Overall, I agree that women and men are equal but I do have a problem with equality when it comes to finances, men and women are really not equal. As we all know women earn less than men, they also take time off to care for children, which of course have a significant impact on their finances and net-worth. As a result; the Equality Method is a little bias in expecting women to have an equal net-worth unless there are no kids in this instance.
I totally agree that most government are sexist, beside income, most pension plans also discriminate greatly against women. I appreciate you posting this. There are certainly cases of sexism and in every one of those cases it is wrong.
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That said, barring those sexist exceptions, there is nothing in America stopping women from making as much or more than men except choices made by those women. When I was doing my MBA at a top 10 university, my statistics professor who was female completed a thorough analysis to determine whether an income gap exists. Her analysis accounted for jobs and years of experience. Her analysis showed that there was no statistical difference between the incomes of men and women. For example, a female electrical engineer with 5 years of experience earns as much as her male counterpart.
As Panda correctly said, the difference in pay is mainly due to career choice. Women generally choose career paths such as teachers that generally earn less than male dominated areas such as engineering. I am on track with my partner to be at around 2M net worth around My fear though is that at that point, we are going to be burnt out from work, and comfortable to spend on nicer vacations, restaurants, etc because of the savings we have.
Totally agreed! Take care of and enjoy yourselves. Do the best you can to hit whatever milestone s you can reach without killing yourselves. My issue here is that part of that 50, half of that is post-tax and suffering from low CD rates.
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Or perhaps look into a 5 year CD less risk? Good question. First of all, nice job being in the 55 age bracket at age That provides a good buffer. Do you have a pension? Or do you plan to just start withdrawing retirement savings at I will likely go with the 5 year CDs then. Unfortunately no pension but good rental income that can help offset for awhile until I start drawing on retirement funds and SS. That does remind me of another question, I was told that SS would be impacted since I have not worked the full 35 years at age 50, only contributed 27 years?
So should I delay just to fulfill SS? We no money in the stock market. Having this much savings is a bit extreme but it makes us warm and fuzzy.
If you have 1. Buy water, mta, well known schools and hospitals. This muni bond interest income will nicely supplement your rental income and will help bridge you until you collect your K and SS. When the bond is called or matures then only the face value of K is returned to you. Remember, buy the bond at the price and interest rate you like. Dont worry if the bond value drops. You are buying the cow for its milk! Thanks Adam! Peter, I am probably one of the most risk averse readers on this site!
Since CD rates are so low, I only buy muni bonds since they are tax free and helped us become FI in I have nothing in the stock market. For our after tax dollars, I only buy individual municipal bonds and NOT a bond fund so I dont lose any principle since I let my bonds get called or matures. I was stupid when I first started investing.
In less than 1 year, I lost 9K combined and I cashed out.
Now, I pick and buy my own muni bonds via Fidelity instead of using a broker at a bank or at a brokerage firm. Definitely, get rid of any mortgages before you retire if you can. Why pay a bank a dollar of interest to get back. The issue is when you sell the K bond to get the principle to pay off your morgage then you dont know what is the value of the bonds and you may even lose principle.
So the CD is a guarantee option for you. I only buy bonds to hold so I dont lose any principle.
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This option may be risky for you in case interest rates rises then bonds may drop in value. If you have any available cash or after your mortgage is paid off then Look into munis. I think you will be happy with them once the tax free interest starts rolling in. We are a little behind now, but are working diligently to play catch up. I have a small pension, but my wife does not. We can both afford to max out our K plans now.
We have been contributing to plans for over 14 years now. Looking at your average net worth chart helps to put things into perspective for us. We tend to live on the frugal side, but tend to spend more money on our kids than required. I am hoping that we can get back on track for retirement. I love reading your insightful articles. Keep them coming! So where is the above average couple that has two incomes for a few years, then starts having kids and one parent stays home?
Should we more or less just inflate the single person a bit to account for some economies of scale? When my wife told me she wanted to stay at home, I needed to support that career choice.
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So I made it my goal to replace her income through raises and side-gigs. If you were to look at our charts, it more or less created a plateau for about 5 years, but looks to be breaking out. Sam, Thanks the charts. We always want to see where we stand but net worth is something most people dont discuss. It is nice to see that our NW doubles the amount in your chart for the above average Financial Samurai couple BUT we will always be middle class regardless what our NW is.
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For years, my only company sponsored retirement option — the Thrift Savings Plan for government employees — was limited to a Traditional IRA style account. That changed in when the TSP began to offer a Roth option. So given my unique circumstances, it just made sense to feed the Roth pig while starving the other. I feel more confident building my [investment] wealth through accounts with [future] taxes only on the gains, not the principle contributed. But at the end of the day, a Roth IRA is better than not contributing and investing at all.
The Roth IRA can be considered a tax diversification strategy. In a traditional IRA, any pre-tax contributions and all earnings are taxed at the time of withdrawal.
The withdrawals are taxed as regular income, and the tax rate is based on your income in the year of the withdrawal. Although taxes are assessed at the time of withdrawal, there are no additional penalties, provided that the funds are used for a qualified purpose or that the account holder is With a traditional IRA, qualified purposes for fund withdrawal include a qualified home purchase, qualified higher education expenses, qualified major medical expenses and certain long-term unemployment expenses.
It is encouraging to see I am on track and motivation to keep hustling. Your blog has helped very much in better educating myself. If I work until 57 my pension before taxes would likely be somewhere in the ballpark of 60k a year before taxes. My salary is k now and would likely with COLA adjustments reach at least k in the next 15 years. Although I feel very much on track, I am afraid marriage and kids could upend all of this so that is one of the reasons I am have been wary about going down that road. This is something very reassuring to me about being the sole captain driving my ship.
Thanks for sharing. I was on the higher end as a single person until I married. Wife was doing ok heck, she at least had 80k or so retirement savings… but 35k of student debt , so I definitely took a step backward. Big fan of these posts Sam — I still go back and reference your above average net worth posts as a way of motivating myself.
This is depressing. I thought we were on target at least according to other sources I read. Have not hit the million yet.
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My husband was military so with moving and him gone, I was a stay at home mom. We have been paying for college since IN fact, we could not even get financial aid since the colleges said we had too much assets Ha I lost my skills by staying home and pretty much can only get a min. Because we lived on one salary, I am figuring we can go by the single person chart as a couple.
Once college is done, then we will be able to save again. So when I look at the retirement schedules online, it looks like we need 1. That can be achieved by How can I know if that is right cause I feel poor looking at your numbers here. Maybe I need to get a few min wage jobs?