[USER]

I keep seeing 1.5 million or so as peoples estimated projection years way in the future.

We are estimated at over 5 million estimated for our 401k and another almost 2 million on our IRA’s. And worried still that will not be enough in the future market.

[Sonia]

I wouldn’t even know what to do with 5 million tbh. Still baking my own bread and living in my tiny house 😂 it’d just sit there chillin.

[Sunny]

If you had 1.5 million. It would probably keep up with inflation unless you were crazy spending.

[Dave]

While those people are almost certainly underestimating what they will need, you are clearly doing the opposite. Your are basically saying you can never have too much. To each their own in terms of lifestyle but I can’t imagine thinking 7m isn’t going to be liveable.

Perhaps zooming out and little bit and seeing the big picture a little bit might be helpful for your perspective.

[Anil]

Doesn’t all the projected calculations include inflation? I believe the 4% rule accounts for inflation. Personally, I like to keep it to 3% or even 2.5% to account for unforeseen global issues but you got to take the leap of faith sometime.

[Dave]

More than half of our net worth is in real estate, perhaps the best hedge against inflation.

[Heather]

The projections and withdraw percentages assume your portfolio will keep up with inflation. I had seen a graph, I think by vanguard, showing than we needed at least 30% equities in our liquid portfolios to keep up with inflation based on historical averages.

[Debbi]

Who holds your 401k?

Fidelity will do projections that account for inflation and I bet other 401 institutions do too. Ask for a financial advisor. You will need to know your current expenses and expected retirement income (pension or ss).

Worth a look: Is it worth withdrawing IRA to contribute to 401k as self-employed?

[Bonnie]

Following the tips and tricks in the book or audiobook Diary of an Early Retiree: How You Can Do It Step by Step, you can retire with confidence that you will have enough.

[Aaron]

Inflation has been an issue twice in 50 years…most normal times it’s 2-3%. If we have runaway inflation you will have to cancel those vacation plans.

[Oleg]

inflation is important but …if ur house is paid off and your portfolio is invested in the market it should give you some protection…if ur passive income is from rent you will increase it in line with market…just have minimal expenses…and get your income in stable currency…

[Chris]

If $7 million in investments and no debt isn’t enough in the future than you are living a lifestyle that most people don’t need / want to live.

Even 30 years from now, I can’t imagine spending more than $23,000 a month with 0 debt and thinking that’s not enough.

[Author]

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