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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: How am I doing? Date: 6/6/2000 5:45 PM
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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:

http://www.scottburns.com/000604SU.htm

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.

intercst
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