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Old 01-10-2008, 01:19 PM   #121
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Are you an engineer??
Nah, just garden variety OCD.

Ha
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Old 01-10-2008, 01:53 PM   #122
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I turn 31 a month from today. My wife (31) and I have a NW of about 700k. No inheritence and both paid for our education. This is broken down into about 150k in home equity, 450k in retirement accounts (401k's and IRA's), 40k saved in 529 plans (2 kids, 3 and 2, with a third on the way), and 50k in Cash.

We owe 343k on our house, own our car outright, and have 3 more payments on my wife's law school loans. Our plan is to retire comfortably at 50, just when the third kid takes off for school (hoepfully!!). We are well on the way from our calculations.

I have saved dilligently since I started working at 22 saving about 20% of my income. Since my wife started her job at 25, we have been able to save nearly 40% of our income a year. We currently pull in around 370k a year.
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Old 01-10-2008, 02:26 PM   #123
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Well, I'm 32 right now, so pretty close to the original poster. My wife and I have about $70,000 in total in our RRSP's, and $80,000 invested in a land banking venture that may or may not pan out. Another $50,000 in equity in the house, for a total net worth of around $200,000. No credit card debt, 2 car payments left, a couple thousand on a line of credit. We're on track, but I'd like to be even further ahead.
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Old 01-10-2008, 07:07 PM   #124
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31 was a watershed year for me, and I was a bit of an early bloomer career-wise.

At 31 I made partner in a major management consulting firm. The next year (at 32, in 2001), we went public and my ownership interest (converted to stock) was valued in the low 7 figures.

I had no debt at the time. (I since bought a condo, so I do have debt now).
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Old 01-11-2008, 09:45 AM   #125
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Are you an engineer??
YES
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Old 01-11-2008, 10:00 AM   #126
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jIMOH,

Does your spreadsheet consider inflation?
NO. It is based on expenses/ spending levels. It's primary role is to give me checkpoints- ages which should have a certain amount set aside by- to be able to communicate to wife and me if we are saving enough for retirement. For example we got an IRR of 9% last year, so I know to look at 9% column for most realistic measurement.

Another reason for no inflation factor- because I am so far from retirement (20-40 years), I base most retirement planning on my income level, as my income level determines current spending patterns. My biggest risk now is "return risk"- I need to get highest returns possible now... and set aside a reasonable amount possible. No reason to "guess" inflation because my salary should keep up, which will adjust spreadsheet spending level as time elapses. In addition, if my investments are ever 33X my expenses (3.3% SWR) I know can retire early (before 52). After age 52, if the investments are 25X my expenses, I can retire "normal".

The spreadsheet:
It takes a current level of income (or expenses), allows for a "bump up" (meaning increase in spending or income), asks for a retirement age, then backtracks.

There are columns for 7%, 8%, 9%, 10% and 11% returns already on sheet. Once the top info is filled in, the table is built.

So for me I would enter:

48k expenses.
25% bump up (I want to spend 25% more than I do now in retirement)
age 60 as the retirement age.

It then divided 48k+25%=60k by .04 to come up with amount needed (1.5 M), and puts age 60 next to it.

In 7% return column pair it reduces age by 72/7 and halves the 1.5 M number. It repeats the equation the row below and so forth.

In 8% column is reduces age by 72/8 and halves the 1.5 M.
and 9%-10%-11% follow same pattern.

I will try to insert a graphic (40k used as example in graphic):
Attached Images
File Type: gif example.gif (13.6 KB, 32 views)
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Old 01-12-2008, 07:30 PM   #127
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Would you mind posting that spreadsheet? I love looking at other people's financial spreadsheets so I can take bits and pieces and incorporate them into mine.
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Old 01-14-2008, 02:38 PM   #128
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I am 33 now and will be turning 34 this year. At 30 I had may primary home paid off and by 31 purchased a triplex, semi-detached, and semi-duplex.

My wife at 31 was laid off but she never returned to work. Got pregnant. Our son will be soon 2 yrs old and we are expecting another in May. We are FI enough that she has the option to never return back to work.
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