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It says 1 to 1.5x, and you are below 1x. You should be closer to the 1.5 mark, and then continue to aggressively save for retirement. BL is you are slightly behind. Not bad, but behind.

How much are you currently contributing per year? That multiple includes both growth and futures contributions. Let’s say on your current salaries you’re saving 20% pre-tax (so $36k a year) That brings you to $350k before any growth. If we assume a 5% average growth factor over the next 5 years compounding (not guaranteed) along with that $36k/year, you should have $415k. If it grows at 7%, you’d have $445k. As you make more, you’ll also likely be able to set aside a larger percentage of your salary to retirement, so there’s variables involved but yeah $510 isn’t out of the realm of possibility

Adding 6k this year 2022 + going forward for both into an IRA + maxing out the 401k n 403b contributions would supercharge them savings.

The market is really down right now. When it swings back up, you will probably be pretty happy. Make a plan and commit to it. My 401k is down nearly 18% for 2022. I try to tell myself that I’m contributing at a discount, because once this swings positive, the gains should look nice.

You should try to max both at $22,500 for 2023. This is the way. Also, make sure you’re invested in index funds.

Yes, compound growth with periodic deposit is awesome like that. If you had $270k in your accounts (1.5x of $180k), at even a modest 6% growth rate, $270k grows to $361k alone without new contributions. But if you also keep adding 15% of the $180k gross income each year on top of compounding, $270k grows to $513.5k instead.

Much more difficult if you are already behind (need to increase contribution rate to 28%).

FYI I think the 1x is based on your starting income, not what you have now, so if you re-frame the question with a lower 1x, you might not be too far behind.

I’m contributing 12%, employer matches 7%. Wife is contributing 10% and her employer matches 5%. So looks like we’d have to start contributing more to get there. Thanks for your response.

>So should I really expect it to go from $170k to $510k over the next 5 years? That seems crazy and unrealistic to me. What am I missing?

By itself they will not just triple, you have to be intentional on targeting that level.

I’m down 22% and wife is down 18%, I know I should stop looking at it but I can’t help myself.

No problem! If you’d like to play around with how much you need to contribute a year to get there, I like to use this compound interest calculator

For 2022 I did start and max out a Roth IRA, hoping to max again in 2023. Forgot to mention it until your comment.

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Yeah, thinking I need to up our contributions.

You can look at it, just don’t fret about it. You have 30yrs until normal retirement age, so you have lots of time for it to grow. There will be more downturns but upturns out number those.