Hi all,
I'm a couple weeks away from turning 28 and have been thinking a lot about what direction I'd like to go in professionally, personally, etc. Folks say that you should do what you love and you'll never have to work a day in your life. Well, I like to meet new people in new places, complete lengthy physical goals (biked across the country in '08, would love to hike the AT and sail across the Atlantic), and spend time outdoors. I'm currently working in Investment Operations in Boston, and am generally not fulfilled with my 9-5.
My company has a fairly generous 401k contribution - - 15% of base salary - - that vests at 5 years. I am currently weighing whether or not it is realistic to duck out of the corporate world once I hit the 5 year mark in April 2017 and start traveling in a financially sustainable way (e.g., teach English abroad, work at a national park in the US, work as a deck hand on a ship sailing across the ocean...). I would also be very open to working in more traditional jobs for longer spurts while I try out cities that I've enjoyed visiting in the past, and those that I suspect I'd enjoy, such as Austin, Denver, and Seattle. Hopefully I would eventually land on something that just clicked, and I would find the long-term job that never feels like work.
Details are:
I currently have about $24k in a traditional 401k (I started working late). I have budgeted and believe I can fund the allowed $17.5k annual contribution beginning next March, once I've finished paying down revolving debt. Assuming that I continue contributing what I do now, max out my contribution beginning in March, that I remain until the 5 year mark, and that my investments earn 8% annually during that period, I will have just over $160k in retirement. Forecasting conservative annual raises, no promotions, and using my current spending rates, I think that I would have about $30k cash, as well as about (15k) remaining in student debt @ 6.8% - monthly payments of about $150.
What do folks think? Sound like a pipe dream? My work would also fully pay for a part time MBA during this time period, but I'm not inclined to go after that as I'd have to focus on Finance and I really just don't care for it. My current job has good work life (i.e., 35-40 hour work weeks and I don't take anything home with me), so I think I can get through the next 4 1/2 years with my psyche still intact. I'm starting to learn guitar, am involved with the outdoors community, volunteer, sail, etc., so it would just be a matter of biding my time. Friends have said both that I should suck it up and just do grad school hoping something clicks, and also that I should just get out now and try to do something different or move elsewhere. I think I'd be more comfortable having these short term adventures if I knew that I had a decent chunk of change in retirement earning some rate of return (at least over the long term).
Thanks in advance,
Denefi
I'm a couple weeks away from turning 28 and have been thinking a lot about what direction I'd like to go in professionally, personally, etc. Folks say that you should do what you love and you'll never have to work a day in your life. Well, I like to meet new people in new places, complete lengthy physical goals (biked across the country in '08, would love to hike the AT and sail across the Atlantic), and spend time outdoors. I'm currently working in Investment Operations in Boston, and am generally not fulfilled with my 9-5.
My company has a fairly generous 401k contribution - - 15% of base salary - - that vests at 5 years. I am currently weighing whether or not it is realistic to duck out of the corporate world once I hit the 5 year mark in April 2017 and start traveling in a financially sustainable way (e.g., teach English abroad, work at a national park in the US, work as a deck hand on a ship sailing across the ocean...). I would also be very open to working in more traditional jobs for longer spurts while I try out cities that I've enjoyed visiting in the past, and those that I suspect I'd enjoy, such as Austin, Denver, and Seattle. Hopefully I would eventually land on something that just clicked, and I would find the long-term job that never feels like work.
Details are:
I currently have about $24k in a traditional 401k (I started working late). I have budgeted and believe I can fund the allowed $17.5k annual contribution beginning next March, once I've finished paying down revolving debt. Assuming that I continue contributing what I do now, max out my contribution beginning in March, that I remain until the 5 year mark, and that my investments earn 8% annually during that period, I will have just over $160k in retirement. Forecasting conservative annual raises, no promotions, and using my current spending rates, I think that I would have about $30k cash, as well as about (15k) remaining in student debt @ 6.8% - monthly payments of about $150.
What do folks think? Sound like a pipe dream? My work would also fully pay for a part time MBA during this time period, but I'm not inclined to go after that as I'd have to focus on Finance and I really just don't care for it. My current job has good work life (i.e., 35-40 hour work weeks and I don't take anything home with me), so I think I can get through the next 4 1/2 years with my psyche still intact. I'm starting to learn guitar, am involved with the outdoors community, volunteer, sail, etc., so it would just be a matter of biding my time. Friends have said both that I should suck it up and just do grad school hoping something clicks, and also that I should just get out now and try to do something different or move elsewhere. I think I'd be more comfortable having these short term adventures if I knew that I had a decent chunk of change in retirement earning some rate of return (at least over the long term).
Thanks in advance,
Denefi
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