36 year old young dreamer!

[iam21177]

Hello, I mostly check out the Young Dreamers section but then I saw this area.

I'm 36 years old, my husband is 34 years old. We recently got married just the two of us in the Canadian Rockies (we're US Citizens though). We've always wanted to visit there! Gina is the name of our dog – hence the screen name.

This summer, we are going to hit a big milestone – half a million in retirement. It's a mixture of 401a, 457b, Roth, 403b and HSAs. We’re already at a net worth of over $500k. We are so very excited for this mini milestone, trying to think of what to do for a mini celebration. Probably buy a bottle of champagne, go hike up to the top of a mountain and drink it and take in the view until sunset. Probably bring some food up there. At least that is what I am envisioning!

We do not plan to have kids and we have no consumer debt. Just the house.

A raise is currently in the works for my recently acquired Master's degree (HR is reevaluating my position). We plan to end our careers with the jobs we have now (as long as the jobs still exist).

Let's say an extra $1400/month will be coming my way with this supposed raise. (guessing)

Currently I have:
Roth IRA - maxed
457b - maxed
401a - 14.2% of salary donated by employer

Currently H has:
HSA - maxed
Roth IRA - maxed
457b - maxed
403b opened, but contributions have stopped
401a - 14.2% of salary donated by employer

Come June, open enrollment for our company, we will get me on a HDHP and do the family max for an HSA. Then with the remaining money from that each month – what would you do with it?



We were thinking putting it in a 403b (either his or I open one) which is another tax-deferred account.



What do you think?

[obgyn65]

Welcome. Have you entered your numbers in FIREcalc?

[iam21177]

Not yet, I need to gather the data to put into it; then take some time to understand the whole thing.

[iam21177]

Would FireCALC help me decide where to put that remaining money then? (403b versus something else?)

[Pauline RFIndependence]

Hi Ginadog! I think you are in great shape for you age and you guys are rocking it! I am French and live in Guatemala so have no idea about the tax implications of retirement accounts, but should you want to retire early could you withdraw money from those accounts without too much of a penalty? Or do you have another plan? It looks like you want to work in your field until normal retirement age but if life happens can you make an early exit?

[iam21177]

Quote:

Originally Posted by Pauline RFIndependence Hi Ginadog! I think you are in great shape for you age and you guys are rocking it! I am French and live in Guatemala so have no idea about the tax implications of retirement accounts, but should you want to retire early could you withdraw money from those accounts without too much of a penalty? Or do you have another plan? It looks like you want to work in your field until normal retirement age but if life happens can you make an early exit?

We plan to retire early for sure, no age is pinned down yet (although my husband has ideas). So far, the HSA (Health Savings Accounts) and the 457b accounts are what we will use for pre-retirement age for health and living expenses - without penalties. Then maybe regular savings too?

457bs - There is no 10% penalty for taking money out of 457(b)s before workers turn 59 1/2, as long as they are retiring or ending their employment.