Join Early Retirement Today
Reply
 
Thread Tools Display Modes
How much longer do we need?
Old 02-26-2014, 12:42 PM   #1
Recycles dryer sheets
 
Join Date: Feb 2014
Posts: 330
How much longer do we need?

I was wondering I think we've incorrectly saved if that's the right thing to say our money for ER. Granted until this January it's something we've never talked about or considered. We always assumed we'd work until 60 and have a ton of money in the bank and everything we paid for home, kids college, wedding, etc.

So now i've started to change my mindset but my DH hasn't yet. We are looking at costs.

Spending $30k mortgage/year, $35k spending/year = $65k/year burn rate but really we want to spend $35-40k/year after ER.
-idea is to not have a mortgage and use current home equity to buy a home cash.

Retirement Savings - $475k
Cash $60k
Taxable Savings $126k

Debts $0, not counting my mortgage or home equity. Let's just say home equity is $200k conservatively.

What do I realistically need saved to retire? $1.32M at 33*40k. but what split of retirement and taxable savings? Does it matter? Would a 25*40 for $1M be too little to ER?

We are 34 and 36.
livingalmostlarge 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 02-26-2014, 12:52 PM   #2
Recycles dryer sheets
 
Join Date: May 2012
Posts: 90
At what age do you plan to retire? Assuming 45 for both and live to 90 that's 45 X 40k = 1.8mm. That's assuming you can get health ins at a real low price and no real emergencies that require long term care that health insurance won't cover.

You should build in a big cushion in case you run out of money when you are 70 and can't work due to medical problems.
hlfo718 is offline   Reply With Quote
Old 02-26-2014, 12:58 PM   #3
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 14,169
Will you have pension and/or SS coming online? That could make for a lower withdrawal rate once they start happening.

We had to model this 6 ways till Sunday to reassure ourselves that we wouldn't run out of money. Our draw is higher in the early years (kids still at home, pre-college), then drops dramatically when my (very small) pension and medium size SS come online. So the SWR of 4% (or 3%, or 2%) don't fit the early years... We're looking at a 5% withdrawal rate for the first few years, then it drops to 2.5%. My spreadsheet shows we're good.

Play around with firecalc - there's a tab for adding in SS, pensions, or off chart spending.
rodi is offline   Reply With Quote
Reply


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
Hi All, how much longer should I wait... impulse Hi, I am... 6 05-15-2010 05:24 PM
How Much Longer Will the Current Bear Market Last? Retire Soon FIRE and Money 31 10-09-2008 02:20 PM

» Quick Links

 
All times are GMT -6. The time now is 08:00 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.