Has 50-Year-Old Couple With $1.1 Million Saved Enough?

A 50-year-old couple with $1.1 million in retirement savings plans to retire at 65 with 15 years remaining. With a 7% net-of-inflation return assumption, the current balance could grow to about $3.04 million, and $50,000 per year of additional savings could add about $1.36 million in future value, totaling roughly $4.4 million at 65. The 7% assumption depends on equity risk premia above current real bond yields, and past stock returns are not guaranteed. Inflation is accounted for using net-of-inflation projections. Key decisions include starting 401(k) catch-up contributions at 50, maximizing HSA contributions with 55+ catch-up, and maintaining disciplined asset allocation such as an 80/20 versus more conservative mixes.

"HSA as a stealth retirement account. Maxing the family limit plus the 55+ catch-up means $9,750 per year for 10 years post-55, or about $135,000 of triple-tax-advantaged dollars at 65. Keep medical receipts and reimburse yourself later. Nothing else in the tax code matches this."

Read at 24/7 Wall St.