Should I keep saving for retirement?
I'm 41 years old, and I have about $480,000 in my 401K and other retirement. I am debt free except for my house, and I have about $45,000 in regular, non-retirement funds. I have about $190,000 equity in my home with 9 years left on the loan, I have about $100,000 equity in my vacation home (28 years left of the loan), and about $10,000 equity in a invesment property I just bought (15 year loan). My co puts in about $10,000 to my retirement without me doing anything. I am wondering if i even really need to save for retirement anymore considering what I already have, and just use the money for something else.
Public Comments
- Go here and find out. You haven't given me enough info to answer: http://firecalc.com/firecalc.php
- If I was in your situation I would continue saving until I retired, you will thank yourself when you retire. You need to make sure that you have enough to live for the rest of your life, what if you live to by 95. You must also consider inflation, and taxes on your retirement accounts, insurance, medical bills etc. If you have 1000000 saved when you retire and you live to be 90 that will only give you 22222/yr. This does not factor in taxes, expenses, inflation, continued growth on investments, or social security(which I wouldn't count on).
- 41 is still pretty young. You should at the very least use the tax advantages that saving for retirment gives you. It sounds like you are pretty well set. So if you have all this money you are getting hit hard by taxes. The advantages of off the top 401k money and a roth IRA are too good to pass up in order to reduce your taxable income. You also need to think about how much money you are going to need in retirement. You are still so young, who knows what it willl cost to live in 25 years?? My parents, who are 62, would never have guessed they'd need as much as they do to live on today. Why? inflation. Personally I won't feel comfortable about retirement until I have about $1.5 million in the bank and I'm only 34.
- Well, knowing your yearly income would provide some needed insight to answer your question. If you go with the recommended 4-5% spend rate on retirement savings, then in today's dollars, you could derive about $25,000 a year as income. While your real estate investments are growing, not sure if you can count on them for income in the future as either rental or income property. So it depends on how much you will need to live on. If you're currently living on $100k per year, you'll probably need to save quite a bit more, if you're living on $40K, then you're getting pretty close.
- yes -- you can not have too much == lets say you have a health insurance that pays 80% of the cost of services that is ok until you run into a bill of say 300K which is not uncommon in this day and age -- than you are stuck with a 60K medical bill also you are very young == a lot of things can happen == god forbid what if you lose your job --- keep savings!!!
