Married and age 29. All values below are combined for my spouse and I.
$4200/mo. I have tracked this over the course of a couple years and can provide more details if helpful. Mortgage of $250k and one low interest student loan $5k.
Expected Retirement Expenses
During retirement I'd like to plan on $4000/mo income. Adding in health care but subtracting out mortgage payments. No children planned at this time, and parents are doing well financially. $200/mo is currently being set aside for major home repairs. No major lifestyle changes planned.
My wife and I both have 2nd jobs we enjoy that bring in $15,000/year. We will continue at least that pace.
Pension is $400/mo if working until 40 and collecting immediately.
Pension is $4000/mo if working until 40 and collecting at 65.
SS at full retirement (67) is $4000/mo [EDIT: not sure about this value if employment stops early]
Net Worth - $220k. Retirement Accounts - $165k (75/25 Equities/Bonds. Average ER 0.09%)
401k's - $100k
Roth IRA's - $65k
HSA's - $1k
Checking/Savings - $25k
Saving 50% of our pre-tax income this year. That's a combination of the above funds and paying down the mortgage.
The plan will be to pay off the mortgage in 11 years and save up as much as possible. $25k/year to mortgage payments and $50k/year to retirement accounts. With 5% real returns and an increase of 2% each year towards retirement savings I'd hope to cross over $1mil by 40.
FireCalc shows if spending is $48k/year and $1mil in retirement, 98% chance of making it to age 65. This doesn't factor in extra income in retirement to be conservative.
2015 is the first time I really started looking into FI at an early age. Advice is appreciated. Thank you!
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!
your social security estimate assumes current income until 65, so that is off. (Other calculators, including one at the social security website, allow customization; in any event, I'd recommend not including it at all given your age. I still don't (at 55), but it is beginning to look like we might get a pleasant surprise.)
It is a long way off with many variables. But, you probably can do it, especially if you continue post retirement with the 2d jobs/SEmployment that you apparently enjoy. Either way, if you shoot for that target (even if you choose not to bail at 40), you will put yourselves in fantastic shape for just about any eventuality. (And bravo at the 50%!)
This community was started in 2002 as an alternative to a then fee only Motley Fool. The focus of the discussions is on topics related to early retirement and financial independence. The community is moderated to ensure a pleasant experience for our members.