Is there a retirement savings "crunch time"- and are we in it??

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Pinotage
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Is there a retirement savings "crunch time"- and are we in it??

Post by Pinotage »

In process of updating our retirement savings spreadsheets including projected rate of return and milestones along the way.

This process has made me wonder if there is a retirement savings "crunch time", and if we are in it.

By "crunch time" I mean:

- If we continue to hit savings goals for the next X years, the portfolio should hit critical mass to achieve projected goals.

- Making it through "crunch time" and hitting critical mass doesn't mean we retire (or quit saving), it means leaving portfolio untouched until projected retirement date leaves a reasonable expectation that projected goal will be met.

- Actionably, double down during "crunch time" to achieve critical mass, leaving more options open before retirement. Also gives a goal other than "save as much as possible"

I may just be talking about achieving FI here, but specifically asking about a window of time critical to that achievement and how to identify/maximize that window.

Our example

Ages 41/37
No debt
Current investments 2.6 M at 70/30
Adding ~185K per year

Thinking the "crunch time" is the next 4.5 -5 years.
Last edited by Pinotage on Sat Jun 06, 2020 6:44 am, edited 1 time in total.
livesoft
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by livesoft »

There is no crunch time.
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Pinotage
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by Pinotage »

livesoft wrote: Sat Jun 06, 2020 6:43 am There is no crunch time.
Honored to have a Livesoft response! :sharebeer

But...can you dumb it down a little more for me?
grok87
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by grok87 »

Pinotage wrote: Sat Jun 06, 2020 6:39 am In process of updating our retirement savings spreadsheets including projected rate of return and milestones along the way.

This process has made me wonder if there is a retirement savings "crunch time", and if we are in it.

By "crunch time" I mean:

- If we continue to hit savings goals for the next X years, the portfolio should hit critical mass to achieve projected goals.

- Making it through "crunch time" and hitting critical mass doesn't mean we retire (or quit saving), it means leaving portfolio untouched until projected retirement date leaves a reasonable expectation that projected goal will be met.

- Actionably, double down during "crunch time" to achieve critical mass, leaving more options open before retirement. Also gives a goal other than "save as much as possible"

I may just be talking about achieving FI here, but specifically asking about a window of time critical to that achievement and how to identify/maximize that window.

Our example

Ages 41/37
No debt
Current investments 2.6 M
Adding ~185K per year

Thinking the "crunch time" is the next 4.5 -5 years.
this is probably a different answer from the others you will get. but i think as you move into your 40s it may be helpful to reframe things. instead of aiming to grow your portfolio to a certain "number" i.e. a certain dollar value, start thinking about the retirement income your portfolio could generate at say age 62.

more about the idea here
viewtopic.php?t=245377

I suggested 62 because that is the earliest you can collect social security. you can get an estimate here
https://www.ssa.gov/benefits/retirement/estimator.html

note: i don't actually recommend collecting at 62- probably best to delay to age 70, but it helps with the projections.

cheers,
grok
RIP Mr. Bogle.
Normchad
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by Normchad »

For me, I thought the first 15 years of my career were that crunch time. I figured if I hit those goals then, that by the time I was 40, I could really ease up on the savings if I wanted to. I.e. the “amount of time in the market” is so important.

Flipping it around, if I messed up those first fifteen years, I did t think I’d ever be able to recover.

Once I hit that critical mass though, I continued to save. It was basically habit at that point, and a good habit. For me, those years of savings between age 40-50 really opened up possibilities I hadn’t considered early on. If I had stopped saving altogether at 40, I could have retired at 65 and been just fine. The continued savings should allow me to retire ten years earlier, and be a bit better off.

But I think getting started early and consistently is the most important time.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by NS_Bane »

Pinotage wrote: Sat Jun 06, 2020 6:46 am
livesoft wrote: Sat Jun 06, 2020 6:43 am There is no crunch time.
Honored to have a Livesoft response! :sharebeer

But...can you dumb it down a little more for me?
You’re overthinking it. There is only one rule, which is that present investments are worth more than future ones. If you want to retire in 30 years, and you’re wondering at what time does an investment have the greatest impact, the answer is Year 1. The time at which an investment has the -second- greatest impact is Year 2. And so on.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by emuK »

I don't think there is a "crunch time" per say but (just to build on what some others have said), the more aggressive you are with saving now, the quicker you begin to accumulate to a point where interest and compounding take over. Maybe that's what you meant in your post by "critical mass." You're probably aware of this already, but if not: if you use one of those compound interest calculators that show how much money grows through the decades, you'll notice that initially most of the build up is through savings (and not as much through interest). Later on as the balance grows the interest really takes over... Obviously the faster you get to that point the better (without sacrificing other important goals along the way).

You might find it helpful to make a spreadsheet or something to simulate different scenarios- for example what it would look like if you were particularly aggressive in saving for the next decade, and whether that allows you to ease off on the savings somewhat after that (and/or take less risk with your portfolio), vs saving that same amount over two or three decades... Obviously you get more bang for your buck if you save more up front (you can essentially work less if you wanted to), but of course only you and your spouse can decide what you are willing to sacrifice to save more now.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by slick_dealer_05 »

OP, we are at the same level of investment and age as you and I've been thinking of slowing down rather than accelerating savings. Our thought process is that after $2.5M, we get to the point of diminishing returns. Taxable investing starts taking a heavy toll on yearly early taxes and instead of "crunching", it's probably better to "cruise" instead. If you are debt free and and maxing out megabackdoors, it's time to smell the roses and spend on better education for your kids.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by gator15 »

I have a self imposed crunch time. My wife and I are blessed to have good incomes and as a result, I feel the need to make hay while the sun is shining. We take this approach because we never know, we could lose our great incomes at any time. Someone mentioned it’s important to start saving early. I agree and thought we did a pretty good job of saving when we were younger. Over the last couple of years, we’ve saved more in one year than it took my wife and I to save in the first 10 years of working lives post undergraduate school.We expect to lose about a third of our income in 4 years. Until then, we will continue to be aggressive with saving.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by Third Son »

Pinotage wrote: Sat Jun 06, 2020 6:39 am In process of updating our retirement savings spreadsheets including projected rate of return and milestones along the way.

This process has made me wonder if there is a retirement savings "crunch time", and if we are in it.

By "crunch time" I mean:

- If we continue to hit savings goals for the next X years, the portfolio should hit critical mass to achieve projected goals.

- Making it through "crunch time" and hitting critical mass doesn't mean we retire (or quit saving), it means leaving portfolio untouched until projected retirement date leaves a reasonable expectation that projected goal will be met.

- Actionably, double down during "crunch time" to achieve critical mass, leaving more options open before retirement. Also gives a goal other than "save as much as possible"

I may just be talking about achieving FI here, but specifically asking about a window of time critical to that achievement and how to identify/maximize that window.

Our example

Ages 41/37
No debt
Current investments 2.6 M at 70/30
Adding ~185K per year

Thinking the "crunch time" is the next 4.5 -5 years.
About ten years from retirement I made a conscious effort to be aggressive in my contributions. I increased the amount of contribution in my 401k to a point where it wouldn't matter to my living expenses. I finished off with a tidy nestegg that allowed me to retire at 60. I guess those ten years were my crunch time.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by Horton »

Pinotage wrote: Sat Jun 06, 2020 6:39 am Our example

Ages 41/37
No debt
Current investments 2.6 M at 70/30
Adding ~185K per year

Thinking the "crunch time" is the next 4.5 -5 years.
You have more than most will ever have. Your so called “crunch time” either doesn’t exist or you nailed it long ago.

How much are you spending per year? When do you want to retire? I anticipate you already have enough for a “normal retirement” (age 55-65) and probably have enough for an early retirement (age 50-55) without making any future contributions.

You may be able to spend more / give more now.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by RockyMountainSlim »

If there's a crunch, it's behind you. Even if you didn't save or earn another penny on the existing savings, you'd have a sustainable 100k/yr upon retirement, not including social security. Another 10 years of saving at the current rate, with not a penny of growth would boost it to 180k/yr at ages 51/47. With those numbers, how could there possibly be a "crunch"? This looks like just another bragging thread to me.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by livesoft »

Pinotage wrote: Sat Jun 06, 2020 6:46 amBut...can you dumb it down a little more for me?
It looks like almost all the other responses have explained what I meant.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by jebmke »

Crunch time for us was up front.

My wife was in a high-burnout, high risk business and we anticipated that her career would be fairly short either through business risk or early retirement (burn-out). When we got married we agreed to save 100% of her income (after tax, but more than half of her income was deferred), all of my variable compensation and enough of my base to max out my 401(k). This meant that we were living on my base income alone, net of the 401(k).
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by retired@50 »

Pinotage wrote: Sat Jun 06, 2020 6:39 am
Thinking the "crunch time" is the next 4.5 -5 years.
I'm thinking you passed the crunch time exit several miles ago. You're fine. Stop worrying.

Regards,
This is one person's opinion. Nothing more.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by tibbitts »

There is no "crunch time", but to the extent there might be something like what you're describing, it would only be obvious in retrospect.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by KlangFool »

Pinotage wrote: Sat Jun 06, 2020 6:39 am
Our example

Ages 41/37
No debt
Current investments 2.6 M at 70/30
Adding ~185K per year

Thinking the "crunch time" is the next 4.5 -5 years.
Pinotage,

The answer is highly dependent on your current annual expense.

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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by stoptothink »

RockyMountainSlim wrote: Sat Jun 06, 2020 8:35 am If there's a crunch, it's behind you. Even if you didn't save or earn another penny on the existing savings, you'd have a sustainable 100k/yr upon retirement, not including social security. Another 10 years of saving at the current rate, with not a penny of growth would boost it to 180k/yr at ages 51/47. With those numbers, how could there possibly be a "crunch"? This looks like just another bragging thread to me.
This. We're only a little younger (39 and 34) with about 1/3rd OPs retirement savings (similarly, no debt) and if someone in my exact situation made a similar post I'd take it as a backdoor brag.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by Pinotage »

Thank you for the replies and examples of how others have considered the early/middle/later years of savings towards retirement goals.

Sorry if this post came across the wrong way - was not intended.

Up to this point it has just been save as much as possible with no specific plan for later. I've been on this forum since at least 2011, and have been a cautious saver for 25+ years. DW and I know we aren't going to starve, and we aren't eligible for/interested in glory laps.

But defining concrete goals is becoming more of a priority for us.

In another thread I read something that stopped me in my tracks:
Pinotage wrote: Sun May 31, 2020 9:56 am
TheTimeLord wrote: Sun May 31, 2020 9:50 am It is hard to tell when you have enough when you don't know what you want.
Every once in awhile, you read something that forces you to pause and consider. This triggered exactly such a moment for me.

Excellent post, TimeLord.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by HootingSloth »

Pinotage wrote: Sat Jun 06, 2020 10:48 am Thank you for the replies and examples of how others have considered the early/middle/later years of savings towards retirement goals.

Sorry if this post came across the wrong way - was not intended.

Up to this point it has just been save as much as possible with no specific plan for later. I've been on this forum since at least 2011, and have been a cautious saver for 25+ years. DW and I know we aren't going to starve, and we aren't eligible for/interested in glory laps.

But defining concrete goals is becoming more of a priority for us.

In another thread I read something that stopped me in my tracks:
Pinotage wrote: Sun May 31, 2020 9:56 am
TheTimeLord wrote: Sun May 31, 2020 9:50 am It is hard to tell when you have enough when you don't know what you want.
Every once in awhile, you read something that forces you to pause and consider. This triggered exactly such a moment for me.

Excellent post, TimeLord.
Pinotage, if TheTimeLord's comment stopped you in your tracks, then perhaps it is time to reflect more not on the means of saving but on the means of living. Thinking about whether now is "crunch time" or not is still thinking about how to accumulate more, not what it is your are trying to achieve by accumulating. It seems likely that the problems you are trying to solve are not financial, so it may be best to stop trying to apply financial tools to them. Applying the wrong tools to the wrong problems can result in unproductive spinning of your wheels.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by TheTimeLord »

Pinotage wrote: Sat Jun 06, 2020 6:39 am In process of updating our retirement savings spreadsheets including projected rate of return and milestones along the way.

This process has made me wonder if there is a retirement savings "crunch time", and if we are in it.

By "crunch time" I mean:

- If we continue to hit savings goals for the next X years, the portfolio should hit critical mass to achieve projected goals.

- Making it through "crunch time" and hitting critical mass doesn't mean we retire (or quit saving), it means leaving portfolio untouched until projected retirement date leaves a reasonable expectation that projected goal will be met.

- Actionably, double down during "crunch time" to achieve critical mass, leaving more options open before retirement. Also gives a goal other than "save as much as possible"

I may just be talking about achieving FI here, but specifically asking about a window of time critical to that achievement and how to identify/maximize that window.

Our example

Ages 41/37
No debt
Current investments 2.6 M at 70/30
Adding ~185K per year

Thinking the "crunch time" is the next 4.5 -5 years.
Personally, I think once you are at or near your number especially if it is within 5 years of your project retirement it is a good time to step back and make sure you are taking risk that is appropriate with your goal of retiring on X date. I did once I realized I had enough and immediately lower my risk allocation deciding I would add to it as I continued to work. My logical was that by doing this I was insulating my retirement from the risk of losing my job during a prolonged market downturn prior to retirement. Pretty much a bond tent strategy as discussed by Kitces, I think Rick Ferri also has a commented about taking some risk off the table when you hit your number.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by TheTimeLord »

HootingSloth wrote: Sat Jun 06, 2020 11:32 am
Pinotage wrote: Sat Jun 06, 2020 10:48 am Thank you for the replies and examples of how others have considered the early/middle/later years of savings towards retirement goals.

Sorry if this post came across the wrong way - was not intended.

Up to this point it has just been save as much as possible with no specific plan for later. I've been on this forum since at least 2011, and have been a cautious saver for 25+ years. DW and I know we aren't going to starve, and we aren't eligible for/interested in glory laps.

But defining concrete goals is becoming more of a priority for us.

In another thread I read something that stopped me in my tracks:
Pinotage wrote: Sun May 31, 2020 9:56 am
TheTimeLord wrote: Sun May 31, 2020 9:50 am It is hard to tell when you have enough when you don't know what you want.
Every once in awhile, you read something that forces you to pause and consider. This triggered exactly such a moment for me.

Excellent post, TimeLord.
Pinotage, if TheTimeLord's comment stopped you in your tracks, then perhaps it is time to reflect more not on the means of saving but on the means of living. Thinking about whether now is "crunch time" or not is still thinking about how to accumulate more, not what it is your are trying to achieve by accumulating. It seems likely that the problems you are trying to solve are not financial, so it may be best to stop trying to apply financial tools to them. Applying the wrong tools to the wrong problems can result in unproductive spinning of your wheels.
Knowing yourself and what's important to you and your family as opposed to your neighbors and society as a whole will really help you understand how much you need and where to focus. A long time ago, when we were relatively young, my wife and I would go on a once and a lifetime trip every year. Virtually everyone we would meet on these trips were late-50s and above, we were by far the youngest people on these excursions. All our friends seemed to have a desire to do the same but couldn't understand how we could afford it. I remember our neighbors lamenting their ability to do the same, then proceeding to tell us that they were redecorating the house for the second time in three years. Absolutely nothing wrong with redecorating your house if that what makes you happy but often life comes down to choices and priorities. For us these trips were our top priority and where we wanted our discretionary spending to go and save for in the future, I can only hope my neighbors felt the same about their redecorating. In life most of us will not have either the money or time to do every possible thing we want, so figure out what is really meaningful and pursue that and understand you really aren't giving up anything of any great importance if you do so. I hope this makes sense.
IMHO, Investing should be about living the life you want, not avoiding the life you fear. | Run, You Clever Boy! [9085]
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by tibbitts »

TheTimeLord wrote: Sat Jun 06, 2020 11:55 am
HootingSloth wrote: Sat Jun 06, 2020 11:32 am
Pinotage wrote: Sat Jun 06, 2020 10:48 am Thank you for the replies and examples of how others have considered the early/middle/later years of savings towards retirement goals.

Sorry if this post came across the wrong way - was not intended.

Up to this point it has just been save as much as possible with no specific plan for later. I've been on this forum since at least 2011, and have been a cautious saver for 25+ years. DW and I know we aren't going to starve, and we aren't eligible for/interested in glory laps.

But defining concrete goals is becoming more of a priority for us.

In another thread I read something that stopped me in my tracks:
Pinotage wrote: Sun May 31, 2020 9:56 am
TheTimeLord wrote: Sun May 31, 2020 9:50 am It is hard to tell when you have enough when you don't know what you want.
Every once in awhile, you read something that forces you to pause and consider. This triggered exactly such a moment for me.

Excellent post, TimeLord.
Pinotage, if TheTimeLord's comment stopped you in your tracks, then perhaps it is time to reflect more not on the means of saving but on the means of living. Thinking about whether now is "crunch time" or not is still thinking about how to accumulate more, not what it is your are trying to achieve by accumulating. It seems likely that the problems you are trying to solve are not financial, so it may be best to stop trying to apply financial tools to them. Applying the wrong tools to the wrong problems can result in unproductive spinning of your wheels.
Knowing yourself and what's important to you and your family as opposed to your neighbors and society as a whole will really help you understand how much you need and where to focus. A long time ago, when we were relatively young, my wife and I would go on a once and a lifetime trip every year. Virtually everyone we would meet on these trips were late-50s and above, we were by far the youngest people on these excursions. All our friends seemed to have a desire to do the same but couldn't understand how we could afford it. I remember our neighbors lamenting their ability to do the same, then proceeding to tell us that they were redecorating the house for the second time in three years. Absolutely nothing wrong with redecorating your house if that what makes you happy but often life comes down to choices and priorities. For us these trips were our top priority and where we wanted our discretionary spending to go and save for in the future, I can only hope my neighbors felt the same about their redecorating. In life most of us will not have either the money or time to do every possible thing we want, so figure out what is really meaningful and pursue that and understand you really aren't giving up anything of any great importance if you do so. I hope this makes sense.
Most people can't go on a once-in-a-lifetime trip while they're working and have a job to come back to - that's the issue much more than money. You can renovate your house (especially if you pay somebody else to do it) and keep your job. Well, time used to be the issue, now it's Covid-19 for next year or two or two hundred.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by TheTimeLord »

tibbitts wrote: Sat Jun 06, 2020 12:34 pm
TheTimeLord wrote: Sat Jun 06, 2020 11:55 am
HootingSloth wrote: Sat Jun 06, 2020 11:32 am
Pinotage wrote: Sat Jun 06, 2020 10:48 am Thank you for the replies and examples of how others have considered the early/middle/later years of savings towards retirement goals.

Sorry if this post came across the wrong way - was not intended.

Up to this point it has just been save as much as possible with no specific plan for later. I've been on this forum since at least 2011, and have been a cautious saver for 25+ years. DW and I know we aren't going to starve, and we aren't eligible for/interested in glory laps.

But defining concrete goals is becoming more of a priority for us.

In another thread I read something that stopped me in my tracks:
Pinotage wrote: Sun May 31, 2020 9:56 am

Every once in awhile, you read something that forces you to pause and consider. This triggered exactly such a moment for me.

Excellent post, TimeLord.
Pinotage, if TheTimeLord's comment stopped you in your tracks, then perhaps it is time to reflect more not on the means of saving but on the means of living. Thinking about whether now is "crunch time" or not is still thinking about how to accumulate more, not what it is your are trying to achieve by accumulating. It seems likely that the problems you are trying to solve are not financial, so it may be best to stop trying to apply financial tools to them. Applying the wrong tools to the wrong problems can result in unproductive spinning of your wheels.
Knowing yourself and what's important to you and your family as opposed to your neighbors and society as a whole will really help you understand how much you need and where to focus. A long time ago, when we were relatively young, my wife and I would go on a once and a lifetime trip every year. Virtually everyone we would meet on these trips were late-50s and above, we were by far the youngest people on these excursions. All our friends seemed to have a desire to do the same but couldn't understand how we could afford it. I remember our neighbors lamenting their ability to do the same, then proceeding to tell us that they were redecorating the house for the second time in three years. Absolutely nothing wrong with redecorating your house if that what makes you happy but often life comes down to choices and priorities. For us these trips were our top priority and where we wanted our discretionary spending to go and save for in the future, I can only hope my neighbors felt the same about their redecorating. In life most of us will not have either the money or time to do every possible thing we want, so figure out what is really meaningful and pursue that and understand you really aren't giving up anything of any great importance if you do so. I hope this makes sense.
Most people can't go on a once-in-a-lifetime trip while they're working and have a job to come back to - that's the issue much more than money. You can renovate your house (especially if you pay somebody else to do it) and keep your job. Well, time used to be the issue, now it's Covid-19 for next year or two or two hundred.
So most people aren't allowed to take vacation when they are working? I am not following your thought.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by Clever_Username »

I'm a little younger (not by much) than you are, OP, and I think I'm past crunch time. If I take my current balance and stop contributing, and it grows at 3.5% real average, then at the start of the year in which I turn 59.5, it'll be at almost 30X my current expenses. Whether that's the right estimate to have for expenses in retirement, I don't know. But I also won't stop contributing, and it also isn't clear if 59.5 is the right year to worry about because I'll have some assets in taxable and some in a 457.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by absolute zero »

tibbitts wrote: Sat Jun 06, 2020 9:24 am There is no "crunch time", but to the extent there might be something like what you're describing, it would only be obvious in retrospect.
+1
As others have said, for someone saving $185k per year there is no crunch time.

For more “typical” savers, as tibbitts points out, a crunch time could only be known in hindsight. As an example, if we knew that years 2025-2035 were going to produce some of the greatest stock returns in history, then the next five years could reasonably be called “crunch time” for everyone. On the other hand, if we knew stock returns were going to be flat during that same period, then a crunch time would most definitely not exist.
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by Pinotage »

Thank you for the continued posts and perspective.

Agree that there is a significant non-financial aspect to thinking through this.

Part of it is figuring out goals, but there is a lot of knowing-oneself that needs to be worked through.
absolute zero wrote: Sun Jun 07, 2020 3:30 pm As others have said, for someone saving $185k per year there is no crunch time.
I acknowledge that we are saving a lot, which has really ramped up over the last few years.

It makes me uneasy to start counting on this level of savings for the long haul, though. That has probably caused me to think along the lines of "if we can just keep this up for X years, all will be set". That thinking, along with spreadsheet forecasts, is how I landed on 4-5 ish years. Using a modest real rate of return the projections look good, and it is a manageable amount of time to wrap my head around.
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willthrill81
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Re: Is there a retirement savings "crunch time"- and are we in it??

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Pinotage wrote: Sat Jun 06, 2020 6:39 amOur example

Ages 41/37
No debt
Current investments 2.6 M at 70/30
Adding ~185K per year

Thinking the "crunch time" is the next 4.5 -5 years.
Based on those numbers, after 5 years, if you get a 3% real return on your investments, you'll have right at $4 million.

If you only withdrew 3% of that balance (arguably the historic perpetual withdrawal rate, meaning that over the long-term, you would always have at least what you started with and usually a lot more) annually, that would be $120k.

That's double what the median U.S. household earns and enough to live comfortably almost anywhere on the planet.

And this doesn't take into account the SS benefits you'll get down the road either.

You'll be fine.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
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Pinotage
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by Pinotage »

willthrill81 wrote: Sun Jun 07, 2020 6:00 pm You'll be fine.
Thanks for the comment, Will.

Knocking out the mortgage a few years ago is what has really allowed us to up our savings rate. We were paying a significant amount extra towards the mortgage each month. So when it was paid off, we diverted all of those funds to taxable.
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willthrill81
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by willthrill81 »

Pinotage wrote: Sun Jun 07, 2020 7:29 pm
willthrill81 wrote: Sun Jun 07, 2020 6:00 pm You'll be fine.
Thanks for the comment, Will.

Knocking out the mortgage a few years ago is what has really allowed us to up our savings rate. We were paying a significant amount extra towards the mortgage each month. So when it was paid off, we diverted all of those funds to taxable.
Good for you!

We recently paid off our mortgage and are now putting over 50% of our gross income into tax-advantaged accounts.

Lots of free cash flow is a wonderful thing, is it not? :beer
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings
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Pinotage
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Re: Is there a retirement savings "crunch time"- and are we in it??

Post by Pinotage »

willthrill81 wrote: Sun Jun 07, 2020 8:02 pm
Pinotage wrote: Sun Jun 07, 2020 7:29 pm
willthrill81 wrote: Sun Jun 07, 2020 6:00 pm You'll be fine.
Thanks for the comment, Will.

Knocking out the mortgage a few years ago is what has really allowed us to up our savings rate. We were paying a significant amount extra towards the mortgage each month. So when it was paid off, we diverted all of those funds to taxable.
Good for you!

We recently paid off our mortgage and are now putting over 50% of our gross income into tax-advantaged accounts.

Lots of free cash flow is a wonderful thing, is it not? :beer
Yessir, cheers to you as well :beer
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