Going overboard with retirement savings?

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Topic Author
cloudboy55
Posts: 26
Joined: Sat Sep 01, 2012 11:05 am

Going overboard with retirement savings?

Post by cloudboy55 »

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Last edited by cloudboy55 on Mon Dec 03, 2012 2:05 pm, edited 1 time in total.
Grt2bOutdoors
Posts: 25625
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Location: New York

Re: Going overboard with retirement savings?

Post by Grt2bOutdoors »

cloudboy55 wrote:Hello all,

I feel as if I've done well saving for retirement, especially since I began in my early thirties. I am 47, and have saved around 300k in well diversified investments in tax deferred, Roth, and taxable. I currently contribute 22k a year, maxing out my Roth and 401k contributions. My spending is moderate, I have no debt other than a moderately priced home and car.

I'd like to save less and live more, but its difficult to find formulas or guidance. I don't want to live like a skinflint if it's not necessary for the sake of living well after 65.

Thanks,

Cloudboy55
Is 54,000 a year plus Social Security enough for you to retire on? If it is, then keep saving at your current rate, if it is not, then save more or downsize your retirement expectations.

I calculated $54K in future dollars ($29.4K in today's dollars discounted back at 3%) using your present value of 300K earning a hypothetical conservative return of 4% over the next 20 years and monthly contributions of $1833 ($22K per year). Could you live on 29K in today's dollars plus Social Security when retirement comes? That is what you need to decide - Vacation now or Alpo later.
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions
JDCPAEsq
Posts: 1835
Joined: Mon Mar 05, 2007 2:58 pm
Location: Southwest Florida

Re: Going overboard with retirement savings?

Post by JDCPAEsq »

You recently posted that you earn $124,000 and are single. I think you should be saving more, not less, if you wish to have a comfortable retirement. You apparently are now living on about $100,000 a year and will need considerably more savings to live at that level in retirement.
John
chaz
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Joined: Tue Feb 27, 2007 1:44 pm

Re: Going overboard with retirement savings?

Post by chaz »

Enjoy life, but keep saving.
Chaz | | “Money is better than poverty, if only for financial reasons." Woody Allen | | http://www.bogleheads.org/wiki/index.php/Main_Page
Topic Author
cloudboy55
Posts: 26
Joined: Sat Sep 01, 2012 11:05 am

Re: Going overboard with retirement savings?

Post by cloudboy55 »

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Last edited by cloudboy55 on Mon Dec 03, 2012 2:06 pm, edited 1 time in total.
dgdevil
Posts: 938
Joined: Sun Feb 20, 2011 12:42 pm

Re: Going overboard with retirement savings?

Post by dgdevil »

cloudboy55 wrote:Hello all,

I feel as if I've done well saving for retirement, especially since I began in my early thirties. I am 47, and have saved around 300k in well diversified investments in tax deferred, Roth, and taxable. I currently contribute 22k a year, maxing out my Roth and 401k contributions. My spending is moderate, I have no debt other than a moderately priced home and car.

I'd like to save less and live more, but its difficult to find formulas or guidance. I don't want to live like a skinflint if it's not necessary for the sake of living well after 65.

Thanks,

Cloudboy55
Similar boat -- slightly younger, slightly more in savings, but no income or retirement contributions now or for foreseeable future. It is tough being diligent when people around you don't seem to have the same cares. I wouldn't blame you if you went a bit nuts every once and a while on the spending side. The commonsense gene is still part of your DNA.
Topic Author
cloudboy55
Posts: 26
Joined: Sat Sep 01, 2012 11:05 am

Re: Going overboard with retirement savings?

Post by cloudboy55 »

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Last edited by cloudboy55 on Mon Dec 03, 2012 2:07 pm, edited 3 times in total.
Topic Author
cloudboy55
Posts: 26
Joined: Sat Sep 01, 2012 11:05 am

Re: Going overboard with retirement savings?

Post by cloudboy55 »

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Last edited by cloudboy55 on Mon Dec 03, 2012 2:06 pm, edited 5 times in total.
edge
Posts: 3833
Joined: Mon Feb 19, 2007 6:44 pm
Location: NY

Re: Going overboard with retirement savings?

Post by edge »

I don't get it. If you spend less than 54k/year and make 120~k/yr, why do you need to cut back on your retirement savings? Where is the rest of your money that you aren't spending going?

I also read somewhere in this thread that you are 'single' and 'want to spend more time at home'. You must have some pretty interesting hobbies!
livesoft
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Re: Going overboard with retirement savings?

Post by livesoft »

Tell us what you want to spend your money on. Or tell Suze Orman.
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