A milestone, for now, anyway...

[kaudrey]

People sometimes post milestones here, and I hit a big one last week, although I know it could be temporary if/when the market drops next. I know the number is meaningless, but I'm excited about it anyway...

Investment assets (401(k), IRA, and taxable accounts), surpassed $500K on Thursday for the first time.

I'm 38, single (for now ) and planning to FIRE around age 52.

Karen - loves this forum!

 

[Sam]

Congratulations. That's a very respectable number for a 38yo single. Hopefully you'll reach FI much earlier than planned.

I reach a milestone with this post too. This is the 1,000th one!

 

[SecondCor521]

Karen,

Congratulations!

2Cor521

 

[xmanz3]

Congrats Karen!

All the way up, the sky is the limit!

 

[runchman]

Excellent, always nice to hear another celebrating a milestone!

- John

 

[Outtahere]

Congratulations!! You're well on your way to FI.

 

[SLC Tortfeasor]

Way to go!! You'll be at $1 million before you know it!

 

[crazy connie]

Cangrats Karen! Now, is the plan to go at a specific (I know you have indicated 52) age, dollar amount or just when it feels right?

 

[Celany]

wowee, congrats! how totally awesome!

hearing things like that just makes me more determined to do well for myself - knowing that it can be done!

 

[simple girl]

Congrats!!!!

We just crossed the same milestone last month. Woo-hoo! Isn't it fun to count your money? LOL

 

[kaudrey]

Cangrats Karen! Now, is the plan to go at a specific (I know you have indicated 52) age, dollar amount or just when it feels right?

Thanks everyone! I've just started realizing that my NW is rising much more because of my portfolio than my savings; although that's been true for several years, I never really thought about it much.

My plan (52) is kind of random but made up of several components:

1) At 51, I'll hit 30 years with the federal government which will allow me to start collecting my full pension at age 57 (otherwise I'd have to wait until I hit 60). Really, I could go at 51 and 3 months.

2) My parents retired at 57, and being the competitive person that I am, I wanted to beat them, and 5 years seemed like a nice round number.

3) I don't have a set $ number in mind, but I have a spreadsheet with all kinds of scenarios that makes me feel comfortable that what I will likely have by my early 50s will ensure that I don't run out of money until I'm 100. I can live with that. (And Firecalc supports my spreadsheet's conclusions).

Thanks for the support everyone!

Karen

 

[bow-tie]

Wow... saving solo and hitting 500k already. That rules. Well done.

At this rate, by the time you are ready to retire, your pension and savings should put you in a great position.

 

[kaudrey]

Thanks bow-tie. We won't talk about the money I paid out to make my ex-husband shut up and go away during my divorce 7 years ago.

I thank my parents for teaching me how to save money, and also for giving me the education and smarts that have lead to me being able to get a pretty high paying job (at least as far as the gov't goes).

 

[DangerMouse]

Karen

Congrats on reaching this milestone and moving one step closer to FIRE.

 

[Mwsinron]

Way to go! Anything closer to FIRE is great in my book.

 

[DRiP Guy]

Terrific!

 

[PPT]

Way to go!!!!!!!

 

[Linney]

Thanks bow-tie. We won't talk about the money I paid out to make my ex-husband shut up and go away during my divorce 7 years ago.

Well... I was about to post that I might have been able to save more but I had to give up half of everything (including retirement funds) to my ex husband : You too? Wow, you've really done great! I've recently reached the same milestone but I'm 46.

 

[JustCurious]

Well... I was about to post that I might have been able to save more but I had to give up half of everything (including retirement funds) to my ex husband : You too? Wow, you've really done great! I've recently reached the same milestone but I'm 46.

Linney, you are entitled to an offset for the amount of HIS retirement savings. Did he not have any??

 

[Linney]

Linney, you are entitled to an offset for the amount of HIS retirement savings. Did he not have any??

We were in a community property state so in truth it doesn't matter who ends up with which asset as long as the split is done 50-50. I kept all of the retirement savings (they were in my name) so he got to keep a much larger amount of the cash from our house. I made my comment about having to give up 1/2 of everything because I was the saver and he was the spender.

My ex took his share of the money and bought a boat. I took mine and bought an economy-class ticket for the journey to FIRE

 

[Jay_Gatsby]

We were in a community property state so in truth it doesn't matter who ends up with which asset as long as the split is done 50-50. I kept all of the retirement savings (they were in my name) so he got to keep a much larger amount of the cash from our house. I made my comment about having to give up 1/2 of everything because I was the saver and he was the spender.

My ex took his share of the money and bought a boat. I took mine and bought an economy-class ticket for the journey to FIRE

Sounds like you got the better end of the deal. Retirement savings grow faster with less tax implications. A boat is just a hole in the water into which you pour money. Or as some have said, there are two happy days when it comes to boats -- the day you buy it and the day you sell it. If it rolls, flies or floats -- rent it.

 

[JustCurious]

We were in a community property state so in truth it doesn't matter who ends up with which asset as long as the split is done 50-50. I kept all of the retirement savings (they were in my name) so he got to keep a much larger amount of the cash from our house. I made my comment about having to give up 1/2 of everything because I was the saver and he was the spender.

Linney, you bring up an issue of unfairness that can arise in a divorce if one person is a saver and the other is a spender. The 50/50 split may be fair if both parties saved or spent equally, but when one is carrying the load of LBYM and saving while the other is living it up and spending for both, when it comes to divorce the saver gets screwed.

The moral of the story is not to get married to someone who doesn't share your saving and spending goals.

 

[SecondCor521]

Linney, you bring up an issue of unfairness that can arise in a divorce if one person is a saver and the other is a spender. The 50/50 split may be fair if both parties saved or spent equally, but when one is carrying the load of LBYM and saving while the other is living it up and spending for both, when it comes to divorce the saver gets screwed.

The moral of the story is not to get married to someone who doesn't share your saving and spending goals.

My wife (a spender) divorced me (a miser) in a community property state last year. We split stuff basically 50/50. You're right that it could be seen as unfair in retrospect, but looking forward presumably over time the saver's and spender's financial lives will reflect their choices.

My divorce is recent, but I think I am even more of a saver now that I was when I was married. I would guess that my wife is even more of a spender. During our marriage I think we tried to curb our natural tendencies and move towards the middle more.

2Cor521

 

[JustCurious]

Did the difference in saving/spending habits contribute to the divorce?

 

[Linney]

Did the difference in saving/spending habits contribute to the divorce?

For me: Contribute, yes. Cause, no -- there were other issues that were more of a factor, particularly his desire not to work and contribute to the household (another financial issue); there were social issues as well.

It will be interesting to see if 2Cor521 answers this queston the same way.