45-50 is my goal. Need to make sure I spend some money to do things when I am younger rather than older. I have also thought about switching to a low stress/lots of free time/avg pay job to wind down and glide into ER. So if either of those scenarios push me back to 50 so be it.
Retirement Goal Age
- Thread starter laurence
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Andre1969
Thinks s/he gets paid by the post
I put down 50-55, but I'll definitely take an early out if I can swing it! I figured it's better to be a bit conservative and be pleasantly surprised than to go aggressive and then get disappointed when I have to work a few more years.
Anyway, here's where I currently stand. I'm 35, divorced, no kids, no alimony. Not exactly rolling in money when it comes to my job...I only make about $50K per year. But I'm in a house that's paid for and has been in the family forever. I'm 1/3 owner in it (with my grandmother and uncle being the other two...joint tenancy with right of survivorship or something like that), although I did take out a $100K HELOC on it. Most of that money right now is sitting in a money market account for easy access with some project I'm planning on, such as building a garage, renovations to the house, and the possibility of acquiring a parcel of land adjacent to me. Other than the HELOC, no debt. Car's paid for, no credit card bills, etc.
Right now, I have about 332K total saved up. About $77K of that is in 401k's and a Roth. $145K is in mutual funds and a Scottrade account. The remaining $110K is scattered between my money market account, checking account, a bunch of old savings bonds that my Mom bought when I was little that are now gradually hitting the 30 year mark, and an I-bond I just bought.
I'm putting around $1200 per month into my 401k (my contribution + the company match), plus another $1300 into mutual funds. When I can, I try to pad the Scottrade account a bit more and play some there, too. Plus I'm trying to contribute the max to my Roth.
So, hopefully by the time I hit 50, I'll be more than set. I'm also trying not to factor in inheritances either down the road, because there's always the possibility that something major could come up. I'm an only child, so I don't have any brothers or sisters to fight over when inheritance time comes, and on Mom's side I'm the only grandkid (my uncle never had any kids...that we know of, at least!
) so ultimately it'll all channel down to me. But still, I'd rather have Grandma, my Mom, and my uncle (and yeah, even my stepdad : than the money. And anything can happen, such as a sickness, lawsuit, or whatever, that could drain resources very quickly.
Besides, when I'm 50, most likely my parents and my uncle will still be alive. Heck, even Grandma might still be kicking. She'd be 96 by then, but she's healthy enough that she might still have a few good years left in her.
Probably the biggest thing I could see happening, financially, is when she does finally pass away. We'll have her house to deal with, and possibly sell, and at that point, depending on how badly the developers are breathing down our neck, we might want to sell the one I'm in, too. They're both right across the street from each other, and combined they cover 5 1/2 acres. So there might be enough profit there to just move someplace cheaper and retire early.
Anyway, here's where I currently stand. I'm 35, divorced, no kids, no alimony. Not exactly rolling in money when it comes to my job...I only make about $50K per year. But I'm in a house that's paid for and has been in the family forever. I'm 1/3 owner in it (with my grandmother and uncle being the other two...joint tenancy with right of survivorship or something like that), although I did take out a $100K HELOC on it. Most of that money right now is sitting in a money market account for easy access with some project I'm planning on, such as building a garage, renovations to the house, and the possibility of acquiring a parcel of land adjacent to me. Other than the HELOC, no debt. Car's paid for, no credit card bills, etc.
Right now, I have about 332K total saved up. About $77K of that is in 401k's and a Roth. $145K is in mutual funds and a Scottrade account. The remaining $110K is scattered between my money market account, checking account, a bunch of old savings bonds that my Mom bought when I was little that are now gradually hitting the 30 year mark, and an I-bond I just bought.
I'm putting around $1200 per month into my 401k (my contribution + the company match), plus another $1300 into mutual funds. When I can, I try to pad the Scottrade account a bit more and play some there, too. Plus I'm trying to contribute the max to my Roth.
So, hopefully by the time I hit 50, I'll be more than set. I'm also trying not to factor in inheritances either down the road, because there's always the possibility that something major could come up. I'm an only child, so I don't have any brothers or sisters to fight over when inheritance time comes, and on Mom's side I'm the only grandkid (my uncle never had any kids...that we know of, at least!
) so ultimately it'll all channel down to me. But still, I'd rather have Grandma, my Mom, and my uncle (and yeah, even my stepdad : than the money. And anything can happen, such as a sickness, lawsuit, or whatever, that could drain resources very quickly.Besides, when I'm 50, most likely my parents and my uncle will still be alive. Heck, even Grandma might still be kicking. She'd be 96 by then, but she's healthy enough that she might still have a few good years left in her.
Probably the biggest thing I could see happening, financially, is when she does finally pass away. We'll have her house to deal with, and possibly sell, and at that point, depending on how badly the developers are breathing down our neck, we might want to sell the one I'm in, too. They're both right across the street from each other, and combined they cover 5 1/2 acres. So there might be enough profit there to just move someplace cheaper and retire early.
WanderALot
Full time employment: Posting here.
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- Sep 10, 2004
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Does semi-retirement count? We are 31/30 now and I would like to semi-retire in 4 years around the time that I'm 35. I might teach, consult etc. but I'm not really sure. I think I'd like to ease into it by working 6-9 months of the year and then lower the hours as necessary. Wife doesn't want to quit anytime soon.
This is WAY sooner than I had targeted before. Since getting married 3 years ago, we've definitely accelerated our savings. But the most pleasant surprise has been the ability to save so much of her salary tax-deferred (28,000 with a 403(b) and a 457). We only started doing that last year and the increase in contributions (not earnings, although that's been good as well) is substantial. We are taking advantage of this as long as we can since once the kids come, this'll be reduced quite a bit, but then I'm guessing that will increase our desire to have more free time!
This is WAY sooner than I had targeted before. Since getting married 3 years ago, we've definitely accelerated our savings. But the most pleasant surprise has been the ability to save so much of her salary tax-deferred (28,000 with a 403(b) and a 457). We only started doing that last year and the increase in contributions (not earnings, although that's been good as well) is substantial. We are taking advantage of this as long as we can since once the kids come, this'll be reduced quite a bit, but then I'm guessing that will increase our desire to have more free time!
Sure, why not? You can start some passionate debates on this board regarding what defines retirement, but ultimately, it's you who sets your own goals. What helps DW and I stay focused (at age 30 and 29 respectively) is to think about our next interim goal of 200k in investments. Once we reach that, we know we'll be set for regular retirement at 62 even if we have to stop contributing from then on(compounding rules). Baby steps.
Andre1969
Thinks s/he gets paid by the post
Speaking of baby steps, I like to track my investments as they climb and fall, and always get excited when a new threshold is broken. It's funny though, how once you hit higher and higher peaks, what used to seem like a lot of money all of a sudden doesn't.
For instance, when I finally broke $10,000 in investments way back in late 1998 (this was when I finally fully recovered financially from the effects of my divorce) I thought I was on top of the world! Back then, every time I climbed another $1000, it felt like a major accomplishment. Nowadays though, on my Excel spreadsheet, I don't really get excited until it breaks another $10,000 barrier. My current goal is to see my combined 401k/Roth/mutuals/stocks break the $300K barrier (currently around $222K), and for my grand total (the $222K plus the "low-return" stuff like my checking account/money market/savings bonds) to break the $400K barrier (currently hovering around $332K)
I plotted out a projection, a rough forecast of what that $222K might grow to, and it looks like I could hit $500K in late 2009, and $1M in late 2014. Then $1.5M comes around roughly April of 2018, and then $2.0M in the late 2020, which is when I'd be about 50 1/2. If I keep investing, I'd hit $3.0M during the summer of 2024, and at that point there's no way in hell I'm going to keep working, unless inflation gets to the point that $3.0M will buy you a Happy Meal at McDonalds!
It'll be interesting to see how reality ends up comparing to this projection. Also, one thing I never took into account is the fact that the 401k contribution limit will rise from year to year, and the Roth limit probably will, as well. It also didn't take into account raises down the road. But then, it also doesn't take inflation into account, so that balances out a bit.
For instance, when I finally broke $10,000 in investments way back in late 1998 (this was when I finally fully recovered financially from the effects of my divorce) I thought I was on top of the world! Back then, every time I climbed another $1000, it felt like a major accomplishment. Nowadays though, on my Excel spreadsheet, I don't really get excited until it breaks another $10,000 barrier. My current goal is to see my combined 401k/Roth/mutuals/stocks break the $300K barrier (currently around $222K), and for my grand total (the $222K plus the "low-return" stuff like my checking account/money market/savings bonds) to break the $400K barrier (currently hovering around $332K)
I plotted out a projection, a rough forecast of what that $222K might grow to, and it looks like I could hit $500K in late 2009, and $1M in late 2014. Then $1.5M comes around roughly April of 2018, and then $2.0M in the late 2020, which is when I'd be about 50 1/2. If I keep investing, I'd hit $3.0M during the summer of 2024, and at that point there's no way in hell I'm going to keep working, unless inflation gets to the point that $3.0M will buy you a Happy Meal at McDonalds!
It'll be interesting to see how reality ends up comparing to this projection. Also, one thing I never took into account is the fact that the 401k contribution limit will rise from year to year, and the Roth limit probably will, as well. It also didn't take into account raises down the road. But then, it also doesn't take inflation into account, so that balances out a bit.
retire@40
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WanderALot said:
As a semi-retired person who did at the same age what you want to do, I don't think of semi-retirement as a final goal, but a milestone. I still want to fully retire at 40, but figure this is the next best thing.
There are many benefits to semi-retirement. The obvious includes more free time and less stress. But it also gives you a chance to get a feel for ultimate freedom. Some people are afraid of quitting their job, so this would give them some comfort in that they could ease into it like you would getting into cold water, a little at a time.
retire@40
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Andre1969 said:
Same here. I did the $1K and $10K thing too. Now I go in $50K increments. I've been tracking my net worth growth for a number of years and I have a growth projection based on my historical growth. It's actually been pretty accurate. When I go back to my net worth 7 or 8 years ago and project to today, I'm within $10K of that projection. I remember back then thinking I would never get to that number, but I have.
Re: Retirement Goal Age 50 3/4
Slow and steady. I clicked 50-54 as that magic age 50 is the minimum possible retirement age in the Public Sector System I entered into the bargain with some 22 years ago.
Low to middle pay for the first few years, with added responsibility and increased salary in the latter years. I didn't figure out my own ER principal and plan until age 43. I could ER tomorrow but my "constantly analyzed and edited spreadsheet" tells me there is real sweet spot if I stick around until March 31, 2006. I'll receive a DBP w/cola of 25K per year, with medical coverage included and paid for by a separate stipend. DW effectively ER'd last year at 48 with a similar pension from the same Public Sector Entity.
We will consider ourselves ER'd and at the same time self-employed with the reality that we don't expect our "business", the creation of art objects to be profitable, possibly break-even, but assuming it will be a hobby with some payback potential.
50 3/4 will be my age on what is called the magic date next year, when you can retire, and receive your first Cola the next day, ironically, April Fools Day. :
Slow and steady. I clicked 50-54 as that magic age 50 is the minimum possible retirement age in the Public Sector System I entered into the bargain with some 22 years ago.
Low to middle pay for the first few years, with added responsibility and increased salary in the latter years. I didn't figure out my own ER principal and plan until age 43. I could ER tomorrow but my "constantly analyzed and edited spreadsheet" tells me there is real sweet spot if I stick around until March 31, 2006. I'll receive a DBP w/cola of 25K per year, with medical coverage included and paid for by a separate stipend. DW effectively ER'd last year at 48 with a similar pension from the same Public Sector Entity.
We will consider ourselves ER'd and at the same time self-employed with the reality that we don't expect our "business", the creation of art objects to be profitable, possibly break-even, but assuming it will be a hobby with some payback potential.
50 3/4 will be my age on what is called the magic date next year, when you can retire, and receive your first Cola the next day, ironically, April Fools Day.
:I clicked 45-50 and sure hope that happens. I'm 32 and my wife is 34. I'm entering my 10th year teaching and bought 5 years of service towards retirement (the maximum allowed by the state). In order to retire with the nice medical benefit package that the state provides (at least currently), you need 30 years in the system. This would put my retirement age at 47-48. In addition to the medical beneifts, I'd be eligible to collect 45% of my salary (with 3% non-compounding increases to adjust for inflation) for the rest of my life. That... combined with the $ we have saved (and plan to save in the future), will hopefully allow this to happen.
Mr._johngalt
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Eagle43 said:
I did not "hate" any job I ever had. Just wanted time to do other stuff.
I dropped out around 50. 50 is a good age for most I think. I wish I had gone earlier.
JG
Michael Moore
Recycles dryer sheets
Two weeks to go, and I'll be 52 about 3 weeks after that. My sweetheart took early retirement last year, just a few days after she turned 52.
cheers,
Michael
cheers,
Michael
Retired at 37! Wasn't sure that was it when I left 2 years ago but I'm sure now.
How? Mainly it's a non-consumer lifestyle with a refusal to live in rental accomodation. When I was working I really stretched to buy a place to live and did well every time. Stock market was not particularly helpful: gained a fortune, lost a fortune and a half.
How? Mainly it's a non-consumer lifestyle with a refusal to live in rental accomodation. When I was working I really stretched to buy a place to live and did well every time. Stock market was not particularly helpful: gained a fortune, lost a fortune and a half.
Mr._johngalt
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dougdo said:
Stock market was "not particularly helpful" to me either. Gained not much
and gave most of it back.
JG
Arif
Full time employment: Posting here.
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- Jun 21, 2005
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- 761
I clicked 40 but plan to be FI by the end of the year at 32. This begins the phase of doing something I really love which is more RE hopefully. We plan to open a family business in Panama (not RE related) so that might distract me a little. I want to be more a strategic thinker than day to day in the business so hopefully I will have time to do both.
For me I think it is enough to know that I can retire anytime but doubt that I will anytime soon. Plus I don't think my energetic 3 year old will let me just loaf around the house! I can hear it now...."Daddy let's play!"
For me I think it is enough to know that I can retire anytime but doubt that I will anytime soon. Plus I don't think my energetic 3 year old will let me just loaf around the house! I can hear it now...."Daddy let's play!"
Hi,
New to the board.
I will be giving my notice in 3 weeks and will "punch out" a few months thereafter at age 42. Never thought it possible at such an "early" age, but a 7 year overseas posting has helped greatly. Worried and excited all at the same time.
New to the board.
I will be giving my notice in 3 weeks and will "punch out" a few months thereafter at age 42. Never thought it possible at such an "early" age, but a 7 year overseas posting has helped greatly. Worried and excited all at the same time.
Wow, I am really impressed with the young ages many have or are planning to retire at.
I'm in for about 7.5 more years. My partner and I will be 55 and 56. We can both bail with reduced pensions and full medical coverage.
According to my spreadsheet, we should hit the magic number at the age we can bail out, so it's looking pretty good. That's with a 5% rate of return which should be doable.
Our descretionary spending will be higher in retirement than it is now thanks to reduced taxes and no further need to save for retirement. Those are by far our biggest expenses. We will have about $25k per year to travel.
We also just achieved debt free status as we paid our mortgage off recently.
Even if I wanted to continue to work, achieving FI is a great goal to have. It's both challenging and quantifiable and can take years to achieve.
-helen
I'm in for about 7.5 more years. My partner and I will be 55 and 56. We can both bail with reduced pensions and full medical coverage.
According to my spreadsheet, we should hit the magic number at the age we can bail out, so it's looking pretty good. That's with a 5% rate of return which should be doable.
Our descretionary spending will be higher in retirement than it is now thanks to reduced taxes and no further need to save for retirement. Those are by far our biggest expenses. We will have about $25k per year to travel.
We also just achieved debt free status as we paid our mortgage off recently.
Even if I wanted to continue to work, achieving FI is a great goal to have. It's both challenging and quantifiable and can take years to achieve.
-helen
maddythebeagle
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Hey HKMike:
Welcome to the board. Would you post your situtation on the "Hi, I am" board. I think everyone is interested in the details and how you did it and what your money plan is. Thanks. It sounds like part of it was some really high, short-term income from working overseas. I think that there are few here that have done that, too.
Welcome to the board. Would you post your situtation on the "Hi, I am" board. I think everyone is interested in the details and how you did it and what your money plan is. Thanks. It sounds like part of it was some really high, short-term income from working overseas. I think that there are few here that have done that, too.
Hi Maddy,
Thanks for the welcome.
Yes, once I have it all sorted, I will post what I've done on the other thread (oh what have I done!).
However, in short strokes, I have worked in Asia for the past 7 years and will stay out here. I'm European, so no WWT, which certainly has factored into the decision.
Mike
Thanks for the welcome.
Yes, once I have it all sorted, I will post what I've done on the other thread (oh what have I done!).
However, in short strokes, I have worked in Asia for the past 7 years and will stay out here. I'm European, so no WWT, which certainly has factored into the decision.
Mike
P
persistent
Guest
We started out living well below our means at an early age. Purchased first home right out of college. Currently in 2nd home,Have always maxed out 401k, Roths, 403b and also did dolllar cost averaging into DRIPS. Started own business for a year and made twice as much $, but had 2x more work, headaches than we needed. Went back to work for large co. with super bennies and retirement plan. Slow and steady, maxing out, no debt, besides mortgage (took 15 yr. vs 30) so we could retire early. We are in our mid 30's and have learned to live by paying ourselves first. Each year our lives get easier and easier. We currently make 3x more $ a day in our diversified stock, mutual fund plans than we earn in our good paying jobs. Purchased a fixer upper 5 years ago and made a tidy profit. Have always had a piece of land or fixer upper on the side. We aren't afraid to spend money on quality of life issues since we started saving so early, ie. beach home, country club, vacations, carsr, kids college taken care of via 529 plans. Dilligent planning will allow you to attain your goals and knowledge of finance is powerful. The principal of compounding is truly phenomenal. Teach somoene!
tryan
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Out at 43 - next month. All real estate ... all the time. Except that I maxed-out my 401k for many years.
Should be fun ... hopefully I'll wish I left 10 years earlier.
Should be fun ... hopefully I'll wish I left 10 years earlier.
