jIMOh
Thinks s/he gets paid by the post
I have a chart I use to measure progress.
My question is two fold- if the chart makes sense (will explain later), is it accurate? And is this typical for people which want to FIRE, or am I "behind" on my savings.
I set aside 20% of gross to 401k+Roth for wife and I, but I am questioning whether its enough.
The chart
make an annual expenses "guess"
60k in my case
Pick an age to retire
55 in my case
25X 60k=$1.5 M
pick a % return (9%) and use rule of 72
the chart (reduce age by 8 and cut dollar amounts in half as checkpoints) 8 is 72/9 for rule of 72.
age 55 $ 1.6 M
age 47 $800k
age 39 $400k
age 31 $200k
I did not have 200k by age 31 and getting $400k by 39 is a stretch (it will be close, but accounts currently have just less than 200k in them, and I am 37). Annual contributions range from 19k-25k depending on employer matches (2008 had higher contributions than 2009 because matches were reduced/eliminated on both 401ks).
My question again- when you are (were) working... when did FIRE become a reality more than it was a goal? It appears so far away, but at same time I think I am doing "all I can" to reach the goal.
Thoughts?
My question is two fold- if the chart makes sense (will explain later), is it accurate? And is this typical for people which want to FIRE, or am I "behind" on my savings.
I set aside 20% of gross to 401k+Roth for wife and I, but I am questioning whether its enough.
The chart
make an annual expenses "guess"
60k in my case
Pick an age to retire
55 in my case
25X 60k=$1.5 M
pick a % return (9%) and use rule of 72
the chart (reduce age by 8 and cut dollar amounts in half as checkpoints) 8 is 72/9 for rule of 72.
age 55 $ 1.6 M
age 47 $800k
age 39 $400k
age 31 $200k
I did not have 200k by age 31 and getting $400k by 39 is a stretch (it will be close, but accounts currently have just less than 200k in them, and I am 37). Annual contributions range from 19k-25k depending on employer matches (2008 had higher contributions than 2009 because matches were reduced/eliminated on both 401ks).
My question again- when you are (were) working... when did FIRE become a reality more than it was a goal? It appears so far away, but at same time I think I am doing "all I can" to reach the goal.
Thoughts?