My 401k is up to $41k. At the end of 2014 it was just at $39k. A nice increase over 2 months. Our profit sharing and 401k matching monies should get deposited into our accounts in a couple of months, which will put another $3400 into my 401k....all the more to keep earning a return on! My current contribution is now at $230 a month. I have NO idea what we'll end up with by the time I retire, but I something is better than nothing. According to the social security report I get, if I retire at age 67 and DH takes half of what I get (at least that's how I read that works - he can either take his amount or 1/2 of his spouse, whichever is higher) we will have about $39,000 a year to live on from just social security, plus whatever we can keep saving in our 401k. Even if we can only afford to draw down $5,000 a year out of it, we aren't going to live richly, but I think we'll get by on that with no house payments, no car payment etc and plans to live in a lower cost of living area.
So, I just went online to
find a calculator to see an estimate of how much I will have if I keep
putting money into my 401k for the next 16 years and retire at 67. I was
pleasantly surprised. I found the calculator on Dave Ramsey's website.
It was the perfect calculator, as I wanted to put in my current starting
amount ($41k) and then all the rest of the info. At first I typed in my
monthly contribution as $230 and then went wait wait wait....I'm putting
that much in but my company matches half and they also contribute 3.4%
of my salary each year. So, really I have $562 a month going into my
401k. I used a conservative estimate of 8% return per year for 16
The total came to $361,333.18! But, I also plan to increase my contributions as the budget allows in future years. When DD is on her own there will definitely be more disposable money (mostly what I'm paying in car and health insurance) that can go towards retirement savings. And hopefully my salary will at least grow some over the next 16 years. We aren't going to be rich, that's for sure, but I think we'll be able to get by with that and social security.........if not well, my DD is just going to have to let us move in with her in our old age - haha!
What I'd also like to figure out is the value of that $361k beyond the retirement date. Obviously we wouldn't be drawing the whole amount out - just a portion per year, so the amount that stays in the account from year to year will be able to keep growing - at least at a safer, less aggressive rate. That is why my mom still has so much money. She pretty much lives off of her social security and the earnings from her retirement account. The principal is still there (mostly because she started with such a large amount). I'll have to see if I can find some kind of calculator for that scenario.