sacrificed a lot but it's worth it.

:yeahthat:

plus DH is very good at saving for retirement

[peanut520]

i'm 35 and i voted 50-100k but thought it was for 401k /ira only. that number doesnt include dh, savings, or our investment portfolio.

[sste]

This is an interesting poll. Last time I answered a poll like this the question was how much will you have at retirement and I think I upset some posters with my figure . . . but I will maintain to my dying breath that the reason my figure seemed high is because almost everyone was inadequately compounding in their calculation!

Anyway, if I count in DH, we are doing well with retirement savings, esp. given the volatile markets of the last decade. My jobs have always contributed 8 or 9% of my salary on a non-matching basis outside of the 401/403 which has helped alot.

I will say we recently turned down a job offer for DH that would have tripled his salary . . . my only regret about that is it would have given DH the option to retire or semi-retire much earlier if he burns out, a concern that does not seem crazy given the way he works!

[niccig]

Add in our house and we have a lot. One benefit of high COL I suppose. We're doing pretty well without that. I would like more though, I'm the pessimist in the relationship. I also have a good chunk in Australia, been contributing to that since I started part-time work at 15, but I have to leave it there until min. 55.

We will be doing better once I'm working - school is going to take 4 years though, but it should set us up better for when DH retires. We'll move, can't afford high COL, and as I'm younger, I'll keep working while DH might/might not transition to something.

I will admit I didn't take this into account when decided to SAHM - I would still do that, but it has affected retirement savings.

[LexyLou]

I'm 33 and hubby is 35. We have saved (over $100K) but nearly enough...which is giving me a heart attack.

To make matters worse we moved cross country in 2009 and had to short sale our home and are back to renting. It's like we took a major step back financially.

My mom did make me feel better when I was freaking out the other day, she said that while you should be saving in your 30's and 40's that your 50's are the major saving years. That's when your kids are grown and out of college and you should be at the height of your career and able to save. So don't not save but really realize that the decade of your 50's will probably be 50-60% of your total lifetime savings.

[blisstwins]

My inlaws say the same thing, still we were in graduate school during out 20s and only started saving in earnest during our mid 30s. We are therefore very aggressive.

[TwinFoxes]

:ROTFLMAO:I just realized that I voted that I'm over 354 years old...

You don't look a day over 350! ;)

[TwinFoxes]

Well, I'm living in it now, but I think of the equity as an asset. It's also our largest single asset. We would plan to downsize and move once we retire. Hopefully close to at least one kid.


This is us. We may have one more house purchase before then, but then again, we may stay here until the girls leave for college. When we retire, I think we'd both be happy moving back to California. At any rate, we will have been in our house for several years before retiring, so if things follow history, we'll make a big chunk of money. While I'm counting that money, I'm not counting ON that money, if that makes sense? Our savings plan doesn't take our house profits into account. Those will be a bonus.

[egoldber]

My mom did make me feel better when I was freaking out the other day, she said that while you should be saving in your 30's and 40's that your 50's are the major saving years.

My MIL recently said the same thing when I was worrying a little about retirement. My ILs were always upper middle class, but had a financial crisis in their 50s related to a business that FIL owned. Most of their saving were wiped out. But they were still able to save enough to retire by being VERY aggressive in their late 50s and early 60s.


While I'm counting that money, I'm not counting ON that money

Well, I *am* counting on that money LOL!!!! We've been pretty aggressive in terms of refinancing to a 15 year mortgage and paying ahead. We currently have about 3 years left and our mortgage will be paid off. I consider my house an asset since it would be relatively easily to get a large sum of money out of it if we really needed it.

[KrisM]

My mom did make me feel better when I was freaking out the other day, she said that while you should be saving in your 30's and 40's that your 50's are the major saving years. That's when your kids are grown and out of college and you should be at the height of your career and able to save. So don't not save but really realize that the decade of your 50's will probably be 50-60% of your total lifetime savings.

Unless, of course, you're youngest will gradulate college the year you turn 60! I'll have 4 months left of my 50s when they've all finished college.

And, of course if you wait until your 50s, you'll have to save more per month because you'll lose out on the interest compounding. That said, my parents have just retired and are doing well. They didn't save anything at all until their mid 40s when we were done with college. I was easier for them to save, since they were done with kids and in their high income earning years.

[KrisM]

Well, I *am* counting on that money LOL!!!! We've been pretty aggressive in terms of refinancing to a 15 year mortgage and paying ahead. We currently have about 3 years left and our mortgage will be paid off. I consider my house an asset since it would be relatively easily to get a large sum of money out of it if we really needed it.

And, you'll need much less per month to live on without the house payment. Plus, you'll have that money you've been paying to save. Whether or not you sell and downsize, I think having a paid for house is key in retirement. The security of knowing you have a house is great. Not having the house payment is great.

[WolfpackMom]

I am 28 and have less than 50k saved (but well over 0), that just includes my 401k. Im not counting the house etc because we plan to move. DH is just now starting a 401k with his new job. I also have a number of investments and things that were established by my parents in my name when I was a kid but I dont have access to until age 30 or something., I didnt count those because I have no idea what they are worth.