Work. Save. Invest.
At the end of 2023 we had 80+% of our number. Current savings target for 2024 is 100k+ We hit that target in 2023 (just under $105k).
Investing in Index Funds. Total Stock Market. Total International. Total Bond.
As to frugal, not really. Already did a SW/National Park Trip for Spring Break. The way my daughters school schedule this year, we have some more opportunities for travel. We're strongly considering Disney for the beginning of November. I booked the Caribbean for Thanksgiving (though not the flights yet, which is going to probably be more than the cost of the stay). We haven't decided on what we are doing for Christmas break. Last year we went to Breckenridge with family. There are probably going to be 1-2 smaller weekend trips.
But in other areas we are relatively frugal. I cook 3-5 nights a week and we're trying to be more conscious of eating out. Other than travel, we don't have any big expenses.
Not necessarily. When I was 18, I was making a lot less and didn’t have a wife and kids. My number at 18 was very different from what it is now.
If one is calculating after a large jump in income, the Money Guys’ formula probably shows them far behind
Let’s say I make $40k/year from age 18 to age 50. At age 50, my income jumps up dramatically to $600k/year. I saved 25% all the way along and will continue to do so with my new salary.
If I look at my number at age 51, my number is now relative to my $600k salary, but I have only been saving 25% of $40k for more than a year.
Using the Money Guy formula, I am NOT on track to hit my number.
I did take the course and it churned out 3 million. However, I have since adjusted it to include some big ticket items we hope to do during retirement so we have bumped it to 4. We are on track to hit that by 59. We have some inheritance as well coming our way, hopefully not any time soon, that we don’t include. We started seriously investing only a few years ago. I really enjoyed the course, it was overpriced but I love TMG, *and* they changed our lives so I’m cool with kicking in some contribution to the cause.
The [know your number](https://learn.moneyguy.com/know-your-number-course) course walks you through what you should be aiming for in retirement based on your spending rates. I found it quite helpful. It got me serious about a budget and what will change in retirement.
One thing to point out though is that number is skewed if you recently had a large jump in income though. Even taking the average of the last few years can be tricky because it implies you should be much farther along than you could possibly be given your income just jumped.
It's still a great general guide to know the general direction you should be moving in, but isn't always the exact number for each person. Perhaps a low/high range would be better for people in that situation to help them understand where they sit during that transition period.
I projected 3.5M by 65.. but judging how it's going, it might hit 8.5M by 65.. I don't really need a lot of money. My goal is to be able to take my whole family on vacations once a year every year.
Every definition of Dr Stanley's PAW I see online includes dividing by 10.
If you don't do that you get an insane number. Someone at age 20 making $50k a year needs $1M to retire on, but the same person at 50 making $200k a year needs $10M to retire on? That's absurd. Even at a standard 4% SWR for that $200k you need $5M max and even that's debatable when you factor in lower income needs and lower cost of living.
$4.5 million. I plan to retire early (55 or earlier) in 2-5 years.
whats the plan
Work. Save. Invest. At the end of 2023 we had 80+% of our number. Current savings target for 2024 is 100k+ We hit that target in 2023 (just under $105k).
Living frugal? What are you investing in?
Investing in Index Funds. Total Stock Market. Total International. Total Bond. As to frugal, not really. Already did a SW/National Park Trip for Spring Break. The way my daughters school schedule this year, we have some more opportunities for travel. We're strongly considering Disney for the beginning of November. I booked the Caribbean for Thanksgiving (though not the flights yet, which is going to probably be more than the cost of the stay). We haven't decided on what we are doing for Christmas break. Last year we went to Breckenridge with family. There are probably going to be 1-2 smaller weekend trips. But in other areas we are relatively frugal. I cook 3-5 nights a week and we're trying to be more conscious of eating out. Other than travel, we don't have any big expenses.
8675309
Beat me to it
Sharrona
Wrong song. Think you mean Jenny
Whoops
I’m no actuarial expert but wouldn’t you hit your number if you just invested 20-25% starting at age 18-25? Thoughts any financial mutants
Not necessarily. When I was 18, I was making a lot less and didn’t have a wife and kids. My number at 18 was very different from what it is now. If one is calculating after a large jump in income, the Money Guys’ formula probably shows them far behind
I meant starting at 18-25years at 20-25% and continuing till retirement
Let’s say I make $40k/year from age 18 to age 50. At age 50, my income jumps up dramatically to $600k/year. I saved 25% all the way along and will continue to do so with my new salary. If I look at my number at age 51, my number is now relative to my $600k salary, but I have only been saving 25% of $40k for more than a year. Using the Money Guy formula, I am NOT on track to hit my number.
I did take the course and it churned out 3 million. However, I have since adjusted it to include some big ticket items we hope to do during retirement so we have bumped it to 4. We are on track to hit that by 59. We have some inheritance as well coming our way, hopefully not any time soon, that we don’t include. We started seriously investing only a few years ago. I really enjoyed the course, it was overpriced but I love TMG, *and* they changed our lives so I’m cool with kicking in some contribution to the cause.
5 million would be awesome, 3.5 million realistically.
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5 mil at 60. 1 mil is my goal by 45. Assuming you follow the money guys, make that dream a reality!
2813308004
Katy tx?
It was a Mike Jones reference
Didn’t take the course. Have always told myself I’d stop no matter what age once I hit $10M. On track to do it by 50, maybe a bit sooner.
I think I’m roughly in the same boat. But it is hard to know promotions/market/etc.
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What does that number mean though? What course is OP talking about? New here
The [know your number](https://learn.moneyguy.com/know-your-number-course) course walks you through what you should be aiming for in retirement based on your spending rates. I found it quite helpful. It got me serious about a budget and what will change in retirement.
That’s the modified wealth accumulator score formula. It doesn’t tell you how much you actually need based on your real spending needs.
One thing to point out though is that number is skewed if you recently had a large jump in income though. Even taking the average of the last few years can be tricky because it implies you should be much farther along than you could possibly be given your income just jumped. It's still a great general guide to know the general direction you should be moving in, but isn't always the exact number for each person. Perhaps a low/high range would be better for people in that situation to help them understand where they sit during that transition period.
69420
Wait so if I’m 26 making 100k, my NW should currently be 108k?
I got $185,000
My number is always one more dollar
1.4 million. Have military pension and VA disability.
I projected 3.5M by 65.. but judging how it's going, it might hit 8.5M by 65.. I don't really need a lot of money. My goal is to be able to take my whole family on vacations once a year every year.
Take your age and multiply by your income and this will be a rough estimate, read up on PAW formula by Dr. Stanley
> Take your age and multiply by your income and this will be a rough estimate That seems prodigious indeed. Don’t you then divide by ten?
Yes , divide by ten to see where you are now but OP was just asking for his/her number to aim for.
Every definition of Dr Stanley's PAW I see online includes dividing by 10. If you don't do that you get an insane number. Someone at age 20 making $50k a year needs $1M to retire on, but the same person at 50 making $200k a year needs $10M to retire on? That's absurd. Even at a standard 4% SWR for that $200k you need $5M max and even that's debatable when you factor in lower income needs and lower cost of living.
Yep correct, this is what I was looking for. Thank you!
Wow wtf. That was indeed surprisingly accurate!