Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Greetings from clueless in Mars
Old 08-02-2013, 04:07 PM   #1
Recycles dryer sheets
Pleeplus's Avatar
 
Join Date: Jul 2013
Location: Mars
Posts: 135
Greetings from clueless in Mars

No really…. I do live in Mars PA!

I accidentally stumbled across this forum a couple days ago and have really enjoyed all the reading, great advice and different perspectives. I can honestly say that reading this site is addicting! I am 42 and DW (what does the &ldquo” stand for? Not dead I hope! &#128516 is 41. My wife and I both came from family’s that did not manage their finances well and they passed the “gene” on to both of us. Retirement was always an afterthought and a bridge that we would cross when / if we arrived. Living paycheck to paycheck and keeping up with the “Jones’s” was our biggest concern. That is… until 2 years ago when we picked up one of Dave Ramsey’s books and familiarized ourselves with the “debt snowball” concept. Unfortunately, by the time we read it we had incurred a considerable amount of debt (specifically CC debt of ~$50K) and were living beyond our means. Over the last two years with blind determination and scaling back we have completely paid off our CC debt, have created an emergency fund (currently $20K), are maxing out both of our 401k’s, pay extra down on our mortgage (9 years left!) and have even managed to save $8K in a 529 plan for my 4 year old son. Compared to many on this board this may not sound like a ton but to my wife and me it is our first of hopefully many steps in the “right direction”. My wife laughs at me when I tell her that we have “shed our diapers and have put on our big boy/girl pants”.

Upon stumbling on this board, of course, the next thing to pop in my mind is will we ever be able to retire early or did we start too late? Also, I feel like the majority of our dollars are / will be locked in the 401K vehicle and do/will not have enough liquidity to create a nice balance.

Current combined income ~$200K Year

Savings: - $20K cash / stocks

Investments – 401Ks -

Mine $150K contributing $17,500 a year and employer matches first 4% Most funds in a lifestyle 2035 fund

DW $111K in a rollover 401K with Fidelity actively managed account
DW $2K in new 401K (new job) Contributing $17,500 a year no company match

House will be paid off in 9 years and is currently valued @ $340K
No other debt.

I will receive two pensions: one which will pay ~$1200 a month at age 65. The other will pay a lump sum of ~$161,000 and an annuity of $634 a month both at age 60.

Looking at how much we spend I am guessing that we will need around $50K a year to live after retirement. Using the 4% rule and that figure I am estimating that we will need ~$2mm to retire @65. Is this correct, it sounds low?

OK, enough about me…..
__________________

__________________
Pleeplus 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 08-02-2013, 04:11 PM   #2
Thinks s/he gets paid by the post
Free To Canoe's Avatar
 
Join Date: May 2008
Location: Cooksburg,PA
Posts: 1,738
Welcome to our solar system.

Sounds like you got things going in the right direction.

Mark - Venus, PA
__________________

__________________
Free to canoe
Free To Canoe is offline   Reply With Quote
Old 08-02-2013, 05:02 PM   #3
Dryer sheet aficionado
LazyErik's Avatar
 
Join Date: Jun 2013
Posts: 49
Welcome aboard! Don't worry about "starting too late". Stats show that you are way ahead of most people.
__________________
LazyErik is offline   Reply With Quote
Old 08-02-2013, 06:00 PM   #4
Recycles dryer sheets
Larro Darro's Avatar
 
Join Date: Jul 2013
Location: Altha
Posts: 161
Welcome to the forum. The first step is getting started. You have done that. With your income, if you can rein in your spending a little more, FIRE will come before you know it.

The section of Mars you are from will have a lot to do with your projected needs. Some areas of that planet have a much higher cost of living than others. Or so I'm told.

Not sure about PA. Is that in some Parallel Solar System?
__________________
Make good money, five dollars a day.
Made anymore, I might move away.
Larro Darro is offline   Reply With Quote
Old 08-02-2013, 06:00 PM   #5
Recycles dryer sheets
 
Join Date: Apr 2013
Location: Thousand Oaks
Posts: 220
"Looking at how much we spend I am guessing that we will need around $50K a year to live after retirement"

Don't overlook the fact that your expenses will be commensurately lower once you have paid off the house. I somehow managed to miss this when doing my own calculations. Sounds like "sqare one" stuff but still...
__________________
chilkoot is offline   Reply With Quote
Old 08-02-2013, 06:21 PM   #6
Recycles dryer sheets
 
Join Date: Oct 2008
Posts: 295
Looking at how much we spend I am guessing that we will need around $50K a year to live after retirement. Using the 4% rule and that figure I am estimating that we will need ~$2mm to retire @65. Is this correct, it sounds low?

? IF That's $50k yr from your Savings In addition to the other Income? Only need $1,250k right?

and Unless going to Keep the Big House ... IF going to Downsize ( if your Wise, so you don;t have to Do alot of Work to it as you get Old) sell it , spend 50% on a Smaller place in a Nicer -safer-Resort area and can even go buy a Condo for winter.. or use that other 50% to add to your Retirement savings like we did..
Unless you live in Detroit.. In 20 yrs your place should be worth about $850k + and that's only at 5% apy growth value.. Ours grew at over 8% apy , 1st $500k tax free..

You might want to look in the next 5 yrs. for a Townhome to Rent out for a Tax Shelter, 15 yr mortge and it's paid off just when you want to retire. Get one in a Nice Area and With a strong HOA.. That's what we did.. we had 2 paid for by time we retired..

And We sold our home in N. Shre. Sub. of Chicago, for $400k in 03' and bought a 2 bdrm Cottage Home 60 mi North In a Wi. Resort town for $75k, put $25k in, to Remodle it into a No Maintenance place , except a Pair of Scissors to Cut Flowers in the garden..and a Push Lawn mower for the wife to use to cut the grass..
and spent another $50k for a Condo In Fla..for 4 mos Yr/winter , the rest, went into our Retirement savings..and after SS, we had enough that only need 3% yr from it..

If not too good on investing? Balanced Funds and Bonds.. that's what we did.. Didn't loose any $ and that's all we wanted.. Just keep what we put in + Inflation.. We saved more than enough..our last 10 yrs..

Hope that helps!
__________________
Dennis is offline   Reply With Quote
Old 08-02-2013, 06:36 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2013
Posts: 5,325
Quote:
Originally Posted by Pleeplus View Post
Looking at how much we spend I am guessing that we will need around $50K a year to live after retirement. Using the 4% rule and that figure I am estimating that we will need ~$2mm to retire @65. Is this correct, it sounds low?
Will either you or your wife get Social Security benefits? Are your pensions cost of living adjusted?

You might try plugging your numbers in to Firecalc and The Fidelity retirement planner.
__________________
daylatedollarshort is offline   Reply With Quote
Old 08-02-2013, 07:26 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Apr 2013
Posts: 5,560
Welcome Mars, enjoy the knowledge here.

DW and I grew up in Williamsport, until we could escape!

MRG
__________________
MRG is offline   Reply With Quote
Old 08-03-2013, 06:03 AM   #9
Recycles dryer sheets
Pleeplus's Avatar
 
Join Date: Jul 2013
Location: Mars
Posts: 135
Thanks for the warm welcome everyone. I look forward to chatting and learning from the forum. Yes, the wife and I will be eligible for SS and the pension figures are adjusted for the future. I will take a look at firecalc. I noticed that many on the forum have spoke highly of the calculator.

Also, Mars is located in a galaxy far far away..... or as others refer to it in a suburb of Pittsburgh.
__________________

__________________
Pleeplus 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


 

 
All times are GMT -6. The time now is 07:39 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.