New member, first post.
My wife (49) and I (51) are fairly frugal. Single income of around 85K with no kids and no debt. 401K maxed out with catch up ($24,500), two Roth's maxed out with catch up on mine ($12,000), HSA max'd out and put into investments ($6,900). That is $43,400 per year and more than half of my gross. We used to track every penny we spent but quit a few years ago. It was around $30,000 per year.
401K - $1,000,000 (about 60/40 split)
Roth - $65,000 (all stocks)
HSA - $70,000 (all stocks)
Taxable stocks - $250,000 (mostly stocks)
Paid for house - $250,000
I'm projecting we will have around $2,000,000 in 3.5 years. I have been working on a spreadsheet tracking the accumulation of $$$ for probably 20 years. A week ago I started working on a second spreadsheet for spending $$$.
Our plans are to retire, sell our "city" house and move to a "farm" for slow country living. We'd like to buy the farm (50 acres ?) and build a house for what we sold our city house for but I am not sure if that will be possible so we may have a small mortgage for a while.
I believe our living expenses will come from $24,000 per year from the 401K (standard deduction - no tax) and the sale of taxable stocks ($0 taxed on the first $~50K of long term cap gains). Hopefully we can do this from 55 to 60 and then switch to living off tax free Roth money from 61 to 70.5 (pension of $9,000 per year starting at 65). At that point we will take Social Security and go heavy into the 401K thus paying a ton of taxes.
I don't like the stress of my job but like my coworkers and will probably miss it. I like to do projects and hopefully the farm life will agree with me. I'm a little scared about retiring and starting a new life but I think that is just being scared of the unknown.
Question - If I retire at the beginning of March there won't be enough income that year to fully fund my 401K, Roth's and HSA acct. This bugs the heck out of me because it feels like I am leaving money on the table. Am I worrying over nothing? Should I just stock pile cash for the last 2 months (or even 14 months) and not worry about it? Since we invest so much we almost live paycheck to paycheck. Maybe only around $40,000 in the checkbook right now and I doubt it will grow much on our current plan.
My wife (49) and I (51) are fairly frugal. Single income of around 85K with no kids and no debt. 401K maxed out with catch up ($24,500), two Roth's maxed out with catch up on mine ($12,000), HSA max'd out and put into investments ($6,900). That is $43,400 per year and more than half of my gross. We used to track every penny we spent but quit a few years ago. It was around $30,000 per year.
401K - $1,000,000 (about 60/40 split)
Roth - $65,000 (all stocks)
HSA - $70,000 (all stocks)
Taxable stocks - $250,000 (mostly stocks)
Paid for house - $250,000
I'm projecting we will have around $2,000,000 in 3.5 years. I have been working on a spreadsheet tracking the accumulation of $$$ for probably 20 years. A week ago I started working on a second spreadsheet for spending $$$.
Our plans are to retire, sell our "city" house and move to a "farm" for slow country living. We'd like to buy the farm (50 acres ?) and build a house for what we sold our city house for but I am not sure if that will be possible so we may have a small mortgage for a while.
I believe our living expenses will come from $24,000 per year from the 401K (standard deduction - no tax) and the sale of taxable stocks ($0 taxed on the first $~50K of long term cap gains). Hopefully we can do this from 55 to 60 and then switch to living off tax free Roth money from 61 to 70.5 (pension of $9,000 per year starting at 65). At that point we will take Social Security and go heavy into the 401K thus paying a ton of taxes.
I don't like the stress of my job but like my coworkers and will probably miss it. I like to do projects and hopefully the farm life will agree with me. I'm a little scared about retiring and starting a new life but I think that is just being scared of the unknown.
Question - If I retire at the beginning of March there won't be enough income that year to fully fund my 401K, Roth's and HSA acct. This bugs the heck out of me because it feels like I am leaving money on the table. Am I worrying over nothing? Should I just stock pile cash for the last 2 months (or even 14 months) and not worry about it? Since we invest so much we almost live paycheck to paycheck. Maybe only around $40,000 in the checkbook right now and I doubt it will grow much on our current plan.
