‘Despite all my efforts, it doesn't seem like enough’: I'm struggling to save for retirement, buy a home, and start a family. How can I make my financial goals a reality?

Hey Money Minder,

I’m just looking for some feedback on my current financial situation. Here’s a little rundown:

I’m 37 years old, living in Houston, single with no kids, no debt, and no home. I’ve been working in finance since I was 22 and recently finished a grad program. Right now, I’m working in account management at a fintech company, making around $125K a year plus a bonus.

I max out my 401K contributions and have around $292K saved up. I also have investments totaling around $71K split between long-term and more liquid assets. I contribute $500 a month to those investments.

I’ve got about $3K in cash savings, but with living at home for the next six months, I’m on track to save around $20-21K by the end of the year. I also have life insurance with a $300K benefit.

My main worries:

Will I have enough saved for retirement by 50?
Can I ever afford to buy a home in Houston?
Can I afford to raise a family while still saving for myself?

My retirement goal is to save at least $3.5 million by age 65 for an annual income of around $100K.

So, how do you think I’m doing so far, Money Minder?

Thanks for your input,
Seeking Financial Guidance

Response from THE MONEY MINDER:

Hello There,

Hello there,

I appreciate you sharing your financial situation with me. Firstly, I would like to commend you on your dedication to your career and financial planning. It seems like you have been quite proactive in managing your finances so far. Now, let’s address your concerns.

I understand your anxiety about retirement and the pressure to save enough to retire comfortably. Saving $3.5 million by the age of 65 might seem like a daunting task, but it’s important to break it down into smaller, achievable goals. Consider meeting with a financial advisor to create a personalized retirement plan and investment strategy that aligns with your long-term goals.

Regarding homeownership, it’s a common challenge faced by many individuals, especially in expensive cities like Houston. Saving diligently and exploring different housing options, such as suburbs or other cities, may help you achieve this goal in the future. Remember, homeownership is a significant financial commitment, so it’s essential to weigh the pros and cons carefully.

As for starting a family, it’s natural to feel anxious about the financial implications. Balancing personal goals with family planning requires careful financial planning and budgeting. Consider discussing your concerns with a financial planner to explore strategies for achieving both personal and family-related goals without compromising your financial stability.

In conclusion, maintaining a forward-thinking and practical approach to your financial goals will help you navigate through these challenges. Remember to stay focused on your financial objectives, seek professional advice when needed, and continue making informed financial decisions. Keep up the good work, and stay committed to your financial journey.

Best regards,
THE MONEY MINDER