Retirement plans
Hello,
I'm a 37 year old female and single parent to one 5 year old child with a lifelong expensive medical condition. I thankfully have relatively dependable employment (6 year as an associate veterinarian in a thriving small animal practice) and live in a reasonably low cost of living area in rural TN. I also love my job, but I would love it a lot more if I did it purely because I enjoyed it and not because I also need the money
My goal for FIRE is currently 55-60 and I am not aversed to some part time work in retirement - but I want it to be either volunteer or at my enjoyment and leisure - not to support myself!
My son will hopefully be fully independent by 25 as with his medical condition insurance for him and medication costs will be outrageous until he is gainfully employed or a medical breakthrough occurs. Funding his insurance, helping fund his education if he so chooses and paying off my mortgage are my 3 big financial pre-retirement goal.
Financial Information
Income
$75,000 annual base salary but bonuses possible so I can make an additional $10,000-20,000 annually if our clinic keeps growing at its current rate.
Debt
-Mortgage $48,900 @ 4.125 %
-Paying $200 extra to principal/mo
- should have it paid off in 10 yrs max on this schedule
Investments
-$68,000 taxable in largely stock, inherited
-Tax deferred
tIRA $87,000
Roth $30,000
Simple IRA $17,000
80/20 stock/bond split for asset allocation
Continued annual contribution plan
-$12,500 max my Simple IRA
-$5,500 max Trad or Roth IRA
-$6750 max HSA (save receipts to try to treat this as a stealth tIRA)
Budget
My budget based on the above is with presumption of enough bonus money to cover the HSA costs so I do not budget for that monthly. I've not made less than $5000 in annual bonuses in 4 years & work is only getting busier!
50,000/yr after tax and includes my child and childcare expenses, LTD insurance and life insurance which obviously will disappear as I near retirement - so I believe I could live comfortably on $60,000/yr pretax
So if all goes well investing $25,000-27,000 annually to tax advantages accounts toward retirement goal for the next 20 or more years. If I have additional bonus income I will be contributing the extra money toward
1) Medical costs to avoid tapping HSA savings
2)pay down mortgage principal
3)Enjoyment for my son and I
4)additional savings/taxable account
Running this plan through Firecalc it shows no failure so it looks like a successfully plan. I've played around with online compounding calculators and assuming a conservative stock/bond return of say 3-4% overall in 20-25 years my timeline should allows me to withdraw around 60,000/yr and live very comfortably in retirement, especially once SS starts kicking in. Of course if business stays good allowing me an extra $15,000 a year and the stock market returns are better than my conservative 3-4% guess then my timeline could certainly speed up!! I'm conservative in my planning by nature, however, so I don't want to depend on those things. Does this seem like a reasonable approach? Do my numbers seem at least theoretically sound? Thoughts appreciated.
Sent from my iPhone using Early Retirement Forum
Hello,
I'm a 37 year old female and single parent to one 5 year old child with a lifelong expensive medical condition. I thankfully have relatively dependable employment (6 year as an associate veterinarian in a thriving small animal practice) and live in a reasonably low cost of living area in rural TN. I also love my job, but I would love it a lot more if I did it purely because I enjoyed it and not because I also need the money
My goal for FIRE is currently 55-60 and I am not aversed to some part time work in retirement - but I want it to be either volunteer or at my enjoyment and leisure - not to support myself!
My son will hopefully be fully independent by 25 as with his medical condition insurance for him and medication costs will be outrageous until he is gainfully employed or a medical breakthrough occurs. Funding his insurance, helping fund his education if he so chooses and paying off my mortgage are my 3 big financial pre-retirement goal.
Financial Information
Income
$75,000 annual base salary but bonuses possible so I can make an additional $10,000-20,000 annually if our clinic keeps growing at its current rate.
Debt
-Mortgage $48,900 @ 4.125 %
-Paying $200 extra to principal/mo
- should have it paid off in 10 yrs max on this schedule
Investments
-$68,000 taxable in largely stock, inherited
-Tax deferred
tIRA $87,000
Roth $30,000
Simple IRA $17,000
80/20 stock/bond split for asset allocation
Continued annual contribution plan
-$12,500 max my Simple IRA
-$5,500 max Trad or Roth IRA
-$6750 max HSA (save receipts to try to treat this as a stealth tIRA)
Budget
My budget based on the above is with presumption of enough bonus money to cover the HSA costs so I do not budget for that monthly. I've not made less than $5000 in annual bonuses in 4 years & work is only getting busier!
50,000/yr after tax and includes my child and childcare expenses, LTD insurance and life insurance which obviously will disappear as I near retirement - so I believe I could live comfortably on $60,000/yr pretax
So if all goes well investing $25,000-27,000 annually to tax advantages accounts toward retirement goal for the next 20 or more years. If I have additional bonus income I will be contributing the extra money toward
1) Medical costs to avoid tapping HSA savings
2)pay down mortgage principal
3)Enjoyment for my son and I
4)additional savings/taxable account
Running this plan through Firecalc it shows no failure so it looks like a successfully plan. I've played around with online compounding calculators and assuming a conservative stock/bond return of say 3-4% overall in 20-25 years my timeline should allows me to withdraw around 60,000/yr and live very comfortably in retirement, especially once SS starts kicking in. Of course if business stays good allowing me an extra $15,000 a year and the stock market returns are better than my conservative 3-4% guess then my timeline could certainly speed up!! I'm conservative in my planning by nature, however, so I don't want to depend on those things. Does this seem like a reasonable approach? Do my numbers seem at least theoretically sound? Thoughts appreciated.
Sent from my iPhone using Early Retirement Forum