cat fever
Elite Member
I agree with Doofy. Things do have a way of working out. Good luck to you.
How to retire at 55 instead of 65 or 70.
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I agree with Doofy. Things do have a way of working out. Good luck to you.
MossRoad
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You don't have to be debt free to be well into the black with a huge positive net worth.
For example, if you currently have a job and make $40k per year, and are paying all your bills, making mortgage payments, having fun, and saving for retirement, you already know that you can get by on $40k per year. So what you need to do is plan to have $40K of income coming in when you retire.
Let's say you're gonna get $1500 in SS per month. That's $18k per year. And you have a pension of $800 per month. That's another $9600 per year. So now you're up to $27,600 per year. You need to get another $12,400 per year to bring you up to your customary $40K per year. If you have a 401K with $400K in it when you retire, earning just 5% per year, that's another $20K per year.... Add that $20k per year to your $27,600 and you're bringing in $47,600 per year. That's $7600 more per year than you need to live and make a mortgage payment, taxes, bills, etc... It's gravy money. It's more than you're used to. Go see the pyramids in South America.
For example, if you currently have a job and make $40k per year, and are paying all your bills, making mortgage payments, having fun, and saving for retirement, you already know that you can get by on $40k per year. So what you need to do is plan to have $40K of income coming in when you retire.
Let's say you're gonna get $1500 in SS per month. That's $18k per year. And you have a pension of $800 per month. That's another $9600 per year. So now you're up to $27,600 per year. You need to get another $12,400 per year to bring you up to your customary $40K per year. If you have a 401K with $400K in it when you retire, earning just 5% per year, that's another $20K per year.... Add that $20k per year to your $27,600 and you're bringing in $47,600 per year. That's $7600 more per year than you need to live and make a mortgage payment, taxes, bills, etc... It's gravy money. It's more than you're used to. Go see the pyramids in South America.
Rock Crawler
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But sadly... My life is based on $130k a year.
MossRoad
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Ouch! Well, there's still ways. I worked for my last employer for 30 year. My pension got frozen at 19 years of service back around 2008. I took a 5% pay cut in 2008, too. I had no raise for 5 out of 6 years, and I got put back to hourly from salary about 4 years ago, which was a 10% pay cut... Then last May they told us we were out in 6 weeks.... 30 years.... life's work, done. I'd planned on 42 years.
About a week after they told us we'd be out in 6 weeks, I set up an appointment with Fidelity to go over my finances. My wife and I had been doing it ourselves for 30 years+, and I just wanted an extra set of eyes on it from someone that has knowledge in that area. I took a job that pays about 60% of what I was making, with the opportunity to get back to about 80% of what I was making within a year. Good benefits and generous 401k match after a year.
We were pleasantly surprised when he made up a plan for us that came out way more generous than the plan that we were on, and our plan had us making about 150% more in retirement than when we were working, even after my freezes, pay cuts and lower salary.
Go get some advice! :thumbsup: It can't hurt and may make you feel less anxious.
MossRoad
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The value of your 401k should double every 7 years. So if you have $100k in it at 46, you'll have around $200K at 53 and $400k at 60. $800K at 67 (your retirement age). Things are looking up! :thumbsup:
Rule of 72 - Wikipedia
Rule of 72 - Wikipedia
MossRoad
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Get that free advice! :thumbsup:
:thumbsup:
buckeyefarmer
Epic Contributor
Does that include whats taken out for taxes and ss? Deduct the expenses thzt go away when you retire.
MossRoad
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Also, if you've never done a net worth statement for yourself, its a good idea. If you have already, never mind.
Your Personal Net Worth
Your Personal Net Worth
MossRoad
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I've been using MINT to track our finances for several years now. It's free and reasonably accurate. You can't manipulate your assets through this program, just track them, and expenses. So even if someone hacked into your account, they couldn't do anything to your assets. Check it out if your interested. It took me an evening to enter all of my bank account, retirement, investment, assets like cars, home, tree farm, tractor, etc... into it. Give you growth charts, spending charts, trends in your spending/savings habits, etc... I like it. :thumbsup:
Mint: Money Manager, Bills, Credit Score & Budgeting
Mint: Money Manager, Bills, Credit Score & Budgeting
I never made over 50K per year during my 40 year work life. My retirement is perfectly fine. Not well off but not starving either. If we want something above the norm...we save for it. Sounds like your whole life revolves around money and "Money" is who you are. I hope not.