Ask HN: Net worth of software engineer at retirement?

Ask HN: Net worth of software engineer at retirement?
2 by krishanath | 0 comments on Hacker News.
In the best case scenario, what net worth can a typical Google or Facebook engineer (not the highest paid, but the average engineer at Google or Facebook) expect to have if he/she retires at 55? One estimate I have seen is $1 to $2 million USD, which I think is too low [1]. I would estimate it at at $7 to $14 million USD. Here's the back-of-the-envelope calculation I used to come up with this number: Annual salary: $250K. Assume 25% tax, which leaves us with $187.5K, which is about $15K per month. Assume $5000 in monthly expenses, which leaves us with $10K per month investable money. (Note: since net worth includes house and 401(k) I have not deducted mortgage or 401(k) payments). So $10K includes those items.) Now use a compound interest calculator [2] to see what $10K per month at 8% interest (assume investment in S&P 500 and allow for some market crashes) will result in, at the end of 30 years. It is about $14 million, which would include your house and your 401(k). [1] https://ift.tt/2NEHVF8 [2] https://ift.tt/2bLsF9T