Hi All,
I have been reading this forum for sometime and have decided to add my story. I am 31 right now. My financials are as follows:
Personal : Single,No Kids.
No Debt.
Cash/Bank ~ 115 K (about 25 K of that is in vanguard index fund. Just started)
401k/IRA ~ 105 K
Interestingly(and fortunately) i have saved the above pretty much unknowingly, as in i had no idea of early retirement etc until about a year ago.
I earn around 75 K right now.After 30% tax and 20% in 401k and medical/dental deductible i get around 35K net.(~ 3K per month)
I did a quick calculation and i save around 1000 dollars a month.
Rent : 1025
Gas/Utilities : 250
Food : 200-300 ( I visit family often, so get food from there also).
Gadget/Hobby/Books/Continuing Education : 150-200
Charity/Donation - 100
Maintenance of car etc - 100
Random - 100 (I may have missed some costs)
Total : 2000
Thats around 33.3% saving on net income.
I did some retroactive calculations:
I have been earning since last 7 years, salary ranging between 65-85 K. Average around 75 K.
Total earnings : 525K.
Assuming i put 60-65 K to 401K(12% average as i didn't start putting 20% until 4 years ago).
That leaves 465 K , after tax thats 325 K. So, i did save around 115/325 = 35%.
So 33-35% seems to be my average saving rate.
Doing some research, seems like Housing and Healthcare are the 2 most important financial burdens one faces in retirement. I don't plan to marry or have kids and unless something terrible happens taking care of my parents as they age(alongwith my 2 brothers) and probably new car are the only 2 main responsibilities i see in the upcoming years.
401k calculator shows i can cross 2 Million mark at age 62, with 5% yearly return and regular 2% raises.
I live in very expensive southern California area and its impossible to buy any property. In fact i drive 25 Miles each way just to save couple hundred dollars after taking into account gas/wear and tear.
Obviously early retirement is just a dream right now. But i am contemplating life planning just for a comfortable ride.
I have Masters in Engineering though i work as a Technician right now.I don't mind the comparatively lower stress work/life balance.(Which actually opened my mind to alternative life to working until you burn, which i was doing earlier).
I keep investing in continuing education and love my trade.
I have EIT certificate and If i do get some appropriate engineering experience, I will get PE license which might facilitate some future part time opportunities.
I understand my earnings don't reflect any early retirement opportunities but main aims are:
1) To gracefully enter 55-60 age group with chances of lowering workload.(Want to spend more time in contemplation/meditation).
2) To face the reality that a run of the mill tech guy(like me) sees depreciation in salary once you enter 50+ age group.
Thanks everyone again.
I have been reading this forum for sometime and have decided to add my story. I am 31 right now. My financials are as follows:
Personal : Single,No Kids.
No Debt.
Cash/Bank ~ 115 K (about 25 K of that is in vanguard index fund. Just started)
401k/IRA ~ 105 K
Interestingly(and fortunately) i have saved the above pretty much unknowingly, as in i had no idea of early retirement etc until about a year ago.
I earn around 75 K right now.After 30% tax and 20% in 401k and medical/dental deductible i get around 35K net.(~ 3K per month)
I did a quick calculation and i save around 1000 dollars a month.
Rent : 1025
Gas/Utilities : 250
Food : 200-300 ( I visit family often, so get food from there also).
Gadget/Hobby/Books/Continuing Education : 150-200
Charity/Donation - 100
Maintenance of car etc - 100
Random - 100 (I may have missed some costs)
Total : 2000
Thats around 33.3% saving on net income.
I did some retroactive calculations:
I have been earning since last 7 years, salary ranging between 65-85 K. Average around 75 K.
Total earnings : 525K.
Assuming i put 60-65 K to 401K(12% average as i didn't start putting 20% until 4 years ago).
That leaves 465 K , after tax thats 325 K. So, i did save around 115/325 = 35%.
So 33-35% seems to be my average saving rate.
Doing some research, seems like Housing and Healthcare are the 2 most important financial burdens one faces in retirement. I don't plan to marry or have kids and unless something terrible happens taking care of my parents as they age(alongwith my 2 brothers) and probably new car are the only 2 main responsibilities i see in the upcoming years.
401k calculator shows i can cross 2 Million mark at age 62, with 5% yearly return and regular 2% raises.
I live in very expensive southern California area and its impossible to buy any property. In fact i drive 25 Miles each way just to save couple hundred dollars after taking into account gas/wear and tear.
Obviously early retirement is just a dream right now. But i am contemplating life planning just for a comfortable ride.
I have Masters in Engineering though i work as a Technician right now.I don't mind the comparatively lower stress work/life balance.(Which actually opened my mind to alternative life to working until you burn, which i was doing earlier).
I keep investing in continuing education and love my trade.
I have EIT certificate and If i do get some appropriate engineering experience, I will get PE license which might facilitate some future part time opportunities.
I understand my earnings don't reflect any early retirement opportunities but main aims are:
1) To gracefully enter 55-60 age group with chances of lowering workload.(Want to spend more time in contemplation/meditation).
2) To face the reality that a run of the mill tech guy(like me) sees depreciation in salary once you enter 50+ age group.
Thanks everyone again.