Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
27 Years Old, Starting to Lay Groundwork.......
Old 03-08-2014, 08:39 PM   #1
Dryer sheet aficionado
 
Join Date: Mar 2014
Posts: 45
27 Years Old, Starting to Lay Groundwork.......

........looking to soak up a much info, expertise, and partake in some good discussion.

I have been lurking on these boards for a few months and more seriously the past month or so, I am truly inspired by many successful stories of other reaching FI and ER at a much earlier age than many people think possible. I just began working full time a little over 3 years ago and I am slowly making sure my ducks are in order so I don't have to play catch up later on in life. Feel free to critique my plan and let me know if I am missing anything. A pleasure to meet you guys and look forward to contributing as much as I can.

27 years Old
2014 will be my 4th year working full time.
2104 will be my 4th year maxing out my Roth IRA
I started doing 10% of my Salary into 401k at the end of 2012, bumped that to 15% this past January(Attempting to bump by 3-5% annually till I reach the max allowable)
Have 6 months living expenses in Cash
0 Debt
No Kids
Renting with my significant Other, not married yet.
Salary is ~50k/yr, She finishes School in May and entry level in her field will be ~$30k/yr
Looking to semi retire by 2037

I know this isn't too much information, If I left anything out. Feel free to ask.
__________________

__________________
2Birds1Stone is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-08-2014, 10:13 PM   #2
Thinks s/he gets paid by the post
Keim's Avatar
 
Join Date: Feb 2007
Location: Moscow
Posts: 1,128
ON my computer the thread title abbreviated to this:
27 Years Old, Starting to Lay...

My dirty mind forced me to open the thread. So many possibilities!

Imagine my disappointment.

OTOH, the OP has the start of a good plan. Avoid debt and bump up that savings rate as able, OP! And, look into low cost indexing, and asset allocation. Wish I'd done that at your age.
__________________

__________________
You can't enlighten the unconscious.
But you can hit'em upside the head a few times to make sure they are really out...
Keim is offline   Reply With Quote
Old 03-09-2014, 09:13 AM   #3
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,511
You are off to a great start and are well ahead of most people.

I gather you're planning to get married. How's your beloved's finances? Any school loans? Those are a biggie to attack right away since they never go away and compound to frightening levels if not paid on schedule. Any other debt she's carrying?
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 03-09-2014, 09:53 AM   #4
Dryer sheet wannabe
 
Join Date: Feb 2014
Posts: 20
Youre really on the right track. I would echo the sentiment of avoiding debt. It sounds like youve done that well so far, but there are times ahead for you where people sometimes shoot the budget (marriage, house, child). Saving 15-20% forces you to live below your means. Well done so far.
__________________
Palimpsest is offline   Reply With Quote
Old 03-09-2014, 10:03 AM   #5
Full time employment: Posting here.
 
Join Date: Dec 2010
Location: Southern California
Posts: 916
Good job so far, keep up the good work.

Is the SO in the same shape with debt? same page on saving?

Just food for thought.
__________________
Aiming_4_55 is offline   Reply With Quote
Old 03-09-2014, 10:07 AM   #6
Recycles dryer sheets
 
Join Date: Aug 2011
Location: Atlanta
Posts: 420
The only thing u have the most control over time is your expenses.
I would live the same as your are now, bank what u are then bank her salary once she starts working.
A lot of people I know said they were going to do this but few ever do. New Cars, bigger house , etc. They turn 40, 50 and realize they are trapped.

good luck ur off to a great start
__________________
SJ1_ is offline   Reply With Quote
Old 03-09-2014, 02:45 PM   #7
Thinks s/he gets paid by the post
38Chevy454's Avatar
 
Join Date: Sep 2013
Location: Cincinnati, OH
Posts: 1,580
Keep up the good start. Continue to max out your 401k, try to save even more if you can. Avoid debt for unnecessary things; housing is OK. The old rule LBYM holds true. The more you save and less you spend results in ability to ER sooner.

Just the fact you are already started in 401k and are thinking about this makes you ahead of most your age. A plan to get to your goal is also more than most have, and will contribute to your success in meeting that goal.
__________________
After Monday & Tuesday even the calendar says, W-T-F...

Semi-Retired 7/1/16: working part-time (60%) for now [4/24/16 changed to 80%]
Retired Aug 2, 2017; age 53
38Chevy454 is offline   Reply With Quote
Old 03-13-2014, 02:08 PM   #8
Dryer sheet aficionado
 
Join Date: Mar 2014
Posts: 45
Quote:
Originally Posted by Keim View Post
ON my computer the thread title abbreviated to this:
27 Years Old, Starting to Lay...

My dirty mind forced me to open the thread. So many possibilities!

Imagine my disappointment.

OTOH, the OP has the start of a good plan. Avoid debt and bump up that savings rate as able, OP! And, look into low cost indexing, and asset allocation. Wish I'd done that at your age.
Hey Keim, I am using Vanguard low cost funds for my Roth and My workplace 401k is through Fidelity so my options there are pretty limited.

Quote:
Originally Posted by Walt34 View Post
You are off to a great start and are well ahead of most people.

I gather you're planning to get married. How's your beloved's finances? Any school loans? Those are a biggie to attack right away since they never go away and compound to frightening levels if not paid on schedule. Any other debt she's carrying?
She has about $25k in loans and no other debt, marriage is definitely in the future but in no rush for now.

Quote:
Originally Posted by Palimpsest View Post
Youre really on the right track. I would echo the sentiment of avoiding debt. It sounds like youve done that well so far, but there are times ahead for you where people sometimes shoot the budget (marriage, house, child). Saving 15-20% forces you to live below your means. Well done so far.
Thank you Pal, I have avoided debt my whole life. Purchased my first 2 vehicles as well as my current car/motorcycle for cash and let some other ****er take the first 3-4 years of depreciation for me. I save ~15% pretax income and 20% post tax income for now while I can.

Quote:
Originally Posted by Aiming_4_55 View Post
Good job so far, keep up the good work.

Is the SO in the same shape with debt? same page on saving?

Just food for thought.
Well, she has school loans, totaling ~$25k so that should be paid off within the first few years of her full time employment. Aside from that she is decent with her money and I just got her to open up a Roth IRA despite still being in her last semester of undergrad.

Quote:
Originally Posted by SJ1_ View Post
The only thing u have the most control over time is your expenses.
I would live the same as your are now, bank what u are then bank her salary once she starts working.
A lot of people I know said they were going to do this but few ever do. New Cars, bigger house , etc. They turn 40, 50 and realize they are trapped.

good luck ur off to a great start
I mean, as of right now we are living like broke college students haha. I have always been very frugal with my money and saving always came fairly easy. I would like to buy a house within the next few years but aside from that I plan on increasing my contributions to tax deferred accounts with the ultimate goal being able to max out both my Roth and my 401k with the maximums. If we could BOTH do that, I think we would be off to a great start, don't know many 20 something year old's putting away $46k/yr to retirement.

Quote:
Originally Posted by 38Chevy454 View Post
Keep up the good start. Continue to max out your 401k, try to save even more if you can. Avoid debt for unnecessary things; housing is OK. The old rule LBYM holds true. The more you save and less you spend results in ability to ER sooner.

Just the fact you are already started in 401k and are thinking about this makes you ahead of most your age. A plan to get to your goal is also more than most have, and will contribute to your success in meeting that goal.
I have 0 faith in social security and I think we live in an extremely uncertain world when it comes to employment. Gone are the days where it is common to work for 1-2 companies your entire working career. I think now more than ever people are not only moving about within an industry but often times changing industries all together.

Right now I work in Retail Management, and do consulting on the side. I am doing everything I can this year to expand my consulting income and hopefully phase that into my main source of income.

For now we just chip away slowly and let compounding work its magic.
__________________
2Birds1Stone is offline   Reply With Quote
27 Years Old, Starting to Lay Groundwork.......
Old 03-14-2014, 09:31 PM   #9
Thinks s/he gets paid by the post
seraphim's Avatar
 
Join Date: Mar 2012
Posts: 1,492
27 Years Old, Starting to Lay Groundwork.......

Sounds like you're on track. Now to keep the faith and avoid temptation lol. It will help for you and SO to find common ground low cost entertainment.
__________________
"Growing old is no excuse for growing up."
seraphim is offline   Reply With Quote
Old 03-15-2014, 05:00 PM   #10
Dryer sheet aficionado
 
Join Date: Mar 2013
Posts: 25
You're off to a good start. I have a similar goal and schedule but am 3 years older than you and aiming for 2034. Don't forget to come back and update us on your progress from time to time.
__________________
readytofire is offline   Reply With Quote
Old 03-18-2014, 09:44 PM   #11
Dryer sheet wannabe
 
Join Date: Dec 2013
Posts: 19
I'm a few years older than you and I'd say focus on your incomes and increasing your savings rate. Those two things will have the biggest impact on your future. Always be looking around in your field, network like crazy and don't burn any bridges, ever. Don't hesitate to leave a good job for a potentially great job especially if it comes with a higher salary. The compounding and long term effects of 10%/yr+ increases in salary are worth the effort.

I like to split my raises with my future self and contribute half of each bump in salary to savings. Don't forget to start thinking about starting a down payment savings as well, a lot of people really get the itch to buy a place when they are in their late 20s/early 30s.

You are on the right path, good luck to you!
__________________
FIREontheMountain is offline   Reply With Quote
Old 10-07-2014, 09:14 AM   #12
Dryer sheet aficionado
 
Join Date: Mar 2014
Posts: 45
Well, I made this post a little over half a year ago......and for the most part things are going great!

Tightened the budget a bit, increased 401K contributions to 25%, also in the works a side business to generate extra income. The misses has finished school and is currently working 2 part time Jobs while she hunts for something in her field.

The only rough patch has been the markets over the past 2 months. I am sure anyone here with a portfolio heavy in equities can feel as well.
__________________
2Birds1Stone is offline   Reply With Quote
Old 10-07-2014, 09:40 AM   #13
Recycles dryer sheets
 
Join Date: Oct 2014
Posts: 354
Hey two birds, go check out wherewebe.com. They ER'd on a 15 year plan. I think you can ER well before 2037. Don't forget about taxable accounts. You will need plenty of $ to bridge the gap between ER (at 40-45) and 59.5 (401K money).
__________________
Bigdawg is offline   Reply With Quote
Old 10-09-2014, 02:17 PM   #14
Thinks s/he gets paid by the post
DFW_M5's Avatar
 
Join Date: Sep 2003
Posts: 4,982
You are way ahead of many your age who have even thought about planning for their retirement. Stay the course, keep increasing savings and spend prudently.
__________________
Doing things today that others won't, to do things tomorrow that others can't. Of course I'm referring to workouts, not robbing banks.
DFW_M5 is offline   Reply With Quote
Old 10-10-2014, 05:29 AM   #15
Recycles dryer sheets
Bryan Barnfellow's Avatar
 
Join Date: Feb 2004
Location: Switzerland
Posts: 338
"If we could BOTH do that, I think we would be off to a great start, don't know many 20 something year old's putting away $46k/yr to retirement."

Precious few I'd say! Save, save, save is the mantra for a successful FIRE.

One thing my wife and I did early on is calculate what the nominal value of a foregone capuccino (for instance) would be 30 years hence, when we would be retired, if we instead invested the cost. For example, in very simple terms, if we don't spend $3.50*2=$7.00 for two capuccinos today and invest it with a 4% annual rate of return, then in 30 years, forgoing the coffee drink on that one day gives us about $23.00 (nominally). It was a nice game to play...Capuccino now or $22 later? We sometimes still went for the coffee; but often thought better of it. These individual decisions added up. For this to work, one just has to be sure to put the money aside and actually invest it.

Or, even better, forgoing going out to dinner when you really don't feel like it but "it's Friday evening and we should". Then, for example, we'd say, dinner out tonight or $130 dollars when we retire (at $40 saved)? Visualization exercises like this kept us on plan for the last 22 years and we are retiring early next July!

We started out by creating "the plan" for early retirement and have had monthly "business meetings" every month since 1992 when we started our plan. She would report on the budget and where things stood. I would report on the investments and projections. As "head of investments" I would push hard for the monthly allocation to be fully available. As "head of budgeting" she would work hard to remind us when we were in danger of running into the ditch.

Sometimes when one of us wanted to buy something not budgeted for, the other would say, "But it's not in the plan". If we still decided to go ahead, we had to agree then and there where the funds would come from in the budget, including from the savings line. The plan became core to our lives (in a very positive way) and provided great comfort when things were difficult at work. It now is a source of joy---one of the products of our 29 year marriage that we can point to with pride. When we reached $1M in invested assets in the early 2000's you can imagine the joy and celebration.

All the best to you as you move forward to your FIRE objective!

-BB
__________________
FIREd, April 1, 2015. My Retirement Benefits Package includes: 6 months vacation, twice a year.
Bryan Barnfellow is offline   Reply With Quote
Old 11-20-2014, 04:43 PM   #16
Dryer sheet aficionado
 
Join Date: Mar 2014
Posts: 45
I appreciate the insight guys and gals!! Since my last post I have discovered MMM. Reached a 50% Savings rate. Interviewed for a new career (should hear back next week) if I get the position it Will be a 50% increase from current pay within 1 year. New FIRE Date is 2027 instead of 2037.
__________________
2Birds1Stone is offline   Reply With Quote
Old 11-20-2014, 08:23 PM   #17
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
brewer12345's Avatar
 
Join Date: Mar 2003
Posts: 16,391
Quote:
Originally Posted by 2Birds1Stone View Post
I appreciate the insight guys and gals!! Since my last post I have discovered MMM. Reached a 50% Savings rate. Interviewed for a new career (should hear back next week) if I get the position it Will be a 50% increase from current pay within 1 year. New FIRE Date is 2027 instead of 2037.
Ah, MMM: land of bullcrap, political correctness and incompetent moderation. Have fun there in limited doses.

A small bit of advice from someone who started saving a year or so ahead of you and is now a semi-retired (read: I don't give a flying reproductive act about my contract job) 41 YO: gather some rosebuds (or some bud/Bud) while ye may. There are lots of things I thought would be lots of fun 15 years ago and I would get to once I made my bank. 15 years later, they are neither no longer fun, or I am too conservative/risk averse to chance enjoying them. Some things are best enjoyed young. Make sure you do so. Oh, and have a couple kids. Best thing I ever did besides marrying DW.
__________________
"There are three kinds of men. The one that learns by reading. The few who learn by observation. The rest have to pee on the electric fence for themselves."



- Will Rogers
brewer12345 is offline   Reply With Quote
Old 11-21-2014, 11:19 AM   #18
Recycles dryer sheets
Sea Kayaker's Avatar
 
Join Date: Aug 2009
Location: Vancouver/Gulf Islands/Baja
Posts: 479
What's wrong with MMM? Or as I like to call it, the Land of Unicorns and Rainbows.

Pretty sure I've seen you post over there Brewer. Good thing too, they could use a dose of your, uh, "unique perspective" over there.
__________________
Retired at 42... the world is my oyster, and I am now in the process of shucking the hell out of it.
Sea Kayaker is offline   Reply With Quote
Old 11-21-2014, 04:40 PM   #19
Full time employment: Posting here.
 
Join Date: Apr 2006
Posts: 925
Quote:
Originally Posted by brewer12345 View Post
....
A small bit of advice from someone who started saving a year or so ahead of you and is now a semi-retired (read: I don't give a flying reproductive act about my contract job) 41 YO: gather some rosebuds (or some bud/Bud) while ye may. There are lots of things I thought would be lots of fun 15 years ago and I would get to once I made my bank. 15 years later, they are neither no longer fun, or I am too conservative/risk averse to chance enjoying them. Some things are best enjoyed young. Make sure you do so. Oh, and have a couple kids. Best thing I ever did besides marrying DW.
I am a bit older than Brewer and not quite RE (even though all of the calculators and my own spreadsheets say I am FI); but, I do echo most of his sage advice above: Specifically, take some time to enjoy life while you are young; your body and outlook will almost certainly change as you age.

Kids aren't for everyone. If you and/or your SO desire them, the rewards can definitely be worth it; but, don't let social pressures persuade you that you need kids. You'll find several happy DINK's here.

Speaking of happy, assuming you have found your soul mate, do everything you can to keep her happy and maintain the relationship which can be worth so much more than money. Conversely, divorce is both expensive and emotionally draining.
__________________
If there's one thing in my life that's missing; It's the time I spend alone
Sailing on the cool and bright clear waters; There's lots of those friendly people
Showin me ways to go; And I never want to lose your inspiration
CoolChange is offline   Reply With Quote
Old 11-22-2014, 12:42 PM   #20
Dryer sheet aficionado
 
Join Date: Mar 2014
Posts: 45
Appreciate that insight very much Brewer and Coolchange.

We are definitely living up life and enjoying a balance. We are outdoors people and do a lot of hiking, camping, motorcycling, spend lots of time with family and friends.

I have been interviewing over the past 4 weeks for a big career change and finally got the offer yesterday. After one year I will see a ~70% pay increase on top of what I make currently. Should make that work/life balance easier as well as push that FIRE Date even closer.
__________________

__________________
2Birds1Stone is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Lay off and FIRE fh2000 FIRE and Money 15 12-02-2010 05:46 PM
Fidelity to lay off 1300 Gotadimple Other topics 4 11-06-2008 08:17 PM
Ken Lay's conviction vacated! 73ss454 Other topics 9 10-19-2006 06:01 PM
Ken Lay (dead) 73ss454 Other topics 33 07-07-2006 02:14 PM
can Ken Lay retire? Will he be posting here soon? dex FIRE and Money 17 02-27-2006 02:39 PM

 

 
All times are GMT -6. The time now is 12:44 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.