I'm fairly new here, and I've read through some of the posts from the 'Young Dreamers'. I'm wondering what it would take for me to be able to retire at 55 (earlier would be more fun...). I'm almost 33 now, so that gives me 22 years. Here's the relevant information:
Age: 32
401k/Roth value: $30,000 (I know, way too little for my age )
Asset Allocation: 95% stock, 5% bonds
Savings/year: $15,000 (maybe I can increase this in future years)
Pension: Yes, but there are so many assumptions here, I'm not sure I should include it (years of service, salary, etc). Age 65 is considered the normal age for the pension, but 55 is the earliest with a significant reduction.
Social Security: Not looking likely...
Health Insurance: If I stay with my employer until retirement, I will have continuing coverage at going rates.
Debt: Mortgage (28 years left)
Emergency Fund: 1 year's expenses
Some basic calculations assuming 6% return (too high?) put the value of investments at age 55 at $862,000. I know it's a lot to ask with minimal information, but is retirement even possible with these numbers and historic inflation rates? Help me understand what assumptions I'm making that are wrong, or what I'm leaving out. Where do I need to adjust course?
Thanks for your comments!
Age: 32
401k/Roth value: $30,000 (I know, way too little for my age )
Asset Allocation: 95% stock, 5% bonds
Savings/year: $15,000 (maybe I can increase this in future years)
Pension: Yes, but there are so many assumptions here, I'm not sure I should include it (years of service, salary, etc). Age 65 is considered the normal age for the pension, but 55 is the earliest with a significant reduction.
Social Security: Not looking likely...
Health Insurance: If I stay with my employer until retirement, I will have continuing coverage at going rates.
Debt: Mortgage (28 years left)
Emergency Fund: 1 year's expenses
Some basic calculations assuming 6% return (too high?) put the value of investments at age 55 at $862,000. I know it's a lot to ask with minimal information, but is retirement even possible with these numbers and historic inflation rates? Help me understand what assumptions I'm making that are wrong, or what I'm leaving out. Where do I need to adjust course?
Thanks for your comments!