What a great resource i've found (i'm sure i'm not telling anyone here anything they don't already know!)
Here's my scenario:
40 years old, married. Current household income is about $220k, with retirement savings of $500k, and are debt free (house paid off). Total net worth approximately $817k.
As with many of you, 80hr work weeks are not sustainable for much longer, and i'm looking to ramp down vs ramp up. If i were to stop working today, i'm pension eligible for $18k/year (beginning draw at age 65). If one believes the SS calculator the gov't provides, a scenario of me stopping work now and my wife continuing, initiating SS draw at 65 would provide an additional $32k/yr (combined for the both of us). I *think* if i were to retire now, and my wife continues to work as a tenured professor with a salary of $70k with retirement contributions of 11% of her salary and the university matches it 100% for a total contribution of 22% of her salary per annum - we'd be just fine - but it's always good go get a second opinion (or 3rd, or 4th..). Assuming 6% growth on our current base, this puts our estimated 401k value between $3-3.5mm USD in 25 years.
Of course i understand the fact that i'll need to be very intentional about what i do with my time element, i'm just looking at the fiscal element here...
Hoping folks who are more versed at this than i can 'kick the tires' on the above and sense check it, point out flaws in thinking, etc!
Here's my scenario:
40 years old, married. Current household income is about $220k, with retirement savings of $500k, and are debt free (house paid off). Total net worth approximately $817k.
As with many of you, 80hr work weeks are not sustainable for much longer, and i'm looking to ramp down vs ramp up. If i were to stop working today, i'm pension eligible for $18k/year (beginning draw at age 65). If one believes the SS calculator the gov't provides, a scenario of me stopping work now and my wife continuing, initiating SS draw at 65 would provide an additional $32k/yr (combined for the both of us). I *think* if i were to retire now, and my wife continues to work as a tenured professor with a salary of $70k with retirement contributions of 11% of her salary and the university matches it 100% for a total contribution of 22% of her salary per annum - we'd be just fine - but it's always good go get a second opinion (or 3rd, or 4th..). Assuming 6% growth on our current base, this puts our estimated 401k value between $3-3.5mm USD in 25 years.
Of course i understand the fact that i'll need to be very intentional about what i do with my time element, i'm just looking at the fiscal element here...
Hoping folks who are more versed at this than i can 'kick the tires' on the above and sense check it, point out flaws in thinking, etc!