How much in your retirement account at retirement?

[pistolpete]

What's your goal for how much $$$ you want in all of your retirement accounts combined at retirement?

My goal is 3.5 mil by age 58.

[Zaphod]

Ooh, I dont know for sure. I know what I'd like and I know what conservative modeling tells me. I think I need a few more years to see what this nest egg will do and how other investments work out.

To retire, I'd be happy with 3 million in retirement accounts in addition to our home, rental property (maybe properties by then). However, I'd totally cut the cord earlier if cash flow turned out to be sufficient without messing with retirement accounts.

[DoubleMDs]

3 million in retirement accounts but at least that and much more also in other vehicles (taxable, real estate, cash etc)

[CM]

.

[Frenchy1011]

I'm thinking 3-4M for early retirement (50-55) with taking 3% withdrawal rate. Still finding it difficult to find a specific number for that early retirement. Difficult to see how a withdrawal rate should be at that retirement age (obviously the 4% withdrawal rate is for normal age retirement).

[WealthyDoc]

pistolpete wrote:

What’s your goal for how much $$$ you want in all of your retirement accounts combined at retirement?

My goal is 3.5 mil by age 58.

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Interesting question!

I think there are a few ways to look at the "retirement" point.

One is based on age.  Chronological line is somewhat arbitrary and varies from person to person.  We have all seen "young" eighty year olds and 60 yo who look 90.  I don't like this one.

Another is the one you mention, "your number"  You then need to assume a SWR.  Estimate your expenses and then calculate your number from that.  It will also vary from person to person.  For most doctors it will be in the 2-5M range.  1M is not enough for month.  10M just creates estate problems.

A third option is to base it on cash flow.  To be FI you need to cover all of your expenses based on investment cash flow.  I can do that with different asset values.  A decade ago, I had few assets but my passive income more than covered my expenses.

As for me, I met my number but I'm too young to retire.  I'm not setting another goal although I'm sure my wealth will grow.

 

[janettebournes]

$10 million by age 70 (mostly in taxable)

[The White Coat Investor]

If rates rise a bond investor is better off, at least after the period of his average duration. The big risk for a mostly bond investor isn't rising rates, it's inflation.

It's an interesting question the OP poses- how much in retirement accounts. The typical question is how big of a nest egg or what income (basically the same thing as money is fungible.) Which is really another way of asking "how much money are you going to spend each year in retirement."

I'm not sure I ever really considered how much money I will have in retirement accounts and how much in a taxable account. Seems kind of odd to look at it that way.

[PhysicianOnFIRE]

The White Coat Investor wrote:

I’m not sure I ever really considered how much money I will have in retirement accounts and how much in a taxable account. Seems kind of odd to look at it that way.

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I think we're talking about how much in all accounts. Once you retire, all your accounts are retirement accounts, including the taxable one. I think in terms of two numbers: a Net Worth number and an Invested Assets number, the latter excluding the primary home.

One additional factor to consider is how long from now do you plan to reach that number. If you want $3 million today, you'll want closer to $4 million in 10 years and $6 million in 25 years (assuming ~3% inflation).

I'll be content to have $80,000 a year at a 3% withdrawal rate = $2.67M, which is > $100,000 at a 4% withdrawal rate. I'm about $0.3M away from that goal, but at this point, the retirement point is more determined by timing than the exact dollar amount. Considering what's best for my group and my family will play a greater role in the timing than whether I've got $2.6M or $2.8M invested.

[PhysicianOnFIRE]

[duplicate deleted]

[Kamban]

pistolpete wrote:

What’s your goal for how much $$$ you want in all of your retirement accounts combined at retirement?

My goal is 3.5 mil by age 58.

Click to expand...

By retirement accounts are you talking tax deferred and taxable accounts as separate or all money put towards retirement.

Most employed physicians, either in groups or hospital employed have good tax deferred plans available, many with match. Solo physicians with no employees can open up solo 401K or SEP-IRA. Unfortunately a solo physician with 6-7 employees might find it difficult to fund the retirement account of these employees, especially in this environment of falling payments from insurances.

I am one such physician. I have almost no money in tax deferred plans , except for small amounts taken out in fellowship and during a short period of employment and placed in a crappy 401K. Almost all my savings is in taxable savings. Luckily that is enough to fund my retirement.

[blowhard]

 

Doesn't it matter how old you are now right now?

I'm 46, plan on having 5M (not just tax deferred, but taxable as well) by age 55.

 

 

[VagabondMD]

My goal was $4M, until we hit it, too soon. Then it was $5M, until we hit it. Now, it is more of a timing issue. The teens are costly and bleeding us dry. We need to launch them before we can consider bilateral full retirement (I just coined that!).

The number itself, outside the context of what is going on in your life and how you see yourself in the future, is not very meaningful. When I read about a 30 year old who plans to retire at 40 with $2M, it concerns me that there is a lot of growth between 30 and 40 and then a lot of living to do between 40 and 90, and many ways for such a plan to go off the rail. I would be cautious about irrevocably curtailing your main source of income too soon.

[Hatton]

At first I was going to retire at 45, then 50, then 55, then 60.  It is hard to decide.  I have >6 million in taxable, tax deferred, and Roth.  As my neck and back hurt today maybe that is "enough".

[VagabondMD]

hatton1 wrote:

At first I was going to retire at 45, then 50, then 55, then 60.  It is hard to decide.  I have >6 million in taxable, tax deferred, and Roth.  As my neck and back hurt today maybe that is “enough”.

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Or get a massage over the weekend and reevaluate?