Consulting

I’m screwed. 35 yo. Had some medical emergencies in my twenties and wasn’t able to save so only got $10k in 401k. This is assuming $19k max into 401k, retiring @ 67, $5300 monthly retirement income.

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works at

$5300/mo certainly seems livable...

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likehelpful
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It is reasonable in 2019 - but in 2050?

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I was 35 with $0 saved because of life. I’m now 38 with close to $130,000 saved in various accounts. The markets have been good and I’ve been living a simple lifestyle to save money. Don’t give up now because you are behind.

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M3: how did you find your financial advisor?

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OP, please keep in mind that these projections generally don’t account for comp growth nearly as aggressively as us consultants experience it. For reference, Wealthfront’s “Path” planner puts their ‘high’ option for comp growth rate at ~3.5%; whereas, with regular promotions or firm hopping, most consultants are probably growing anywhere from 2-5x that rate.

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You aren’t negative... just not as positive as others. You still have a lot of years to tuck stuff away if you get debt down and manage your cost of living.

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Thanks. I need the positive encouragement

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$MTBC $TEUM $BABA $TCEHY $BZUN $MU $JD $PCRFY $LTHM $CRON $TWLO $EQIX $DLR $LK proceed with caution

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Get rich or die trying🔥

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Use the fear to drive you OP. Great advice and support here. You’ll hit some nice raises by the time you’re 45 too. Just work smart. You’re a consultant and imo that puts you ahead. So many resources available to you. Most important thing is enjoy life and take care of your health. Shoot, at worse - retire to a cheap country and live like a king 🤴

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You’re not necessarily screwed but it’s going to be hard to catch up. Consult with a financial advisor. Are you taking into account company matching? The short of it is that you’re going to need to start investing more of your savings into other investment vehicles. And save way more.

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Here’s a podcast to piggyback off M1’s point. It explains the difference between fee-only (😍) and fee-based (😖) https://www.npr.org/2018/12/12/676160245/should-you-pay-for-financial-advice

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Dude why do you assume your income won’t go up and why retire at 67? Are you really not planning on doing anything for income or having anything in your checking account? Your income can only go up from here.

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Why are you yelling at me. Pls stop

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I don't want to be Debbie Downer, but I just feel obligated to point out here that the assumption that our future is stable enough to predict like this just really isn't substantiated by the facts on the ground. This isn't going to be the rodeo it was for our parents. The experts in climatology generally agree we are past the point of no return. Those that work in sustainable food supply predict core foods, like fish, start to collapse within little more than a decade. And economic inequality is putting not just the United States on a path of economic collapse, but, as Jared Diamond (one of the most famous, regarded and awarded anthropological researchers in the world) points out in his new book upheaval, entire global civilization. So, if it makes you feel less stressed there is a better than 50% chance that extra million isn't going to make a lick of difference! 👍

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SC5: Whoa! Hold up. The aristocracy is concerned that income inequality might lead to a civil uprising? Wow. Just absolutely ground breaking stuff right there. That hasn’t been happening since the beginning of time.

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smartfunny
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OP you know that most of Americans don’t even have 100k when they retire right??

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My point exactly. Op has every right to be concerned but perspective should help calm him/her down

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I’d say if you have $M as a goal you’ll be ok. Might fall short of your goals but screwed is a bit hyperbolic

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Any $M is workable, but not great. Perspective.

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start now, save what you can, save a little more next year, be patient and avoid stupid debt. when you pay off your car or phone; keep it and save the payment when you get a raise; save most or all of it. you have plenty of time; and those calc tools love to scare us into action

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36 and have zero in retirement. Have about 80k in equity in my house, zero debt other than the house, and $15k in savings. I’m a little worried, but my wife will be back to work when our kids are in school, and that money will all be going to savings.

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https://joinfishbowl.com/bowl_k5o4h

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This right here OP. I joined the FIRE community a few years back and it’s snowballed into an amazing effect in just 2-4 years. I only made 45-60k from 22 to 27/28 yr old but was still able to save handsomely with the mindset to live below your means, pay down high interest debt and adjust lifestyle expectations. Core tenants of FIRE, I still live in Chicago with high COL but go out on the company card/free events and enjoy myself at least 3-4 times a month. Travel on points and take vacations regularly (pro tip - tac on vacations to sandwiched weekly work trips and fly both ways on project budget, use Marriott points for hotel while your away)

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OP, now that you are aware, you can take small actions that will pay off handsomely. So, yes, time to do some new things, but panic isn't one of them. As others have said, max out your 401K. Then you can open a Roth IRA. You are way too young to have more than 8-12 weeks emergency fund in liquid savings. You can also invest outside retirement accounts after you maximize those contributions. An investment advisor can really help you, and one of the primary strengths beyond understanding your options and situation is helping you not do dumb things. Very smart people still do dumb things around finances. Asking and getting help is fine. Just as we use SMEs in consulting without worry or embarrassment, so should we here. Just like with your lawyer, doctor and accountant, you must tell the truth to get the best advice. I'm more than willing to share the name of a great Registered Investment Advisor if you wish. Or you can use TDAmeritrade or Fidelity. But get help. We can sympathize and empathize here, and that should be in parallel with proper help. You are young, have tremendous upside potential and will be fine with some simple (though not always easy or fun) steps.

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+ social security! Assuming you own a home by then. You’ll be alrighty! Sorry for your challenges.

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open an ira and max that too. and a brokerage. you may not be able to do a Roth ira anymore with your current income but you would have a platform for multiple income streams

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If you’re putting the absolute max into your 401K every year (not just what the company matches but the max contribution allowed), and you have the wiggle room, start saving some more of your paycheck into another market account to grow that money too.

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- company matching - HSA - company stock plans Do none of these apply?

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On top of it the news of CMS and SSA going bankrupt in next 10 years takes a good 2000 out of that 5300

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