Thoughts on Savings

[Daredevil]

So as many of you know I'm going through a divorce which is tough and can be expensive. Today I was doing a lot of thinking on life. I'm 34 years old with 2 young kids.

My concern is that I only have $13K saved and I'm still working towards my retirement. I will be able to retire in 18 years at 52 years old.

Am I doing good at this point in my life or am I behind? I don't own anything and make about $65K a year and I'm only able to save $10K a year and my retirement will pay about $3,500 or little more after taxes when I retire at 52. Hopefully by then I own a home.

I figured who else is better to ask then the vets here who are older than me.

 

[lith56bigguy]

Due to your current situation, you are fine. As the years progress, you will want to increase the amount you are investing and also possibly explore different opportunities. Now reality. As far as the retirement at 52 part... We'll see how that works after your kids have grown and college comes about etc, but it is a good plan and all success starts with a plan.

 

[blasson]

52 with only 13k in there now seems a bit unrealistic to me.. I just hope you have a very good investor who is going to make you 10-12% gains yearly on avg. may need to start dumping more in there if you can.

The main goal is to have NO mortgage. A paid off house when you retire is pretty much a game changer. Keep it up. As you get older you tend to make more money. Then you'll be able to throw more into retirement.

If you ever get a chance, go get yourself the book called "the total money makeover" and read the whole thing. Follow it. It works.


Sent from my iPhone using Tapatalk

 

[T-bar]

I have to agree with blasson. It's not realistic with only 13k saved. Earning 10%-12% on your money is a pipe dream. Even great investors (lucky) only pull in about 7% on average. For the twenty years ending 12/31/2015 the average equity fund investor earned a market return of only 5.19%. If you are putting your money in a ROTH or some other investment fund then you'll see it go up and then watch it drop. After a while you realize you're never going to get ahead like this. Compound interest and duel income is what it's all about. You have to find a way to be making money that works for you when you are not working. The kid factor is another unknown. The only thing you know for sure is that an ex-wife and kids are going to cost you far more than you anticipate. And a hell of a lot more if the ex has an attorney or is ignorant or a bitch.

 

[misterB]

id think you're going to be working till 63

 

[LittleTom]

Some good advice here already man. I would not say your behind in life by any means. Its all a matter of perspective however, as many have stated unless you get a killer job I dont see your retirement plans working out the way you want them to. At least not at this point. The kids are major variables as pointed out. Besides there is nothing wrong with working into your mid sixties now a days. Even if you could scrape by and retire at 53, your gonna want to have a little spending money. Good to have a plan regardless..

 

[Baited]

Does your company match 401k contributions? What ever that % is, max it out. You are losing free money from your company if they match 5% and you only contribute 2%.


Also on that end, don't put 15% in if they only match 5%. You can do 5-8% if you want. opening a Roth account and putting the extra with medium-high risk as your investment profile will be better. ETFs are generally better/safer than single stock holdings. They invest in the entire sector. SPY 500 etf will invest in the S&P index, so your yield matches the market.

 

[Daredevil]

Gents I meant I have $13K saved and I'm working with a company that offers a pension. I don't have a 401K.