Not able to max out all the retirement accounts

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yellowgirl
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Not able to max out all the retirement accounts

Post by yellowgirl » Fri May 22, 2015 11:30 am

Our household income is between 110K to 120K a year. Husband is in sales therefore no steady paychecks. We need 5K a month for all expenses for family of 4. I looked at the budget and we can't cut out anything. We don't even have cable TV and cell phones are $40 a month for both of us. My husband is thinking about getting a second job as an Uber driver so we can max out retirement. Anybody here has this problem?

traveler90
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Re: Not able to max out all the retirement accounts

Post by traveler90 » Fri May 22, 2015 11:41 am

How much are you saving? How much do you already have saved? Age?

Honestly, the people on here that are maxing out two 401ks and two IRAs and throwing more into taxable are a rarity in the real world. Reading this forum makes it seem common, but the average person doesn't need to be maxing out to set themselves up for a comfortable retirement. Putting aside 15% will set you up very very nicely.

hbgpharmd
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Re: Not able to max out all the retirement accounts

Post by hbgpharmd » Fri May 22, 2015 11:44 am

110,000 - (12 x 5,000) = $60,000/year

Which retirement accounts are you eligible for?

2 iras + 2 401k's = $11,000 + $36,000 = $47,000/year contribution limit

Seems like even with the most generous retirement accounts (contribution-wise) that you should be able to max them out.

yellowgirl
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Re: Not able to max out all the retirement accounts

Post by yellowgirl » Fri May 22, 2015 11:52 am

traveler90 wrote:How much are you saving? How much do you already have saved? Age?

Honestly, the people on here that are maxing out two 401ks and two IRAs and throwing more into taxable are a rarity in the real world. Reading this forum makes it seem common, but the average person doesn't need to be maxing out to set themselves up for a comfortable retirement. Putting aside 15% will set you up very very nicely.

We are behind in retirement accounts at our age mid 30s couple.
hbgpharmd wrote:110,000 - (12 x 5,000) = $60,000/year

Which retirement accounts are you eligible for?

2 iras + 2 401k's = $11,000 + $36,000 = $47,000/year contribution limit

Seems like even with the most generous retirement accounts (contribution-wise) that you should be able to max them out.
Not with all these deductions: taxes, health insurance, disability insurance, pension, life insurance. I am also in school and we have to pay for books and tuition. We need: 36K for 401Ks, 18K for 457 plan, 11K for IRAs = 65K.

We are behind therefore we need to max out.
Last edited by yellowgirl on Fri May 22, 2015 12:20 pm, edited 1 time in total.

yosef
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Re: Not able to max out all the retirement accounts

Post by yosef » Fri May 22, 2015 11:59 am

traveler90 wrote:How much are you saving? How much do you already have saved? Age?

Honestly, the people on here that are maxing out two 401ks and two IRAs and throwing more into taxable are a rarity in the real world. Reading this forum makes it seem common, but the average person doesn't need to be maxing out to set themselves up for a comfortable retirement. Putting aside 15% will set you up very very nicely.
+1 Working another job solely to save more for retirement seems quite a bit overzealous. It sounds like you're putting away a fair bit ($120k - $TAXES - 60k)? already. Don't project the norms you perceive here on BH to people as a whole. Do both you and your husband have 401ks? If so saving $47k seems difficult for a family of 4 on $120k/yr without an exceedingly spartan lifestyle that I don't think even many Bogleheads would advocate.

HalfMillionaire
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Re: Not able to max out all the retirement accounts

Post by HalfMillionaire » Fri May 22, 2015 12:05 pm

How much are you saving right now? As long as you are saving a good bit, its okay if you can not max out all the tax advantaged options.

logicon
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Re: Not able to max out all the retirement accounts

Post by logicon » Fri May 22, 2015 12:05 pm

You will have to cut spending or earn more. Cutting spending is easier and more effective (saving $1 post-tax > earning $1 pre-tax). Would you consider posting your budget? Maybe there are areas you haven't thought about yet.

Also, contributing to tax-deferred accounts will lower the amount of taxes you pay today. Putting $18k into a Traditional 401k will not reduce your take-home pay by $18k, it'll be something like $13.5k.

retiredjg
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Re: Not able to max out all the retirement accounts

Post by retiredjg » Fri May 22, 2015 12:13 pm

yellowgirl wrote:Not with all these deductions: taxes, health insurance, disability insurance, pension, life insurance. We need: 36K for 401Ks, 18K for 457 plan, 11K for IRAs = 65K.

We are behind therefore we need to max out.
We know little about you, but I'm not sure that you need to save that much.

flyingbison
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Re: Not able to max out all the retirement accounts

Post by flyingbison » Fri May 22, 2015 12:14 pm

yellowgirl wrote:
Not with all these deductions: taxes, health insurance, disability insurance, pension, life insurance. We need: 36K for 401Ks, 18K for 457 plan, 11K for IRAs = 65K.

We are behind therefore we need to max out.
I don't think anyone would suggest that someone in their 30s needs to be saving 50% + of their gross income for retirement.

lack_ey
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Re: Not able to max out all the retirement accounts

Post by lack_ey » Fri May 22, 2015 12:21 pm

yellowgirl wrote:
traveler90 wrote:How much are you saving? How much do you already have saved? Age?

Honestly, the people on here that are maxing out two 401ks and two IRAs and throwing more into taxable are a rarity in the real world. Reading this forum makes it seem common, but the average person doesn't need to be maxing out to set themselves up for a comfortable retirement. Putting aside 15% will set you up very very nicely.

We are behind in retirement accounts at our age mid 30s couple.
Then if you save roughly about 20% at that age you should be okay, especially if income goes up later and/or expenses go down (kids done with college) eventually. Actually, less than that, given that there's a pension involved.

Maxing out retirement accounts is for people with fewer mouths to feed, those making more, those with fewer retirement accounts to use, and/or the uncommonly frugal. It's not a quota or benchmark most people should have. There's no way most people can save that much; others should be saving a lot more.

therivler1
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Re: Not able to max out all the retirement accounts

Post by therivler1 » Fri May 22, 2015 12:33 pm

flyingbison wrote:
yellowgirl wrote:
Not with all these deductions: taxes, health insurance, disability insurance, pension, life insurance. We need: 36K for 401Ks, 18K for 457 plan, 11K for IRAs = 65K.

We are behind therefore we need to max out.
I don't think anyone would suggest that someone in their 30s needs to be saving 50% + of their gross income for retirement.
That depends entirely on when you are planning on retiring.

Signed,
In 30s, saving 47% of gross.

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Pajamas
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Re: Not able to max out all the retirement accounts

Post by Pajamas » Fri May 22, 2015 12:36 pm

Being an Uber driver probably wouldn't net as much as you think it would on an hourly basis. Your husband might be better off trying to sell more at his present job to increase his commissions.

If you and your husband are in your mid-30s and you are in school, your income may be higher later and you can save more then. You can't necessarily expect to max out tax-advantaged accounts when you are in your 30s and have children and high living expenses and one wage earner, even though he is doing well. You could still have plenty of money for retirement without maxing them out now.

You also need to plan for college expenses.

yellowgirl
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Re: Not able to max out all the retirement accounts

Post by yellowgirl » Fri May 22, 2015 12:38 pm

therivler1 wrote:
flyingbison wrote:
yellowgirl wrote:
Not with all these deductions: taxes, health insurance, disability insurance, pension, life insurance. We need: 36K for 401Ks, 18K for 457 plan, 11K for IRAs = 65K.

We are behind therefore we need to max out.
I don't think anyone would suggest that someone in their 30s needs to be saving 50% + of their gross income for retirement.
That depends entirely on when you are planning on retiring.

Signed,
In 30s, saving 47% of gross.

Are you a high earner?

therivler1
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Re: Not able to max out all the retirement accounts

Post by therivler1 » Fri May 22, 2015 12:46 pm

~100K. HCOL area (DC suburbs). single dad with full custody of two kids.

your expenses are a bit high. post your monthly expense breakdown

yellowgirl
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Re: Not able to max out all the retirement accounts

Post by yellowgirl » Fri May 22, 2015 12:47 pm

Reading share your net worth progression post makes us very nervous about our retirement accounts. We were just too heavy in real estate before we found this site.

therivler1
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Re: Not able to max out all the retirement accounts

Post by therivler1 » Fri May 22, 2015 12:49 pm

it sounds like you guys are still doing exceptionally well. comparing yourself to people on this site will drive you crazy.

yellowgirl
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Re: Not able to max out all the retirement accounts

Post by yellowgirl » Fri May 22, 2015 12:50 pm

therivler1 wrote:~100K. HCOL area (DC suburbs). single dad with full custody of two kids.

your expenses are a bit high. post your monthly expense breakdown
More than 60% of our expenses are mortgage 2K and 1.2K for daycare.

an_asker
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Re: Not able to max out all the retirement accounts

Post by an_asker » Fri May 22, 2015 12:50 pm

yellowgirl wrote:Reading share your net worth progression post makes us very nervous about our retirement accounts. We were just too heavy in real estate before we found this site.
Rule #0 of Bogleheads: Do not compare your net worth with other Bogleheads. Depression will ensue! :oops:

an_asker
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Re: Not able to max out all the retirement accounts

Post by an_asker » Fri May 22, 2015 12:51 pm

yellowgirl wrote:
therivler1 wrote:~100K. HCOL area (DC suburbs). single dad with full custody of two kids.

your expenses are a bit high. post your monthly expense breakdown
More than 60% of our expenses are mortgage 2K and 1.2K for daycare.
I am with therivler1. Please post the breakup of the 5k per month.

therivler1
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Re: Not able to max out all the retirement accounts

Post by therivler1 » Fri May 22, 2015 12:52 pm

if you want to juice your numbers just to make you feel better, count the principal portion of your mortgage payment into your monthly savings total.

Crow Hunter
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Re: Not able to max out all the retirement accounts

Post by Crow Hunter » Fri May 22, 2015 12:54 pm

My wife and I max out both 401ks and Roths and save some here and there in a taxable account. We gross ~$145,000 between the two of us and we are 41 and 36.

However, we also can't have kids and we live in a very LCOL area. For example, our house payment is only $466/month. We are also EXTREMELY cheap. We haven't gone on a vacation in 5+ years and our entertainment this weekend is going to be movies rented at the local Hastings because I have a rent one get a second free coupon. This is a due to a combination of cheapness and issues with extended family using up our vacation time.

Save as much as you can, but do live some, please. Especially since you have kids.

Personally, I would rather have a couple of kids and be a little shy on retirement with lots of good memories than to be like my wife and myself.

Those memories are all I have of my parents now since they both passed away at an early age.

yellowgirl
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Re: Not able to max out all the retirement accounts

Post by yellowgirl » Fri May 22, 2015 12:58 pm

an_asker wrote:
yellowgirl wrote:
therivler1 wrote:~100K. HCOL area (DC suburbs). single dad with full custody of two kids.

your expenses are a bit high. post your monthly expense breakdown
More than 60% of our expenses are mortgage 2K and 1.2K for daycare.
I am with therivler1. Please post the breakup of the 5k per month.
On top of my head.


2K mortgage piti
$200 gas and electric
$60 water and trash
$800 groceries, formula, and lunches and dine out.
$50 vehicles maintenance
$200 gasoline
$160 car insurance
$1200 daycare
$40 cell phones
$30 internet
$50 home warranty
$50 medication and supplies
$150 other misc.

Rob Bertram
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Re: Not able to max out all the retirement accounts

Post by Rob Bertram » Fri May 22, 2015 12:59 pm

I wouldn't put much value in the net worth progression. It suffers from self-selection bias, so you get more people who want to brag about their net worth than those who want to share for the sake of sharing.

As other posters have mentioned, what is more important is that you are saving adequately for your current retirement plans. If you plan on retiring early, you might be behind. If you plan on retiring at a more traditional age, you might be overly aggressive on your savings rate.

therivler1
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Re: Not able to max out all the retirement accounts

Post by therivler1 » Fri May 22, 2015 1:01 pm

drop home warranty - those are generally worthless

i hope you are getting $5K for daycare expenses through your husbands work flex spending?

cut down on lunch/dinner out some

honestly, not too much fat. it is expensive to have kids and be in school. I'd suggest you be happy with how you are doing.

but still drop the home warranty.

cmlim
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Re: Not able to max out all the retirement accounts

Post by cmlim » Fri May 22, 2015 1:05 pm

I'm curious about the real estate bit. Was the OP referring to property ownership where extra income can come from renting/AirBNB?

We're up in the metro Boston area with a family of 4 too and we couldn't max out retirement accounts consistently until the kids were out of daycare. Once they were out, we readjusted the 401k contributions and Roth IRAs.

Speaking of daycare, with my and my wife's working hours, we were able to schedule a later drop off and early pick-up on some days. It wasn't much but over a month we trimmed about a $100 from the bill.That's $1200 back in a year. Hopefully that is a possibility for you.

Good luck.

LateStarter1975
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Re: Not able to max out all the retirement accounts

Post by LateStarter1975 » Fri May 22, 2015 1:07 pm

an_asker wrote:
yellowgirl wrote:Reading share your net worth progression post makes us very nervous about our retirement accounts. We were just too heavy in real estate before we found this site.
Rule #0 of Bogleheads: Do not compare your net worth with other Bogleheads. Depression will ensue! :oops:
+100
Debt is dangerous...simple is beautiful

yellowgirl
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Re: Not able to max out all the retirement accounts

Post by yellowgirl » Fri May 22, 2015 1:15 pm

cmlim wrote:I'm curious about the real estate bit. Was the OP referring to property ownership where extra income can come from renting/AirBNB?

We're up in the metro Boston area with a family of 4 too and we couldn't max out retirement accounts consistently until the kids were out of daycare. Once they were out, we readjusted the 401k contributions and Roth IRAs.

Speaking of daycare, with my and my wife's working hours, we were able to schedule a later drop off and early pick-up on some days. It wasn't much but over a month we trimmed about a $100 from the bill.That's $1200 back in a year. Hopefully that is a possibility for you.

Good luck.

Yes, we are thinking about building a guest house on our land for extra income. We have so much in equity at this moment. We are not sure if we should do a cash out refinance.

Texanbybirth
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Re: Not able to max out all the retirement accounts

Post by Texanbybirth » Fri May 22, 2015 1:19 pm

LateStarter1975 wrote:
an_asker wrote:
yellowgirl wrote:Reading share your net worth progression post makes us very nervous about our retirement accounts. We were just too heavy in real estate before we found this site.
Rule #0 of Bogleheads: Do not compare your net worth with other Bogleheads. Depression will ensue! :oops:
+100
OP, thank you for being brave enough to post this topic. As a new member, some of the threads DO make me discouraged. It's a flaw in my personality, though, to compare myself to others. It's even easier on an online forum where anonymity allows people to talk about things they might not normally, namely how much money they have. It sounds like y'all have a good amount being saved, and more importantly you are looking to do more, which is awesome! For instance, currently we only save 15% of my income into a 401k, and we're looking to try to save more in a one income family. I'm 30 years old, and do not have a six-figure retirement account. I am not worried about the future, so long as I'm selective about what threads I read online. :mrgreen:

Perhaps your daycare bill will drop off in a few years when the kids go to big kid school? As far as your husband getting a second job, what would he have to sacrifice in terms of time with you and the kids? I already work so much that even if I was just making $50k/yr I wouldn't want to sacrifice the precious little time I get with my family. Money is only one part of a happy life, and finding the balance is a very healthy mature thing to do. Letting too much of the numbers on this website get to you won't help you find that balance.

an_asker
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Re: Not able to max out all the retirement accounts

Post by an_asker » Fri May 22, 2015 1:20 pm

yellowgirl wrote:[...]
On top of my head.


2K mortgage piti
$200 gas and electric
$60 water and trash
$800 groceries, formula, and lunches and dine out.
$50 vehicles maintenance
$200 gasoline
$160 car insurance
$1200 daycare
$40 cell phones
$30 internet
$50 home warranty
$50 medication and supplies
$150 other misc.
Agree with therivler1 - I think you should cut down on your lunches and dine out. Don't know if you have said this earlier, but what are you going to school for and how many months/years left? How old are the kids? Pretty soon, you should have a) less daycare b) less tuition c) second job d) more gas and auto expenses. In balance, things will look up.

The car insurance seems high to me, but that might be a function of your area. But you could try to bump up the deductibles a bit to get a better rate.
36K for 401Ks, 18K for 457 plan, 11K for IRAs = 65K
Hadn't focused on these numbers. Using them, even we don't max out our retirement accounts - we have never had a 457 plan! :oops:

an_asker
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Re: Not able to max out all the retirement accounts

Post by an_asker » Fri May 22, 2015 1:22 pm

Texanbybirth wrote:
LateStarter1975 wrote:
an_asker wrote:
yellowgirl wrote:Reading share your net worth progression post makes us very nervous about our retirement accounts. We were just too heavy in real estate before we found this site.
Rule #0 of Bogleheads: Do not compare your net worth with other Bogleheads. Depression will ensue! :oops:
+100
OP, thank you for being brave enough to post this topic. As a new member, some of the threads DO make me discouraged. It's a flaw in my personality, though, to compare myself to others.[...]
Everyone does it - it is not a flaw in your personality. If someone says he or she is not, I would flat out say that he/she is lying. But it is not good to dwell upon that all the time. Go play a sport, watch a movie, do something!

DVMResident
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Re: Not able to max out all the retirement accounts

Post by DVMResident » Fri May 22, 2015 1:36 pm

OP, you still haven't stated your saving rate or portfolio size. The board will not be able to tell you if you're saving enough if you don't provide this information.

If you don't want to say, I'll point you to Wade Pfau's work:

Image

Consider your pension, SS, and how much your costs will drop when your house is paid off. Your required income replacement rate and required saving rate maybe surprisingly low. Certainly much less than 65k/yr, ~56% of gross.
yellowgirl wrote: $2K mortgage piti
$1200 daycare
^These two alone make up 64% of your monthly costs. They will both go away in time. :beer Patience.

jpelder
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Re: Not able to max out all the retirement accounts

Post by jpelder » Fri May 22, 2015 1:37 pm

I'd suggest plugging your numbers into a retirement calculator (AARP and Bankrate have decent back-of-the-envelope ones). A cursory run-through of your numbers suggests that you need only save about 20% ($23000) of your income to have enough to last through age 100. In other words, maxing one 401k and one IRA. This calculation does include Social Security starting at age 68, I think.

yellowgirl
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Re: Not able to max out all the retirement accounts

Post by yellowgirl » Fri May 22, 2015 1:48 pm

DVMResident wrote:OP, you still haven't stated your saving rate or portfolio size. The board will not be able to tell you if you're saving enough if you don't provide this information.

If you don't want to say, I'll point you to Wade Pfau's work:

Image

Consider your pension, SS, and how much your costs will drop when your house is paid off. Your required income replacement rate and required saving rate maybe surprisingly low. Certainly much less than 65k/yr, ~56% of gross.
yellowgirl wrote: $2K mortgage piti
$1200 daycare
^These two alone make up 64% of your monthly costs. They will both go away in time. :beer Patience.
We have less than 60K including pension. We are thinking about take out 300K from home equity (cash out refinance). We can use the 300K for day to day expenses and max out 401ks, iras and 457. Is this a good idea?

traveler90
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Re: Not able to max out all the retirement accounts

Post by traveler90 » Fri May 22, 2015 1:56 pm

yellowgirl:

With 60k currently, and if you have another 25 years before retirement, putting away 20k a year could give you a nest egg of $1.5 million. No need to panic.

retiredjg
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Re: Not able to max out all the retirement accounts

Post by retiredjg » Fri May 22, 2015 2:05 pm

yellowgirl wrote: We are thinking about take out 300K from home equity (cash out refinance). We can use the 300K for day to day expenses and max out 401ks, iras and 457. Is this a good idea?
No. This is not a good idea.

Don't look for shortcuts. Just start saving now.

sharpjm
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Re: Not able to max out all the retirement accounts

Post by sharpjm » Fri May 22, 2015 2:08 pm

yellowgirl wrote:We are thinking about take out 300K from home equity (cash out refinance). We can use the 300K for day to day expenses and max out 401ks, iras and 457. Is this a good idea?
Simply put, no. It is a horrible idea.

The way I am reading your posts, you seem extremely stressed to the point of panic. In this mindset you may not be able to think clearly about your finances. Is there some other financial burden or issue that you haven't mentioned that would be causing this panic? As many others mentioned in this thread, you have plenty of time to save for retirement at your current savings rate.

I would suggest reading some of the books mentioned in the wiki page on this website and especially Dave Ramsey's financial peace book. At your income level, savings rate, and age, saving for retirement shouldn't be (is not) as much of a burden as you seem to think it will be.
Last edited by sharpjm on Fri May 22, 2015 2:08 pm, edited 1 time in total.

DVMResident
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Re: Not able to max out all the retirement accounts

Post by DVMResident » Fri May 22, 2015 2:08 pm

yellowgirl wrote:
DVMResident wrote:OP, you still haven't stated your saving rate or portfolio size. The board will not be able to tell you if you're saving enough if you don't provide this information.

If you don't want to say, I'll point you to Wade Pfau's work:

Image

Consider your pension, SS, and how much your costs will drop when your house is paid off. Your required income replacement rate and required saving rate maybe surprisingly low. Certainly much less than 65k/yr, ~56% of gross.
yellowgirl wrote: $2K mortgage piti
$1200 daycare
^These two alone make up 64% of your monthly costs. They will both go away in time. :beer Patience.
We have less than 60K including pension. We are thinking about take out 300K from home equity (cash out refinance). We can use the 300K for day to day expenses and max out 401ks, iras and 457. Is this a good idea?
$60k is a little low for your age/income, but $300k in equity is way more than most people your age. And no major other debts (?). You managed all that with kids and still being in school. Impressive. I don't have all the number, but you're probably doing better than you think.

After taxes, your take home is $90k~$95k
Costs are $60k.
That leaves $30k~$35k for savings.
That's more than enough to fill a 401(k) and IRAs: $18k (pre-tax) + $11k = $28k plus a pension. That saving rate is in the mid-20's%. Look at the chart above. You're saving rate is very good.
That leave $2-7k for the 457s (which should be your lowest priority).

There is no need for the cash out refi. I think it's a bad idea.

Barefootgirl
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Re: Not able to max out all the retirement accounts

Post by Barefootgirl » Fri May 22, 2015 2:16 pm

I read that net worth progression thread....I was noticing some had approx $300K/year over year gains on a $1M portfolio and thinking - wow! what kind of index funds are earning close to 30% a year? ;)

As some point, I have to believe people are including assorted and sundry windfalls - income jumps, additional new household earner, bonuses, inheritances, law suit settlements, lol - not just regular earnings ....*IF NOT* someone please clue me in! I want in on that game.

BFG
How many retired people does it take to screw in a lightbulb? Only one, but he takes all day.

NorCalDad
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Re: Not able to max out all the retirement accounts

Post by NorCalDad » Fri May 22, 2015 3:08 pm

Yellowgirl, I think you're doing perfectly fine at your current savings rate. It'd be crazy for your husband to moonlight as an Uber driver for the sake of maxing out retirement accounts. But it does make sense to look for any ways possible for both of you to advance in your careers and earn more income in your current line of work.

Maxing out retirement accounts is somewhat subjective, anyway. If the limits somehow doubled next year, would you feel a need to take on three jobs to fill that space? It's a fair assumption that most of us maxing out retirement accounts earn more or don't have the family responsibilities you do.

retiredjg
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Re: Not able to max out all the retirement accounts

Post by retiredjg » Fri May 22, 2015 3:27 pm

Two people have mentioned the current savings rate....but I don't think the poster has told us the current savings rate. Did I miss it?

sharpjm
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Re: Not able to max out all the retirement accounts

Post by sharpjm » Fri May 22, 2015 3:33 pm

retiredjg wrote:Two people have mentioned the current savings rate....but I don't think the poster has told us the current savings rate. Did I miss it?
I don't think OP has stated it. I had assumed a rate of 20% given that expenses are only $60k/year and after tax income is ~$85k, possibly higher with dependents, mortage deduction, etc.

yellowgirl
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Re: Not able to max out all the retirement accounts

Post by yellowgirl » Fri May 22, 2015 3:42 pm

retiredjg wrote:Two people have mentioned the current savings rate....but I don't think the poster has told us the current savings rate. Did I miss it?

We are putting about 30K a year to retirement accounts. Soon will be less than 30K because I will transfer from community college to state university. My husband thinks he can make about 30K a year extra with Uber. He hopes.

retiredjg
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Re: Not able to max out all the retirement accounts

Post by retiredjg » Fri May 22, 2015 3:53 pm

Putting away $30k a year for retirement is an excellent start. Yes, you will need to increase it if you can - but trying to get to $65k a year is not reasonable until your income has grown considerably. And even then $65k a year may not be reasonable.

I didn't read the net worth thread, but I think you would do best to forget it. Good that it gave you a kickstart, but bad that you feel your efforts are inadequate. Don't set an unreasonable goal that you cannot achieve. Save money - as much as you can. Enjoy your family - as much as you can. Don't try to measure up to others because there will always be many who have more wealth.

DTSC
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Re: Not able to max out all the retirement accounts

Post by DTSC » Fri May 22, 2015 3:57 pm

For once, I am suggesting that someone take a break from reading posts here. Bogleheads save obsessively and entirely skews one's perspective. Your family is making $120K and spending only 1/2 of it. You're doing fine. Don't compare yourself to people here. IMHO, your husband should not sacrifice time spent with you and your children to earn more money. Children are young only once. They will be teenagers who don't want to be seen with you in the blink of an eye.

lack_ey
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Re: Not able to max out all the retirement accounts

Post by lack_ey » Fri May 22, 2015 4:05 pm

Eventually you're going to have higher combined income and no mortgage. I wouldn't see a cause for concern if you were saving $10k a year now if you were disciplined enough to save more later, never mind $30k.

Keeping up with the Joneses in outward spending, saving, or whatever else is a great way to waste a life and energy. For your own sake, get over it. If you have enough savings to feel reasonably secure and do the things you want to do later, that is enough.

Twins Fan
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Re: Not able to max out all the retirement accounts

Post by Twins Fan » Fri May 22, 2015 4:14 pm

Exactly!.... So, OP will be in school and studying all the time and hubby will be working all the time..... hey, who cares about the family and kids, right? I mean retirement accounts are being maxed and that's what counts. :confused

OP, RELAX!!!

I hadn't even started saving for retirement in my mid-thirties. You're fine!

Save what you can...... and if you're saving $30k a year you're doing better than most out there. As mentioned, your expenses will go down after you finish school, the daycare costs will go away, and I'm guessing you're going to school to get a better paying job. Your already good situation will likely get even better someday.

Relax and enjoy life!!

Scotttheking
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Re: Not able to max out all the retirement accounts

Post by Scotttheking » Fri May 22, 2015 4:34 pm

You are saving more than plenty, don't worry about it. Stop worrying about trying to max out your retirement accounts, and stick to saving 20% of your income, which it sounds like you are more than doing.

MP173
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Re: Not able to max out all the retirement accounts

Post by MP173 » Fri May 22, 2015 5:12 pm

Yellowgirl:

I will join in with others and say "relax". Tonight, put the kids to bed, watch a movie with your hubby and have a glass of wine. You are doing fine. You are investing in yourself, which will pay off down the road. Sounds like you took the sensible route and used community college to reduce college expenses. Your other expenses are not out of line...PLUS YOU ARE INVESTING $20k per year. That is very good at your age and circumstances.

Couple of suggestions:
1. I am in sales. I would not recommend a second job in Uber or anything else. Instead, concentrate on growing his income in the sale job. If that is not feasible, then look at another sales job. Those jobs are out there.
2. Since his income is variable (as is mine), learn to live on a variable income. That means reduce fixed costs as much as possible. By no means should you refinance and take out $$$ and thus increase your fixed costs. The next recession (and it will arrive) will knock his variable income down. Keep your expenses under control and look to increase income.

Good luck and congradulations on your success so far.

Ed

HalfMillionaire
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Re: Not able to max out all the retirement accounts

Post by HalfMillionaire » Fri May 22, 2015 5:27 pm

You are doing fine. Your net worth (including equity in home) is 360K and you are saving decent bit despite going to school and daycare cost. So relax. Your husband need not burn himself out. You need not panic. You are on the right path and pace will pick up when you finish school. Enjoy the ride.

inbox788
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Re: Not able to max out all the retirement accounts

Post by inbox788 » Fri May 22, 2015 5:48 pm

Barefootgirl wrote:I read that net worth progression thread....I was noticing some had approx $300K/year over year gains on a $1M portfolio and thinking - wow! what kind of index funds are earning close to 30% a year? ;)
Actually, just about everyone was in 2013! And up another 20% in 2014. Good time to be in the market!

http://quotes.morningstar.com/chart/fun ... 2%3A955%7D

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