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How much more do I need to be saving?

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  • How much more do I need to be saving?

    We are approaching the point in which all of our high interest loans will be paid off. We have maxed out all tax efficient savings. I would like to start saving some additional retirement money in taxable accounts. My goal is to have 5mil saved in 10-15years from now. I am trying to figure out how much per month I need to be putting away to make this happen. Wondering which calculators folks have found most helpful to estimate these amounts? Thanks in advanced!

  • #2
    Where are you at now? Can use a compound interest calculator

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    • #3
      800k

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      • #4
        Investment Calculator

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        • #5
          Just google future value calculator, or use the future value function in excel. Jim has articles on how to learn how to do it in excel

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          • #6
            Thank you

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            • #7
              1. How long have you been out of residency / fellowship?
              2. Are you saving at least 20% of gross compensation towards retirement?

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              • #8
                https://www.investor.gov/financial-t...oal-calculator
                You need to save $9,261 per month for the next 15 years and have a growth rate of 7% for your $800,000 to become $5,000,000.
                The scary part is that if inflation remains at 7%, $5,000,000 will be the equivalent of $1,800,000 in todays dollars in 15 years. Compound interest works both ways.

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                • #9
                  Originally posted by nephron View Post
                  https://www.investor.gov/financial-t...oal-calculator
                  You need to save $9,261 per month for the next 15 years and have a growth rate of 7% for your $800,000 to become $5,000,000.
                  The scary part is that if inflation remains at 7%, $5,000,000 will be the equivalent of $1,800,000 in todays dollars in 15 years. Compound interest works both ways.
                  This, ladies and gentlemen, is why you should use risk adjusted, after tax, inflation-adjusted ("real") rates of return rather than nominal returns when you run your calculations. "How much beer money will this be in the future?"

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                  • #10
                    I have been out of fellowship for 9years. My husband just finished residency 2 years ago. About 12%.

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                    • #11
                      Originally posted by nephron View Post
                      https://www.investor.gov/financial-t...oal-calculator
                      You need to save $9,261 per month for the next 15 years and have a growth rate of 7% for your $800,000 to become $5,000,000.
                      The scary part is that if inflation remains at 7%, $5,000,000 will be the equivalent of $1,800,000 in todays dollars in 15 years. Compound interest works both ways.
                      I was using estimates of 3-4% return to account for inflation?

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                      • #12
                        Originally posted by Psychfatfire View Post

                        I was using estimates of 3-4% return to account for inflation?
                        I use 3% inflation for my estimations but who knows.

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                        • #13
                          Originally posted by Psychfatfire View Post
                          I have been out of fellowship for 9years. My husband just finished residency 2 years ago. About 12%.
                          That isn’t enough to save towards retirement. Plumbers and nurses need to save 10% to 15% of gross income for retirement.

                          Doctors need to save at least 20% of gross income towards retirement. Part of this is because you start earning your full income so many years later than folks who started working with a four year degree or less. Another reason is that social security will replace a far lower percentage of a high earner’s working years income.

                          Simple math suggests that gross income less taxes and savings equals spending / consumption. The greater your spending during your working years, the higher your retirement accounts will have to be to maintain that same standard of living in retirement.
                          Last edited by Hank; 03-20-2022, 05:03 PM.

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                          • #14
                            Does anyone use personal capital for estimates? I like it bc you can put in all the life events (college, weddings etc). But I wonder if it is overly conservative? The success rate it shows seems to be less than other calculators (meaning it tells me I need to save significantly more to get to goal).

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                            • #15
                              Originally posted by Psychfatfire View Post
                              I have been out of fellowship for 9years. My husband just finished residency 2 years ago. About 12%.
                              With high interest loans about to be cleared, guessing you plan for this to go up a decent bit?

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