Saturday, December 30, 2006

Net Worth and Retirement Saving Status, 2006 Year End

As discussed in this post, I'm reporting my net worth in terms of months of spending. So here goes:

  • Non retirement account savings --> 20.46 months
  • Tax-deferred retirement savings -> 79.37 months
  • Roth IRA retirement savings------> 11.30 months
  • Total --------------------------> 111.13 months
Based on current savings and Social Security credits and subtracting estimated taxes, I estimate my income in retirement based on retiring at the following ages, and stated in terms of replacement of current spending:
  • Age - Current Spending replaced
  • 62 ---- 73.44%
  • 66 ---- 90.63%
  • 70 --- 112.64%
Again, this is based on savings to date. With future savings, I'd like to get the replacement rate well above 100% before I retire, to provide margin for changes in spending for things such as health care and lifestyle changes -- I might want to travel more. I have a few more years to improve these numbers. By the time I reach the age of 62, I expect to be able to have the spending replacement for that age over 100%, provided I can maintain my current savings rates and the stock market doesn't crash.