OptimistPrime
Confused about dryer sheets
- Joined
- Mar 28, 2011
- Messages
- 6
Hi all,
I'm a newbie at Megacorp (started full-time January 2010), and I have this crazy idea in my head that I'd like to retire in ~20 years (at age 45). I've been maxing out a Roth 401k ($16.5k) + Roth IRA ($5k), am managing to push $2.6k/yr into a taxable account, and am currently building up my emergency fund to smooth out any bumps along the way. I haven't yet been able to start saving for some other things I'd like to save for (house, vacations, new car.. -- on hold until I'm happy with my e-fund), but I figure I could do worse than to "over-save" for retirement now and change my mind later.
I have no doubts that my current savings rate combined with my current lifestyle (<$40k/year) will put me in a solid position by age 60 when I can start withdrawing my 401k/IRA, but I'm a bit lost as to how to bridge the 15-year gap between 45 and 60. I know I'm not putting away enough in the taxable account to cover it (but plan to increase that over the next few years), but what is the typical plan for that (not that retiring at 45 is typical, but maybe on this forum!).
Is my best option just to save more in a taxable account in addition to what I'm already doing?
Thanks,
Optimist
I'm a newbie at Megacorp (started full-time January 2010), and I have this crazy idea in my head that I'd like to retire in ~20 years (at age 45). I've been maxing out a Roth 401k ($16.5k) + Roth IRA ($5k), am managing to push $2.6k/yr into a taxable account, and am currently building up my emergency fund to smooth out any bumps along the way. I haven't yet been able to start saving for some other things I'd like to save for (house, vacations, new car.. -- on hold until I'm happy with my e-fund), but I figure I could do worse than to "over-save" for retirement now and change my mind later.
I have no doubts that my current savings rate combined with my current lifestyle (<$40k/year) will put me in a solid position by age 60 when I can start withdrawing my 401k/IRA, but I'm a bit lost as to how to bridge the 15-year gap between 45 and 60. I know I'm not putting away enough in the taxable account to cover it (but plan to increase that over the next few years), but what is the typical plan for that (not that retiring at 45 is typical, but maybe on this forum!).
Is my best option just to save more in a taxable account in addition to what I'm already doing?
Thanks,
Optimist