Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
30 year old whose looking for helpful advice to retire at 56
Old 08-06-2017, 05:11 PM   #1
Confused about dryer sheets
 
Join Date: Aug 2017
Posts: 6
30 year old whose looking for helpful advice to retire at 56

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!
__________________

__________________
MJT411 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 08-06-2017, 05:16 PM   #2
Moderator
rodi's Avatar
 
Join Date: Apr 2012
Location: San Diego
Posts: 8,566
Welcome MJT411 -

It looks like you're doing a decent job with saving - 21% (20k-year savings / 95k-year income)

You're young - so compounding is your friend. And you have the added benefit of a pension qualified job. Nice.

I'd say you're on track for retiring at 56. You're ahead of where I was at age 30... and I retired at age 52.

That said - you're single now... but that might change and your spouse might have other ideas about spending vs. savings... I'd look for a partner that had similar long term goals.
__________________

__________________
Retired June 2014. No longer an enginerd - now I'm just a nerd.
micro pensions 7%, rental income 18%
rodi is offline   Reply With Quote
Old 08-06-2017, 05:48 PM   #3
Confused about dryer sheets
 
Join Date: Aug 2017
Posts: 6
I forgot to add i also pay into my pension plan that i get at age 67 which comes out to about 9k a year.

Thank you for the positive response. I would like to retire possibly earlier than 56 but i figure thats a good age for me to still do some fishing!
__________________
MJT411 is offline   Reply With Quote
Old 08-06-2017, 06:55 PM   #4
Full time employment: Posting here.
 
Join Date: Sep 2013
Posts: 508
You're doing pretty well on the savings side of things. The other big component, though, is to avoid "lifestyle creep" - i.e. increasing your standard of living and expectations as you get older and wealthier. The hobbies, and particularly the spouses, you choose can have a large impact on this - so choose carefully.
__________________
stepford is offline   Reply With Quote
Old 08-06-2017, 07:31 PM   #5
Full time employment: Posting here.
CaliKid's Avatar
 
Join Date: Apr 2016
Location: Cali
Posts: 514
Quote:
Originally Posted by stepford View Post
You're doing pretty well on the savings side of things. The other big component, though, is to avoid "lifestyle creep" - i.e. increasing your standard of living and expectations as you get older and wealthier. The hobbies, and particularly the spouses, you choose can have a large impact on this - so choose carefully.
+1,000
__________________
______________________
Hoping to get out around September 1, 2022... I hope, I hope, I hope. Until then off to work I go....
CaliKid is offline   Reply With Quote
Old 08-07-2017, 10:54 AM   #6
Dryer sheet wannabe
ghh101's Avatar
 
Join Date: Aug 2017
Posts: 17
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.
__________________
ghh101 is offline   Reply With Quote
Old 08-07-2017, 11:09 AM   #7
gone traveling
 
Join Date: Mar 2017
Location: New York City
Posts: 2,838
As everyone else said your off to a nice start. Life does happen between 30 and 56. Marriage/divorce, kids. Layoffs, you know the routine. 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.
__________________
Blue Collar Guy is offline   Reply With Quote
Old 08-07-2017, 12:02 PM   #8
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
pb4uski's Avatar
 
Join Date: Nov 2010
Location: Vermont & Sarasota, FL
Posts: 15,679
Have you modeled out your situation in FireCalc or Quicken Lifetime Planner? If not, that would be a good first step.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
pb4uski is offline   Reply With Quote
Old 08-07-2017, 12:12 PM   #9
Thinks s/he gets paid by the post
MooreBonds's Avatar
 
Join Date: Aug 2004
Location: St. Louis
Posts: 2,086
Quote:
Originally Posted by MJT411 View Post
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!
Find ways to slash your expenses without having a significant impact on quality of life. For instance, buy used furniture and cars. Cook at home sometimes instead of eating out all the time. Shop around a bit more when making large purchases. It's a hell of a lot easier for most people to reduce expenses than it is to arbitrarily increase income on a whim. For every $1,000 you reduce your expenses by, you have a doubly beneficial effect:

1) You have more after-tax income to save.

2) If it is a permanent reduction in expenses, then you need 33x (or 40x) less money in your stash to be able to fund your retirement! With your situation with the pensions, it will take a bit more number crunching to determine the exact benefit, but you get the idea.

Adding 1 and 2 above result in a giant impact to your net worth growth.
__________________
Dryer sheets Schmyer sheets
MooreBonds is offline   Reply With Quote
Old 08-07-2017, 12:55 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 2,943
Do you have to work until age 56 to get the pension? All you have to do is save enough outside of retirement savings to cover years 56-59 then you can withdraw from your 457 to cover your expenses from 59.5 until your 67. After you hit 67, you'll be so loaded you will have a hard time finding ways to spend your money. That's a pension most can only dream of.
__________________
aaronc879 is offline   Reply With Quote
Old 08-07-2017, 01:19 PM   #11
Confused about dryer sheets
 
Join Date: Aug 2017
Posts: 6
No i dont have to till 56 to get the pension. If i work till 56 i get 72% and if i work till age 59 i get 80% my final average salary of my last 8 years working. I can retire earlier but every year i go earlier i lose right around 2.5% so if i would retire at age 55 i would get 69.5% at age 67. I can collect at age 62 but because im not 67 theres a 6% age reduction for each year im not 67. So i figured wait till im 67 to get the maximum amount unless i needed it i would take it sooner. I thought with a 457 plan there was no age requirement or penalty for early withdrawl as long as i seperated from service
__________________
MJT411 is offline   Reply With Quote
Old 08-07-2017, 01:30 PM   #12
Recycles dryer sheets
Dogman's Avatar
 
Join Date: Feb 2008
Location: Chandler
Posts: 50
The most important advise I can give based on many associates, but not me personally is the following:
1.) When (most people do) you marry pick a conservative woman, who understands you are not a sugar daddy, and you are not here to make her life a dream. Don't pick someone too pretty, you will have trouble most likely. Pick someone who has your same values regarding religion, can save, is not a spender, and is not afraid to have sex. Finally does not have credit card debt!
2.) Stay on track always, save for your future. Many young people have the idea of forget tomorrow and spend today.
3.) You don't need everything today, live below your means. But don't forget to have fun.
Investment advise is everywhere, just follow John Bogle's blog and this site, it will all work out in time. Time is your friend.
4.) Get a dog if you have time! The best friend, wife, and investment adviser a man ever had. They just love you and don't care how much money you have.
Enjoy life, I went from $1,500 when I got out of college to multi seven figure net worth, but it took 40 years.
__________________
Dogman is offline   Reply With Quote
Old 08-07-2017, 01:32 PM   #13
Thinks s/he gets paid by the post
 
Join Date: Jan 2006
Posts: 2,943
Quote:
Originally Posted by MJT411 View Post
No i dont have to till 56 to get the pension. If i work till 56 i get 72% and if i work till age 59 i get 80% my final average salary of my last 8 years working. I can retire earlier but every year i go earlier i lose right around 2.5% so if i would retire at age 55 i would get 69.5% at age 67. I can collect at age 62 but because im not 67 theres a 6% age reduction for each year im not 67. So i figured wait till im 67 to get the maximum amount unless i needed it i would take it sooner. I thought with a 457 plan there was no age requirement or penalty for early withdrawl as long as i seperated from service
It's nice to have options. What is the earliest you could retire and still get a (reduced) pension. I know little to nothing about 457 plans. I just thought they were the same as 401K's except for non-profit businesses.
__________________
aaronc879 is offline   Reply With Quote
Old 08-07-2017, 02:40 PM   #14
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 16,196
Quote:
Originally Posted by aaronc879 View Post
I know little to nothing about 457 plans. I just thought they were the same as 401K's except for non-profit businesses.
Not non-profit businesses, but for city and local governments, such as a county, or in some places they call it a township.
__________________
I heard the call to do nothing. So I answered it.
Walt34 is offline   Reply With Quote
Old 08-07-2017, 03:08 PM   #15
Recycles dryer sheets
FlaGator's Avatar
 
Join Date: Aug 2008
Location: The 850
Posts: 288
My compliments on your savings discipline and having a plan at your age. Took me well into my 30's before I figured out what you already know.

+1 on the advice to carefully choose a partner, if you take that path.

Also, stay invested and don't freak out and sell your equity holdings when they decline. If you can stomach it, I'd be at 100% at this point.
__________________
Stay at home slacker dad since 2015
FlaGator is online now   Reply With Quote
Old 08-07-2017, 03:46 PM   #16
Confused about dryer sheets
 
Join Date: Aug 2017
Posts: 6
So the earliest i can retire and collect a reduced pension at 62 is with 10 years of service. Thank you everyone for the advice and positive outlooks. I started saving heavily in my 457 when i found out about my pension not being able to collect later in life which i know im fortunate to have.
__________________
MJT411 is offline   Reply With Quote
Old 08-07-2017, 08:24 PM   #17
Thinks s/he gets paid by the post
MooreBonds's Avatar
 
Join Date: Aug 2004
Location: St. Louis
Posts: 2,086
Quote:
Originally Posted by MJT411 View Post
So the earliest i can retire and collect a reduced pension at 62 is with 10 years of service. Thank you everyone for the advice and positive outlooks. I started saving heavily in my 457 when i found out about my pension not being able to collect later in life which i know im fortunate to have.
2 things on the 457:

1) Investment expenses - make sure you check the investment option expenses. Just like 401k plans, 457 (perhaps even moreso than 401ks) plans often are overflowing with expenses, and sometimes even have insurance/mortality expenses added in too! Could be worth it to simply bypass the 457 and just add to the taxable savings if the options are crappy enough.

2) Tax diversification - always pursue tax diversification. No one knows what future tax legislation will be. In 1901, no one thought there would be a personal income tax. In 1985, no one thought you would EVER have social security payments TAXED (because you paid income taxes on them when you were working). Will ROTHs be subject to some form of taxes? Will any Traditional 401k/IRA be subject to a new tax? Will there be a consumption tax instead of income tax? Will you live in an income tax-free state when retired?

Unless you know for a fact that your income will be one extreme while working, and the opposite when retired, I always suggest people pursue tax diversification just as you pursue investment diversification. You might only be "average", but like index funds, you're guaranteed to not get hurt regardless of what happens.
__________________
Dryer sheets Schmyer sheets
MooreBonds is offline   Reply With Quote
Old 08-08-2017, 04:53 AM   #18
Recycles dryer sheets
 
Join Date: Jun 2017
Posts: 101
My expenses (excluding bar tabs that are now 0) went 3x when I got married had kids and that is with my SO covering half. You're counting on pension (need to stay with company?) and you need to fund gap between retirement and pension. You probably want some after tax savings in there (max out Roth first) but you can always do 72t
__________________
pj.mask is offline   Reply With Quote
Old 08-09-2017, 07:39 AM   #19
Confused about dryer sheets
 
Join Date: Aug 2017
Posts: 6
So im looking at my budget and im going to try to max out my roth ira for this year and possibly looking at opening a brokerage account.
__________________
MJT411 is offline   Reply With Quote
Old 08-09-2017, 12:00 PM   #20
Recycles dryer sheets
Rianne's Avatar
 
Join Date: Aug 2017
Location: Milwaukee
Posts: 172
[QUOTE=Dogman;1920480]The most important advise I can give based on many associates, but not me personally is the following:
1.) When (most people do) you marry pick a conservative woman, who understands you are not a sugar daddy, and you are not here to make her life a dream. Don't pick someone too pretty, you will have trouble most likely. Pick someone who has your same values regarding religion, can save, is not a spender, and is not afraid to have sex. Finally does not have credit card debt!

That is truly special! Goes the same for a woman picking a man. There are such things as sugar mommies. I would check the credit score while you're at it. Lots of people fake it and look good until after the marriage. Needs to be some proof.
__________________

__________________
Rianne 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
45 Year Old Looking for Some Advice WantToRetireEarly Hi, I am... 17 05-28-2017 03:40 PM
18 year old form the UK looking to retire in under 10 years. mrjim Hi, I am... 10 01-16-2014 08:14 PM
28 year old looking for some sage advice FreeLunch Hi, I am... 13 10-10-2012 11:12 PM
can being multi-lingual be really helpful when looking for a job? Keyboard Ninja Other topics 15 08-14-2008 09:54 PM
Helpful Advice in Jan 2000 from a Dirty Mkt Timer haha FIRE and Money 0 11-11-2004 12:50 PM

 

 
All times are GMT -6. The time now is 10:28 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.