Retirement Targets
- Thread starter yowza
- Start date
That was my original game plan, but I have backed off a bit. I won't be funding 401k's, IRAs, and 529Bs in retirement, and I won't be paying a mortgage. All that stuff totals about $55k since I try to max out contributions. Figure it is safe to assume current salary minus half that total.
"backing off a bit" == retiring 5 years early, and that has really started to look appealing. Want to do some traveling while we can still move around. Plus, there are not too many 60 years doing what I do for a living.
H
Iowa no longer taxes retirement accounts, so that number will drop. When we were doing our taxes, our CPA told us that we should expect to pay about 10 to 12 percent of our retirement income on taxes, that is under current rates.
35 more working days and I am finished, can stay on my wife's insurance program until we reach Medicare age for a little less than $200 a month for the both of us.
The good news is you have 30 years to go. There are an awful lot of people that are getting close to retirement and barely have anything saved.
Many cities have "volunteer flower gardens."
My mom does that type of stuff.
That would be good here, but only about 4 people volunteer for anything in this town.
My mom volunteered at the clothing bank and food bank.
Dad worked with Habitat
You have to have a reason to get out of bed in the morning. I would think sitting in front of the TV would get real old after a couple of weeks
My parents built a house right away when they retired which I think was brilliant.
Just enough little hobbies now for dad.
It is easier to put less in now with having the earlier start and let compound growth take over versus playing catchup at a higher rate later on. But sometimes debt early on makes it difficult to contribute a lot.
It's such a hard guessing game of "what the best route is." I have a 401K, 2 roths (1 to openly invest on my own for stocks) and some whole life insurance. Would I like to know where I am versus others at my age? Yeah, of course, but I also know that I started somewhat early and others targets and amount they put will differ, so it makes it tough to evaluate. My wife and I also have a thought process of well, if you put so much or too much towards your retirement, you're not necessarily living life right now and enjoying things either. So people will work and save 40+ years with no guarantee of even making it to retirement? I know some dig into FIRE and really work at investing rapidly early, but again, it almost still applies to needing to enjoy life now too.
I just don’t even know what % to put into my 401k.. I get 6% match (I have been doing that for about 7 years now - I started late. Didn’t even know what a 401k was when I stared).. I think I need to up mine to 12/15% to hit my targets per my 401k calculation on my plan… but I’m lost/overwhelmed on all of it. Haha
My advice? Don't try to swallow the elephant whole, just take small bites over time. Why don't you try increasing contributions by 1% a year and see how your lifestyle adjusts? Planning doesn't have to be perfect to be successful, and it rarely requires an "all or nothing" approach.
Wouldn't hurt to seek help or advice from a financial advisor. Obviously everyone is different and their goals are different. A 6% match is fantastic, so take advantage of that free money! I think I put about 13-16% of my income towards retirement. They say usually around 15% is good. But, like I said it's tough to gauge what stuff will cost in the future. At the rate we are going, we won't be able to afford much and our amounts will be obsolete lol.
But, don't stress yourself out too much, you have time. Just start reading about retirement to improve your understanding.
But, don't stress yourself out too much, you have time. Just start reading about retirement to improve your understanding.
Yeah, I think I could up my 401k by a couple of percent and not notice much.. Now that I think about it my spending probably needs to get in check as well.
Where's the party????????????????????????????? 35 freakin days!!!!!!!!!!!!!!!!!!!!!!
The great thing is you have time!!!! It's the biggest lever there is.
I don't know much about it, but everyone I know buys the supplemental coverages. Another $500 month in premiums? Someone else can confirm.
35 years of educating the next generation is enough, we start Easter Break today, so when we come back on the 10th, I have 7 weeks to go. First IPERS payment should arrive in June.
Last summer we booked a half off Alaskan cruise for July, 10 days, out of SF, going out a few days early to see the city and the area. Wife is retiring the same day, May 26th.
