Join Early Retirement Today
Reply
 
Thread Tools Display Modes
31 and would like to retire in 25 years with at least 1 million..... How?
Old 02-15-2011, 02:36 PM   #1
Confused about dryer sheets
 
Join Date: Feb 2011
Location: New Orleans
Posts: 7
31 and would like to retire in 25 years with at least 1 million..... How?

I'm a 31 year old process operator at a local chemical plant and I would like to retire at the age of 55 or 56 with a minimum of 1 million dollars of liquid assets. I currently have 36k in my 401k and 12k in savings. It is possible for me to reach my goals or perhaps do better?
DevrinB 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 02-15-2011, 02:49 PM   #2
Thinks s/he gets paid by the post
martyb's Avatar
 
Join Date: Nov 2006
Location: Bossier City
Posts: 2,183
I'd be shooting higher than 1 million in 25 years. A million won't be what it is today in 25 years. Of course, it isn't today what it was 25 years ago, either! The good news is you have PLENTY of time to grow your nest egg. You just have to have the discipline to do what it takes. Max your 401k, max Roth IRAs...live below your means, stay out of high-interest debt as much a possible. Don't forget to enjoy life along the way, but keep your eye on the prize...
__________________
“Change is the law of life. And those who look only to the past or present are certain to miss the future.”
-John F. Kennedy

“Hard work never killed anybody, but why take a chance?” - Edgar Bergen
martyb is offline   Reply With Quote
Old 02-15-2011, 03:07 PM   #3
gone traveling
 
Join Date: May 2008
Posts: 3,864
LBYM

Invest every cent you can...Get as much $$ into a company sponsored 401K and/or an individual Roth IRA as soon as you can to take advantage of compounding; time is still on your side in this equation.


Rinse and Repeat every year.


Your fellow swamp dweller Uncle Mick would probably add "pssst... Wellesley."

Lots of financial calculators online that should show you what you need to do on the $$ side, but LBYM is the most important, IMO.








And definitely pay off the Mortgage early....
Westernskies is offline   Reply With Quote
Old 02-15-2011, 03:47 PM   #4
Recycles dryer sheets
Arnie's Avatar
 
Join Date: Dec 2010
Posts: 230
Quote:
Originally Posted by DevrinB View Post
I'm a 31 year old process operator at a local chemical plant and I would like to retire at the age of 55 or 56 with a minimum of 1 million dollars of liquid assets. I currently have 36k in my 401k and 12k in savings. It is possible for me to reach my goals or perhaps do better?
Welcome. Might depend on how much of a head start you have already, marital status, kids, etc. But at this stage, keep control of your budget, LBYM, be smart about debt, be diligent about saving, keep investing expenses low ... and let time be your friend.
__________________

Arnie is offline   Reply With Quote
Old 02-15-2011, 04:29 PM   #5
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Amethyst's Avatar
 
Join Date: Dec 2008
Posts: 12,566
Something many of us have done is to put pay raises (if we get 'em) in the bank, instead of raising our living standard in step with the raise. Even if it is not a big raise, the constant savings can mount up over time. So there is an idea for you.

Also, people on this forum pay close attention to spending habits. If you have any little habits, like buying coffee every day, you might put that few bucks a day in the bank instead. Again, it mounts up over time.

Good luck!

Amethyst

Quote:
Originally Posted by DevrinB View Post
I'm a 31 year old process operator at a local chemical plant and I would like to retire at the age of 55 or 56 with a minimum of 1 million dollars of liquid assets. I currently have 36k in my 401k and 12k in savings. It is possible for me to reach my goals or perhaps do better?
__________________
If you understood everything I say, you'd be me ~ Miles Davis
'There is only one success – to be able to spend your life in your own way.’ Christopher Morley.
Even a blind clock finds an acorn twice a day.
Amethyst is offline   Reply With Quote
Old 02-15-2011, 05:17 PM   #6
Confused about dryer sheets
 
Join Date: Feb 2011
Location: New Orleans
Posts: 7
Thanks everyone for this very useful information. I'm actually aiming for about 5 million but I at least would like to have 1 million. A few people mentioned the Roth IRA so it looks like I'm gonna have to start one. Thanks again
DevrinB is offline   Reply With Quote
Old 02-15-2011, 05:52 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 14,328
Welcome DevrinB.

Start by reading a few books off this list. You can buy many of them used on line. I like the Bogleheads Guide to Investing as a starter.

Investment Books
travelover is offline   Reply With Quote
Old 02-15-2011, 06:07 PM   #8
Confused about dryer sheets
 
Join Date: Feb 2011
Location: New Orleans
Posts: 7
Ok thanks travel
DevrinB is offline   Reply With Quote
Old 02-16-2011, 02:23 AM   #9
Confused about dryer sheets
 
Join Date: Feb 2011
Location: Costa Mesa
Posts: 4
Quote:
Originally Posted by Amethyst
Something many of us have done is to put pay raises (if we get 'em) in the bank, instead of raising our living standard in step with the raise. Even if it is not a big raise, the constant savings can mount up over time. So there is an idea for you.

Also, people on this forum pay close attention to spending habits. If you have any little habits, like buying coffee every day, you might put that few bucks a day in the bank instead. Again, it mounts up over time.

Good luck!

Amethyst
More power to you.But there must be other ways.Typical American on a typical day usually eat out!But ..........let's hope it averages.
Ginamalou is offline   Reply With Quote
Old 02-16-2011, 02:42 AM   #10
Confused about dryer sheets
 
Join Date: Feb 2011
Location: Costa Mesa
Posts: 4
Quote:
Originally Posted by Arnie
Welcome. Might depend on how much of a head start you have already, marital status, kids, etc. But at this stage, keep control of your budget, LBYM, be smart about debt, be diligent about saving, keep investing expenses low ... and let time be your friend.
I'm like you,only,I 'm already here.You're still on your way. It's dreadful,but I'm positive.I have a husband who have 401k.At this time I already got and spending my 401k we are paying our mortgage .Children out the house my son on his own ,however,my daughter we helped only few bucks. I will try to be frugal.That's why I say I may ,if I have a way not to go back to work.if not,then I'l go and find a job to supplement his our income.One thing people back then do not earn two income,I wish it will be the same.Then people will not hordes.Nor do we need to fill our house with stuff we don't really need.
Ginamalou is offline   Reply With Quote
Old 02-16-2011, 05:49 AM   #11
Recycles dryer sheets
robbridg's Avatar
 
Join Date: Sep 2010
Location: Allen Park
Posts: 118
Quote:
Originally Posted by Ginamalou View Post
More power to you.But there must be other ways.Typical American on a typical day usually eat out!But ..........let's hope it averages.
I think you'll find most of the successful people on this forum are not typical.
robbridg is offline   Reply With Quote
Old 02-16-2011, 09:07 AM   #12
Confused about dryer sheets
 
Join Date: Feb 2011
Location: New Orleans
Posts: 7
Yea I'm starting to realize that you guys aren't typical. That's a good thing though. Being typical is what got so many people in so much debt
DevrinB is offline   Reply With Quote
Old 02-16-2011, 09:24 AM   #13
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,290
Quote:
Originally Posted by Amethyst View Post
Something many of us have done is to put pay raises (if we get 'em) in the bank, instead of raising our living standard in step with the raise.
I remember having a similar conversation with a lady friend at work, who was also torn between spending pay raises and increasing savings. What I did was split the difference, allowing myself to spend half of each raise and saving the other half. Inflation was still romping along pretty good at the time so not increasing spending at all was not, I thought, being realistic. She thought that was a good middle ground.
__________________
When I was a kid I wanted to be older. This is not what I expected.
Walt34 is offline   Reply With Quote
Old 02-16-2011, 10:28 AM   #14
Confused about dryer sheets
 
Join Date: Feb 2011
Location: New Orleans
Posts: 7
I have a few co workers that have told me to do that also... Every year we would get a 3% cost of living raise and they suggested I put it in my 401k.
DevrinB is offline   Reply With Quote
Old 02-16-2011, 11:21 AM   #15
gone traveling
 
Join Date: Feb 2008
Posts: 510
Quote:
Originally Posted by DevrinB View Post
I have a few co workers that have told me to do that also... Every year we would get a 3% cost of living raise and they suggested I put it in my 401k.
It's wonderful that you've got such savvy coworkers. At my place, everyone avoids talking about their finances and what they do to achieve comfortable retirement in the future. It's their business and they have a right not to discuss it, so I'm happy I've discovered this forum.
PS. There are also ladies who obviously don't shop at Target or Kohl's, so I imagine what they do with their $$...
aida2003 is offline   Reply With Quote
Old 02-16-2011, 11:24 AM   #16
Confused about dryer sheets
 
Join Date: Feb 2011
Location: New Orleans
Posts: 7
Yeah my co workers help me out alot. Especially the older ones. Those guys have been here 30 years and have a few millions saved. I always pick their brains for info.
DevrinB is offline   Reply With Quote
Old 02-16-2011, 11:41 AM   #17
Thinks s/he gets paid by the post
 
Join Date: Aug 2005
Location: Crownsville
Posts: 3,696
I'd agree with others, that you definitely want to shoot for higher than $1M, simply because of inflation and such.

That being said, over the course of 25 years, I'd say $1M should be pretty attainable. Just looking at my own records, when I was 31, ten years ago, I had about $75K combined (investments, 401k, IRA, savings bonds, checking acct). Now, ten years later, I'm hovering around the $660K mark.

Now, I did get lucky in some instances. Some of that came from selling a condo, where I probably cleared around $75K. And most recently, when the market crashed, I maxed out my HELOC and did a lot of investing while stock and mutual fund prices were low.

And I've done other LBYM methods, such as buying mainly used cars, not eating out alot, having roommates, etc.
Andre1969 is online now   Reply With Quote
Old 02-19-2011, 07:03 PM   #18
Recycles dryer sheets
JmfromTx's Avatar
 
Join Date: Nov 2010
Location: Houston/Galveston area
Posts: 163
Hi Devrin. I'm new here too. The way we did it was to live on my salary and save my wife's. We put it on autopilot in the mid nineties with Vanguard. Check goes in the bank, Vanguard takes it out once a month and distributes it to our IRAs and other mutual funds according to my instructions. I'm an I&C tech and next Friday is my last day at the plant so if I can do it you can do it better with an earlier start. If I had known what I know now at your age I could easily have twice the money I have invested. (Or be broke because I thought I could outsmart the market)
JmfromTx is offline   Reply With Quote
Old 02-19-2011, 07:44 PM   #19
Confused about dryer sheets
 
Join Date: Feb 2011
Location: New Orleans
Posts: 7
Man that sounds like a really good plan but the only problem is that my wife has no income so I gotta do it alone. It's cool though. I figure since I started early I could still save a lot.
DevrinB is offline   Reply With Quote
Old 02-22-2011, 10:58 AM   #20
Recycles dryer sheets
 
Join Date: Aug 2010
Posts: 68
From what I have read and seen, it does make it harder when only one half of a couple works, but it still should not be impossible if they are both willing to work as a team to make things happen. My wife was ill for many years and could not hold a job, so we have had to make it on one income. She is trying to start making a small contribution with freelance writing, but that kind of thing takes a while to get off of the ground. So (unlike some) I do not automatically condemn someone as not being serious about finances if he/she does not tell a spouse to pony up or get out.

Different circumstances just require different strategies. There are some expenses that can be cut a lot with only one person working (transportation, childcare, etc.)

I am actually cheating a little bit to make my plans work - I am in the Army, so if I stick around until retirement, I get a (whisper) pension that will help keep us afloat no matter what my personal savings and investments look like around retirement time. *shrug* Not a universal solution, but it works for me. Besides, I like the uniforms. I never have to figure out what to wear to work.
Joshua is offline   Reply With Quote
Reply

Tags
early retirement, million, retirement


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
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
Book - Get A Life: You Don't Need A MILLION to retire well Midpack Life after FIRE 29 05-10-2011 10:57 AM
OK, 42 years old over a million ca$h, NOW WHAT? Gurus I need your help please!! RAMBO Hi, I am... 9 01-30-2010 07:00 PM
How to Lose 3 Million in 6 Years easysurfer FIRE and Money 50 09-07-2009 05:20 PM
Three Takes on Whether $1 Million Is Enough to Retire sarahsays FIRE and Money 35 06-14-2008 05:23 AM

» Quick Links

 
All times are GMT -6. The time now is 05:56 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.