[USER]

Hard to decide if we are in Saving/Investing vs Spending stages.

My spouse and I are in our early 40s, 2 Kids under 10.

We have total of 1 million diversified investments which will fetch us between 4-6% Return Annually.

We spend 100K Annually and save/invest 50-70K in Diversifed categories.

If we decide to retire by 60, do we continue to Save/Invest like we do or should we spend more/less?

Thank you.

[Grant]

In your 40’s with a “retire in 60’s,” I am concerned that you are not getting a good enough return on your money.

You should be focused growth (using funds like VOO) and getting at least 10-12% return.

[Marty]

I would keep investing unless you have found the guarantee for 4-6 percent.

You should get up a little more before you let up on the gas

[Frank]

You need to keep investing or change your investments. You cannot get to FI investing in things like savings accounts yielding only 4-6% annually.

Where did those numbers come from? Some “Never Retirement” calculator assumptions perhaps?

Or some poorly designed AmeriJones or Empower or target date things?

If you put your investments in index funds and are not paying AUM advisor fees, you would be close to Coast FI, because you would expect those investments to double twice in 20 years at a real rate of 7%.

Then you could spend more now.

[Brian]

So… there’s the math side. 100k annual spend needs 2.5M to produce that.

If I assume you’re 45, get an 8% return, work til 60…

that gets you to 5M. So if everything went perfectly…

you’d either be able to invest less and hit 2.5, spend double in retirement or be able to retire earlier.

Then there is the risk side…

note that above when I mentioned “perfectly”, you maintain incomes, investing, the assumed returns happen, no major medical issues, no large unplanned expenses, etc.

[Kim]

College? Likely you’ll spend lots more on. Kids activities / clothes /sports etc the closer they get to middle school /high school

[Author]

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