We have a “safe harbor” employer contribution plan where it’s sufficient to pay at least 3% to all employees, and the officers can reach the $50K+ limit with up to a 25% rate for profit sharing. You can find lots of links with details by googling safe harbor profit sharing.
Crikey. Most people get nowhere near any of that. Honestly, I have no clue on what I would spend all that money on if that was my funds. I don’t know why you guys worry at all about money when you have so much!
@shawbridge, if you consider SS + pension + any positive cash flow from rentals + any part time or other income, add all of those up and subtract from what you and your W predict you will need annually as your expenses. That is the gap your assets and investments need to fill.
For most folks, that number would be far below $200k/yr, but that is the # you and spouse need to estimate and multiply it by the # of years you expect to have remaining in your lives, minus any amount you expect investments to grow.
Ah, the familiar sounds of top-heavy solo DB plans and safe harbors! 
I’m thinking that we could probably go with a replacement ratio between 50-60%, based on our spending habits and the things we won’t be spending our current income on come retirement. We’ve been living on that for a number of years already (when one accounts for tuition, student loans, child care, etc.).
Yea, when paying for mortgage, college for two kids, lots of medical expenses and retirement savings, we had to make do with what was left. That was a lot of juggling and economizing. Fortunately, I was bringing a salary which contributed toward our household and both kids worked as they were able.
***** Warning***** Serious bragging here
Besides mortgage and taxes, I don’t think we spend more than $20,000 a year at this time. That frugal life style enables us to do some meaningful investments since the last tuition bill. The net result is that our net worth is growing much faster than any previous period.
We checked our net worth when we did a consultation with one banker around July last year. I was very pleasantly surprised to realize today that our investment (none cash) accounts have grown more than 6 figures in this 7 months. My shares of MO are just burning.
While I know that may not be anything to a lot of folks here. It is a very big deal for someone like me whose first monthly pay check was about $2.
Looks like we may actually become a middle class family and retire early after all.
Sitting on hands but sooo wanting to type what EVERYONE is thinking.
Wait. What is everyone thinking? Maybe everyone but me, but I am probably clueless.
Jym, I don’t know what everyone else is thinking, but here’s what I was thinkng:
Dad II, if your investments have grown by “more than 6 figures” in 7 months, that means you’ve made a return of more than $1,000,000 in 7 months off your investments. And you’re looking to “become a middle class family”?
@Hayden, that’s grammar with an edge, and I like it :). I think Dad II meant “by more than $100k,” which should of course be referred to as “by 6 figures” instead, but Dad II was too busy counting the money to spend time accurately describing the gain.
Well officially more than 6 figures is 7 figures. So officially Hayden is correct. But insu is probably right too. With the obfuscating and double-speak, we don’t know how big of a brag this “dirt poor” poster is enjoying. My guess- more than 100k but less than $1m.
"Jym, I don’t know what everyone else is thinking, but here’s what I was thinkng:
Dad II, if your investments have grown by “more than 6 figures” in 7 months, that means you’ve made a return of more than $1,000,000 in 7 months off your investments. And you’re looking to “become a middle class family”
That’s exactly what I was thinking. And I was awfully impressed, as I’d love to have that kind of return on assets. I think it’s taken us a good three years to do that. 
I’ll leave you to wonder whether I’m kidding or serious.
IxnayBob, you’re probably right. Whatever the amount, it’s nice to see people making money and getting jobs these days. It seems so many have forgotten what 2008 was like.
Whatever the amount, Dad II, I’m happy your investments are going in the right direction.
I wonder if that $20,000/yr includes the all inclusive Mexican vacations and the expensive camera parts.
If the return is that good, I’d highly appreciate some stock recommendations. Everything looks too overpriced right now.
BD11, My bad, I thought 6 figure is 100,000 and 1,000,000 is more than 7 figures.
Now you can laugh it. To me, it is a very large number.
Well, I could still use a good stock pick, regardless!
BD11, majority of our investment are done by my “private client” banker. We are pretty happy with their job.
In my trade accounts, I have majority of my $$ in MO, in thousands of shares. My first $10,000 purchase has turned into over $30,000 now with dividend re-invested. My goal, as I have discussed on CC before, is to have $20,000 a year income from dividend when I retire. Whenever I have saved up enough, I buy 500 shares of MO.
Due to the natural of my job, I can’t do much day trade. So I just buy and hold. Once the oil is somewhat stabilized, I will diversify into BP and CAT for their high dividends. Your money, your call.
I suppose that MO is Altria Group? They do have a really great dividend, but I’m not sure about betting on tobacco. The usage seems to be declining. The oil stocks seem like a better bet.
Yes, deb922, it does include our annual trips and my camera hobby.
our last trip was an 8 day stay at Iberostar Grand Rose Hall (Jamaica) just before Christmas.
In terms of Camera, my bodies are of really low grade from the pro point of view. My back up is a refurbished D300 and my main body is a very old D700. A pro grade D4s is about $6500 and a used D700 is about $1000, for reference.
I do have top of the line lenses. My Nikkor 200mm F2 VR costs over $5000 new. But I only paid a small friction of that for my used copy (no body would believe how little I paid for that lens). Most the $$ I sent on my camera actually coming from my trades of used equipment. For example, I just sold the 300mm F2.8 I paid $1275 and used for over 2 years for over $1450. I have said on CC before. I buy used gears, clean & repair, repack, and sell them or trade them. Out of all my lenses, only two I have purchased new.
There you have it. Most of my gears are used. I don’t care. You could start to laugh now.