You Dreamers what is your number

[brokrken]

We are currently 31 and soon to be 35 those ages are the projected retirement ages[emoji12]

Gotcha, not far off from our projected ages of 50 and 54.

 

[cyber888]

Congrats cyber888! great progress in 7-8 months. Is your target $1M at 57 before FIRE?

Yes thanks. Targeting $1 mil - $1.1 mil by 57.5 yrs with house paid. With no kids and living in the South, 1 mil works

 

[Barabus]

50 now and have $3M with house equity. Plan is to downsize at 56 with about $4.25M and a sailboat. DW would like to fire sooner. Not confident about that.

 

[68bucks]

My situation is sort of complex which has been giving me fits trying to figure out a number, and a date. DW and I are both 56. We owe about $250K on the house we just bought 2 years ago and I'd still like to do a couple major projects on it probably to the tune of $150K or so. Doesn't have to be now or all at once but we plan to stay here. We're at $1.2+ mil in IRA today but when I retire I will get about another $600K right away and would have about another $350k or so coming for each of the next 9 years. That amount is also dependent on company performance. We're pretty solid but you never know. If that all comes to be or better we're set. Kids are grown. I have been working on what our actual living expenses are and I'm coming up in the $75-85K range. I figure healthcare will probably just replace the mortgage payment when its gone but I could have both for a while which makes it worse. Potential early withdraw penalties are in the mix. I also don't know how all you folks have such low annual expenses. We don't live a really high life style I don't think. We're in the mid-west so COL isn't bad. We don't travel extensively. I don't know what's worse sometimes, the stress of working or the stress of trying to figure out if I can retire. But then I probably over analyze everything.

 

[street]

Fun to read your plans and the dreams everyone has. A plan and a goal is the first step.

 

[CaliKid]

My number keeps going up darn it. I hope eventually that my number stops going up so I can end this madness!

 

[swakyaby]

I had that problem too. When I was in college and knew nothing about finance, I thought $1 million was a lot and a cool round number. Then I realized you have to actually pay taxes, so I thought $1.3 million would do it. Then I graduated, went on to professional school, bought a house and a car. Thought I really needed $3 million to maintain the lifestyle and have some cushion. As I entered my peak earning years, I sensed that my colleagues would consider that amount the minimum savings they would consider retiring on, that $5 million was more the normal (without any pension or other benefits).

So I finally said I need to stop these financial mind games, stop comparing myself to my wealthier colleagues, and determine what I and DH need to retire comfortably with a sufficient cushion for unexpected expenses. And that time is this year end.

 

[CaliKid]

I had that problem too. When I was in college and knew nothing about finance, I thought $1 million was a lot and a cool round number. Then I realized you have to actually pay taxes, so I thought $1.3 million would do it. Then I graduated, went on to professional school, bought a house and a car. Thought I really needed $3 million to maintain the lifestyle and have some cushion. As I entered my peak earning years, I sensed that my colleagues would consider that amount the minimum savings they would consider retiring on, that $5 million was more the normal (without any pension or other benefits).

So I finally said I need to stop these financial mind games, stop comparing myself to my wealthier colleagues, and determine what I and DH need to retire comfortably with a sufficient cushion for unexpected expenses. And that time is this year end.

Well said and I agree. Have had similar thoughts as my number goes up. At some point it does have to be your own number and not worry about others. You are so right.

 

[DireWolf]

I have two possibilities to my number:

1) FIRE in 2-3 years with at least 1.5M after selling the house. Then live abroad (Mexico, probably) for about 7 years at 2.5% WR. After living on a low WR for several years, then potentially moving back to the states and bumping to around a 4.5% WR until age 70 when SS kicks in.

2) Stay where we are and FIRE in 6 years (+/- a year) around 1.8M plus paid off house. DW may continue to work p/t for a few years in that case, until youngest out of the home.

Currently at around 850k plus 300k equity and adding 60k/yr in savings and 20k/yr in equity. We expect around 75-80k/yr at age 70 in SS and we also have a 12k/yr pension at 65. Safety net includes living abroad longer and also very strong possibility of 200-500k in inheritance.

 

[dallas27]

I have two possibilities to my number:

1) FIRE in 2-3 years with at least 1.5M after selling the house. Then live abroad (Mexico, probably) for about 7 years at 2.5% WR. After living on a low WR for several years, then potentially moving back to the states and bumping to around a 4.5% WR until age 70 when SS kicks in.

2) Stay where we are and FIRE in 6 years (+/- a year) around 1.8M plus paid off house. DW may continue to work p/t for a few years in that case, until youngest out of the home.

Currently at around 850k plus 300k equity and adding 60k/yr in savings and 20k/yr in equity. We expect around 75-80k/yr at age 70 in SS and we also have a 12k/yr pension at 65. Safety net includes living abroad longer and also very strong possibility of 200-500k in inheritance.

80k social security? I hope you are talking about inflated dollars. Max is ~2600 today pp.

 

[Surewhitey]

I have two possibilities to my number:

1) FIRE in 2-3 years with at least 1.5M after selling the house. Then live abroad (Mexico, probably) for about 7 years at 2.5% WR. After living on a low WR for several years, then potentially moving back to the states and bumping to around a 4.5% WR until age 70 when SS kicks in.

2) Stay where we are and FIRE in 6 years (+/- a year) around 1.8M plus paid off house. DW may continue to work p/t for a few years in that case, until youngest out of the home.

Currently at around 850k plus 300k equity and adding 60k/yr in savings and 20k/yr in equity. We expect around 75-80k/yr at age 70 in SS and we also have a 12k/yr pension at 65. Safety net includes living abroad longer and also very strong possibility of 200-500k in inheritance.

It's uncanny how close we are to the exact circumstances. We gave Mexico a test run for a couple years and returned 2 years ago. I would highly recommend doing something like that. I'm working on your #1 option, personally...

 

[DireWolf]

80k social security? I hope you are talking about inflated dollars. Max is ~2600 today pp.

Max is $3538 pp per month at 70. I should be getting pretty near that max if I work till 55, although it drops off slightly if I stop before that. DW is a bit behind me, but not too much. With the pension, we should be around that range, although the pension will be losing ground to inflation.

 

[militaryman]

The number I'm working for is an age ---- 56 and 8 months -- That is the earliest age Fed Gov will let me retire and immediately draw a pension.
Whatever my balances are then will have to do cause I wanna GOOOOO!
Right now -- at age 49.5 I have 640K in TSP ( with matching I'm contributing $28k+ starting in 2018 with the "catch-up Contribution provision)(22K this year)
10K/yr Mil Pension @ 60
32K/yr FERS Pension @ 56 and 8 months
19K SS Supplement ( if still there ) that will equate my SS draw between 56 and 62
19K @ 62 SS and supplement goes away

Will have a 130K "bucket" to carry me to Military pension age 60 and SS age 62 (in case supplement is eliminated like Prez is trying to do)

House is worth $300k and paid for...
Thinking 401k(TSP) will be worth 900K+ when I reach 56 and 8 months

So pensions and SS should be 51K and a 2.5%WR on 900K (22K) should put me at 73K retirement income per year

Will have Federal Employee Health Benefits @ retire and Tricare backup after age 60

Should be bring home 10K more than current when you eliminate TSP contributions and SS that is taken outta each income check.

That'll do just fine

 

[hilltide]

Paid off mortgage- 2.5 Mil Portfolio-
4 days a week of work at 50
Retire at 55

 

[YoungSaver]

FIRE in 2-3 years with at least 1.5M after selling the house. Then live abroad (Mexico, probably) for about 7 years at 2.5% WR. After living on a low WR for several years, then potentially moving back to the states and bumping to around a 4.5% WR until age 70 when SS kicks in.

This is similar to my plan. Hoping for about a million around the age of 42. I wouldn't actually retire, just switch to something more "fun".

It's uncanny how close we are to the exact circumstances. We gave Mexico a test run for a couple years and returned 2 years ago. I would highly recommend doing something like that.

How were those 2 years? Any valuable lessons learned that you would like to share?

 

[neaux2135]

Currently my number is $2.25m. Why this number? I’m using my expenses now minus student loans as a base. About $50k. 4% withdrawal, 3% inflation, @ 20 years covers my current year expenses. This is my conservative, all stock estimate.

Of course I want to leverage borrowed funds for real estate. Every $1,000 net income replaces ~$25,000 stock portfolio. My conservative mindset ignores real estate appreciation.

When/if I hit that number, I’m done.