moneymaker
Recycles dryer sheets
- Joined
- Mar 13, 2013
- Messages
- 106
Hi,
Wanted to get some thoughts. Currently, wife and I are 38 y/o with two girls (11 & 8); dual income; I'm an active duty 05 in the Army with about 5 1/2 to go until I hit 20 years at which point, the plan is to retire from the Army and go to work for MEGACORP for a few years. Wife works in sales from home with about the same level of income.
Current assets:
Retirement accounts: $550k (split between wife's 401k, my Army 401k, Roth IRAs, and rollover IRA)
Taxable accounts: $25k
Real Estate equity: $600-700k (split between primary, 2 rentals, and 1 beach home/rental)
I will get 50% of my base pay if I retire at 20 plus some VA disability probably (Total income of $4-6k in today's dollars).
We have mostly maxed our retirement contributions, but believe now would be the time to dial that back considerably and contribute more to our after tax accounts to increase those. We will still contribute about 8% to my 401k and my wife will still contribute 6% out of her paycheck, but with company match it will be 15% (they automatically contribute 3% plus match up to 6% D/D). When I do the calculations of even 6% rate of return, that $550K would be around $2 million when we are 60 y/o.
The reason is so that I can cover the gap from 50 y/o to 60 y/o as I don't believe my pension will cover everything.
Does anyone see anything wrong with this?
Thanks in advance.
Wanted to get some thoughts. Currently, wife and I are 38 y/o with two girls (11 & 8); dual income; I'm an active duty 05 in the Army with about 5 1/2 to go until I hit 20 years at which point, the plan is to retire from the Army and go to work for MEGACORP for a few years. Wife works in sales from home with about the same level of income.
Current assets:
Retirement accounts: $550k (split between wife's 401k, my Army 401k, Roth IRAs, and rollover IRA)
Taxable accounts: $25k
Real Estate equity: $600-700k (split between primary, 2 rentals, and 1 beach home/rental)
I will get 50% of my base pay if I retire at 20 plus some VA disability probably (Total income of $4-6k in today's dollars).
We have mostly maxed our retirement contributions, but believe now would be the time to dial that back considerably and contribute more to our after tax accounts to increase those. We will still contribute about 8% to my 401k and my wife will still contribute 6% out of her paycheck, but with company match it will be 15% (they automatically contribute 3% plus match up to 6% D/D). When I do the calculations of even 6% rate of return, that $550K would be around $2 million when we are 60 y/o.
The reason is so that I can cover the gap from 50 y/o to 60 y/o as I don't believe my pension will cover everything.
Does anyone see anything wrong with this?
Thanks in advance.