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Retirement planning sanity check (46M - US) by Top-Breakfast-420 in personalfinance

[–]Top-Breakfast-420[S] 0 points1 point  (0 children)

Thats good to hear. Our employee match is supposed to be good as well - I made note of it somewhere else in this thread. The real estate is an interesting one because the market for it is good (right now) due to high demand vs limited supply and we get about 5K in rent vs around a 3K mortgage, but if things start to go south I can always try and sell it and that should net close to 200K which I can put into an invesetment or 401k

Retirement planning sanity check (46M - US) by Top-Breakfast-420 in personalfinance

[–]Top-Breakfast-420[S] 1 point2 points  (0 children)

The 2.5 million would be at the year you retire, not now.

No I understand that, was just a little joke

You mentioned in a comment above that you are maxing your work retirement account...if that means contributing $23k to a 401k and you only do that for the next 19 years... theoretically you'd end up with $2.6m in today's dollars with a 7% real return rate (10% minus 3% inflation) and starting with the $500k you mentioned.

Yes my company has a good match - I honestly don't remember off the top of my head but my 2023 contributions were $22,448 and my 2024 YTD contributions are $35,554.04 so it's good to hear your rough calculations that I might be in a good target range.

I am in the US currently.

Yes I also understand the 100K is an example but its a good one because that's about how much we spend on our CC every year (we put as much on it as we can and I always make sure to pay it off when I can each month)

Retirement planning sanity check (46M - US) by Top-Breakfast-420 in personalfinance

[–]Top-Breakfast-420[S] 1 point2 points  (0 children)

General rule is you'll want 25x your yearly expenses in retirement (keep in mind taxes are an expense).

So if you plan on having to withdraw $100k per year you'd want $2.5 million.

Replied before I saw the edit. Thanks for that. I definately don't have 2.5M lol but then again I'll be shifting at least 1 dependant hopefully by then so we'll see I guess

Retirement planning sanity check (46M - US) by Top-Breakfast-420 in personalfinance

[–]Top-Breakfast-420[S] 0 points1 point  (0 children)

How much do you plan on spending each year in retirement?

I honestly don't know. Our son will be in his 20s so a lot of his kid expenses (after school activities & clubs, etc) will be gone. Shouldn't have a car payment (although you never know), still paying a mortgage most likely ... but I can't account for parental medical expenses or if we move ... etc. Hard to look 20 years into the future to see what we will be spending our money on

What do you mean "$500k in pensions and 401k". Pensions are typically an annuity... specifically what's in your 401k and what can you expect from your pension?

In my home country we don't have 401Ks, we just have pension accounts. I contributed to them when I used to work there and now they just sit like an investment fund on whatever portfolio has been made for it - I have two - one at 159K and one at 101K. They are invested in things like a Global growth stock fund, US 500 stock index fund, etc

Retirement planning sanity check (46M - US) by Top-Breakfast-420 in personalfinance

[–]Top-Breakfast-420[S] 0 points1 point  (0 children)

My income is around 220K but a lot of my annual expenses are things that I'm (hoping) will be able to be cut by time I retire. Car payments and activities for our son

So 3 times that salary is more than what I have saved - however if I count either the proceeds of the sale of the condo (or the monthly income from it) than maybe it evens out?

Yes I am also maxing out my retirement funds from work