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How in the flying fuck do you only have $150k at 61 in a 401k??? Jesus Christ some people are dumb. On track depending on this inflation for $5-6M by 61. That's not including other business or monies we could obtain over 20 years. Not counting on it at all, but potential for $1-4M from family as well. To truly retire and enjoy it I'm guessing $10M is going to be needed for someone my age. $150k pfffft. You're fucked.

WookieMan says

To truly retire and enjoy it I'm guessing $10M is going to be needed for someone my age.

I agree.

zzyzzx says

WookieMan says

To truly retire and enjoy it I'm guessing $10M is going to be needed for someone my age.

I agree.

So, maybe 1% of retirees?

Does she/he/it own a house or condo?
In 10 years the 401K can be $300k.
She can get about 6.5+ % from an immediate annuity at age 70, if she wants to turn the 401K over. This would be about $20,000/year. ($300,000 x .065)
Social security will be $2000+ per month or more.
Pension $900/month isn't too bad.
The fly in the ointment will be: 1. rent if she doesn't own a place. 2. Taxes
She's okay assuming she doesn't develop a health problem which interrupts her work and saving.
If she owns a place she can get a roommate or reverse mortgage.

Welcome to the race, where wealth and devolving aging decreptitude compete with each other. Will I have enough money to fall apart in style? Caligulan Splendor is wasted on the young.

The Great Socialist Paradise will make this question moot, as it murders you out of your SS and Medicare creditor status. KILL THE CREDITORS! KILL THEM ALL!

You guys are all pretending her 401K will still be worth $150K by the end of this year.
What ever you have saved up for Retirement, the 401K is the worst way to have it tied up.
The idiots should have paid the taxes on that income while they were young and could absorb it better.
By time many people retire they believe that they have $150K in their 401K but soon find out, it's more like $100K in your 401K because you're taxed the full 30% on every cent you pull out of it.

$150K in a savings account, is all yours, you don't have to give Uncle Fucker 1/3 of every withdraw.

WookieMan says

other

Damn wookieman. How did you get that much in 401 k

20 k x 30 years about 600 k plus growth. so what n how are you investing 401 k to grow to be 5 million

Yes you are going to need professional help; and I am not talking financial. You are going to be in a mess since you are locked into todays fixed income prices. Buckle up....

Tenpoundbass says

for Retirement, the 401K is the worst way to have it tied up

Yes, that money should have been in either a Roth IRA a/o Roth 401K.

And then, she can take whatever dividend income she earns and pay it out as non-taxable cash.

So in that situation, even an amount like $150K isn't so bad. If you average out the dividends from BHP, Annaly(NLY), Lumen(LUMN), Rio Tinto (RIO), Altria (MO), British-American Tobacco (BTI), National Grid (NGG), Verizon (VZ), ATT (T), and Manulife Financial (MFC), it's some 9%, closer to 10%+ during bearish lows.

Using a simple dividend reinvestment calculator, with additional $7K (Roth IRA limit) per year (I'm assuming she knows nothing about Roth 401Ks w/ higher limits), keeping cap gains down to -1% per annum and then an 8% basket dividend yield. The results aren't so bad in 9 years if cap gains are minuscule for the decade ahead.

Year Balance Additions Growth Dividends Reinvested End Balance
1 150,000 7,000 -1,500 12,000 12,000 167,496
2 167,496 7,000 -1,674 13,399 13,399 186,216
3 186,216 7,000 -1,862 14,897 14,897 206,247
4 206,247 7,000 -2,062 16,499 16,499 227,681
5 227,681 7,000 -2,276 18,214 18,214 250,614
6 250,614 7,000 -2,506 20,049 20,049 275,153
7 275,153 7,000 -2,751 22,012 22,012 301,410
8 301,410 7,000 -3,014 24,112 24,112 329,505
9 329,505 7,000 -3,295 26,360 26,360 359,566

So by her retirement age, she's getting $2K/month from the above, $900 from her pension, and some $1.6K from SS.

That's $4.5K per month of tax free income, which for an ordinary person is $54K/yr or $70K/yr+ (when taxable)

GNL says

zzyzzx says

WookieMan says

To truly retire and enjoy it I'm guessing $10M is going to be needed for someone my age.

I agree.

So, maybe 1% of retirees?

What's the point in retiring unless I can do it in Caligulan splendor?

I thought the idea is to take the job for a few years and meet a pilot or businessman, get married, and live happily ever after (or at least have a very lucrative divorce). Same concept as NFL Cheerleader. Either that, or you buckle down and live frugally; then retire pretty well, actually.

I'm not knocking the profession, but this just seems to be a case of failure to have long-term goals and a realistic outlook. At least this "profession" has large upside in the early years. Fast-food workers and 1/2 the college graduates are in far worse shape in short term and no better shape after.

Article is useless without knowing how attractive she might be, even at her age. And article is back.

https://www.imdb.com/title/tt0119396/?ref=fn_al_tt_1