37 and looking to graduate in 2027

[Brianeboatman]

I just completed a four year 'air time' purchase. In looking to retire in 2027 at the age of 50. It feels like a lifetime away, but it will be here sooner that I think. My 5 year old son is my 'retirement gauge'. When he graduates, so do I. Yippee!

Any other class of 2027?


Sent from my iPhone using Early Retirement Forum

 

[Brianeboatman]

In 2027, I will have 30 years in, with the credits I've purchased from Nevada PERS.


Sent from my iPhone using Early Retirement Forum

 

[TimSF]

In 2027, I will have the option of taking SS, though a little early.

 

[38Chevy454]

Good to have the goal and work towards that. 13 years may seem long, but a lot better than 23 or 28 to go! With your son growing up the time will fly by.

 

[Brianeboatman]

I enjoy my job at least. The time will be pleasant. Just not as pleasant as living in Washington and fishing myself to death!


Sent from my iPhone using Early Retirement Forum

 

[Brianeboatman]

Nobody else looking to hang it up in 2027?!?!


Sent from my iPhone using Early Retirement Forum

 

[zesty]

If things work out perfectly, I might be able to hit 2027! My official goal is FI in 2028, at the age of 45. With my projections of low return I'll need to save 40-50% gross in order to do that, but it still might be a tad optimistic. I've been able to stick with it for the last 5 years though.

 

[movaly1]

2023 is my goal year, but 2028 is my no later than date. So depending on how things go, it could be 2027.

 

[Brianeboatman]

Nice! Where are you two on your path? Account balances, expected yearly expenses in retirement?


Sent from my iPhone using Early Retirement Forum

 

[dallas27]

Air time?


Sent from my iPhone using Early Retirement Forum

 

[Brianeboatman]

Air time is what they call it when you purchase years of service in a government pension but don't actually work those years. For example, I work 5 years and buy 5 additional years. When I retire, I get the pension as if I had worked for 10 years. It's kinda controversial because it's not offered in private pensions, that I know of. It's a sweet deal for the pensioners too.


Sent from my iPhone using Early Retirement Forum

 

[Chelhxi]

I'm also 37 and planning for around 2027. Don't know exactly how things will go but it's good to have the end somewhat in sight, even if it feels long sometimes. I'm at about 1/4 of my target NW.

 

[dallas27]

Air time is what they call it when you purchase years of service in a government pension but don't actually work those years. For example, I work 5 years and buy 5 additional years. When I retire, I get the pension as if I had worked for 10 years. It's kinda controversial because it's not offered in private pensions, that I know of. It's a sweet deal for the pensioners too.

Sent from my iPhone using Early Retirement Forum

ya, sounds like a curious scheme. I wonder how they discount future returns.

 

[steelyman]

Air time is what they call it when you purchase years of service in a government pension but don't actually work those years. For example, I work 5 years and buy 5 additional years. When I retire, I get the pension as if I had worked for 10 years. It's kinda controversial because it's not offered in private pensions, that I know of. It's a sweet deal for the pensioners too.


Sent from my iPhone using Early Retirement Forum

That's not always true. Service credit may be offered for years you were employed, but did not pay into the retirement system. You are charged the payments plus interest (which could be decades).

 

[Brianeboatman]

True, but the county has always paid my pension payments, not me


Sent from my iPhone using Early Retirement Forum

 

[stepford]

In my 20s-30s I always wanted to retire at 40, then at 50 and finally I got greedy and decided to stick around for the pension at 55.

While my original target dates did go by the wayside, the planning involved was by no means wasted. By saving as if I was planning to retire at a younger age the options as I grew older became much more plentiful. Knowing that I could survive financially gave me the confidence to semi-retire (and work part time) at 48 while retaining the flexibility to get a bit richer over the ensuing few years.

So for the OP: setting a target 13 years out is not at all unreasonable. The aggressive savings strategy you'll employ can only work to your advantage, and as you near your target date you may be able to pick and choose among various options along the work <-> retirement spectrum.

 

[Brianeboatman]

Thanks, stepford.

At at 50, I'll have my 30 years in with the state retirement. On top of that, in saving $1,841 per month. That's right, $1,841...lol.

I currently live in Nevada but will retire in Washington. You think it would be wise to spend $30k on a vacant lot on which we'll build our retirement home in retirement or would it be wise to wait and see if we even live another 13 years? I fear that the land will cost significantly more in 13 years. Am I crazy?


Sent from my iPhone using Early Retirement Forum

 

[zesty]

Nice! Where are you two on your path? Account balances, expected yearly expenses in retirement?

I expect to need about $40k real per year (even though right now I live on about $25-30k). I want to have about 30 times that, and am roughly at the 25% mark. I also have one old pension that'll provide $5000 a year without COLA, and my current one which would give around $20k per year with COLA. That's assuming I stick with the current company for the next 15 years.

Hopefully by investing $40k real per year from my job for the next 15 year, and growing an Adsense/Youtube side business, I'll have enough by 2028 to call it quits (only if I feel like it). Even if I have enough, I might stick with the job for longer if it's still somewhat fulfilling.

Of course, a lot could change in 15 years, with taxes/healthcare/SS. And I don't expect to get married, but I suppose there is a minute chance that could happen and would likely change everything.

 

[38Chevy454]

I would not buy bare land. Invest the money instead, and then in future you can buy the land at increased prices with the increased investment money.

Bare land now will cost you each year in taxes and potential upkeep, while being a lot less liquid in the event of changed plans.

 

[Brianeboatman]

Good advice


Sent from my iPhone using Early Retirement Forum

 

[dallas27]

I would not buy bare land. Invest the money instead, and then in future you can buy the land at increased prices with the increased investment money.

Bare land now will cost you each year in taxes and potential upkeep, while being a lot less liquid in the event of changed plans.

Agreed, creating a sunk cost with negative returns based on a presumed far future value that ultimately would have probably calculated out to a wash anyway creates humungous risk for you. 13 years from now everything could be rezoned, gas station gets built, local employers move out of the area, city government goes bankrupt in a scandle.

Now, if you can buy the land, and rent it to a local farmer for hay to cover expenses, that's a different story, but never buy something that isn't either 1) productive or 2) brings you value through enjoyment/happiness/utility.

 

[kaudrey]

I'm shooting for 2026, so I'm close.

For the land, I'd say it depends. My parents bought land about 15 years before they retired, built a house on it when they retired, and have lived there for the last 20 years. But, they pretty much knew exactly where they wanted to retire and how, and found a lot that met those requirements. There was no upkeep on a 5 acre lot of woods, and taxes were minimal without a house on it.

 

[Brianeboatman]

Interesting! I am looking at 3 acres of wooded property in Washington state, where I was raised. I KNOW that I want to end up there and have plans in motion to be there in 13 years. The taxes (as of today) are approximately $350 per year. My thinking was that I could travel up at least once a year and camp out in the land and make slight improvements to the land. For example, I could plant trees, remove trees, put up a fence, build a shed, etc. Then, in 13 years, I would build the house and rot there. I can't wait. I do understand the liquidity issues and recognize that life happens. I'm not sure what to do. To be honest, I think my emotions are driving my desire to buy. Having that land would make me feel like I'm closer to moving up and retiring.


Sent from my iPhone using Early Retirement Forum