Author Topic: Retirement Readiness 178%! (according to Fidelity)  (Read 7004 times)

Gyosho

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Retirement Readiness 178%! (according to Fidelity)
« on: April 27, 2015, 05:56:26 PM »
My workplace offers retirement accounts managed by Fidelity. I've been shoving as much money as possible in those accounts for the past 15 years - today Fidelity tells me that my retirement readiness is 178%!

The canned message is very funny:

"Gyosho, if you retire from <company> at 65, you could have 178% of your current estimated annual pay in retirement. You may need 80% of pay in retirement."

They obviously don't expect anyone to have enough funds even to generate 80% of their current salary. On the page leading up to the "Retirement Readiness" calculator, they have a recommendation - "consider saving even 1% more of your salary!"

Needless to say, I will be retiring long before I hit 65.


Murdoch

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #1 on: April 27, 2015, 08:23:13 PM »
Haha, that's gold.
Keep up the good work.

Murdoch

Hamster

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #2 on: April 28, 2015, 01:46:12 AM »
In your eventual exit interview, make sure to mention that Fidelity told you that you didn't need to work anymore.

"Fidelity made me quit!"

berlinDamma

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #3 on: April 28, 2015, 06:18:30 AM »
Criticism is wonderful.

Mississippi Mudstache

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #4 on: April 28, 2015, 06:26:10 AM »
Ha. My old company's 401k was with Vanguard. Every time I logged on, I had a dashboard that said something like, "You may be on track for retirement. If you retire at age 65, you could have $212,000/year* in retirement income, which may be enough." And of course I earned under $70,000, so yeah, I think I was "on track".

*if markets perform well

Gone Fishing

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #5 on: April 28, 2015, 07:39:51 AM »
A few years ago our benefits statement predicted I would have $28 million or so at retirement.  They have tempered their model a little since then!

Cougar

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #6 on: April 28, 2015, 08:24:08 AM »

Gysho,

 Is this the fidelity check you did ?

http://www.fidelity.ca/cs/Satellite/en/public/education_planning/calculators/snapshot

 I have a fidelity account also and did this but I dont see my retirement readiness.

dycker1978

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #7 on: April 28, 2015, 08:37:29 AM »
HA HA.. I just did that for the fun of it... it says that I will need a minimum of 2.1 Million to retire at 65... That is awesome.  I am sure that if someone gave me 750000 today that I would be retired tomorrow. 

Gyosho

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #8 on: April 28, 2015, 09:00:13 AM »
My company has a portal into Fidelity that shows the reports, but under "Guidance and Retirement -> Retirement Tools and Planning" I found similar reports. If you are Canadian, you probably have different options.

Cougar

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #9 on: April 28, 2015, 09:43:53 AM »

tracked it down thanks.

not sure of your numbers, but 178% is impressive; i'm no where near that and i estimate i'm only 3 to 5 years from fire.

arebelspy

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #10 on: April 28, 2015, 10:08:39 AM »
HA HA.. I just did that for the fun of it... it says that I will need a minimum of 2.1 Million to retire at 65... That is awesome.  I am sure that if someone gave me 750000 today that I would be retired tomorrow.

Sure, but 750k today (when you are 36) would be equivalent to 2.1MM in 29 years (when you are 65) if the market averaged only 3.61% over those 29 years.. it should do much better than that (or it has, historically--that'd be about a 0% real return).

So they're basically saying you need less than 750k today, you are estimating you need more than they are estimating you'll need, once you actually convert to real dollars.

If you discount their 2.1MM back 29 years at 7%, they're saying you need just under 300k.

It's important to understand and account for the time value of money, not just laugh at "2.1MM sounds like so much" (when it's actually LESS than the 750k today that you cite you could ER on).  :)
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Elderwood17

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #11 on: April 28, 2015, 11:27:43 AM »
On the page leading up to the "Retirement Readiness" calculator, they have a recommendation - "consider saving even 1% more of your salary!"

I get that one in our system too and I want to respond "I am maxing it out and they won't let me save 1% more!" but there is no place to type it.

dycker1978

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #12 on: April 28, 2015, 12:26:32 PM »
HA HA.. I just did that for the fun of it... it says that I will need a minimum of 2.1 Million to retire at 65... That is awesome.  I am sure that if someone gave me 750000 today that I would be retired tomorrow.

Sure, but 750k today (when you are 36) would be equivalent to 2.1MM in 29 years (when you are 65) if the market averaged only 3.61% over those 29 years.. it should do much better than that (or it has, historically--that'd be about a 0% real return).

So they're basically saying you need less than 750k today, you are estimating you need more than they are estimating you'll need, once you actually convert to real dollars.

If you discount their 2.1MM back 29 years at 7%, they're saying you need just under 300k.

It's important to understand and account for the time value of money, not just laugh at "2.1MM sounds like so much" (when it's actually LESS than the 750k today that you cite you could ER on).  :)

Well that is my bad.  The yearly income is posted in todays dollars on the site, so I just looked at the number for projected savings.  I assumed it was also todays dollars, but it is not.  it is future dollars.

They do figure that I will need $56800 in todays dollars per year to retire though, which is still laughable.


minority_finance_mo

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #13 on: May 12, 2015, 04:09:00 PM »
--- Quote from: less4success on April 27, 2015, 10:30:32 PM ---In your eventual exit interview, make sure to mention that Fidelity told you that you didn't need to work anymore.

--- End quote ---

This. You would be a legend!

Gyosho

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #14 on: May 13, 2015, 08:26:02 AM »
Thanks. cFiresim also told me I can retire, but now that I feel free to go at any time, I am actually enjoying my job more.

Got a big promotion in January too, so that inspired me to stick around a while longer, until it is not fun any more.

forummm

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Re: Retirement Readiness 178%! (according to Fidelity)
« Reply #15 on: May 13, 2015, 02:09:56 PM »
I'm 235% ready for retirement (my mood calculator). But my bank account is still <100% ready for it. :)

 

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