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Currently dumping $20,000 a year into 401k. Planning on a 65 max retirement age with a goal of 55. 7% rough interest over 32 years would net me $3.5 million by

Currently dumping $20,000 a year into 401k. Planning on a 65 max retirement age with a goal of 55. 7% rough interest over 32 years would net me $3.5 million by 65, or $1.6m around 55. A 9% average return would net $5.8 and $2.5 respectfully. Overall I expect that I should be able to happily draw $140,000+ a year during retirement and have that NEVER run out. My wife is a teacher and should be able to pull $40,000-50,000 during retirement as well. Medical would be taken through her retirement plan. Household income between $150,000 and $200,000 during retirement. Honestly? I don't want to retire. Why would I? I love working on computers, from my basement office and working remotely is great. I have a kid, I would expect to take 2-3, months off a year for less money, but that's not a problem to me. What would I do with retirement? Clean my house more? walk my dogs more? travel more? Maybe? Work is great and just find something / someone you like working for, have enough fuck you money to not care if you get fired and the rest is gravy. I think I'm far more likely to leave the programming career (web development) and pursue a masters in something like quantum computing or physics than I am to retire.

lmarcos 4y ago
Retirement doesn't mean to stop working with computers. It means to stop working with computers to make your boss/CEO rich (in exchange for a bit of money). You can still work on stuff that interests you.
akomtu 4y ago
Are you sure about 7% for 30 years straight? These days returns may be negative. Also, 140k in 30 years may be as good as 14k today.
- bb88 4y ago
  Also 401Ks vary across companies. Many 401ks just don't have competitive funds. I would invest up to the matching in a 401k up to the limit, and then invest in some good tech companies for long term gains.
  - snow_mac 4y ago
    My company offers vangaurd, and before that I was a SEP contributor.
dnissley 4y ago
> I don't want to retire. Why would I? I generally feel the same way, but even in my mid-30s I've noticed that my energy levels have definitely trended downwards over time. And I'm doing all the right things: eating healthy, exercising, using standing desk, etc. Nothing too extreme at this point, but I also notice this trend in older relatives and coworkers, so the possibility of this happening to me seems very real and worth planning for. If it does, there will be a point where I don't have enough energy to put into a full-time job plus everything else I need to do to live, and so it'll make sense to retire then. And if I end up feeling just as spry as I do now in 40 years, then sure why not just keep working?
robga 4y ago
> 7% interest … 9% return … 32 years These are wild figures. Most adventurous rules of thumb are about 4-5% over inflation. If you have a way to be confident in getting 7-9% pa over 30 years quit your day job and pile your time into whatever that secret is. Then you’re pulling out 4% + fees a year which is also around the point of confident adventurousness. Many now say 3-3.5% including fees. Good luck to you.
- snow_mac 4y ago
  7-9% is a range conservative estimate of the stock market returns since 1920; that is adjusting for inflation. Here's one source that supports the 7-9% range over the last 30 years: https://www.sofi.com/learn/content/average-stock-market-return/#:~:text=The%20average%20stock%20market%20return%20is%20about%2010%25%20annually%20in,7%25%20when%20accounting%20for%20inflation https://www.sofi.com/learn/content/average-stock-market-retu.... 1920 to 2022: 7.38% (adjusted for inflation) https://www.officialdata.org/us/stocks/s-p-500/1920?amount=100&endYear=2022 https://www.officialdata.org/us/stocks/s-p-500/1920?amount=1... 1989 to 2022: 7.4% (adjusted for inflation) https://www.officialdata.org/us/stocks/s-p-500/1989?amount=100&endYear=2022 https://www.officialdata.org/us/stocks/s-p-500/1989?amount=1...

lmarcos 4y ago

Retirement doesn't mean to stop working with computers. It means to stop working with computers to make your boss/CEO rich (in exchange for a bit of money). You can still work on stuff that interests you.

akomtu 4y ago

Are you sure about 7% for 30 years straight? These days returns may be negative. Also, 140k in 30 years may be as good as 14k today.

bb88 4y ago
Also 401Ks vary across companies. Many 401ks just don't have competitive funds. I would invest up to the matching in a 401k up to the limit, and then invest in some good tech companies for long term gains.
- snow_mac 4y ago
  My company offers vangaurd, and before that I was a SEP contributor.

dnissley 4y ago

> I don't want to retire. Why would I? I generally feel the same way, but even in my mid-30s I've noticed that my energy levels have definitely trended downwards over time. And I'm doing all the right things: eating healthy, exercising, using standing desk, etc. Nothing too extreme at this point, but I also notice this trend in older relatives and coworkers, so the possibility of this happening to me seems very real and worth planning for. If it does, there will be a point where I don't have enough energy to put into a full-time job plus everything else I need to do to live, and so it'll make sense to retire then. And if I end up feeling just as spry as I do now in 40 years, then sure why not just keep working?

robga 4y ago

> 7% interest … 9% return … 32 years These are wild figures. Most adventurous rules of thumb are about 4-5% over inflation. If you have a way to be confident in getting 7-9% pa over 30 years quit your day job and pile your time into whatever that secret is. Then you’re pulling out 4% + fees a year which is also around the point of confident adventurousness. Many now say 3-3.5% including fees. Good luck to you.

snow_mac 4y ago
7-9% is a range conservative estimate of the stock market returns since 1920; that is adjusting for inflation. Here's one source that supports the 7-9% range over the last 30 years: https://www.sofi.com/learn/content/average-stock-market-return/#:~:text=The%20average%20stock%20market%20return%20is%20about%2010%25%20annually%20in,7%25%20when%20accounting%20for%20inflation https://www.sofi.com/learn/content/average-stock-market-retu.... 1920 to 2022: 7.38% (adjusted for inflation) https://www.officialdata.org/us/stocks/s-p-500/1920?amount=100&endYear=2022 https://www.officialdata.org/us/stocks/s-p-500/1920?amount=1... 1989 to 2022: 7.4% (adjusted for inflation) https://www.officialdata.org/us/stocks/s-p-500/1989?amount=100&endYear=2022 https://www.officialdata.org/us/stocks/s-p-500/1989?amount=1...