Getting Started

[veritasophia]

Well, I graduated in December and I received a job offer from a local actuarial consulting firm. Here are the stats for my wife and I:

• Non-retirement accounts: ~96k
• Retirement: ~21k
• Student loans: ~5k

Initially, we will be able to save around 2,500 a month in non-retirement + max out our 401k accounts. According to my calculations, which include raises, we will reach 1M in our non-retirement in 13 years assuming 8% return. At that time, our retirement account should be close to 1M as well (960k according to my calculations).

If we decide to RE in 13 years and exhaust the non-retirement funds 25 years after retirment, I get a monthly withdrawal rate of about 5,250 (assuming 4% growth after inflation). Then we start on the retirement funds which would have grown to 7M (assuming 8%), and live off of the interest and dividends.

Does this seem like a good plan?

[brewer12345]

Spoken like an actuary.

I think you have a reasonable plan, and I would spreadsheet if you haven't already. Having said that, a lot can change in 13 years, so bear in mind that the reasonable span of outcomes is very wide. Any plans for kids? Smartest thing I ever did was sock away the after-tax funds before we had kids.

What kind of actuary are you?

[veritasophia]

Quote:

Originally Posted by brewer12345 Spoken like an actuary. I think you have a reasonable plan, and I would spreadsheet if you haven't already. Having said that, a lot can change in 13 years, so bear in mind that the reasonable span of outcomes is very wide. Any plans for kids? Smartest thing I ever did was sock away the after-tax funds before we had kids. What kind of actuary are you?

Yeah, life is full of surprises. Just wanted to check with all of you to see if the plan was reasonable.

The consulting firm I will be working for does mostly pension and health with opportunities to gain experience in both fields. Out of the 3 offers I received, this company pays the most, and best of all, I can bike to work.

[ats5g]

Quote:

Originally Posted by Veritasophia Yeah, life is full of surprises. Just wanted to check with all of you to see if the plan was reasonable. The consulting firm I will be working for does mostly pension and health with opportunities to gain experience in both fields. Out of the 3 offers I received, this company pays the most, and best of all, I can bike to work.

Hey, small world, pensions is what I used to do. Man, have "fun" with those exams. Hope the company isn't Aon. Their raises sucked and no bonus. Though, the usual path in that field is to get one or two exams under your belt, then jump companies for a pay hike. At least I know enough to know to read my pension plan's reports and IRS filings intellegently.

To expand on the kids angle, plan for the unexpected. We weren't planning on having kids for a couple o years, and then whoops, we gots two.

- Alec

[Sandy]

Yes,a good plan, but don't be surprised that over 13 years the plan will likely change several times.