Retirement Targets
- Thread starter yowza
- Start date
Was concerned the banking stuff would turn things sour, but has seemed to have gotten the market to assume the Fed will back off sooner than they planned. I think they pause and hold for a few months to see how things play out over the early summer.
There is online savings no requirements with UFB @ 5.02%APY FDIC insured up to 250k. I am parked there and some other money market funds (US tbills). No decline for net worth. Some are predicting 6% out of S&P for next 5-10 years. I don't see it. Waiting for a downturn. Could be wrong, but just waiting this out.
I know they say to assume X% of current salary, but I am like you I am targeting full salary when exit. Just own personal preference I guess.
$200K annually of income. Once I can secure that... I'm out ($4M nestegg at 5% annual RoR example)
Diminishing returns after that IMO until you hit silly numbers
Diminishing returns after that IMO until you hit silly numbers
I'm using 80% but in reality it's not even going to be close to 80%. This year I'm tracking every expense so that we have a more accurate picture. Right now we're putting a very large portion of our salary into retirement savings, which we won't be doing. The mortgage will be paid off in 3 years. Really the only extra expense we should have is health insurance for 5 years until Medicare. I'm not counting social security into my numbers so that will be another addition.
By the time I retire in 2037. My youngest will be 24 years old and should be on his way to independence. Wife and I expenses should go down significantly. Will consider moving into smaller home. It will be interesting where we will get our interest income at that time, but will have to see how things are going. Just need to get my wife's spending under control.
Seems like a great target and especially not having a mortgage. Thankfully this year has started off better than last year.
One of the dreams my wife and I have is travel, and in particular being able to really get to visit all the countries in Europe and spend decent time there. We have been to Ireland and are 100% sure we will go back there. We watch their news and follow a number of their facebook pages to keep learning and understanding differences. I think our plan will be to take a portion of retirement funds and buy a modest home in Ireland and use that as a base for exploring Europe with flights out of Ireland to anywhere in Europe are all short range instead of the arduous Atlantic flights. I just couldn't take doing that frequently. I know the house will probably eat some money and not provide a return, but it would add rest and relaxation for weeks at a time and ability to see Europe in depth and also Irish people are very friendly toward Americans. Still a lot to figure out and understand but that's the current dream. Plan would be to sell it when we can't really travel any longer or it loses its luster.
That sounds very interesting. We've been to western Europe about 10 times and have enjoyed each trip but as I get older I could see us doing less trips there. After 10 days, I feel like I need 5+ days for actual vacation. We went to Ireland (mostly west side) a few years back and really enjoyed it. We're heading to Scotland next month. Since we never had kids, it kind of gave us the ability to go to Europe often at a pretty reasonable cost.
If your goal is 200K, fed and state taxes are around 38% (if all the income is taxable) - $76,000; Health ins until full retirement is around $24,000. With the remaining $100,000 lets say you give 8% to charity, property taxes / auto taxes another 8%, leaves you with $84,000 or $7,000 month for food / utilities / grand kids / travel / fun. / cars / golf course memberships / etc.
Pretty close.. Our allocation is going to be around 1/3 of the income coming from roth so savings a bunch on taxes. Ideally I can fund this HSA for another 20+ years and have that tax free as well. I calc around $100K after all major expenses to "enjoy".
That also assumes 5% RoR annually, which I think is conservative. So anything over 5% is gravy
We still have one in school. About the time we are retiring he will be done. When we went we realized pretty quick there was not enough time and it made the trip tiring because you don't want to waste a minute. I like my travels more laid back and easy going. I know it will be a money loser on the property to some degree and we aren't doing some waterfront deal. It will be out in the country somewhat close to Shannon or Cork where there are airports that have jet service to many countries in Europe. And if there is any trouble, no one really ever messes around with the Irish or Ireland, so we deem it pretty safe. We did the west coast from Dingle to Doolin. And then in the south around Cork and Cobh. A few days in Dublin which was fun. Got to see Guns N Roses play outdoors there.
Definitely wished we had a day or two after arriving over there just to get adjusted and rest.
I always wonder that too. Some people like to get out and be doing stuff like that. I always hope its not to pay the bills.
Dividends/interest are taxed lower, I believe like capital gains. With Iowa going to 4% state, and if current rates hold for fed it would be 20% I think, so 24% tax rate for that amount.
You won't pay $76K in federal taxes. Thats not how our tax brackets work. You'd end up paying about $44K in Fed and Iowa taxes. I think you'd have to pay the FICA and stuff too, but it wouldn't end up being $76K.
That is what some people do to stay active. You would be surprised how much sitting around many do so they want a part time job just to stay busy and socialize.
