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36 and late!
Old 07-09-2005, 10:57 AM   #1
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36 and late!

I must say, I am both impressed and overwhelmed with the info on this board.

Now for my story...

I'm 36, single, no kids. My financial picture is as follows:

Net Income: $56 K/yr
Debt: $0/mon
Monthly expenses: $1300/mon (Rent 950, insurance 53, food 100, gas 35, phone/internet 38, cable 13, remaining "other"...i.e. hair, entertainment, etc.


My problem...

I only have about $42 K saved at this point---combination of 401-K and deferred stock options. $30M and $12 M respectively.

Beginning this week---I plan to target saving $35 M per year for 5 years....

Have I screwed uo? I work in a factory and am not banking on overtime as I've gotten the last few years.

Please respond.
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Re: 36 and late!
Old 07-09-2005, 11:06 AM   #2
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Re: 36 and late!

Quote:
Originally Posted by Cindy
I must say, I am both impressed and overwhelmed with the info on this board.

Now for my story...

I'm 36, single, no kids.* My financial picture is as follows:

Net Income:* $56 K/yr
Debt: $0/mon
Monthly expenses:* $1300/mon (Rent 950, insurance 53, food 100, gas 35, phone/internet 38, cable 13, remaining "other"...i.e. hair, entertainment, etc.


My problem...

I only have about $42 K saved at this point---combination of 401-K and deferred stock options.* $30M and $12 M respectively.

Beginning this week---I plan to target saving $35 M per year for 5 years....

Have I screwed uo?* I work in a factory and am not banking on overtime as I've gotten the last few years.*

Please respond.
I don't think you have screwed up. When I was 36 (long time ago) I
had a wife and 2 kids at home, big house, big mortgage and no real savings.
I made good money but we spent it all. Didn't get serious until I was
about 48, so you potentially have a lot of time to work on it (unless you wanted to retire in 2006, that is)

JG
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Re: 36 and late!
Old 07-09-2005, 11:20 AM   #3
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Re: 36 and late!

He,he - Cindy you are doing GREAT! Keep it up and champagne will be on me when you pass the first 100k in a couple of years! Cheers!
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Re: 36 and late!
Old 07-09-2005, 11:51 AM   #4
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Re: 36 and late!

Never too late. Do you have a plan? How much you think you need and when you want to retire? With that income and rent level, you should be able to save a nice chunk.
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Re: 36 and late!
Old 07-09-2005, 12:04 PM   #5
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Re: 36 and late!

Hi Cindy,

I didn't start saving for retirement until I was 35 years old. *I plan to retire when I am 56.

The best move I made was to make a budget to find out what I was spending my money on. *Then I started saving. *It sounds like you have already done this.

I increase my savings every year when I get a raise. * I have this money automatically pulled from my checking account. *I send this money to my 401k, Roth Account, Vanguard for after tax savings and ING for my next car purchase and vacation savings.

I keep extra money in a savings account at my credit union and I have an emergency fund at ING Direct. *

I use a credit card for every purchase that I can and I pay the balance in full every month. *This allows me to build frequent flyer miles.

I used low cost index funds so that I can keep as much of my hard earned money as possible instead of lining the pockets of the fund manager.

I fund my Roth IRA every year. *The rule of thumb is to fund the 401k up to the company match, then fund the Roth. *If you still have enough money to save more, go back and fund more of the 401k.

You are ahead of me at your age. *Keep doing what you are doing and keep reading and learn everything you can about finance.

This board is great, so is the vanguard diehard forum at morningstar:

http://socialize.morningstar.com/New...&t1=1120928282

Also, the Motley Fool is good, but there is a small cost per year. *I find the tips on the Living Below Your Means board saves me more money than what I pay for membership.

http://www.fool.com/

Best of luck to you ! *Hope you continue to post.

-helen
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Re: 36 and late!
Old 07-09-2005, 10:25 PM   #6
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Re: 36 and late!

Cindy you can do it -* Your finances look good -* I think it is all about focusing on what you want.* If you want it bad enough, you'll make it happen.*

I didn't really start focusing on retirement until I was 50 and accomplished it at 56.* I spent those 6 years focused on nothing other than accomplishing retirement.* *Luck played a part too, but look at how much earlier you are starting!*
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Re: 36 and late!
Old 07-11-2005, 02:44 PM   #7
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Re: 36 and late!

Hey Cindy,

How about marrying some older guy and getting a lot closer to retirement
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Re: 36 and late!
Old 07-18-2005, 11:07 AM   #8
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Re: 36 and late!

Cindy, you are *very* close to my situation. We are doing very well compared to our peers, but hanging around here can make you feel poor or behind-the-game sometimes. But we're doing well.
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Re: 36 and late!
Old 07-18-2005, 02:15 PM   #9
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Re: 36 and late!

Quote:
Originally Posted by BigMoneyJim
Cindy, you are *very* close to my situation. We are doing very well compared to our peers, but hanging around here can make you feel poor or behind-the-game sometimes. But we're doing well.
Big Jim, you are right. There are a LOT of people on this board who have a LOT of money. There are a few who are making it on less.

I remember a friend of mine told me a story... a long time ago. He was 25 and this 45 yo was bragging about how much 'more' he had than my friend... my friend replied 'well I hope so, you have 20 years on me'!!!

So, save the 35K and with compounding etc you will be fine.
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Re: 36 and late!
Old 07-18-2005, 03:39 PM   #10
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Re: 36 and late!

Quote:
Originally Posted by BigMoneyJim
Cindy, you are *very* close to my situation. We are doing very well compared to our peers, but hanging around here can make you feel poor or behind-the-game sometimes. But we're doing well.
No question about it, when you read on this board about those folks who have managed to retire at 36, 38 or even 40, with a couple of million in the bank, you can't help but feel that you're WAY behind the curve.

Then again, FIRE isn't a competition with anyone but yourself.
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Re: 36 and late!
Old 07-18-2005, 09:16 PM   #11
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Re: 36 and late!

Cindy,

I am curious how you only have a budget of $100 a month for food - that's $3.33* a day for food - wow. What exactly do you eat everyday that keeps this cost so low. I think this only covers my breakfast (organic blackberry/yogurt protein shake).
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Re: 36 and late!
Old 07-18-2005, 09:56 PM   #12
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Re: 36 and late!

Quote:
Originally Posted by Jay_Gatsby
No question about it, when you read on this board about those folks who have managed to retire at 36, 38 or even 40, with a couple of million in the bank, you can't help but feel that you're WAY behind the curve.

Then again, FIRE isn't a competition with anyone but yourself.
You also have to look at all the facts.* What will make you happy?* $1mil in the bank, $2mil in the bank?* My kid makes ME feel like a millionaire.* So as much as this FIRE thing is important to me, it can never replace the happiness I get from my child, wife, and the rest of my family.* FIRE is a tool to independence so you can do the things you want to do when you want to do them.

I have less than $1mil and don't feel at all "behind the curve."* For now I found that semi-retirement, part-time work, or whatever you want to call it, works very well for me.* Would I want to have everything I have now plus an extra mil in the bank and be fully retired?* Hell ya.* But I don't let what I don't have worry me.* Work with what you have and make it work for you.
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Re: 36 and late!
Old 07-19-2005, 05:54 AM   #13
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Re: 36 and late!

Quote:
Originally Posted by retire@40
* Work with what you have and make it work for you.
Amen brother!

JG
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Re: 36 and late!
Old 07-19-2005, 05:57 AM   #14
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Re: 36 and late!

Quote:
Originally Posted by dimwit
Cindy,

I am curious how you only have a budget of $100 a month for food - that's $3.33* a day for food - wow. What exactly do you eat everyday that keeps this cost so low. I think this only covers my breakfast (organic blackberry/yogurt protein shake).
This can be done. Drink water. Hunt and fish.
Garden. Food stamps. Food pantry. Eat with your folks. Buy at
surplus stores. Yep, it's doable.

JG
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Re: 36 and late!
Old 07-19-2005, 09:00 AM   #15
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Re: 36 and late!

Quote:
Originally Posted by MRGALT2U
This can be done.* Drink water.* Hunt and fish.
Garden.* Food stamps.* Food pantry.* Eat with your folks.* Buy at
surplus stores.* Yep, it's doable.
I am OK with hunting, fishing, and gardening because they are derived from independent self-sustenance.* I would consider that way of living as a proud accomplishment.

I would never retire early by choice if I had to depend on the government giving me food stamps or my family feeding me.* I would consider that way of living as an embarrassing failure.
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Re: 36 and late!
Old 07-19-2005, 10:47 AM   #16
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Re: 36 and late!

Hey Cindy !

We're in similar situations in that I am also 36, but I have done things substantially different.* I've taken some career risk that has paid off, but has also required me to work *very* hard and travel a ton.* It was great at the time, but it's started to take it's toll now.* The good news is that it has allowed me to save quite a nut at this age.* I've just about reached a very low level of FI.* I have this board, the retireearlyhomepage, and others, to a lesser extent, to thank for that.

Now, for your situation, I have some questions on your expenses.* Food was already mentioned, so you should probably look at that.* Here is a simple breakdown of mine for comparison:

mortgage $0.00
prop_taxes $114.00
home ins $56.00
electric $50.00
heat $190.00
water $30.00
misc* $90.00
food $400.00
hm phone $0.00
cable $50.00
cell phone $120.00
car ins $80.00
bike ins $35.00
excise $10.00
gas $225.00
clothes $30.00
gym $45.00
HC $0.00
isp $50.00
entrtnmnt $400.00

total $1,975.00
annual $23,700.00

I am still working, so some of these like food, gas, cell phone, and my gym are up there, but I am sure they will be replaced with other expenses in retirement, mainly health care.* So, I'm suggesting you review your expenses to make sure you have calculated everything, then multiply your annual expenses by 20 or 25 (5% or 4% withdrawal rate) to figure out how much money you should need to retire.* Don't forget to take into account future or capital expenses (kids, house, car replacement, etc) into this equation.

Hope this helps !

-Pan-
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