How am I doing financially overall?

[tommyb]

Hello,

I would love to get perspective on how I am doing overall financially?

I am 50 years old, married (she's 48) with two kids (14 and 9). We live in the Midwest for now so housing is about average.

My wife and I have combined:
401k/403b savings of $850,000
Stock/mutual funds of $300,000 (I consider this my reserve for emergencies as well)
Equity in house of $225,000 (mortgage owed of $180,000)
College Savings of $50,000

We have no other debts.

My wife is a teacher and we are estimating that she will get a pension at 60 of $2,400 per month (w survivor benefits)
I was have a small pension from prior company that will pay out at 60 $1,800 per month (w survivor benefits)

My goal is to not have to work under the current stress of very stressful corporate job after 55. Will do something to not dip into savings - and plan more fully to retire at 60 (but may still do some consulting). Over next 5 years till 55, I plan on being able to put away in 401k with company match including spouse $50,000 per year.

I know we are doing well - but first, I am paranoid of not having enough, we live an average middle class comfort lifestyle (and are grateful for it). I know college is going to be an issue…

Thanks for any perspective in advance

[elessar78]

Sounds like y'all are doing very well. Things can always be better. What do you have your retirement in? Are you starting to change your asset allocation toward more "shelf-stable" vehicles?

[tommyb]

have not moved the 401k to safer choice yet. assuming won't touch for 10 years so still mostly index to large and mid cap US stocks. was thinking my conservative portion of my investments are my actual pensions….

But maybe it's time to start to shift and better balance?

[kork13]

have not moved the 401k to safer choice yet. assuming won't touch for 10 years so still mostly index to large and mid cap US stocks. was thinking my conservative portion of my investments are my actual pensions….

But maybe it's time to start to shift and better balance?

Perhaps it is. At least by some common rules of thumb, at the age of 50, you "should" have anywhere from 30-50% of your assets in less-volatile assets (bonds, CD's, money market, etc). Sounds like you're probably closer to 5-20% at the moment. That's not NECESSARILY a bad thing, but do so with a full understanding of your acceptable level of risk. Are you okay/comfortable with the idea that your assets could drop by 25% (or more) in a sour market? If not, you might want to re-evaluate.

As a whole, however, you left off one significant factor in evaluating your overall situation -- what are your current expenses, and what are you planning your expenses to be in retirement? Presently, your current assets are sufficient to safely provide about $4k/mo of gross income. Is that good news, or does that worry you?

[disneysteve]

you left off one significant factor in evaluating your overall situation -- what are your current expenses, and what are you planning your expenses to be in retirement?

You left off an even bigger factor: How much do you earn?

We can't tell you how you're doing with no point of reference. If you make 100K, your numbers tell a much different story than if you make 500K.

[feh]

I know we are doing well - but first, I am paranoid of not having enough, we live an average middle class comfort lifestyle (and are grateful for it). I know college is going to be an issue…

Thanks for any perspective in advance

http://firecalc.com

https://www.fidelity.com/calculators-tools/retirement-income-planner

Those are probably the 2 highest regarded retirement planning tools around. You're gonna need to get a handle on what your expenses are and will be.

[bjl584]

You're millionaires, but without more info it's hard to know if it will be enough. Anticipated healthcare costs, current income, and what your plans are to pay for your children's colleges are all things to consider.

[autoxer]

As a whole, however, you left off one significant factor in evaluating your overall situation -- what are your current expenses, and what are you planning your expenses to be in retirement? Presently, your current assets are sufficient to safely provide about $4k/mo of gross income. Is that good news, or does that worry you?

I agree, it really depends on your expenses. Will the mortgage be paid off before retirement? Will you be spending more on travel or entertainment? Healthcare is a big unknown, so you should plan somewhat conservatively, but between the savings and the pensions, I think you could plan to spend $6k/month in retirement. The first five years (age 55 - 60) it will come from your taxable stock mutual fund accounts and beyond that it will come from your 401k & pension.

[tommyb]

Thanks all…

Yeah, expenses- we live moderately for our income level. Currently, I am well compensated - with options over $400K per year (but this is all very recent). I am trying to put most of that away. We live as if combined salary and bonus is $150K, which is still very very comfortable.

For me, the next five years are critical - stockpile as much. Kids college is the big one. I am hoping good state schools vs. private, helping on funding but also holding kids to a little.

My goal is to retire comfortably - but not in luxury. Currently our expenses are low. Motrgage and taxes don't exceed $2000. No car debt. Other than feeding two voracious boys who can eat their bodyweight in food, we don't have any bad habits, expensive tastes, etc.

I think $6,000 per month would be comfortable (assuming I would buy house that we retire in and not have mortgage).

Healthcare is the big variable - I think for all of us….that one is hard to figure out.

[indianguy80]

How am I doing financially?

Hi,
I am 34 yrs old married guy and I would like to know how I am doing financially. I have been working for 5 years only. Before that I was in college.


Annual Income: 130K
401(k): 120K
Investments: 107K
Cash: 76K

Life Insurance: 650K 20 yr. term.


Can anyone please give me some advice? Am I doing OK financially? Should I change something?


-Krishna.

[siggy_freud]

Hi,
I am 34 yrs old married guy and I would like to know how I am doing financially. I have been working for 5 years only. Before that I was in college.


Annual Income: 130K
401(k): 120K
Investments: 107K
Cash: 76K

Life Insurance: 650K 20 yr. term.


Can anyone please give me some advice? Am I doing OK financially? Should I change something?


-Krishna.

Might want to start your own thread and when you do, include all your expenses. Without knowing your expenses/debts it's impossible to say.

[indianguy80]

Might want to start your own thread and when you do, include all your expenses. Without knowing your expenses/debts it's impossible to say.

My apologies. I have started a new thread with the expenses.