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You should move a lot of your $710k in savings to other accounts that grow, such as high yield savings accounts, bonds, and maybe an IRA

Are you maxing out your 401Ks?

No, we are not.

Ok. I would definitely start by doing that, you have a ridiculously high amount in savings; might as well max out the 401K to reduce your tax burden and grow your money more than a savings account

What are your income needs in retirement?

What is your income? What are your monthly expenses? How much do you think you can comfortably spend per month in retirement?

When you say savings, what are they? A savings account? A pile of cash under the bed? Stock market investment?

Start building up passive streams of income. You should keep a safety net anywhere from 3 months to a year of income (I’m sure you can find more concrete values on this sub) and everything else should be invested into some sort of passive income earner for retirement. I’d personally recommend starting an investment account. Unfortunately you don’t have a lot of time for the interest to start accruing, but it sounds like you have a good amount saved already so congrats on that!

Honestly it sounds like you could use a financial advisor. There’s a special type you want to get, called a fiduciary, which long story short essentially means companies can’t pay them to push certain brands, so they act solely in your best interest. Don’t take the advice of random strangers on the internet too seriously, 100% your best course of action is speaking to a professional.

I would ask them about IRAs, investment opportunities, and how to manage your savings to effectively prepare for retirement. Best of luck!

I'm not really sure. We live pretty modestly and are savers.

Look at the prime directive in the right hand bar, it will tell you what to do the with the money.

You don't really give us any info about income vs expenditures so can't comment on how well your are doing. If your savings rate is 20%+, you probably are going to be ok presuming your expenditures are not ridiculously high. But again, without knowing specifics we can't say.

Why not put your info into a retirement calculator, and then figure out what you could live off with using the 4% withdrawal rule (use 3% if you want to be conservative).

Here's a link to the PF Wiki for helpful guides and information.

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Well, you need to figure that out since that’s your target/goal you’re trying to solve for

What is your monthly spend now?

How much and when will you take social security?

The $710k is in a savings account. The $100k in a 401k.

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I’d have both of you max out your 401ks. Everything is on sale right now! Plus see if either of your employers offers an HSA. That’s another $7500 tax free. Back door Roth as well. Check out an ally savings account or a cd if you feel attached to the $710k.

We generally live off of my $4500 a month and sometimes dip $1000 or so into his earnings.

Yes, that is what I am thinking. I think it is 100% time to talk to a Vanguard rep. Husband is very indecisive so we have been spinning our wheels and now its time to get going with this.

Is that $710k in cash?

You’d need about $1.65 million in todays dollars to generate $5500 in monthly income given a 4% safe withdrawal.

If what you have is all invested, you should have 2.2 million in 15 years assuming a 7% inflation adjusted return. If you earn only 5%, you’d end with about 1.68 million

Sounds like a good plan. Be safe out there. And anyone on here who tries to message you personally likely is trying to scam you. Don’t let your good work go to waste, we’re all strangers here and a healthy distance is important on the internet.

Oh yes, 100%!

Yes it is cash.

Get all the qualified investment money you can. IRA, 401k, HSA, anything. It is a limited time opportunity. Max out on everything you can.

Big oof. Need to get that invested

Start here: https://www.reddit.com/r/personalfinance/wiki/commontopics

Recommend creating the IRA (Roth and Traditional) this year (2022) and putting the max deposit in. You can decide on the investments later. I would guess your income exceeds the Roth threshold, so you need to do a backdoor Roth. Agree with maxing out the 401ks. Need a advisor to help run the numbers, but it may be better to use the 401k traditional to reduce current income taxes.

Start maxing out both of your 401k 100%. You still can catch up big time if you max out both. I make far more than my wife who makes $70k but we put something like 28% of her income into 401k so she hits the limit each year. That should be step 1. Step 2 is is moving at least 600k or so into some index funds or stocks to make money off it. You have far to much cash. You’ve actually in theory lost 50k alone due to inflation just this past year. Invest it somewhere whether real estate or stocks.

Step 3 should be figuring out a real budget, ideally where do you want to live, will you stay in the home, how much money etc..

Step 1 and 2 should be done asap though.

Good to know when I speak very soon to the Vanguard advisor. Thanks!

savings is way to high id put that into something so it can grow you wont need all that money when retiring but instead draw a little at time, typically, CD, IRA, etc account's would be great for that.

Why so much cash?

You need to invest. You don't have much in your 401K, way too much in savings, and probably don't have IRAs. Read the wiki link.

Here's a link to the PF Wiki for helpful guides and information.

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Congratulations for being so good at saving! You have quite a good stack of cash piled up. Learn how to invest that in low cost index funds so that you don't slowly lose it to inflation.

Also max out your tax advantaged accounts, otherwise you are paying more taxes than necessary.

Yes, 100%. I am going to get with an advisor that isn't pushing any products ie Vanguard and get it all set up asap.

I'd like to see those numbers flipped: $100k cash and $710k in 401k. unless there's some compelling need to keep that much cash.

quick dirty estimate, $750k would produce about $30k a year income if invested. that's substantially less than you're accustomed to living on. $100k in the 401k will produce about $4,000/year.

is there a pension or something in the background? if this is all your savings, you are likely nowhere near prepared for retirement.