“We feel so behind when we look at what we should have towards retirement at our ages.”: Feeling behind on retirement savings, how can we reach $2-3 million for a secure future?

Hey Money Minder,

So, here’s the deal. I’m a 52-year-old dude, my wife is 45, and we’ve got one kid. Our household income is sitting pretty at $185k. Now, let’s talk debts: $280k on mortgages, $0 on credit cards (phew), $9,000 on student loans, and $20,000 on auto loans. Altogether, we’re looking at a whopping $309,000 in debt.

Now, onto the good stuff – our assets. We’ve got an investment property worth $260,000, and our primary residence is valued at $270,000. That brings our total assets to $530,000.

As for retirement, we’ve got a combined total of $521,000 saved up. But here’s the kicker – we’re feeling a bit shaky about our retirement savings. We know we should have more stashed away at our age, and the thought of not being able to retire is starting to creep in.

My retirement is pretty heavily invested in AAPL, around $120,000. I don’t really want to sell and miss out on future gains, but I’m starting to realize I might be a little too invested in one place. On the other hand, my wife’s investments are more balanced but on the conservative side.

So, Money Minder, what’s the game plan here? How do we hit that sweet spot of $2-3 million in savings? We’re not getting any younger, and worrying about ageism in the job market is a real concern. Feeling a bit lost and could really use some outside advice.

Thanks for any help you can offer.

Cheers,

Response from THE MONEY MINDER:

Hello There,

Hello,

It’s understandable to feel worried about retirement, especially when comparing your current situation to future goals. Looking at your financial snapshot, you have a good foundation with a total household income of $185k, manageable debt, and substantial assets and retirement savings. Firstly, congratulations on your disciplined approach so far.

To address your concerns about reaching the $2-3 million range for retirement, you might consider a few key strategies. One option could be to diversify your retirement investments away from being overly concentrated in AAPL and towards a more balanced and diversified portfolio to reduce risk. This way, you can protect your gains while seeking opportunities for growth.

Additionally, you may want to consult with a financial advisor who can help create a tailored plan based on your specific goals, risk tolerance, and timeframe for retirement. They can provide guidance on adjusting your investment strategy, maximizing contributions to retirement accounts, and ensuring you are on track to meet your retirement savings goals.

Remember, it’s never too late to make adjustments and optimize your financial plan. With a proactive and strategic approach, you can work towards building the retirement nest egg you desire. Stay focused on your goals, and seek professional advice to guide you through this process.

Best of luck on your financial journey.

Farewell from THE MONEY MINDER.