CLASS OF 2027 to 2037

[2035]

Quote:

Originally Posted by KM He retired on 12/31 and as of Friday - I am done. When you hit your number - it will feel really good!

May you have a long and prosperous retirement!

[Sesq]

I am nearly 41, and 2027 is pretty close to my target (age 55). I'd love to do age 50, but I don't think I'll make it. I have two kids and my wife stays home. My job is demanding and erratic in its stresses, so its unlikely my wife will re-enter the workforce in a high dollar fashion when both kids are in school full time in a couple years.

Having read in this thread a few folks commenting on how hard it is to accumulate assets, I read in this forum (pretty sure) an analogy that its like a multi-booster rocket. First 100K is the first stage, massive fuel spent to break gravity's hold. Second stage (500K), gets easier, you have some momentum, your career is hopefully on track, you've learned good savings habits. Third stage (1M) is easier still, the prime of your career, some compounding may creep in, etc. Fourth stage (FI) easiest of all, gravity is weakest, compounding starts to drive your results.

I am about at the halfway point between stage two and three for my total net worth. I will say I found stage 2 to be just as hard as stage 1, as 2008 really kicked my butt (both stock and real estate losses as I moved for a job).

Since I broke the 500k barrier, things have really moved. That probably means we are due to give back 10-20% in the market, but most of the growth has been from solid compensation growth and related savings. I get a lot of incentive comp, so year to year my savings rate moves. I max the Roth 401(k), pay extra on the mortgage, I converted TIRA's in 2010, and I am starting back-door roth's this year.

Good luck to the brethren.

[2035]

Quote:

Originally Posted by 2035 I think to keep each other motivated, we should post milestones at the end of the year...and more often as achieved. For example, I got a late start, so I reached $100K (401, Roth) last January at 38, now I'm at $145.5K (401 - 120.25K, Roth - 25.25K). In addition to maxing out my 401(k) and Roth, I also buy $50 in I Bonds every two weeks. This represents 32% of my pay (company kicks in an additional 4.5%)...not an easy feat for a single gal in SF, but I have my eyes on the prize!!!!

Greetings Folks,

I know we're not quite at the end of the year, but I'm posting my new milestones/stats now, as I'll be very busy until the end of the year.

A lot has happened since I last posted in the spring. I bought a single family home in the East Bay. It was a short sale, so I got it for much less than the seller paid for it 10 years ago. I forgot how expensive owning a home can be, especially for a single modest-income earner. It's old, but has gone through a few updates. My mortgage is only $300 more than my old apartment in the City, but there is always something to fix or update. All in all, I'm a proud homeowner and like all of my neighbors (except the German Shepard next door who barks at everything). My commute costs have quadrupled, but I'm near a quaint downtown with restaurants and shopping. It's definitely not my forever home, but I'll probably stay for a couple of years (2-5) and build a real emergency fund, plus play money.

My retirement numbers are pretty much the same because I borrowed against my 401(K) and took money out of my Roth. I'm not able to contribute as much to the 401(k) because I have to pay back $215 every two weeks, but it's basically the same amount as before (if you include the repay). In April, I borrowed $25k from my 401(k), reducing the balance to $101K, but since then I've put in $10K from all sources and I'm back up to $124k. Had I left the money in (no house), I'd have about $160K. I know for sure that I have more than that made up in equity, so I don't beat myself up too bad, and I am paying myself back. Conservatively, the house has gone up by 20%. I took $8.5k from my Roth and only put in about $500 since April, but it's back over $25k.

Lessons learned (Positive and Negative)

1. I'd rather rent an apartment in a artsy, urban area than live in the burbs (might feel different if I were married to a handy man). I like the culture and convenience of the City. Plus it's so expensive managing a house with one income.

2. For the time being, I think I made a smart move. The rents in SF are going through the roof and tons of people are being priced out of the city. My old place went from $1,433 to $1,895 and that is dirt cheap still for City now surpassing NYC.

3. I can't garden to save my life, and I don't love it either...though I have a nice little container garden going in my front yard and porch.

3. I now see the value of cash/emergency funds. I'm slowly working to build one up.

4. I bought at such a deal, that I'm almost certain to walk away with at least $50K after loan repay and CC payoff...shouldn't type that and jinx it.

5. I'll probably leave my job after I sell my house too and maybe move back to Seattle with healthier 401(k), Roth and 18 month emergency fund. Oh and travel a little, just a little...like Europe for the first time. I'm basically at 5 years, so I'll get $475/mo if I leave tomorrow and $100+ more for every year I stay.

6. Retirement savings are important but living life fully and seeing a little of the world is important too. I don't want to solely focus on "one day" in the future. A few colleagues have dropped dead recently and they were youngish, from cancers, sudden heart attack and stress.

New Retirement Savings Plan:
401(k): $1,650/month
Roth: $200/month (beginning January 3rd) - less but still something
Cash: $100/every two weeks

No change in retirement date.

Well, enough about me ....how are you folks doing?

[iam21177]

My H and I are 35 and 37. This year has been pretty good so far. We are at $650k in retirement savings. We are putting away 33% of our money into pre- and post-tax accounts.

I think we'll hit $1M before I hit 40 (so less than 3 years). That will be cause for a celebration!

For 2014, the Roth IRA and 457b max limits are not changing, but the HSA limits are now at $3300 for 2014. H will up his monthly contributions to match the limit; I plan to open my own HSA in 2014 as well, so that will be 6 accounts between the both of us that we are maxing (Roths, HSAa and 457bs = $4383) opposed to the 5 accounts we were maxing for 2013.

Our employer also gives us 14.2% of each of our salaries on top of this to 401a accounts as part of our benefit package ($1782). Add this on to our personal contributions and 47% of our salary is being saved.

We recently had a talk about wants. Normally around New Year's we make a tick list for trips then assign tentative months to them. Usually they are all trips we can drive to and we do it cheap (aka camping or stay with friends). We want to go hike the the rifugios (huts) in the Dolomites; we want to take his parents with us on a trip to Norway before they get too old for a long flight like that; we would really like a hot tub for apres ski. If we stop all retirement contributions for just 2 months in 2014, we'd have all the money right there for the hot tub and for the Dolomites/Italy trip saved up in 2 months' time. Sounds tempting! I don't want to save all our big trips for retirement!

Then my car. I don't trust my car to leave the valley so it never goes more than 5 miles one way, but it does me fine for getting around town and to work. It's got a lot of quirks (some of which need to be fixed this month due to safety inspections), but it's paid for and so cheap the own. Not quite sure what to do about that. Probably just keep it until repairs are worth more than it's value?

[2035]

Quote:

Originally Posted by ginadog My H and I are 35 and 37. This year has been pretty good so far. We are at $650k in retirement savings. We are putting away 33% of our money into pre- and post-tax accounts. I think we'll hit $1M before I hit 40 (so less than 3 years).

Way to go!

[Pleeplus]

Quote:

Originally Posted by caninelover I keep it simple, annual savings (incl. match) / salary + bonus (that would be the bulk of my line 7). My salary is fixed, my bonus is not, hence the plus or minus in any given year.

+1
I try to keep it simple as well and maybe even a little more simple as I only count my inputs and not employer contributions. My current allocations are as follows:

Pre tax 401k - ~19% (maxed out)
After tax 401k - ~2%
HSA - ~4%
529 - ~2%
TOTAL = ~27%

DW's salary and allocations are almost identical with the exception of the after tax 401k as her company does not offer it so collectively we are sitting at ~25%.

Looking at between 2028 - 2030 to retire.

I am in awe of those that can save upwards of 50%. Well done!!!

[2035]

I wish I was one of those people who could be happy eating at home every night, didn't like live theatre, or the occasional massage, but I'm not.

I know that I could/should have more, but I'm doing pretty well for a single homeowner making shy of $80k. We definitely live in a 2-income world.

[readytofire]

This year has been good to me. Markets have been up which is nice of course, but I hit some personal milestones too. This is my first year of maxing 401k, and I maxed Roth IRA for both 2012 and 2013 this year too. My target retirement date is 2034.

[2035]

That's great! Despite my name, I hope to go anywhere between 2033-2035. Race ya...🚣

[movaly1]

I'm hoping for 2023 but looking like 2027 will be more realistic.

[2035]

Quote:

Originally Posted by movaly1 I'm hoping for 2023 but looking like 2027 will be more realistic.

How did you do this year?

[movaly1]

Good. Plugging away. I don't make a large income but I save a good percentage of it.

[MaddMaxx]

long time lurker, first time poster. I took a nice paying job in a rural area, so I have the golden opportunity to become debt free and save a tremendous amount of money. Am soon to be 47. Have about 155k saved in retirement savings currently, 100k of debt including house that I hope to pay off within two or three years. Company matches 100% up to 15% of my pay in 401k (35k combined per year).

I hope to keep this job another 18 years until I am 65 (2032), but I should be able to hit my goal of 1.2 million in retirement money only by age 59. With FI in three years and assuming I can hold on to the job until I am 65, I should have around 3 million in both retirement and taxable accounts by 2032. I would say my expenses per year will be about 30k a year (current dollars) after FI.

I hope to travel and enjoy retirement.

Am putting all of my retirement savings in low cost Vanguard S&P 500 ETF's and Mutual Funds including 401k. My average fund expense is .07%

[2035]

Quote:

Originally Posted by MaddMaxx Company matches 100% up to 15% of my pay in 401k.

Wow! 15% match? Is that just for management/officers or rank and file employees too.

[MaddMaxx]

Quote:

Originally Posted by 2035 Wow! 15% match? Is that just for management/officers or rank and file employees too.

All employees are entitled to the 15% match 90 days after hire. It feels good to be able to put in double the $17,500 max per year.

[FIREontheMountain]

First time poster as well. This thread seems to bring out the lurkers!

30 years old working diligently towards ER with DW. Targeting 2028 for retirement around age 45 but we will see what life brings. I got a bit of a late start in my career but have had very good luck in the job market over the past few years and have seen significant growth in my income and responsibilities. I hope this trend continues and I can move to part time consulting before age 45.

Cheers to everyone working hard to earn their freedom!

[growing_older]

Quote:

Originally Posted by MaddMaxx Company matches 100% up to 15% of my pay in 401k (35k combined per year). I hope to keep this job another 18 years until I am 65 (2032), but I should be able to hit my goal of 1.2 million in retirement money only by age 59. With FI in three years and assuming I can hold on to the job until I am 65, I should have around 3 million in both retirement and taxable accounts by 2032. I would say my expenses per year will be about 30k a year (current dollars) after FI.

That's a great 401k match. I'm thoroughly jealous and hope you take maximum advantage of it.

If you project expenses of 30K, why shoot for $3 Million? Or are these a mixture of nominal and inflation adjusted numbers? You should safely be able to draw 30K from a lot smaller portfolio.

[Agbower]

35 and off to a late start with currently one year of gross income in retirement (50k). Saving 12-13% (plus 5% company match). Household of 6 on living on less than 60k a year. I figure my end is smaller than most because we live on way less

[MaddMaxx]

Quote:

Originally Posted by growing_older That's a great 401k match. I'm thoroughly jealous and hope you take maximum advantage of it. If you project expenses of 30K, why shoot for $3 Million? Or are these a mixture of nominal and inflation adjusted numbers? You should safely be able to draw 30K from a lot smaller portfolio.

I have a low stress job in a rural area that pays very well. I am also 1200 miles away from my boss, so as long as I take care of my territory, I am left alone. I think I will try to keep the job as long as possible up to 65.

It did take me awhile to get to the full 15% contribution as I have three teenagers and a wife that works only part time. But I do take full advantage currently of the full 15% contribution now.

[UnderTheRadar]

I am 41 as well, planning on retiring at 55 in 2028.

I have realized that, due to consistent saving/LBYM since age 23, I have pretty much pre-purchased my retirement already. Usually I am obsessed in maxing out 401k/Roth/etc - but have realized that from here on out this added yearly investment will have relatively small effects on the age-55 nestegg. All of us have our magic number - mine is $2M in investible equity at age 55 (will also have a pension from work).

I plan on gradually decreasing my stock/fund investing until age 45 and then concentrate on getting the home paid off by 55. We have been moderate college savers so far - but should be able to cash flow remaining college as needed.

If at any time I appear to fall behind the curve in achieving my magic number from 45-55 - then I will adjust accordingly.

I am also planning on spending! Saving and saving is fun to watch the number grow - but I have worked way too hard into my current position not to buy some toys once I know that the long term goals are met (probably a taboo topic on this board).