Hello all, just found this board through links from other boards.
Quick intro: I am 44, DW is 41, 4 kids ages 11-15. I have never had a retirement "plan", but have been trying to contribute to 401ks and IRAs for the past 15 years or so. Between DW and I, we have about 180k in those accounts, and are maxing our IRAs each year and trying to add more to our employer plan, maybe 1500 extra a year.
I went to FIREcalc and put in the applicable numbers, and it says with a target retirement age of 58, with 182k in savings, adding and extra $10k in 2013, and contributing $13k a year for the next 14 years, I have a 100% chance of success. This is with 50,000 a year spending, and lasting until I am 94.
"Because you indicated a future retirement date (2027), the withdrawals won't start until that year. Your contributions will continue until then. The tested period is 14 years of preretirement plus 36 years of retirement, or 50 years.
FIRECalc looked at the 91 possible 50 year periods in the available data, starting with a portfolio of $182,000 and spending your specified amounts each year thereafter.
Here is how your portfolio would have fared in each of the 91 cycles. The lowest and highest portfolio balance throughout your retirement was $182,000 to $6,862,758, with an average of $2,693,660. (Note: values are in terms of the dollars as of the beginning of the retirement period for each cycle.)
For our purposes, failure means the portfolio was depleted before the end of the 50 years. FIRECalc found that 0 cycles failed, for a success rate of 100.0%."
This also includes my SS and DW pension, total of about 22k a year starting when I'm 62 and she is 62.
Still this was amazing, and I am not sure how accurate this is. I have always heard the 25 times your annual spending, which would mean I would need 700k in savings after assuming SS and pension. I guess doing the calcs myself now in spreadsheet, assuming 7% earnings, and those types of contributions, this may be a reality??!?
dozer
Quick intro: I am 44, DW is 41, 4 kids ages 11-15. I have never had a retirement "plan", but have been trying to contribute to 401ks and IRAs for the past 15 years or so. Between DW and I, we have about 180k in those accounts, and are maxing our IRAs each year and trying to add more to our employer plan, maybe 1500 extra a year.
I went to FIREcalc and put in the applicable numbers, and it says with a target retirement age of 58, with 182k in savings, adding and extra $10k in 2013, and contributing $13k a year for the next 14 years, I have a 100% chance of success. This is with 50,000 a year spending, and lasting until I am 94.
"Because you indicated a future retirement date (2027), the withdrawals won't start until that year. Your contributions will continue until then. The tested period is 14 years of preretirement plus 36 years of retirement, or 50 years.
FIRECalc looked at the 91 possible 50 year periods in the available data, starting with a portfolio of $182,000 and spending your specified amounts each year thereafter.
Here is how your portfolio would have fared in each of the 91 cycles. The lowest and highest portfolio balance throughout your retirement was $182,000 to $6,862,758, with an average of $2,693,660. (Note: values are in terms of the dollars as of the beginning of the retirement period for each cycle.)
For our purposes, failure means the portfolio was depleted before the end of the 50 years. FIRECalc found that 0 cycles failed, for a success rate of 100.0%."
This also includes my SS and DW pension, total of about 22k a year starting when I'm 62 and she is 62.
Still this was amazing, and I am not sure how accurate this is. I have always heard the 25 times your annual spending, which would mean I would need 700k in savings after assuming SS and pension. I guess doing the calcs myself now in spreadsheet, assuming 7% earnings, and those types of contributions, this may be a reality??!?
dozer
