Milestone time

[chasesfish]

I stumbled across this board recently and thought I'd post this.

We just hit the $500,000 mark, ironically in both liquid assets and net worth at the same time (student loans eat into the house net worth)

I am a month short of 31 and my wife just turned 31.


Now, I'm trying to figure out how much money I need to comfortably retire at 40. I'm looking forward to the advice around here

 

[EvrClrx311]

Depends heavily on how much you plan to spend as well as many other variables (e.g. paying off home?). $500K has a different feel to a couple spending 50K a year than it does to one spending 200K a year. In that way, ER has just as much to do with how much you spend as it does with how much you have. They are both parts of the equation.

That said, my guess is that you're on track to meet or exceed what you need by 40. If you've reached 500K by 31, odds are you'll be in the 1.5-2.5mil range by 40 depending on family/kids, market performance and spending habits. Keep the awesome savings rate up. Great job!

 

[Sniggle]

Great job. Wish I could have gotten there at your age. Just keep stashing it away and you will be where you want to be when you want to be there.

 

[photoguy]

Now, I'm trying to figure out how much money I need to comfortably retire at 40. I'm looking forward to the advice around here

Track your expenses with a spreadsheet/program. Although it may be cumbersome, there's no other way around it.

 

[obgyn65]

Have you played around with Firecalc ?

 

[chasesfish]

I've always kept a spreadsheet budget, ever since my last semester and summer session of college when I had to give up working for schedules. I haven't played around enough with FIRE calculator, I think I need to run some of my own models because I'll have a pension at 55, but more challenging is a deferred comp plan that looks both like an investment portfolio and a pension (I invest, then when I leave employment, it's paid out in 180 monthly installments). We can use it above and beyond our 401k at work

 

[jollystomper]

I think I need to run some of my own models because I'll have a pension at 55,...

Given your age and the number of years before you reach 55, you might want to run models without this as an assumption. Having a pension these days are rare, and companies are trying to convert them to either a "cash balance" or a "lump sum" which would by an annuity much less than the pension you are getting. Had I been 2 years younger when my megacorp moved away from pensions when I was 41, I would not still be eligible for a pension today, and FIRE, while not impossible, would have been more of a challenge.

 

[chasesfish]

I completely agree regarding the pension, given that I'd like FI by 40 and can't touch it until 55. The other big challenge is how much to keep in a taxable regular account verses tax deferred. We've maxed out all tax deferred iras/401ks/simple iras that we quality for. There's always a debate in my house about what to do next, the dividend paying stocks with annual increases have done well, but I also like the guaranteed return of early debt repayment. We should be mortgage free by 34

 

[YoungSaver]

Based on the thread title, I guess this is the general milestone thread.

On my 32nd birthday, I hit $250k combined in my investment accounts and down to $79.5k mortgage (about 50% paid!). Feels good seeing that $250k in Mint.

 

[2035]

Based on the thread title, I guess this is the general milestone thread.

On my 32nd birthday, I hit $250k combined in my investment accounts and down to $79.5k mortgage (about 50% paid!). Feels good seeing that $250k in Mint.

Way to go!!

 

[Jay_Gatsby]

Not to rain on the parade, but should milestone figures be a combined (i.e., couple net worth) or individual?

 

[YoungSaver]

Not to rain on the parade, but should milestone figures be a combined (i.e., couple net worth) or individual?

I think it depends on your plan and goals, but in general I would think it would be combined.

 

[YoungSaver]

Based on the thread title, I guess this is the general milestone thread.

On my 32nd birthday, I hit $250k combined in my investment accounts and down to $79.5k mortgage (about 50% paid!). Feels good seeing that $250k in Mint.

2 years later....34 years old now. $314k in investment accounts, $70k mortgage.