Race to 2024 - please join :)

[brokrken]

I am spending 5200 per month, but the mortgage is 1700 and it should go away once I pay it off. I can also squeeze a little more once my day care cost is gone next year. I checked the Obama Care in my city and I can get one with 200 per month after FIRE.

You can get a plan for a family of 4 for $200/month? I've never heard of anyone getting such a deal. What plan is it and how much is the deductible?

Also, will you have enough taxable money to bridge the gap between your FIRE date and 59.5, when you can take out of the IRAs?

 

[chasedream2002]

I searched in the market place website. Based on the projected income level, the cost of plans range from 200-800 in my area. Deductible is high for these plans. In order to reach this level of cost, the income level needs to stay low.

I have more than 300k in cash and taxable and hope to get to 600k in the next few years.

You can get a plan for a family of 4 for $200/month? I've never heard of anyone getting such a deal. What plan is it and how much is the deductible?

Also, will you have enough taxable money to bridge the gap between your FIRE date and 59.5, when you can take out of the IRAs?

 

[MoneyChic]

You can get a plan for a family of 4 for $200/month? I've never heard of anyone getting such a deal. What plan is it and how much is the deductible?

Also, will you have enough taxable money to bridge the gap between your FIRE date and 59.5, when you can take out of the IRAs?

Can’t speak for Chasedream, but I know it depends on your state, and maybe even your zip code. I looked into options for a plan for my husband and myself in one of the states on our list of possible retirement locations (can’t remember which one at the moment) and with the subsidies for keeping income in a certain range, our premiums were going to be rediculously cheap- like less than $50 a month combined for the two of us. All of this assumes that the subsidies stay in place, and I really have no predictions on that front.

 

[brokrken]

Can’t speak for Chasedream, but I know it depends on your state, and maybe even your zip code. I looked into options for a plan for my husband and myself in one of the states on our list of possible retirement locations (can’t remember which one at the moment) and with the subsidies for keeping income in a certain range, our premiums were going to be rediculously cheap- like less than $50 a month combined for the two of us. All of this assumes that the subsidies stay in place, and I really have no predictions on that front.

Wow, these are encouraging messages. I currently have $2k per month in my FIRE budget for healthcare

 

[chasedream2002]

I even found 0 dollar premium coverage in my area. The key is to keep income low. I input 30k-40k income range and got very cheap quotes. Of course it can be over 1000 per month if the subsidy is gone. Hope the subsidy can stay!

Wow, these are encouraging messages. I currently have $2k per month in my FIRE budget for healthcare

 

[RxMan]

This is my first post here. I stumbled upon these forums a couple of weeks ago and I’ve been lurking and reading a lot in that time.

I’m 45 and my DW is 32. I hadn’t really seriously thought about early retirement until recently. We have $1.24m total as of the beginning of this month. That is broken down as $725000 in retirement accounts as the rest is in various taxable brokerage accounts. We’re sitting at about 70/30 AA at the moment. We also have a paid off $300K home not included in the above numbers and no debt of any kind.

In running some preliminary numbers I’d say our target savings amount should be about double what we have now. Running numbers in the $2.25m-$2.5m range gets us to around $6500-$7000 per month spending which is a little over twice what we currently spend per month.

Admittedly, the roughly $3000/month slim budget we currently try to follow is due to the fact that my DW is currently not working and about to go back to school. So not only will she not be working for the next 14 months but we’re cash flowing the rather large tuition bill.

I’d love to conditionally apply to be included in the class of 2024 with you but realistically I’ll probably fail a couple of classes and be held back into the 2025 or 2026 classes. The markets could also push me back if they under perform for an extended period of time.

I do have some anxieties about one day pulling the plug on employment:

1. Healthcare costs. This is a wildcard and difficult to predict beyond a couple of years out.

2. Spouse’s financial security. Let’s face it- between the difference in our ages and life expectancies the odds are my DW will have a long time on this earth to fund after I’m gone. Will any retirement readiness calculations I do now account for this and ensure she’ll not run out of money?

3. Emotional readiness. What has impressed me the most after reading through these forums is that the decision to retire is as much an emotional one as it is financial. Will I finally accept that retirement is an option or will I fall in an endless cycle of OMY?

4. Recession proof my calculations. It’s easy to fall into the trap of thinking we’re doing alright and on track to RE with the recent success of the equities markets. But if a bad recession comes in the next few years will there be time to recover and maintain any retirement timetable goals I try to set for myself now? Will I be emotionally ready to stay the course and keep investing during a major bear market?

5. Job security. The irony is it may not be up to me to decide when I quit working. What if my company downsizes? I quit a job last year before my employer was going to close my store and lay me off so I know that job security is a relative term. And what if my health turns south and I can’t work any longer?

6. Staying busy. What will I do with my retirement time is as valid a concern as can I afford retirement. Plus, odds are my DW will not want to retire as soon as I will. Do I just continue to work until she’s ready?

7. Withdrawal strategies. I can’t help but wonder if I retire in 2024 at the age of 50 how do I fund my lifestyle until I have access to my retirement accounts? What accounts do I tap first for funds? How much cash should I hold?

There is a lot to consider. It’s overwhelming when you seriously consider retirement. Somehow I think it’s a blessing I still have at least 5 years to ponder all of these considerations.

 

[Ronnieboy]

Welcome RxMan,

Can I assume that your handle - you are a pharmacist? That and the fact you mention your employer was going to close your store, I know quite a few stores being closed and/or hours cut and some pharmacists are without a job

Anyway, the only advise I can offer are to your #1 question, healthcare. My plan is to drop to PT and semi retire. My employer will offer almost as good insurance to the PT employees as the FT ones. I'd only have to work 24 hours/average per week to maintain the benefits and luckily the HC benefits are quite good and reasonably priced. The only sticking point would be a PT position being open when I am ready and a manager who is willing to work with me on schedule. They could technically work someone 5 hour shifts 5 days a week to get to the 24 hours/wk
Maybe that is something you could do?
Other than that there is still the ACA exchange available.

#2 about spouses security, you just plan out your FireCalc to whatever the age you would expect to plan out for her. 90 Y.O.? 100? Easy peasy.

Good Luck!

 

[RxMan]

Welcome RxMan,

Can I assume that your handle - you are a pharmacist? That and the fact you mention your employer was going to close your store, I know quite a few stores being closed and/or hours cut and some pharmacists are without a job

Anyway, the only advise I can offer are to your #1 question, healthcare. My plan is to drop to PT and semi retire. My employer will offer almost as good insurance to the PT employees as the FT ones. I'd only have to work 24 hours/average per week to maintain the benefits and luckily the HC benefits are quite good and reasonably priced. The only sticking point would be a PT position being open when I am ready and a manager who is willing to work with me on schedule. They could technically work someone 5 hour shifts 5 days a week to get to the 24 hours/wk
Maybe that is something you could do?
Other than that there is still the ACA exchange available.

#2 about spouses security, you just plan out your FireCalc to whatever the age you would expect to plan out for her. 90 Y.O.? 100? Easy peasy.

Good Luck!

Yes, I am a pharmacist- 18 years in the community pharmacy setting and now about 6 months as a consultant pharmacist. My ideal situation down the road a few years would be something that is between 20-30 hours a week flexible with some sort of health insurance option. I’d do that indefinitely if I found the right opportunity.

For now, we’re firmly in the accumulation phase. I’d like to think our retirement outlook will dramatically improve in the next 5 years but my financial health is becoming more dependent on the markets now that we have some skin in the game.

Neither of us will have any pension coming which I failed to mention above. I’m also completely ignoring SS because who know what that will be like when I’m finally eligible.

For now I’m continuing to save what I can as the only one working and we’re hoping for the best. I know we’re doing better than so many people that struggle with money but sometimes it just feels like we’re broke. Funny how that works isn’t it.

 

[fullplay2024]

I just discovered this thread, and I'm excited to share the journey with you to punch out in 2024. I posted our plan a few days ago:

http://www.early-retirement.org/forums/f28/please-critique-our-plan-97505.html

 

[BradyC10]

I posted this in the 2027 thread but will post here since I am willing to accept a package anytime after 2022 I would qualify for 24 months of severance so it would be a no-brainer. Package offers are not rare so fingers crossed!

Assets:
Tax advantaged accounts: $830K
Company stock: $115K
House value: $600K
Rental property value: $350K

Liabilities:
House mortgage: $135K
Rental mortgage: $225K

Spouse and I are 46 years old. I'm working at Megacorp and have a case of the golden handcuffs. Spouse is a stay-at-home parent. We have 2 teens.

Salary is $145K. We add approx $28K to the various savings vehicles each year. It could be more but we're just coasting to retirement now and have decided to enjoy life a little. The kids are in competitive gymnastics to the tune of $18k/year so we might increase our savings rate when they retire

I will have a pension (partially indexed) of approx $30K if I stay until 55 but wait until 60 to draw from it. Pension is reduced by 4% each year if taken earlier than 60. Retiree health benefits start at 55 (paid by company).

Estimated retirement income need is 90K pre-tax with about 25% of it being discretionary spending. I am assuming that the mortgage is paid and the kids are launched by this time. The plan is to sell our principal residence and downsize into the rental townhouse. Our tax burden will be greatly lessened in retirement since we will be able to split the income 50/50 between us. Currently I am in a very high tax bracket since I'm the sole income earner.

ETA: we're in Canada so no need to worry about healthcare

 

[NgineER]

Q2 2019 results

44% - investments and cash only
68.5% of target when including cash flow from properties.

45.3% - investments and cash only
71.3% of target when including cash flow from properties.

 

[Exit 2024]

We closed Q2 at 53.2% , have exactly 5 years to go according to original plan

 

[brokrken]

06/20/2017 - $1,205k
10/02/2017 - $1,273k - Nice little quarter, I would say.
1/1/2018 - $1,354k - Still headed in the right direction. Let's see what 2018 has to offer.
4/1/2018 - $1,398k - Smaller increase this quarter as the market hasn't helped. Luckily my contributions more than made up for the lack of market returns.
07/02/2018 - $1,461k - Q2 was similar story to Q1. Moving in the right direction though.
10/01/2018 - $1,537k
01/01/2019 - $1,328k - Ouch, what a terrible December
04/01/2019 - $1,520k - Q1 got back much of what Q4 lost!

07/01/2019 - $1,576k - Nice quarter and a new high. Still chugging along.

 

[chasedream2002]

2019 Q2 update: finally reached 900K networth.

I am saving 10-12k a month on average. Hope to reach 1M in the end of the year if the market continues! Fingers crossed!

1. I am 38 and wife is 33. Both working. Two kids 3 and 8. Networth:860K
2. I am making 180k and wife is making 52k. Totally 232k, but my job is not stable. May have to take a lower pay job next year.
3. Retirement account (IRA and 401k): 340K, taxable 210k, cash 110k, totally 660k savings, all the investment funds are from Vanguard.
4. House is 380k, mortgage balance is 180k, about 200k equity in the house. Currently the mortgage is 15 year, interest rate 3%
5. I am contributing 18k into 401K (employer match 7k) and 6K into roth IRA, wife is contributing 12k into simple IRA (1k match from her employer). On top of the retirement contributions, about 60k goes into taxable account each year. Total saving is 110k per year.
6. My expenses are quite high due to mortgage, property tax and day care cost. Monthly I am spending about 5200 dollars. It can be reduced to less than 3000 after FIRE. I plan to pay off mortgage and won't have day care cost after FIRE.
7. Current estimated FIRE date is 2024 and I hope to reach it quicker. Is there anything I can improve to meet the goal quicker?

 

[exnavynuke]

Now at 67.6% of total goal, 46% of investment goals. Not bad for spending a lot more on hobbies than I had originally planned for the year.

 

[HenryD]

We're targeting 2025, but 2024 is certainly close enough for this thread to interest me.

NW today is $834k, so if we can at least maintain that through the end of 2019 we'll have met the $827k goal, and we spent a lot on travel in the first half of the year. My 2024 goal is $1700k to $1800k.

Good luck to all here. You are inspirational.

 

[pjigar]

Now at 50% of investment target. On track but firecalc says 2026!

With the market correction, we are still at 50% of investment target.

 

[craigmac3030]

2019 Q2 update: finally reached 900K networth.



I am saving 10-12k a month on average. Hope to reach 1M in the end of the year if the market continues! Fingers crossed!

Yeah I think you’ll get there!! 110k in cash seems like a lot can I ask why your holding such a large cash position?

 

[brokrken]

06/20/2017 - $1,205k
10/02/2017 - $1,273k - Nice little quarter, I would say.
1/1/2018 - $1,354k - Still headed in the right direction. Let's see what 2018 has to offer.
4/1/2018 - $1,398k - Smaller increase this quarter as the market hasn't helped. Luckily my contributions more than made up for the lack of market returns.
07/02/2018 - $1,461k - Q2 was similar story to Q1. Moving in the right direction though.
10/01/2018 - $1,537k
01/01/2019 - $1,328k - Ouch, what a terrible December
04/01/2019 - $1,520k - Q1 got back much of what Q4 lost!
07/01/2019 - $1,576k - Nice quarter and a new high. Still chugging along.

10/01/2019 - $1,594k - While I'm way up from January. I'm not that far up from same period prior year. But, I'll keep piling it in and hope the market helps me along the way.

 

[Exit 2024]

brokrken, you are doing great!!! and NW fluctuations will happen so we all just continue and hope it all will work out at the end

 

[Exit 2024]

We closed Q3 2019 at $1,649k (+$52k for quarter) and 55% of overall target

 

[brokrken]

We closed Q3 2019 at $1,649k (+$52k for quarter) and 55% of overall target

Well done, Exit!

 

[HadEnuff]

Yes, I am a pharmacist- 18 years in the community pharmacy setting and now about 6 months as a consultant pharmacist. My ideal situation down the road a few years would be something that is between 20-30 hours a week flexible with some sort of health insurance option. I’d do that indefinitely if I found the right opportunity.

For now, we’re firmly in the accumulation phase. I’d like to think our retirement outlook will dramatically improve in the next 5 years but my financial health is becoming more dependent on the markets now that we have some skin in the game.

Neither of us will have any pension coming which I failed to mention above. I’m also completely ignoring SS because who know what that will be like when I’m finally eligible.

For now I’m continuing to save what I can as the only one working and we’re hoping for the best. I know we’re doing better than so many people that struggle with money but sometimes it just feels like we’re broke. Funny how that works isn’t it.

I worked 25-30 hours/week for many years. It was great! I would have done it longer than I did (I retired at 62) but my partner wished to get out of the practice and relocate, so I had to work harder and longer. While I made a lot more money for a few years, it just wasn't any fun....
I know this is a "retirement" forum, but for those who can't quite pull the trigger on the BIG R, for whatever reason, if there is a way to bridge the "working too hard" years to the "not working at all years" with a decade or so of working an abbreviated schedule, I heartily recommend it. Even if you aren't throwing a lot of money into the retirement fund, at least you aren't draining from it.

 

[NgineER]

45.3% - investments and cash only
71.3% of target when including cash flow from properties.

42.8% - investments and cash only
68.8% of target when including cash flow from properties.

Down due to spending all our cash to buy a dump that will turn into a nice cash flowing property by the spring. Hope to not have to sell any investments to turn property around.

 

[teetee]

I am so late to the game. Age is 42 and net worth is 550k (started saving when I was 36). I am hoping to reach 3M by next 11yrs (2030) when I am 53 and decide if I need to retire or work more for the social security 35-year salary calculation sake.

If I started working, saving, and investing 10 years earlier when I was 26, things would have been a lot easier and my life would have been fuller but oh well. Educate your kids so they know. Me on the other hand, I have to take care of myself.