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Old 04-02-2013, 07:33 PM   #21
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Originally Posted by Lagniappe View Post
Basi,

I completely followed you until the last part. Are you stopping your 403b contributions now, and saving the money post tax? The money gets added to your net worth now, and it will get added if you save it post tax.

If you meant that you will no longer be funding this after retirement, I don't understand how this relates to your income. Everything you shared was net of taxes and contributions. So how will you have more money after retirement to make up that $200 per month shortfall?

L.
First of all... the last 2 lines of my post... starting with Basi... should have been omitted. I apologize for that... shouldn't have hit submit without deleting that from my original post.

Allow me to attempt to clarify the last part.

I am not stopping my 403b contributions now. My net income per month right now is $3500.

When I retire... I will be stopping all 403b contributions (about $900 per month off of my gross income) That... by itself... should increase my retirement net income by well over $200 per month.

To summarize (and sorry if this is confusing... I'm an amateur at explaining this... and I might even be totally wrong).... My pension is based on 45% of my gross income. I get that I'll still have taxes that get taken out of my check. That said, my current net income is much lower than it would be if I didn't contribute to a 403b... so my retirement net income will be... in reality... more than 45% of my current net income.

Does that make sense?
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Old 04-02-2013, 07:36 PM   #22
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Originally Posted by laurence View Post
Sounds pretty good...is the pension COLA'd?
yep... up to 3% per year.
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Old 04-02-2013, 11:41 PM   #23
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Originally Posted by piranha View Post

To summarize (and sorry if this is confusing... I'm an amateur at explaining this... and I might even be totally wrong).... My pension is based on 45% of my gross income. I get that I'll still have taxes that get taken out of my check. That said, my current net income is much lower than it would be if I didn't contribute to a 403b... so my retirement net income will be... in reality... more than 45% of my current net income.

Does that make sense?
Yes, you are just saying that your net pension is not 45% of your current net, but 45% of your gross minus taxes. The difference is well in excess of $200 because you will not be making 403b contributions.

Makes sense to me.
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Old 04-11-2013, 09:28 AM   #24
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+1 The point is that your wife is your partner. Your retirement schedule will still be subject to her working schedule, which means no "drop everything for that last minute great vacation deal."

As for the maternity aspect, I actually think the OP is entitled to take some time off, provided he shoulders a similar child-rearing burden. Such burden won't exactly be the same as raising infants/toddlers, but ask any parent and you may find they'll say teenagers are no less stressful. Add in the "after school taxi service" and you likely have a similar situation.
I also agree that maybe you should wait couple more years longer before letting your DW pull the wagon alone.
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Old 04-23-2013, 03:53 AM   #25
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Cost of education could rise faster and eat up the 90k fast.

Currency inflation and a melt down of the usd over the next 10-15 years could pose a serious risk to the pension, even if it is index to inflation (b/c the true and index figures never match)

It's still probably worth the risk as you get 'time' that is yours; ER.
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