Scots
Dryer sheet wannabe
- Joined
- Jun 24, 2018
- Messages
- 16
Hi all - I made an introduction post in the Introduction thread a while back, but wanted to pop into here and share our plan with you guys!
We've done some further planning and projecting, and we're aiming at 55 for "retirement" (now 32). I put in quotes because for me, that means being able to live where and how we want with no need for a 9-5, though I'll probably continue to keep doing things as I'd like to, on my own terms.
Current total pre-tax income: 129,000
Net worth: around 420k
House: Worth 375k, owe 223k
Cash: 25
Liquid mutual funds: 59k
401Ks: 119k
Roth IRAs: 9k
529s: 5k
HSA: 4k
Cars: 18k and 12k
Valuables: Various
We've got 23 years until 55, and our plan moving forward is:
401k Monthly Contribution: $1,000
Company Match (Monthly equivalent): $210
Roth Monthly Contributions: $800
Liquid Brokerage Fund Monthly Contribution: $200
Total Monthly Retirement Savings: $2,210
If I use my current "nest egg" number (not including cash emergency fund 25k) of $187,000, and assume a conservative 5% growth number for the next 23 years contributing the $2,210 a month, it gets us to $1,728,000 at 55. A better return of 6% gets us over $2M, while a worse return at 4% gets us to around $1.5M. Using a 3.5% withdrawal rate, that's roughly 60k/year income solely from the next egg, not including any other continuous income we bring in after that time, or inheritance money. And shouldn't have a house payment at that point.
The inheritance (we are blessed and don't take this for granted!) will be coming at some point (parents are currently 63), which will be somewhere between $1.5M and $2M at some point in the next 30 years or so (hopefully not for a long time!). There is also an inheritance of around 50k from a grandparent that will likely hit in the next 5-6 years. I know it's not wise to factor these in, so we view it as a bonus that we're planning to simply bolster the portfolio when it comes. The reality is that if it's the low end at $1.5M, my low projection of $1.5M from our own build-up becomes $3M, which sets us up very nicely.
So what do you guys think? On track for our 23 year, "55 and free" plan?
We've done some further planning and projecting, and we're aiming at 55 for "retirement" (now 32). I put in quotes because for me, that means being able to live where and how we want with no need for a 9-5, though I'll probably continue to keep doing things as I'd like to, on my own terms.
Current total pre-tax income: 129,000
Net worth: around 420k
House: Worth 375k, owe 223k
Cash: 25
Liquid mutual funds: 59k
401Ks: 119k
Roth IRAs: 9k
529s: 5k
HSA: 4k
Cars: 18k and 12k
Valuables: Various
We've got 23 years until 55, and our plan moving forward is:
401k Monthly Contribution: $1,000
Company Match (Monthly equivalent): $210
Roth Monthly Contributions: $800
Liquid Brokerage Fund Monthly Contribution: $200
Total Monthly Retirement Savings: $2,210
If I use my current "nest egg" number (not including cash emergency fund 25k) of $187,000, and assume a conservative 5% growth number for the next 23 years contributing the $2,210 a month, it gets us to $1,728,000 at 55. A better return of 6% gets us over $2M, while a worse return at 4% gets us to around $1.5M. Using a 3.5% withdrawal rate, that's roughly 60k/year income solely from the next egg, not including any other continuous income we bring in after that time, or inheritance money. And shouldn't have a house payment at that point.
The inheritance (we are blessed and don't take this for granted!) will be coming at some point (parents are currently 63), which will be somewhere between $1.5M and $2M at some point in the next 30 years or so (hopefully not for a long time!). There is also an inheritance of around 50k from a grandparent that will likely hit in the next 5-6 years. I know it's not wise to factor these in, so we view it as a bonus that we're planning to simply bolster the portfolio when it comes. The reality is that if it's the low end at $1.5M, my low projection of $1.5M from our own build-up becomes $3M, which sets us up very nicely.
So what do you guys think? On track for our 23 year, "55 and free" plan?