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Started By
Message
Comfort-ability retirement scenario….42 y/o currently.
Posted on 10/22/24 at 10:57 pm
Posted on 10/22/24 at 10:57 pm
42 yo now, looking to retire in 20ish years. Portfolio should look simiiiar to below.
Currently make $120k combined income
$2,000 pension- after health care (teacher)
$2,500 social security
$1.2M 401k (I’m thinking could draw another $4k/mth using 4% rule- and shouldn’t deplete principal much as should be able to see 4% returns…. Right?)
So $8,500 /mth
$200k cash savings
Paid off house (insurance/taxes roughly $500/mth
No debt - maybe a car loan(or just pull more from 401k and pay cash)
Currently make $120k combined income
$2,000 pension- after health care (teacher)
$2,500 social security
$1.2M 401k (I’m thinking could draw another $4k/mth using 4% rule- and shouldn’t deplete principal much as should be able to see 4% returns…. Right?)
So $8,500 /mth
$200k cash savings
Paid off house (insurance/taxes roughly $500/mth
No debt - maybe a car loan(or just pull more from 401k and pay cash)
This post was edited on 10/23/24 at 11:12 am
9
Posted on 10/22/24 at 11:23 pm to xBirdx
How old are you?
Posted on 10/22/24 at 11:56 pm to Rize
I’m on my early 40s. Just a for instance if that were my situation now
Posted on 10/23/24 at 5:11 am to xBirdx
quote:
$200k cash savings
Should have invested 70% of this
Posted on 10/23/24 at 5:42 am to xBirdx
Have to factor in taxes. Also inflation if you are in your 40s, though presumably some of the pension and social security will keep up.
Also what is the budget of expenses today for comparison? One persons comfortable is another’s pauper and a third persons king. You don’t have to answer just something to think about.
Also what is the budget of expenses today for comparison? One persons comfortable is another’s pauper and a third persons king. You don’t have to answer just something to think about.
Posted on 10/23/24 at 7:12 am to kywildcatfanone
quote:at least in a money market fund
Should have invested 70% of this
Posted on 10/23/24 at 7:23 am to xBirdx
This is like 60% of the information needed to tell you anything, even on a message board.
Posted on 10/23/24 at 7:53 am to slackster
quote:
This is like 60% of the information needed to tell you anything, even on a message board.
Which is at least twice as much info as other similar threads provide?
Posted on 10/23/24 at 7:59 am to xBirdx
This looks like it is what you are predicting to have in 20 more years of work and investing. I would keep investing and revisit your retirement scenario when you are closer to the age to withdraw.
Roughly 2 million saved in 20 years on teachers salary does not compute. so as other said, you need to divulge more information to get serious advice.
Roughly 2 million saved in 20 years on teachers salary does not compute. so as other said, you need to divulge more information to get serious advice.
Posted on 10/23/24 at 8:00 am to xBirdx
Don’t know what things will be like in 20 years. Prepare for the worst. Hope your pension and SS is still there at the time you need it. Many many things can and will happen.
Posted on 10/23/24 at 8:50 am to shotskimakesmysat
Wife is a teacher
I’m not
This is combined
I’m not
This is combined
Posted on 10/23/24 at 11:26 am to xBirdx
With your new update, it looks like you would have an increase in pay compared to what you make now. I would think in 20 years if you hit your 1.2 million mark, you will live very comfortably and not have to worry financially.
8500 a month with state health care and no mortgage will be very enjoyable compared to your current (my estimate) $7900 a month with a mortgage payment.
8500 a month with state health care and no mortgage will be very enjoyable compared to your current (my estimate) $7900 a month with a mortgage payment.
Posted on 10/23/24 at 1:04 pm to shotskimakesmysat
I’m assuming my math on the 4% withdrawal rate is correct? If so, theoretically, this would never deplete the principal, correct?
And pretty spot on your estimate… just put pen to paper and we bring home about $7,717 currently
And pretty spot on your estimate… just put pen to paper and we bring home about $7,717 currently
Posted on 10/23/24 at 3:55 pm to xBirdx
Maybe I missed it..what’s the spending side of the ledger?
Posted on 10/23/24 at 4:02 pm to xBirdx
Something else to consider is that your retirement doesn't have to be a cliff. People get burned out from a job and want to count down the days to be done, but IMO this is a bad way to live your life.
Count down the days until you can enjoy doing something you love. When you are 50 and 60 with 20 years of experience there's tons of ways for you to earn $20-40k as a side gig or part time for the most part when you want to work, supplement your income, and just be happy. Keeping active for both your physical and mental health is really important.
I know a guy that sells used fishing electronics for example, he claims he sells $10k a month. I have no idea what he makes. It could be passive income, like a rental home, flip home, etc. It could be working at your local Ace hardware or homebrew beer store for 10 hours a week. Point being, it doesn't have to be an absolute cliff of no work relying on a pension and investments only.
Count down the days until you can enjoy doing something you love. When you are 50 and 60 with 20 years of experience there's tons of ways for you to earn $20-40k as a side gig or part time for the most part when you want to work, supplement your income, and just be happy. Keeping active for both your physical and mental health is really important.
I know a guy that sells used fishing electronics for example, he claims he sells $10k a month. I have no idea what he makes. It could be passive income, like a rental home, flip home, etc. It could be working at your local Ace hardware or homebrew beer store for 10 hours a week. Point being, it doesn't have to be an absolute cliff of no work relying on a pension and investments only.
Posted on 10/23/24 at 5:35 pm to lynxcat
Regular bills. No mortgage.
$500 home insurance / taxes
$500 auto loan (maybe)
$1k household bills (electric, etc.)
$300 car insurance/ cell
$500 home insurance / taxes
$500 auto loan (maybe)
$1k household bills (electric, etc.)
$300 car insurance/ cell
Posted on 10/23/24 at 7:40 pm to xBirdx
I will give you mine, it may not be relevant but it may. I am selling my business and retiring next april and I’ll be 58.
total assets will be 3MM half of which will be cash, and 1MM of that cash will be deferred compensation over the following 4 years net of capital gains taxes. The remainder will stay invested in vanguard funds of varying risk. I won’t draw SS until 62, mine should be 30K and the wife’s should be 20K per annum. We can spend 200K a year with 3% inflation escalation and 5% market gain on invested balances and not run out of money until I am 85.
At any time we can reduce spending either incrementally or drastically as we don’t have any major bills other than insurances. I plan on starting a new business that hopefully will break even, and if I need to I can go work at Home Depot or similar
if at any time we get in a bind I can take my time and figure something out. No different than when I had to do that in my 20’s. I can also consult within my (former) industry
hope that helps
I would consider 3MM a minimum retirement portfolio if retiring before 60. I’d like to have more obviously but I don’t want to work anymore
total assets will be 3MM half of which will be cash, and 1MM of that cash will be deferred compensation over the following 4 years net of capital gains taxes. The remainder will stay invested in vanguard funds of varying risk. I won’t draw SS until 62, mine should be 30K and the wife’s should be 20K per annum. We can spend 200K a year with 3% inflation escalation and 5% market gain on invested balances and not run out of money until I am 85.
At any time we can reduce spending either incrementally or drastically as we don’t have any major bills other than insurances. I plan on starting a new business that hopefully will break even, and if I need to I can go work at Home Depot or similar
if at any time we get in a bind I can take my time and figure something out. No different than when I had to do that in my 20’s. I can also consult within my (former) industry
hope that helps
I would consider 3MM a minimum retirement portfolio if retiring before 60. I’d like to have more obviously but I don’t want to work anymore
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