Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
need help. what's a girl to do?
Old 02-13-2008, 03:19 PM   #1
Confused about dryer sheets
 
Join Date: Feb 2008
Posts: 3
need help. what's a girl to do?

Hi everyone
I am so glad I found this site. I am a 35 yr old single female from NYC,work as an RN. I have been saving a lot since I graduated from a nursing school. I have paid off my student loans and a car loan. I also bought an apartment in 2003 with 25% down. I hate being in debt so I have been paying down my mortgage.So far, I was told that that was not a great financial move. I still have about 34K left to go.

basic stats
35yr single
income 96K, tax 25% federal,7% state, 8.65% city
195K in retirement accounts( 403b,Roth) (vanguard mutual funds, some indexed)
70K in taxable investment account ( vanguard mutual funds,some indexed)
25K in cash in MM earning at 4.3%
180K estimated home equity
mortgage rate is 4.625% arm, will be adjusting in 2/2009.

Asset allocation of mutual funds are approx. 65% U.S, 35% international. 100% stocks,no bonds.

My job is extremily stressful and burned-out rate among RNs is high.
I'm so wanting to retire early...like at 50 instead of 60 or 65.
so far I have been maxing out 403b and Roth every year. I have no pension but my employer kicks in about 5K/yr into a 403b. I also save 1K/mo into a taxable account. I plan to work 2-3x/mo as a per diem to supplement post retirement income.

I was told I need about 2 mil to retire at 55. The way I am investing/saving, can I retire at 50 with 2 million dollars?
I am not sure where I want to retire..probably in a low cost area. I'd like to keep my apt in NYC after I retire so whenever I want to relocate, I'll have a place. Is this a wise thing to do?

My money in MMF is not getting the same interest as it used to be so should I just pay off my mortgage before it resets?

I also want to travel and do volunteer jobs..like working for doctors without borders, habitat for humanity, peacecorps. I might get married later and prob. adopt or have a kid. Second thought.. I might not.

I know I am a girl with a lot of dreams. I just have to get there to pursue my dreams.

Your help is greatly appreciated. Thanks in advance.
tu

(I apologize in advance for any grammar mistakes, English is not my first langauge.)
__________________

__________________
tulipsnyc 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 02-13-2008, 05:35 PM   #2
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,889
Welcome Tulips, you have asked a lot of questions, but I'll start and I'm sure others will jump in. By the way your English is excellent - better than many with English as a first language.

The amount you need to retire on is dependent on how much you will need to live on. Very generally speaking, you can safely withdraw 4% of your nest egg a year, before taxes and increase it with inflation for the rest of your life. Within that 4% are all expenses, including health care. There are a number of calculators around to help you figure out how much you will have saved, but you need to determine how much you'll need to spend once retired. Firecalc on this site is one possibility. I also like the free Fidelity retirement calculator.

You mentioned your mortgage being reset. What does that mean, exactly? There are numerous "should I payoff the mortgage" threads here, but you many have special circumstances.

Have you considered using your RN for a different aspect of nursing, say move from hospital to home care, physician's office? This change might be a respite for a while. At least you are in a sought after field.

You have a good start with your investments.
__________________

__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 02-13-2008, 05:40 PM   #3
Thinks s/he gets paid by the post
Coach's Avatar
 
Join Date: Nov 2005
Location: Colorado, USA
Posts: 1,127
tulipsync, you are doing a great job! That's a high savings rate and well-controlled debt.

I don't know if $2 million is right or not, and I have my doubts about anyone who told you that it was.

But there is great tool available here called FIRECalc that will really help you answer your questions. There's a link right at the top of this page. It's worth investing some time with it.

It's really terrific to see someone your age thinking about retirement, and doing such a great job so far.

And your grammar was perfectly fine.

Coach
__________________
Coach is offline   Reply With Quote
Old 02-13-2008, 07:21 PM   #4
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Moemg's Avatar
 
Join Date: Jan 2007
Location: Sarasota,fl.
Posts: 10,035
Congratulations ,You are on your way to riches . I'm also an RN . I worked 39 years until burnout did me in . I was able to amass a nice retirement in those years so you can do it ! Good luck !
__________________
Moemg is offline   Reply With Quote
Old 02-13-2008, 08:39 PM   #5
Full time employment: Posting here.
 
Join Date: Oct 2003
Posts: 961
Here's the link the the paying of the mortgage FAQ's. My own feeling is that after I maxed out the retirement plan options [403b + IRAs], I'd rather pay down the mortgage first than invest the money. Paying down the mortgage is a known rate of return while investing the money isn't.

Quote:
I also bought an apartment in 2003 with 25% down. I hate being in debt so I have been paying down my mortgage.So far, I was told that that was not a great financial move. I still have about 34K left to go.

My money in MMF is not getting the same interest as it used to be so should I just pay off my mortgage before it resets?
If it is going to reset/adjust to some undesirable rate, then I'd pay it off.

Quote:
I'd like to keep my apt in NYC after I retire so whenever I want to relocate, I'll have a place. Is this a wise thing to do?
Might want to ask this question over at the "Life after FIRE" board. I'm sure there are people with two homes. Seems like after an awfully stressful career you'd want to reduce the stress level as much as possible, which would include only having one residence.

- Alec
__________________
ats5g is offline   Reply With Quote
Old 02-15-2008, 09:18 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Quote:
Originally Posted by tulipsnyc View Post
Hi everyone
I am so glad I found this site. I am a 35 yr old single female from NYC,work as an RN. I have been saving a lot since I graduated from a nursing school. I have paid off my student loans and a car loan. I also bought an apartment in 2003 with 25% down. I hate being in debt so I have been paying down my mortgage.So far, I was told that that was not a great financial move. I still have about 34K left to go.

basic stats
35yr single
income 96K, tax 25% federal,7% state, 8.65% city
195K in retirement accounts( 403b,Roth) (vanguard mutual funds, some indexed)
70K in taxable investment account ( vanguard mutual funds,some indexed)
25K in cash in MM earning at 4.3%
180K estimated home equity
mortgage rate is 4.625% arm, will be adjusting in 2/2009.

Asset allocation of mutual funds are approx. 65% U.S, 35% international. 100% stocks,no bonds.

My job is extremily stressful and burned-out rate among RNs is high.
I'm so wanting to retire early...like at 50 instead of 60 or 65.
so far I have been maxing out 403b and Roth every year. I have no pension but my employer kicks in about 5K/yr into a 403b. I also save 1K/mo into a taxable account. I plan to work 2-3x/mo as a per diem to supplement post retirement income.

I was told I need about 2 mil to retire at 55. The way I am investing/saving, can I retire at 50 with 2 million dollars?
I am not sure where I want to retire..probably in a low cost area. I'd like to keep my apt in NYC after I retire so whenever I want to relocate, I'll have a place. Is this a wise thing to do?

My money in MMF is not getting the same interest as it used to be so should I just pay off my mortgage before it resets?

I also want to travel and do volunteer jobs..like working for doctors without borders, habitat for humanity, peacecorps. I might get married later and prob. adopt or have a kid. Second thought.. I might not.

I know I am a girl with a lot of dreams. I just have to get there to pursue my dreams.

Your help is greatly appreciated. Thanks in advance.
tu

(I apologize in advance for any grammar mistakes, English is not my first langauge.)
I think you are on a great path. Keep learning about finance, read books like Four Pillars, do searches on this forum, lots of good info on here.

Where was a nice lady like you when I was SINGLE a decade or so ago??
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 02-15-2008, 09:24 AM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
FinanceDude's Avatar
 
Join Date: Aug 2006
Posts: 12,484
Looking at about $265,000 in current investments, using the "Rule of 72", if you added nothing, that money would grow to about $841,000 in 15 years at 8%. So, looking at it another way, you're almost halfway there.

Looks like you save about $32,000 a year, or 1/3 your income, that's awesome. If you do that every year, in 15 years at 8%, you'll have another $869,000. Again, these are projections, but that puts you at $1,710,000.
__________________
Consult with your own advisor or representative. My thoughts should not be construed as investment advice. Past performance is no guarantee of future results (love that one).......:)


This Thread is USELESS without pics.........:)
FinanceDude is offline   Reply With Quote
Old 02-15-2008, 11:49 AM   #8
Thinks s/he gets paid by the post
jIMOh's Avatar
 
Join Date: Apr 2007
Location: Milford, OH
Posts: 2,085
I think you are on pace to a successful early retirement.

Here are some thoughts- you are paying close to 40% in taxes. If you can lower the taxes paid in retirement, I think you will see the date you retire move earlier. Is there a reason you want to be in the city? 214k of house here in Ohio is 2400 sq ft with 4 BR, 2.5 BA and 2 car garage (attached). I am sure you can find a similar deal in PA, NH, or update NY for less than the 214k NYC costs you, and get more for that money.
__________________
Light travels faster than sound. That is why some people appear bright until you hear them speak. One person's stupidity is another person's job security.
jIMOh is offline   Reply With Quote
Old 02-15-2008, 12:44 PM   #9
Full time employment: Posting here.
tightasadrum's Avatar
 
Join Date: Aug 2006
Location: athens
Posts: 802
Welcome Tulips,

Your taxes make me choke! But if your state and local taxes allow you to use your Federal Gross Adjusted Income to compute taxes, you have a significant tax savings with your mortgage I expect. Your effective return on paying off the mortgage would be a no risk 2.8%, not something I would jump all over to invest in. On the other hand, having no mortgage, priceless. One is an analytical financial calculation, the other is an emotional decision. Either way you're already on the winning track. I hope my DD is in as good a shape financially in 15 years when she is 35.
__________________
Can't you see yourself in the nursing home saying, " Darn! Wish I'd spent more time at the office instead of wasting time with family and friends."
tightasadrum is offline   Reply With Quote
Old 02-16-2008, 03:30 AM   #10
Recycles dryer sheets
amy5708's Avatar
 
Join Date: Feb 2008
Posts: 53
Tulips,

Have you thought about renting out your apt and travel nursing now?

I'm an RN, planning to load up the family and travel nurse next year; you never know, we may not be around to enjoy life later on. I was just talking to a traveller earlier at work who travelled all over the country, including Hawaii. She wished she travelled more before settling down. I'm suggesting this now since your single.

You can make good money and get free housing, plus contribute to 401k while travelling.
__________________
amy5708 is offline   Reply With Quote
Old 02-16-2008, 05:18 AM   #11
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Feb 2007
Posts: 5,072
Welcome.

Looks like you have a great start. Just keep at it. You will have the option to stop working one day if you choose.

$2mm at 50 might work. It depends on your expenses. You probably need to work a bit on that type of analysis.

About the apartment... are you intending to stay in NYC? I would suspect that NYC is an expensive area to live. You could consider relocating. But if that is where your family lives, that may not be an acceptable option.
__________________
chinaco is offline   Reply With Quote
Old 02-16-2008, 08:04 AM   #12
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 13,275
Quote:
Originally Posted by Moemg View Post
Congratulations ,You are on your way to riches . I'm also an RN . I worked 39 years until burnout did me in . I was able to amass a nice retirement in those years so you can do it ! Good luck !
Just to say..... 39 years at ANYTHING considered work would probably burn you out...
__________________
Texas Proud is offline   Reply With Quote
Old 02-19-2008, 11:58 PM   #13
Confused about dryer sheets
 
Join Date: Feb 2008
Posts: 5
Tulip,

You rock! Your English is great and you are a shining example of what immigration can be to this country. Why would we not want hardworking, financially inteligent people to come here?

Are you sure about your home equity? $180k seems low unless you are in a rouch area. If you moved you could invest your excess funds, get even closer to retirement and probably be less stressed. In some medical offices there are even opportunities to do interntional charitable works before retirement. You don't have to wait. But that is none of my business.

How much you need to retire depends on how much you need to live. Most people on this forum are clear thinkers. Be skeptical of anyone who tires to give you advice without really knowing you. Do you like beans and rice or Kobe beef? Save as much as you can and check back in a few years.
__________________
getrichslow is offline   Reply With Quote
Old 02-20-2008, 12:07 AM   #14
Confused about dryer sheets
 
Join Date: Feb 2008
Posts: 3
Thank you everyone. Your encouragement is greatly appreciated. To answer your questions, I don't really know how much I need to live on when I retire 15-20 yrs from now on. I have been living way below my means since I came to this wonderful country. Partly because my family and I came here with nothing. I had to put myself through undergrad and grad schools with student loans and schlorships. After college, I worked a ton of OTs and paid off the loans, saved for the down payment, maxed out 403b, Roth etc. I have been living like a college student for the last 10yrs so my expenses were pretty low.
As a single girl, living in NYC can be very expensive. But I found ways to save. I'm not into the latest trendy styles, clothes,handbags, etc. I think I was the last person in NYC to get an ipod last yr. I don't think I'll require a lot in retirement. I'm a simple girl and my goal is to keep living a simple but meaningful life.

Travelover..my mortgage rate is an ARM which means it will be adjusting in 2009. Maybe highter than current rate of 4.625% or maybe lower, don't know.

Coach... 4% of 2mil would give me 80K/yr which is more than I need> maybe I CAN retire at 50 yay!!!

Moemg... I love being a nurse but can't even imagine working 39yrs as a nurse. I'm in critical care. I'm already burning out. help!

Alec... thanks. I'll post my question on life after FIRE board. The reason, I want to keep my apt. in NYC is because of my family and it has been my home since I came to the United States.

Financedude...I save about 38K/yr including employer match. I'll keep adding more as my salary goes up. I know I need to read about financial related books but to be really honest..they make my head spins. I read money mag. occasionally. Does it count?

JimOH...My apt is in one of the outer boroughs of NYC so It is considered relatively cheap compare to Manhattan realestate prices where a similar 1 br apt (750sf) can cost 600k+. 1br apts in my neighborhood sell for 220-275K. I know I can buy a really nice big house in other parts of the country, that's why I am considering moving to a place where taxes are lower.

Tight...I hope your DD will be in great shape when she is 35 too.

Amy.. I thought about renting my apt out and travel too. travel nursing... sounds good. After my mortgage is paid off, I'm thinking of getting out of acute care...maybe teaching,travel nursing or case management.
tu
__________________
tulipsnyc is offline   Reply With Quote
Old 02-20-2008, 08:29 AM   #15
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
travelover's Avatar
 
Join Date: Mar 2007
Posts: 9,889
Quote:
Originally Posted by tulipsnyc View Post
................ I know I need to read about financial related books but to be really honest..they make my head spins. I read money mag. occasionally. Does it count?.................
Reading Money magazine delayed my FIRE date by several years - financial porn.

The books in the link below will give you more practical advice. My current favorite is the Bogleheads book. I'd really encourage you to read at least one of these books and if you have questions, post them here. It really is not complicated, but it is very important to get a basic knowledge of investing. No one cares about this as much as you.

Bogleheads :: View topic - Books
__________________
Yes, I have achieved work / life balance.
travelover is offline   Reply With Quote
Old 02-20-2008, 09:07 AM   #16
Full time employment: Posting here.
 
Join Date: Oct 2003
Posts: 961
Quote:
Originally Posted by travelover View Post
Reading Money magazine delayed my FIRE date by several years - financial porn.

The books in the link below will give you more practical advice. My current favorite is the Bogleheads book. I'd really encourage you to read at least one of these books and if you have questions, post them here. It really is not complicated, but it is very important to get a basic knowledge of investing. No one cares about this as much as you.

Bogleheads :: View topic - Books
I second that. Virtually every "financial magazine" is about selling magazines, not educating you about investing. I occasionally leaf through a copy at the library or Borders for fun, just to see what "the next great stock buys for the next 10 years" are.

A great way to ease yourself into personal finance/investing is through the dummies books:

Personal Finance for Dummies

Investing For Dummies

Mutual Funds For Dummies

I started out with those and then went onto John Bogle's Common Sense on Mutual funds, which is excellent, as is the The little book of common sense investing. Also Frank Armstrong's free book,Investmetn Strategies for the 21st Centurty is good.

Since you're into LBYM, most of these books can be found at local libraries, which I'm sure NYC has a plethora of.

- Alec
__________________

__________________
ats5g 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
It's Simple Economics (What's a girl gotta do to get a sugar daddy?)... Calgary_Girl Other topics 8 10-18-2007 08:25 PM
Hello-from young married girl with big financial independence dreams Miss_Lala Hi, I am... 24 09-21-2007 10:42 AM
Girl Interrupted Martha Other topics 25 07-30-2007 09:24 PM
We are having another baby girl! Now, what to name her????? laurence Other topics 71 02-01-2007 04:36 PM
You can't drink a fat girl thin John Galt Other topics 9 01-06-2005 02:07 PM

 

 
All times are GMT -6. The time now is 08:26 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.