Total retirement savings by Age and FIRE

Jan 6, 2020 20 Comments

I was on a call with Fidelity today. And while on hold, i was pondering if i havr enough saved up for my age.

I have ~950k in 401k and IRA saved so far. I turn 45 this year. hope to retire by 55. (does not include my msft espp or stock awards). Hoping for another 500K saved by then in retirement accts (just principal).

Is that a good number/saving strategy if aiming for a FIRE in 10 years? Not lean or fat FIRE but sewhere in the middle (normalFIRE I guess?)

edit: TC 375k, yoe 15+

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TOP 20 Comments
  • Amazon
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    Math will tell you. You can safely withdraw 4% annually. How much are you going to spend annually in retirement?
    Jan 6, 2020 6
  • You are asking us if 58k a year is enough for you to retire on? You tell us...
    Jan 6, 2020 0
  • Absolutely. Put your numbers in firecalc.
    Jan 6, 2020 0
  • Oracle
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    BIO
    Life, Liberty, and the Pursuit of Happiness
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    Also, when you retire, defer withdrawing your SS till about 72 or 75. Check on SSA website. I am betting you can easily get around 30k additional in SS payments per year. So yeah, a 4% withdrawal rate from 55 to 75 and then 3% thereafter coupled with SS will see you through and also leave some for your kids.
    Jan 6, 2020 2
  • Oracle
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    BIO
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    Your first task should be to estimate how much you would need per year to maintain whatever standard of living you would like. That may include even relocating. Estimate the cost of insurance - medical, car, home etc. Medical is by far the highest, at least until age 65 when you can start Medicare which is much cheaper comparatively (assuming you stay in the US). Also add up the cost of a roof over your head. Will you have a paid off house or do you want to relocate to a low COL place and just rent a small condo. Maybe live with your kids. Lots of things to think about. Don't forget vacations and expenses for leasure/hobby activities. Once you have a ballpark number - and that too will be different as you age. What you need at 55 is not going to be the same at 65 or 85 - you can then map out how much you can withdraw to meet that number at that age. It is a good exercise to do. Do it with your SO.
    Jan 7, 2020 0