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Old 08-09-2017, 01:00 PM   #21
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Originally Posted by MJT411 View Post
Hi so im a 30 year old single man a d i want to retire at age 56 i make 95k a year who has the following...in my 457 plan i have 155k, my roth ira 10k, cash 20k, im fortunate to have 2 pension plans but... one i will get around 1000 a month when i turn 65 and the other i will get 72 percent of my final average pay when im 67 with 1.5% cola, i have no social security...the only debt i have is my house which i purchased recently for 200k and i owe 160k. Currently i max out my 457b 18k every year and i contribute 2k a year to my roth ira. Ive read alot of posts on this site and i feel the people on here can help point me in the right direction. Thank you!
You're doing great. Your house will be paid off by then. You should have over a million in the 457b, but you can't collect until 59.5 right? Keep adding to the cash for a cushion


Also. Think about a prenup.......you don't want to get half your legacy stolen by a greedy ex wife
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Old 08-09-2017, 01:04 PM   #22
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I agree on the lifestyle creep. I don't have a pension but I was saving quite a bit at 30 and had to resist the temptation to spend more. I made some blunders along the way but I always tried to learn from them.
Lifestyle creep for sure. I am 36 and saving > 35% of Gross, have similar #s to you but instead of the pension you paid into, I have income property. I am on my way to my first pension which honestly wouldn't be much with my plan to FIRE at Fifty!

My family, father, wife all give me reasons why this won't happen, I will get bored, I won't have "enough".

If I can save 75k/yr for next 15yrs that is 1.5mil + any market gains. Add to it a couple of paid off mortgages debt free, and I see no reason why I can't live off some cash reserves for a while. My father's estate will begin paying at 50, but that is by no means why I would quit, I had planned this before I even knew he had money.

I am already over 1/10th of the way there. If you are crafty with XLS, you can create a burndown chart month/month or yr/yr to see your progress of where you should be (green line) and where you are (orange line). Helps me stay inspired seeing that sucker sky rocket with each raise.

Nice work friend.
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FIRE in 2031 @ 50yrs old (+/- 2yrs) w/ a hypothetical $2.5mil portfolio, 3 appreciated homes worth $1.0mil and rental income to fund my gap years until RMD. Assets will go to an inherited IRA where I plan on watching the investments grow until I die or the trust gets executed.
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Old 08-09-2017, 02:20 PM   #23
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Good Job! As others have mentioned, watch out for lifestyle creep. Somewhere in our early 30's, the DW and I decided our standard of living was satisfactory. From that point forward, we only increased our spending for (our) inflation. All other increased income from raises and bonuses went into savings never to increasing lifestyle. Our savings rate went up significantly over the years.

FN
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Old 08-10-2017, 03:30 PM   #24
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Agree with others - you're doing great so far. I recommend not only tax diversification but also multiple income streams. If you leave your company or it is acquired or its financial outlook changes, you may or may not get the pension you're counting on. Having a healthy taxable portfolio outside of your employer is a good idea. May also want to consider rental property or hard money loans so you can get an income stream that isn't closely connected to the financial markets or your employer.
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Old 08-10-2017, 06:46 PM   #25
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We have a 457 and we can withdraw now without a penalty. Husband is 52.
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Old 08-10-2017, 07:00 PM   #26
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You're about where I was around 35, and we retired at 47.

Don't consider wife/children as "lifestyle creep" but do factor in that a family might result in a change of specific straight line plans. Life isn't all about racing to the finish line.
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Old 08-11-2017, 02:11 AM   #27
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I don't want to discount the fundamentals of LBYM but what gave perspective to my FIRE plans was tracking my spend and building a spreadsheet of all my finances tracking the year end results and forecasting what my numbers would be each each year. That kind of gave me metrics on where I was on my FIRE schedule, if I needed to course correct or could let off the gas a bit, and where I could/needed to make adjustments.

The other aspect is that I started to think what I wanted to do in retirement to ensure my numbers matched up with my retirement goals. In theory, I suppose, you can stay the same person, spending the same amount of money as you age. But the risk is that your interests, priorities, and goals in life may evolve and get more refined over time.
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Old 08-11-2017, 05:34 AM   #28
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I hope to live to see your post at 56 that you retired and can live like a king for the rest of your life.
I hope to see his post too when he's 56. I'll be (or should have been) 91 at that point, so I really, really hope I can read his post!
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Old 08-11-2017, 07:01 AM   #29
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Originally Posted by MJT411 View Post
Hi so im a 30 year old single man a d i want to retire at age 56 i make 95k a year who has the following...in my 457 plan i have 155k, my roth ira 10k, cash 20k, im fortunate to have 2 pension plans but... one i will get around 1000 a month when i turn 65 and the other i will get 72 percent of my final average pay when im 67 with 1.5% cola, i have no social security...the only debt i have is my house which i purchased recently for 200k and i owe 160k. Currently i max out my 457b 18k every year and i contribute 2k a year to my roth ira. Ive read alot of posts on this site and i feel the people on here can help point me in the right direction. Thank you!
I retired 9 years ago at 45. The ER plan I put together was in 2 parts. The first part was getting from age 45 to age ~60, the years I would be relying only on my non-retirement accounts. The second part was beyond age ~60 when my "reinforcements" would kick in. Those included unfettered access to my rollover IRA, my frozen company pension, and Social Security.

The further away from age ~60 you want to retire, the more money you will need in your non-retirement accounts to get to you to age ~60 when you will have unfettered access to more of your money. I was able to move half of my retirement account money (company stock) to my taxable account (without taking a huge tax hit) and that provides me more than enough monthly dividend income from a big bond fund to cover my expenses.

As long as I get to age ~60 intact financially, I will be fine because my financial outlook only gets better after that.

Like you, MJT411, I am single. Being that and childfree and debt-free (paid off the mortgage at age 35) were big reasons as to why I was able to retire 9 years ago at 45.
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Retired in late 2008 at age 45. Cashed in company stock, bought a lot of shares in a big bond fund and am living nicely off its dividends. IRA, SS, and a pension await me at age 60 and later. No kids, no debts.

"I want my money working for me instead of me working for my money!"
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Old 08-11-2017, 04:40 PM   #30
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Originally Posted by scrabbler1 View Post
I retired 9 years ago at 45. The ER plan I put together was in 2 parts. The first part was getting from age 45 to age ~60, the years I would be relying only on my non-retirement accounts. The second part was beyond age ~60 when my "reinforcements" would kick in. Those included unfettered access to my rollover IRA, my frozen company pension, and Social Security.

The further away from age ~60 you want to retire, the more money you will need in your non-retirement accounts to get to you to age ~60 when you will have unfettered access to more of your money. I was able to move half of my retirement account money (company stock) to my taxable account (without taking a huge tax hit) and that provides me more than enough monthly dividend income from a big bond fund to cover my expenses.

As long as I get to age ~60 intact financially, I will be fine because my financial outlook only gets better after that.

Like you, MJT411, I am single. Being that and childfree and debt-free (paid off the mortgage at age 35) were big reasons as to why I was able to retire 9 years ago at 45.
Thanks for the reply thats what i need to do is figure out my first part of when i want to retire then the 2nd part. That makes alot of sense. I say 56 but maybe i can retire early if the numbers work for me....
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Old 08-11-2017, 05:55 PM   #31
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Buy your toilet paper on sale, wrt A Tobias.
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Old 08-14-2017, 11:21 AM   #32
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I just turned 31 and can say you're on a better track than most. Don't have kids, unless you actually want to. But do NOT do it jus tbeacuse you feel like that's what is expected, bucking to some sort of antiquated societal norm. That'll shave decades off your ER path.
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