New milestone for us

[Callie]

We went over the 1mil in our 401ks/IRAs after Friday. We have other non-qualifying invesetments but it was cool to see this. 4-5 more years for us. If it wasn't for college, we could retire in 2.

 

[citrine]

NICE!!!! Congratulations on your first million....if you don't mind me asking...how long did it take you?

 

[Callie]

I am 51, hub is 52. I started late because I was a very struggling single mom in my early 30s with no child support - so I started my first 401K at about 34. Hub lost half of his savings in a divorce (250K) but we really focused on maxing out after that.

He also took a job where he gets a super generous match and bonus that goes into the 401K - totalling about 22% of his 6 fig salary. So 20.5 + 25K in for him per year. Me - 20.5 + 6K = 67K per year now.

 

[Alan]

We went over the 1mil in our 401ks/IRAs after Friday. We have other non-qualifying invesetments but it was cool to see this. 4-5 more years for us. If it wasn't for college, we could retire in 2.

I am 52, DW is 51, and we plan to RE in 2.5 years. It sure does feel could to pass that million mark and see your RE dreams just around the corner. Congratulations.

 

[Callie]

If it wasn't for my hub's insistence on super high priced private college educations for both of his daughters, we would be retiring in 2 years also. Yes, he pays for them....

 

[73ss454]

If it wasn't for my hub's insistence on super high priced private college educations for both of his daughters, we would be retiring in 2 years also. Yes, he pays for them....

IMHO you guys did the right thing paying for your DD's education. I think that's what parents are supposed to do.

It could be a lot worse paying for Dr's or lawyers or something else bad.

You guys will be retired before you know it. 1M at your age's is terrific.

 

[Callie]

My only concern is one wants to be a "writer" and goes to a school that does not specialize in writing, and the other says she wants to be a teacher and wants to go to Dartmouth. If they wanted to be engineers, etc., I would feel better about the 46K per year. If you want to be a teacher, a state school is fine.

 

[Alan]

My only concern is one wants to be a "writer" and goes to a school that does not specialize in writing, and the other says she wants to be a teacher and wants to go to Dartmouth. If they wanted to be engineers, etc., I would feel better about the 46K per year. If you want to be a teacher, a state school is fine.

When we paid for our 2 children to go through college we told them that it was in case our 401(k)'s and pensions "bombed" and we'd expect them to look after us. They both got degrees in Computer Science so we were fairly confident that they would end up with decent jobs. Both also went to State schools even though DD went out of state (cost about $90K in total over 4 years, but starting salary at IBM in 2003 was $60k/yr so a good investment we reckon)

 

[mickeyd]

We went over the 1mil

Not too shabby. Should be good for about $40k/year.

 

[Bestwifeever]

Congrats. They say the first mil is the hardest . Also sent two kids to college--and will never regret one penny of it.

 

[Callie]

I shouldn't whine we are doing fine, paying cash for college and R&B as we go along. It is a little frustrating because his ex is not contributing at all, she is "underemployed" on purpose.

They are both super bright girls and I sense they are inheriting that lack of drive their mom has. Hopefully they will prove me wrong or marry well!

 

[W2R]

They are both super bright girls and I sense they are inheriting that lack of drive their mom has. Hopefully they will prove me wrong or marry well!

Divorce is often harder on kids than one would think (even college aged kids). They may do better after some time. Meanwhile, you know you are doing the right thing.

 

[Spanky]

They both got degrees in Computer Science so we were fairly confident that they would end up with decent jobs. Both also went to State schools even though DD went out of state (cost about $90K in total over 4 years, but starting salary at IBM in 2003 was $60k/yr so a good investment we reckon)

Was this in the silicon valley? Starting salary for a software engineer is about $53K in our area (a major metro area in upper midwest).

 

[Spanky]

My only concern is one wants to be a "writer" and goes to a school that does not specialize in writing, and the other says she wants to be a teacher and wants to go to Dartmouth. If they wanted to be engineers, etc., I would feel better about the 46K per year. If you want to be a teacher, a state school is fine.

A coworker sent his DD to Dartmouth with average cost of $42K per year. Her major was social work. He suggested that I should send my daughter there also because of the networking gained from attending Dartmouth. I told him that he must be kidding. An ivy league education is nice to put on your resume, but to get ahead requires a different set of skills learned elsewhere or in life. Most people who have advanced their career to senior management at companies for which I have worked over the years do not have fancy degrees from prestigious colleges. Most graduated from state universities (not the public ivies such as UC Berkeley, U of Michigan, U of West Virginia, U of North Carolina, etc). They reached to the top because of their ambitions, people skills, and political savvies.

Luckily for us, my daughter went to one of the public ivies with a merit scholarship. Thus, college cost is very, very inexpensive - $5K per year.

 

[Spanky]

He also took a job where he gets a super generous match and bonus that goes into the 401K - totalling about 22% of his 6 fig salary. So 20.5 + 25K in for him per year. Me - 20.5 + 6K = 67K per year now.

Wow! what a nice place to work for. My company only matches 50% of my contribution or up to 6% of my salary, whichever is less.

 

[Alan]

Was this in the silicon valley? Starting salary for a software engineer is about $53K in our area (a major metro area in upper midwest).

This was in Austin, another technology hotspot, and she was a graduate from UT in Austin - 4.0GPA helped a lot I'm sure.

 

[maldini]

I
He also took a job where he gets a super generous match and bonus that goes into the 401K - totalling about 22% of his 6 fig salary. So 20.5 + 25K in for him per year. Me - 20.5 + 6K = 67K per year now.

Congrats on your first million! Wonderful accomplishment!

I have a question on the equations above. What does the 20.5 represent?

 

[LOL!]

Congrats on your first million! Wonderful accomplishment!

I have a question on the equations above. What does the 20.5 represent?

I'll guess 20.5 is the $20,500 contributed to the 401(k) plan since they are at least 50 years old by year-end.

 

[bssc]

Congratulations. Goals are neat things to reach.

 

[maldini]

I'll guess 20.5 is the $20,500 contributed to the 401(k) plan since they are at least 50 years old by year-end.

ahh! I forgot about the new "catch up" rule. Thank that makes sense to me now.

 

[NinjaPigeon]

A coworker sent his DD to Dartmouth with average cost of $42K per year. Her major was social work. He suggested that I should send my daughter there also because of the networking gained from attending Dartmouth.

I didn't think social work was an area that required 42k/year worth of networking... Am I missing something or is he trying to feel better about his incredible expense?

 

[DblDoc]

This was in the Seattle Times this weekend - don't let your kids read it!

Business & Technology | Does going to college pay? Answer isn't simple | Seattle Times Newspaper

DD

 

[FinanceDude]

I didn't think social work was an area that required 42k/year worth of networking... Am I missing something or is he trying to feel better about his incredible expense?

I think what he means is that Ivy League Schools are VERY good at helping alums get jobs, because there is a formalized structure of "get-togethers" that alumni are invited to where they can meet potential employees.......

 

[Milton]

If you want to be a teacher, a state school is fine.

If you want to be anything (other than a snob!), a state school is fine.

Oh well, working an extra two years is almost certainly less painful than arguing with your husband about his daughters' expensive educations. Don't sweat it.

 

[Spanky]

I didn't think social work was an area that required 42k/year worth of networking... Am I missing something or is he trying to feel better about his incredible expense?

I am puzzled by this also. May be it is something something that he can brat about sending her daughter to an ivy league school.