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kcwageslave asks,

Just want a little feedback on how my wife and I are doing in accumulating a retirement nest egg. I'm 37 and she's 34. Between the two of us we have accumulated about $100K in our 401(k) plans (after the NASDAQ meltdown). We both work and together earn about $175K annually.

I would like for us both to be able to retire in about 18-20 years. We are putting about $20K into our plans annually (including employer contributions).

I know there are tons of variables but do we have a decent start and are we on the right track?

Scott Burns of the Dallas Morning News had a very interesting article on the distribution of wealth by age group n his Sunday column, see link:

About 25% of the 30-39 year olds have net worths in excess of $127,000. It looks like you are solidly above average for your age.

If you are earning $175k and saving $20k, the arithmetic says you're spending $155k per year. Using the 4% withdrawal rate in retirement often mentioned on this board, you'd need $3.9 million to safely provide $155,000 in retirement income in today's dollars. Twenty years of inflation could easily double that number. You'll probably have to save more than 11.4% of your combined salaries to get there.

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