vtd0918
Dryer sheet wannabe
- Joined
- Oct 15, 2015
- Messages
- 19
30F making $84k per year as a government employee for the State of California. SO is 32 and makes $25k a year which we are using his income for our current monthly living expenses. We have a 8 year daughter together and plan to have another one in 3-5 years, maybe. Currently renting at my in laws house. Right now we have $100k saved split between my 401k and 457 accounts. I max both the 401 and 457 which totals to $36k a year. Starting next year I will be saving $12k each year to a taxable account. We’re also saving to put down 20% to purchase a home within the next year or two. I am estimating our retire expenses will be $4500 a month. This is due to adding more travel after RE. We currently live on $2k a month but I’m estimating after buying a home it will be around $3k.
I am still considering if I should go at 50 or 55 or the middle of the two at 53. If I retire at 55 my pension will provide me with 70% of my current pay and free healthcare. For the pension, 70% of my current pay would be roughly $5280 before any taxes are taken out. The earliest I can retire is 50 but that would drastically cut my pension unless I defer it to 58 to still get the 70% but would then lose healthcare. If I defer the pension and retire at 50 the gap between age 50-58 I would use the taxable account and 457 as a retirement vehicle until the pension kicks in. I will not touch the 401 and let it grow.
SO’s employer contributes 3% of his pay into his 401 each year and healthcare is free. He doesn’t anything towards his 401k. SO’s 401k is at $60k invested in VTSAX. He doesn’t plan on retiring early as his job is pretty easygoing. I did some back of the napkin calculation for his 401 with a 5% return he will have roughly $600k by 60. I may hop on his healthcare plan if I retire earlier but it isn’t all that great with high copays but it’s better than going through the exchange.
Assuming I continue to max the 401 and 457 for the next 25 years along with contributing the $12k a year to a taxable I would have way more than enough to retire on. I didn’t factor in Social Security. I sometimes feel I am saving too much and could use that money now to do more traveling but at the same time that would push back my FIRE plans. I really just want the option readily available for me to quit even earlier if I ever change my mind.
I am still considering if I should go at 50 or 55 or the middle of the two at 53. If I retire at 55 my pension will provide me with 70% of my current pay and free healthcare. For the pension, 70% of my current pay would be roughly $5280 before any taxes are taken out. The earliest I can retire is 50 but that would drastically cut my pension unless I defer it to 58 to still get the 70% but would then lose healthcare. If I defer the pension and retire at 50 the gap between age 50-58 I would use the taxable account and 457 as a retirement vehicle until the pension kicks in. I will not touch the 401 and let it grow.
SO’s employer contributes 3% of his pay into his 401 each year and healthcare is free. He doesn’t anything towards his 401k. SO’s 401k is at $60k invested in VTSAX. He doesn’t plan on retiring early as his job is pretty easygoing. I did some back of the napkin calculation for his 401 with a 5% return he will have roughly $600k by 60. I may hop on his healthcare plan if I retire earlier but it isn’t all that great with high copays but it’s better than going through the exchange.
Assuming I continue to max the 401 and 457 for the next 25 years along with contributing the $12k a year to a taxable I would have way more than enough to retire on. I didn’t factor in Social Security. I sometimes feel I am saving too much and could use that money now to do more traveling but at the same time that would push back my FIRE plans. I really just want the option readily available for me to quit even earlier if I ever change my mind.