Retirement Journey, saving money

Retirement Series: Our current savings.

blue and yellow graph on stock market monitor
Photo by energepic.com

After posting about our expenses, the next retirement nut to crack is savings.  Do we have enough?

Ah.  The million dollar question.  Literally.

We used  NewRetirement, a free retirement planning tool to figure out if we were on the right track for retirement.  After inputting all of our financial information, and with the assumption that we will continue to contribute the maximum to our retirement account over the next four years, we come out with a ‘great’ score for retirement in 4 years.

 

Screen Shot 2019-10-24 at 7.26.30 AM

Our net worth includes retirement accounts, home equity and cash savings.  This program also included our mortgage and healthcare expenses, so if we wanted to, based on the above, we could stay in our home.

Thankfully, we have weathered the stormy markets and have come out ahead.  We are more conservative investors, and have rarely averaged a 12% return in a years’ time.  Our average is closer to 8%.  But we still managed to hit the $1M mark.  After 35 years of saving in our retirement accounts, we are finally seeing the fruits of our labor. 😉

What I LOVE so much about the New Retirement site and the chart they provide, is that it lets you know when your social security starts and when you need to take RMDs (required minimum distributions) from your retirement accounts.  It also assumes a 2-3% investment growth, which, to me, is very realistic.

So, do we have enough to cover our expenses and retire in 4 years?  I believe we do.

I will follow this post up with a future post on how we managed to accumulate $1.7M in net worth.  But for now, know that it took hard work, steady investing and a bit of luck.  No inheritance.  No rich relatives.

How are you doing in retirement savings?

 

5 thoughts on “Retirement Series: Our current savings.”

  1. I played with the site. Very interesting.
    As long as my husband is alive, we are in a good spot. Since he is retired military, his pension/health care covers us well. We save most of his social security. We, too, worked hard to get in this spot.
    It says that without him I will run out of money when I am 104. I will move to a much smaller house, sell all of his toys and just enjoy walking in DC more often. I really don’t need much to be happy. What will the world look like in 2062 anyway? Maybe I will be teaching my great grand children read! It does give me something to think about.

    Like

  2. I’ve used the New Retirement website. It’s a little bit stricter than the Fidelity or Vanguard retirement yardsticks. But in any case, or as in this instance, all cases, we have enough money to get us into our mid 90’s. Geeze, from their charts to God’s ears! We should live so long.
    Thanks for the link.

    Like

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