At what point did you feel comfortable?

[disneysteve]

Originally Posted by jIM_Ohio

If my salary goes up, I'll need more saved.

That is true only if you increase your spending to match your higher income. If, however, you maintain the same lifestyle and boost your savings instead, you wouldn't need to change your retirement projections and, in fact, you would get there quicker.

[disneysteve]

Originally Posted by bjl584

No other reason than I recently read that for the majority of Americans the single greatest asset that they have is their home.

I'm only 42 but our investment portfolio is already worth a fair amount more than our house. Of course, our portfolio isn't a "single asset" but rather a conglomeration of different accounts, stocks, bonds, mutual funds, etc. so I guess it depends how they are defining that.

My mom is 76 and her portfolio is also quite a bit more than her home value, but again, it isn't all in a single asset.

[jIM_Ohio]

Originally Posted by bjl584

No other reason than I recently read that for the majority of Americans the single greatest asset that they have is their home. I figure that if I can stay away from the norm and the majority, then I will be more likely to succeed at financial independence. I guess that I just feel that if I do what everyone else does, then there's a better chance that I will end up like everyone else. It's the people on the fringes that march to the beat of a different drum that are the most likely to succeed. (To a point of course and kept in context.) I just don't want my house to become my greatest asset in retirement. I would feel a lot more successful having my personal investment accounts being my greatest asset. Just my way of looking at things I guess.

I think most "savers" will have more than their home value well before retirement. When we bought our house with next to nothing down, my 401k was already 1/4 the value of the house and I was 32 at the time.

At one point in 2006 my 401k was 1/3 the value... the market did some work and put me back to 1/4 in early 2007. Within 15 years, my 401k should equal my house value... that does not even take into account my wife's 401k or either IRA.

Your point was an interesting measuring stick... one I had not thought of before.

[bjl584]

Yeah. I guess those of us here are "savers" and not really like the rest of America that isn't as keen on budgeting and investing. Most people end up with their house being their most valuable asset because they don't really have any other savings. I guess those of us here on the board aren't really going to have that much of a problem surpassing our homes value with our personal investments. In other words, it's not that hard of a goal to reach. It's a place to start though. Of course, geography plays a big role. Someone in California will have to wait a lot longer to have their investments worth more than their house than say someone in a cheaper market like Ohio.

[jIM_Ohio]

Originally Posted by bjl584

Yeah. I guess those of us here are "savers" and not really like the rest of America that isn't as keen on budgeting and investing. Most people end up with their house being their most valuable asset because they don't really have any other savings. I guess those of us here on the board aren't really going to have that much of a problem surpassing our homes value with our personal investments. In other words, it's not that hard of a goal to reach. It's a place to start though. Of course, geography plays a big role. Someone in California will have to wait a lot longer to have their investments worth more than their house than say someone in a cheaper market like Ohio.

Ohio RE market is cheaper than CA and other hot areas... but our taxes here are the third highest in the country (or so I'm told). CA and NY are the only two states with a higher state income tax than Ohio.

Maybe I should retire when my yearly tax bill is equal to the GDP of North Dakota. LOL.

[Scanner]

BJL,

I know what you mean - when your retirement portfolio > house worth (with the mortgage retired), it feels like a "tipping point."

Again, not that you should coast or that's the goal, you just feel like you can see the finish line.

[lrjohnson]

I started to feel comfortable when I was able to grocery shop (or take care of any other need) at any point I wanted without regard to pay day. I have a co-worker who is continually boggled that I forget when payday is.

That may be a low step on the scale, but it certainly was a definitive moment for me. I will have other successes, but none as sweet.

[disneysteve]

Originally Posted by lrjohnson

I have a co-worker who is continually boggled that I forget when payday is.

When 60% of the workers in this country are living paycheck to paycheck, isn't it nice to be in the minority? Back when I was an intern/resident, I had direct deposit so I totally didn't care when payday was. I didn't need to go to the office to pick up a check and I didn't need to go to the bank to deposit or cash it. And yes, it did use to baffle some of my coworkers.

My wife used to work with more than a few people who on payday, would rush out at lunchtime to cash their checks so they could afford to eat lunch that day. Of course, these were the same people who were buying lunch out every day while she was brown bagging from home. They'd spend more in a day than she spent in a week, but couldn't seem to understand why they never had any money left.

[Ima saver]

I am starting to feel comfortable.I like the fact that I can earn close to $2000 a month in interest for a while. Now if we could just learn to live on that. I discussed it with dh last night. You know, small house, only one car. He does not think that would be fun at all. so, he keeps working and I will keep saving.