I am 42 and the wife is 43. I work as a Parole Officer and can go out in 7 years,my wife is a child services sup. and can also go out in 7 years. House is paid off and we have about $400,000 in savings. We also receive $20,000 net from a family buisness that we don't work in,but invested in years ago. We have a small child age 7. The pensions are good,but not huge around $25,000 each. We should be able to save another $500,000 in the next 7 years. Will this be enough ? God I hope because I hate this job. I work the sex offender cases and it's making me sick.
7 years to go I hope.
- Thread starter Batman
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Welcome aboard, Batman!
You need to know what your projected annual expenses are before you can decide whether your planned savings are 'enough'.
Then run FIREcalc (see link in light green band near the bottom of the page).
omni
You need to know what your projected annual expenses are before you can decide whether your planned savings are 'enough'.
Then run FIREcalc (see link in light green band near the bottom of the page).
omni
Property taxes are around $10,000 per year and we do send our child to Catholic School. I will more than likely go back to work after a break,but not in any kind of criminal justice work. I will check out the Firecalc as you indicated though. Thanks.
MooreBonds
Thinks s/he gets paid by the post
I agree that the first step is knowing what approximate budgets would look like when retired (especially possible educational expenses for your child)...however, I'm not expecting your salaries to currently be in the top 2%, so if you are confident you and your wife will be able to save $500k over 7 years, odds are you don't live too extravagantly.
Two big questions are whether your pensions have any Cost of Living Adjustments, and if you qualify for social security. Either way, you look like you're in a decent position.
Most people on the forum would probably recommend a couple in their 50s to safely assume a 3.5% to 4% annual withdrawal from a broadly diversified portfolio for the rest of their days, as a good rule of thumb to start the planning process off with.
Two big questions are whether your pensions have any Cost of Living Adjustments, and if you qualify for social security. Either way, you look like you're in a decent position.
Most people on the forum would probably recommend a couple in their 50s to safely assume a 3.5% to 4% annual withdrawal from a broadly diversified portfolio for the rest of their days, as a good rule of thumb to start the planning process off with.
Combined we gross about $180,000. The pensions did have Cola,but that is currently suspended. I have no idea if it will ever come back. We do pay into Soc.Sec. and can draw under current rules at age 62. We don't live high off the hog. Savings has always been top priority for us.
Like others said, you should start with expense, not income. Then you can see how much $ will be needed to cover your monthly expenses beyond your pensions (and SS later on). BTW, at what age will you start receiving pensions? And if they're not COLA'd anymore, you'll need more $ in your saving to bridge that gap. Plans for the child's education?
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Does your retirement plan include health insurance (or at least the ability to buy in at a reasonable rate)? If not, that's something you need to factor in - although who knows what health insurance will be like in 7 years.
Good luck and keep saving!
Good luck and keep saving!
