lem1955
Recycles dryer sheets
- Joined
- Mar 1, 2007
- Messages
- 378
Try FIRECalc with a 6 or 7% growth assumption.
Omy syndrome justified!But it would take about 14 years at Home Depot to equal 1 year at your current job...
My wife and I live pretty modestly, and our income peaked (inflation adjusted) at about 75% of OPs. We added less than $10K to after-tax savings on a $135K income last year. That post-retirement spending level would seem to need a close look, especially for two people young enough to be very active.How will you handle going from $288k to $100k in yearly spending?
Are you getting VA disability on top of the pension?Thank you. Of course I will continue to save but its nice knowing I can bail when I want. The VA pension comes with a physical cost![]()
I was thinking the opposite. I was thinking that with a $48K pension and $1M in savings there is no reason to continue working. They have a paid off house. How can they possibly need $100K/yrMy wife and I live pretty modestly, and our income peaked (inflation adjusted) at about 75% of OPs. We added less than $10K to after-tax savings on a $135K income last year. That post-retirement spending level would seem to need a close look, especially for two people young enough to be very active.
$1M saved now what? Not to be a smart aleck, but my answer at your age is go back to work and ask when you have $2 million.First and foremost, thank you all for any review and replies!
About Me
- Age 46
- Just broke the $1M milestone
- Asset allocation 70/30
- $50K cash Emergency Fund
Income
His
Her
- $200,000 Annual
- $48,000 VA pension
Total $288K
- $40,000
Debit / Loans / payments
If I dont save another dime, can I retire in 9 years?
- Home paid / Utilities only
- $0 annual Property tax (disabled veteran Florida)
- $750/yr Tricare Prime for Life Insurance
- $6000/yr Property Insurance
- If I don’t save another dime, my $1M next egg wil be worth approx. $2.2M in 9 years (age55) (In todays dollars)
- Assumptions = $1M x 9years @ 9% return
- My annual retirement expenses will be $100,000 annually (In today’s dollars) at age 55 Spreadsheet attached
- I will continue to draw VA pension $48,000 for life (In todays Money, adjusted for cost of living annually)
In many parts of the US, a paid-for house of ordinary size can still run up $25K in annual costs.I was thinking the opposite. I was thinking that with a $48K pension and $1M in savings there is no reason to continue working. They have a paid off house. How can they possibly need $100K/yr
Nine years to double, means 8% CAGR... doable, with an equity-heavy portfolio... and very doable, if there are additional annual savings. With a more conservative portfolio and no additional savings, it becomes... considerably less doable.Some of you guys are rough on OP. Nine years to double his money seems very doable. If it doesn't, then maybe he works a few extra years.
I suspect he will be at $2M before 9 years, especially if he invests what he was using to pay off his mortgage.
Congrats to OP on hitting $1M and having a paid for home. Many will never accomplish those goals.
I suppose it's a matter of how much they need/want to spend. We could get by on 100K/yr but that would mean cut-backs.I was thinking the opposite. I was thinking that with a $48K pension and $1M in savings there is no reason to continue working. They have a paid off house. How can they possibly need $100K/yr
We are not rough but realist. It would be a different matter if someone amassed a 1M portfolio with $70K annual income. That person can probably stop working altogether because his/her spending would be $40-45K. Retirement is more about how much you spend than what you have and most of us here have realized that fact a long time ago.Some of you guys are rough on OP. Nine years to double his money seems very doable. If it doesn't, then maybe he works a few extra years.
I suspect he will be at $2M before 9 years, especially if he invests what he was using to pay off his mortgage.
Congrats to OP on hitting $1M and having a paid for home. Many will never accomplish those goals.
Made me look at our last "double". It took ~6.5 years with income and high savings rate. A lower starting point is easier to double in a short time with a big income like OP...Nine years to double, means 8% CAGR... doable, with an equity-heavy portfolio... and very doable, if there are additional annual savings. With a more conservative portfolio and no additional savings, it becomes... considerably less doable.
Two important lessons here. First, upon attaining a certain amount of money, it's only too easy to submerge into "I've won the game mode", transitioning to a more conservative portfolio. This might be a mistake! The result is probably smaller cumulative gains. Are we prepared to accept that?
Second, as our portfolios grow, our incremental capacity to goose them further, with more annual savings, wanes. A $1M portfolio's apparent annual gains can be nicely improved by saving an extra $50K annually. But that extra $50K won't substantially help a $10M portfolio.
The 48K is his VA disability. 100% I'm guessing. Doesn't look like he gets a retired military pension. We only receive a "military pension" if we complete 20 years or more. There are a few exceptions.Are you getting VA disability on top of the pension?
I didn't see any post that said he didn't retire with a $48K pension. He is 46 so he could have a pension and now work private sector. He could also be eligible for disability on top of the pension. If he is using the word pension when he is talking about disability then that is very confusing. My Dad has a pension and 100% disability. He doesn't have a pension and a pension.The 48K is his VA disability. 100% I'm guessing. Doesn't look like he gets a retired military pension. We only receive a "military pension" if we complete 20 years or more. There are a few exceptions.
Some of you guys are rough on OP. Nine years to double his money seems very doable.
Congrats to OP on hitting $1M and having a paid for home. Many will never accomplish those goals.
On the start here tab, set 0 spending, 100 portfolio, 9 full years. Go to the your portfolio tab, and change equities from 75 to 70. Run the calculations. You will see the spread of outcomes.Does someone more conversant with FireCalc than me know if it will show historical 9-year period real outcomes for a 70/30 AA split? I'd be interested in in the probability of 9%+ real returns as well as the overall final distribution.
How do you have $200k income and VA disability?First and foremost, thank you all for any review and replies!
About Me
- Age 46
- Just broke the $1M milestone
- Asset allocation 70/30
- $50K cash Emergency Fund
Income
His
Her
- $200,000 Annual
- $48,000 VA pension
Total $288K
- $40,000
Debit / Loans / payments
If I dont save another dime, can I retire in 9 years?
- Home paid / Utilities only
- $0 annual Property tax (disabled veteran Florida)
- $750/yr Tricare Prime for Life Insurance
- $6000/yr Property Insurance
- If I don’t save another dime, my $1M next egg wil be worth approx. $2.2M in 9 years (age55) (In todays dollars)
- Assumptions = $1M x 9years @ 9% return
- My annual retirement expenses will be $100,000 annually (In today’s dollars) at age 55 Spreadsheet attached
- I will continue to draw VA pension $48,000 for life (In todays Money, adjusted for cost of living annually)
Hello, not sure wheree you live but it seems your husband is 100% VA disabled, I live in TX and I am also 100% VA disabled. I pay no property taxes. Suggest you check for your state.First and foremost, thank you all for any review and replies!
About Me
- Age 46
- Just broke the $1M milestone
- Asset allocation 70/30
- $50K cash Emergency Fund
Income
His
Her
- $200,000 Annual
- $48,000 VA pension
Total $288K
- $40,000
Debit / Loans / payments
If I dont save another dime, can I retire in 9 years?
- Home paid / Utilities only
- $0 annual Property tax (disabled veteran Florida)
- $750/yr Tricare Prime for Life Insurance
- $6000/yr Property Insurance
- If I don’t save another dime, my $1M next egg wil be worth approx. $2.2M in 9 years (age55) (In todays dollars)
- Assumptions = $1M x 9years @ 9% return
- My annual retirement expenses will be $100,000 annually (In today’s dollars) at age 55 Spreadsheet attached
- I will continue to draw VA pension $48,000 for life (In todays Money, adjusted for cost of living annually)