Submitted by TyperMcTyperson t3_127odxf in personalfinance
PetraLoseIt t1_jeffimk wrote
You might get to $3 million. You have about $460k now. If you keep adding $24k per year, I come to $2.8 million twenty years from now, assuming a 7% return.
What would help is:
- socking away more money, starting as soon as you can. The longer that money can grow, the more it will become. Saving an extra $10k now is better than saving $10k when you're 60.
- reducing your expenses now and also when you're retired
- pay off debt and reduce your ongoing liabilities/bills. If you plan to continue to live in your current house, this could include making the house more energy efficient and buying/building things that last forever instead of just ten years (so good quality furniture and appliances and things like that).
By the way, I'd take social security into account for say half of the currently promised amount. If that gives say $40k/year after age 67, that means that by that age it represents about 25 x $40k = $1 million of net worth that you don't need to save up.
TyperMcTyperson OP t1_jefgle7 wrote
Right now I'm saving about $51k per year with full 401k + match + backdoor roth.
Yeah. I go back and forth with including SS. I like the idea of just counting half of my currently monthly estimate though.
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