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Hats off to all the night shift people!
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I think it matters more to get multiples of each your spend rather than your income. If you’re saving a huge % of your income to FIRE, you don’t need to maintain that in retirement.
I was on track to hit 3x by 40 but then my salary doubled so now I’m only 1.5x 😭 I’m so screwed! Considering taking a lower paying job so that I can stay on track.
Just quit and you’ll be ready to FIRE today!
Coach
You should measure based on where you are today and what youre capable of doing on a go forward basis. You can't go back in time. Are you a high earner now but you weren't early in your career?
That guidance Fidelity shares is if you want to retire at normal retirement age. So you'll just likely need to retire a few years later. Nothing to worry about.
The longer you work the less you need saved because your life expectancy after retirement will shrink.
Coach
Comparison is the thief of joy
Are you able to save aggressively now? Are you financially stable overall?
2/3 of Americans can’t pay for an unexpected $1,000 bill. Could you? If so, you’re above average.
Comparison is the thief of joy . . . proceeds to compare yourself against 2/3 or the population.
I agree with the first part of your statement. It doesn't matter how other people do. What matters is that you save enough that you can retire without being entirely dependent on the government who we all know is known for being trustworthy and reliable /s
You are better off figuring out the amount of expenses you will have post retirement (w/inflation) and target enough savings for that’s. Rules of thumb are for people with relatively simple circumstances. Particularly in professional services where people may make a lot more in their 40s and 50s…
I'm about to turn 38 and have about 2x current salary saved, but I've also had massive income growth in recent years, so I have found it's helpful to also track my average income across all full time working years and compare against that. I mean, my TC for last year was ~$392k, but my average income across my full time working years was ~$172k - really big difference for comparison purposes.
Subject Expert
I like tracking in years of expenses.
eh those guidelines are silly. Too many exceptions such as people getting promoted/ new job with higher pay. I don’t bother with their emails that are ads in disguise. Bogleheads / reddit are better sources for personal finance
Coach
Let’s say all of the random people on the internet say you are doomed, how is that going to change what you are doing? The best day to start investing was yesterday, the second best day is today.
I think your total financial picture is a better gauge. Do you have other assets and no debt? I have a 1.4MM net worth and im 41. I only have 400,000 of that 1.4mm in "retirement" accounts which is only 2x, but I have a rental property, cash, a brokerage account, and my personal home equity (300k or 21%). NW is your true goalpost. As you get into FIRE tactics, having a good mix of assets outside your retirement accounts is a good idea. Most normal people if they do have any assets, have them stuck in retirement accounts and their primary home which is NOT great. FWIW you are doing better than almost all Americans for your age (assuming you make around 6 figures of income). The average balance, which is skewed really high by the super savers, is 142k for someone aged 34-44. The MEDIAN is only 42k for your age range. I am pretty sure you have more than 42k so you are already doing better than half the population.
Its amazing how compound interest works. The first $100k is soo hard and then it starts to grow. You shouldn’t just have money in your 401k ~$20k a year isn’t enough. Deloitte makes investing more difficult than it needs to be but you can set up brokerages in your Vanguard account.
Yes you are doomed. Unless you make like half million a year. Then 1x is fine.
Subject Expert
No. Project your resources and their sufficiency for your goals. Rules of thumb aren't tailored for your situation.
Do you have an estimated time to FI based on your income, expenses, saving rate, and current portfolio size?