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Anyone else with a 10yr retirement goal with $50-60k post-retirement expenses?
Old 04-19-2016, 07:17 PM   #61
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Anyone else with a 10yr retirement goal with $50-60k post-retirement expenses?

Our situation was much like the OP's when I was age 40 ten years ago in 2006, which seems like last month because time flies. According to my investing journal, we had $400,000 in investible assets then and we have $1.2M now. That is not enormous progress compared to many super-focused people on this forum but we are very likely far ahead of nearly everyone we know in our real life set of peer relationships.

Helps:
- No kids, though not for lack of trying. "OK, Universe, if we can't have kids we can at least become wealthy."
- Pay increases from about $170k in HH income then to $260K today, with corresponding stress of going from managing no one to each of us managing 18+ people.
- Finally maxing our 403Bs since 2010 after a steady climb, then maxing our makeup provisions at age 50. This year we aim to save $76K.
- Selling a house that was more than we needed, earning $200K and reducing the mortgage by 25%.
- Driving cars that are 10 and 14 years old and avoiding consumer debt.
- Getting really good at budgeting through YNAB for the last 4 years, which cut $3,000/month in waste.

Regrets:
- Not doing most of the above in our 30s! We are both losing interest in our careers but have 5+ years to go unless we want to radically scale back lifestyle. DW grew up poor and can't see voluntarily making major cutbacks, though she is not extravagant at all. We communicate well and are on the same page with our plan.

Next up:
- 4.5 years: Secure our health insurance for life through DW's job.
- 5 years: Qualify to tap 403Bs at 55 if I leave employment, though I probably won't.
- 5.5 years: Save aggressively and pay off house.
- In 6.5 years we can tap DW's IRAs.
- If I somehow find it within me to work 9 more years, we should have well over $3.5 million. There's no way I'm working beyond that. Even if I wait that long, we will still be RE compared to all our friends and family, probably. Good luck all!
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Old 04-20-2016, 07:45 PM   #62
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Markola, thanks for sharing your journey. Gives me hope that in 9-10 years I'd have $1.2M which is my lower-end target ($1.5M being the main goal at the moment)- even if there's another 2008-2009 that you experienced.

When you say "Secure our health insurance for life through DW's job" how do you mean?
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Old 04-21-2016, 02:04 PM   #63
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Federal government employees can buy into the health insurance plan for life after ten years employment and DW is a little over half way.
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Old 04-21-2016, 02:58 PM   #64
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I just went back and looked at the post I made in this thread, about two years ago. At that time, I said FireCalc gave me an 88.5% chance of retiring at age 50, in 2020, with a withdrawal of $60K per year. I just re-ran the numbers, and I'm at around a 91.3% chance now.

So, I guess that's not bad, considering that the market hasn't gone up a whole lot since then. At least, not for me, it seems. I did cross over the $1M threshold back in 2014, in August I think. But then it seemed to take forever to break $1.1M! That happened just last month, I believe.
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Old 04-21-2016, 07:46 PM   #65
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@Markola, I didn't know that, thanks for clarifying.

@Andre1969, as long as you're in the two comma club because you only need a couple of good market years to help close the small gap. Thanks for the update!
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Old 04-29-2016, 08:06 AM   #66
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I am 41 with 1M invested capital. Aggressively saving $90K per year. Target spending $100K year. Would like to get 3% SWR in 10 year. Possible? Firecalc says 13 years (100% success) but I think I can do it in 10! Plan B: Reduce target spending.
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Old 04-29-2016, 11:53 AM   #67
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Quote:
Originally Posted by Markola View Post
Federal government employees can buy into the health insurance plan for life after ten years employment and DW is a little over half way.
That's new to me, and I don't believe it to be true.

As far as I understand the system, if you retire as a Fed you keep the same partially subsidized coverage for life. You have to have been in the FEHB system for 5 years (I think) prior to retirement to qualify for continued membership with the eternal subsidy. There is no opportunity for a Fed to "buy in for life" outside of actually sticking around until you are eligible for retirement (57 years old for people currently 50 or younger).

I could be wrong on the 5 year thing, and might be missing some other small requirement, but the key is you have to properly retire.

I'm a Fed. While more than half the premium is paid by my employer, I still pay about $6k/yr myself. No way I stay until I am 57 and just about dead () just for that. Not when Obamacare costs less assuming I keep my MAGI under 4x the FPL for a family ($63k or so).

Of course, the level of O-care subsidy might (and probably will) change between now and when I give it up in 269 weeks (age 51). I'll be keeping an eye on it...
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Old 04-29-2016, 12:03 PM   #68
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Quote:
Originally Posted by Proteus126 View Post
As far as I understand the system, if you retire as a Fed you keep the same partially subsidized coverage for life. You have to have been in the FEHB system for 5 years (I think) prior to retirement to qualify for continued membership with the eternal subsidy. There is no opportunity for a Fed to "buy in for life" outside of actually sticking around until you are eligible for retirement (57 years old for people currently 50 or younger).

I could be wrong on the 5 year thing, and might be missing some other small requirement, but the key is you have to properly retire.
That certainly sounds plausible.

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No way I stay until I am 57 and just about dead () just for that.
Good for you. Grinding it out in a hated job merely to qualify for increased pension benefits is a poor use of one's all-too-limited time on earth.

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I'm a Fed. While more than half the premium is paid by my employer taxpayers, I still pay about $6k/yr myself.
Fixed!
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Old 04-29-2016, 12:13 PM   #69
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I'm a Fed. While more than half the premium is paid by taxpayers, I still pay about $6k/yr myself.
Very, very true! The taxpayers pay, and we are doing our work for the benefit of the active duty people. Don't want to forget either fact.


The way I figure it, I'm definitely underpaid in terms of salary, and the nice bennies and high degree of job security serve to improve my overall compensation to the point where it is competitive.

I'm a subject matter expert in one particular niche. I'm an R&D engineer. That is worth decent sheckles. I'm passing it on and training as I go. The way it should be.
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Old 04-29-2016, 01:34 PM   #70
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Quote:
Originally Posted by Proteus126 View Post
That's new to me, and I don't believe it to be true.

As far as I understand the system, if you retire as a Fed you keep the same partially subsidized coverage for life. You have to have been in the FEHB system for 5 years (I think) prior to retirement to qualify for continued membership with the eternal subsidy. There is no opportunity for a Fed to "buy in for life" outside of actually sticking around until you are eligible for retirement (57 years old for people currently 50 or younger).

I could be wrong on the 5 year thing, and might be missing some other small requirement, but the key is you have to properly retire.

I'm a Fed. While more than half the premium is paid by my employer, I still pay about $6k/yr myself. No way I stay until I am 57 and just about dead () just for that. Not when Obamacare costs less assuming I keep my MAGI under 4x the FPL for a family ($63k or so).

Of course, the level of O-care subsidy might (and probably will) change between now and when I give it up in 269 weeks (age 51). I'll be keeping an eye on it...

It will be true for us, though, given DW's age. Pardon my oversimplification because you're right that it doesn't apply to everyone. See: http://www.fedsmith.com/2012/09/27/y...ity-keep-fehb/
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Old 07-14-2016, 10:39 PM   #71
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Well folks, OP here, with the recent run up in the market my investments+savings finally reached the $500k milestone for the first time today. I'm sure I'll cross it a few times in both directions but it's an important milestone for me- like a shade tree along a long, hot desert road
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Old 07-15-2016, 07:27 AM   #72
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We're roughly in that ballpark. I'm 34 right now, looking to retire in 14 years with more like 60-80k in annual expenses. Currently, we have about $400k in investments (plus $150-$200k in home equity, which might be relevant as we contemplate a downsize around the time of retirement). Currently, we're saving a total of about $65-70k per year (including employer matching in 401k) and I project that we'll hit around $2-2.5M by 2030ish, which should do the trick for us.
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