Retirement Savings -- Countup

[srblanco7]

Savings to Retire at 55 to be used for Age 56-60
Balance: :$ 42K
End-Goal by 55: $100K (that means a living budget of $20K/year for age 56, 57, 58, 59 and 60)
Retirement Condo $400K: Fully Paid (No Renting expense!)

At 61, 401K will cover 1 Year; at age 62, it is SSS onwards
401K Retirement Savings: $ 305K
IRA Retirement Savings: $ 61K
Total Retirement Savings: $ 366K (healthy pullback allows for buy on discount)


My Forecasted Monthly Retirement Check Amounts, if to retire starting 2025 (actual withdrawal can only start in Jul of 2031):
401 : $ 1.46K
IRA : $ 0.29K
SS : $ 1.47K
Tot : $ 3.22K
End-Goal : $3.50K
The mood is buy the dip.

I'm intrigued as to how you're forecasting cash flows. Are you assuming a certain percentage withdrawal rate from your 401k and IRA?

[Randomsaver]

I'm intrigued as to how you're forecasting cash flows. Are you assuming a certain percentage withdrawal rate from your 401k and IRA?

My 401K company forecasts them for me. It's not a certain percentage of withdrawal but the full (gross?) amount to be received. I assume it's gross amount not net of tax. That way it's more conservative, i.e., the amount, say $3,500, I conservatively expect that to be reduced by tax later. And by that, I really should shoot later on for a new goal of $4K.

[Randomsaver]

How much longer to hit 55? How long to save $58k?

I got full 3 years to hit 55, God-willing. Got no debt so what I used to pay for mortgage + interest, I'm adding to this. This is now essentially my "mortgage", and as a mortgage, it gets prioritized over others (i.e., retirement accounts) .

[Randomsaver]

Savings to Retire at 55 to be used for Age 56-60
Balance: :$ 43K
End-Goal by 55: $100K (that means a living budget of $20K/year for age 56, 57, 58, 59 and 60)
Retirement Condo $400K: Fully Paid (No Renting expense!)

At 61, 401K will cover 1 Year; at age 62, it is SS onwards
401K Retirement Savings: $ 313K
IRA Retirement Savings: $ 63K
Total Retirement Savings: $ 376K (market recovered)


My Forecasted Monthly Retirement Check Amounts, if to retire starting 2025 (actual withdrawal can only start in Jul of 2031):
401 : $ 1.49K
IRA : $ 0.29K
SS : $ 1.47K
Tot : $ 3.25K
End-Goal : $3.50K
The mood is sell some on big ups.

[Randomsaver]

The rent income albeit just about net 10K a year is also extra money I can use from my desire to pre-retire at 55. I have saved about $20K already so 3 more years would make that $50K total. I have forgotten about this.

Here is how I plan to use the $50K.
- $10K to be spent for global health insurance for 5 years
- $20K as show money for visa (will not be spent)
- $20K to be spent for 61y expense, and that way I do not need to touch 401K amount.

[Randomsaver]

Savings to Retire at 55 to be used for Age 56-60
Balance: $ 55K
End-Goal by 55: $100K (that means a living budget of $20K/year for age 56, 57, 58, 59 and 60)
Retirement Condo $400K: Fully Paid (No Renting expense!)

At 61, 401K will cover 1 Year; at age 62, it is SS onwards
401K Retirement Savings: $ 320K
IRA Retirement Savings: $ 65K
Total Retirement Savings: $ 385K (market reacting to great American outlook)


My Forecasted Monthly Retirement Check Amounts, if to retire starting 2025 (actual withdrawal can only start in Jul of 2031):
401 : $ 1.52K
IRA : $ 0.30K
SS : $ 1.47K
Tot : $ 3.29K
End-Goal : $3.50K
The mood is sell some on big ups.

[Randomsaver]

Savings to Retire at 55 to be used for Age 56-60
Balance: $ 55K
End-Goal by 55: $100K (that means a living budget of $20K/year for age 56, 57, 58, 59 and 60)
Retirement Condo $400K: Fully Paid (No Renting expense!)

At 61, 401K will cover 1 Year; at age 62, it is SS onwards
401K Retirement Savings: $ 317K ($3K was being transferred from small cap to large cap due to annual re-balancing)
IRA Retirement Savings: $ 65K
Total Retirement Savings: $ 382K (market reacting to great American outlook)


My Forecasted Monthly Retirement Check Amounts, if to retire starting 2026 (actual withdrawal can only start in Jul of 2031):
401 : $ 1.59K
IRA : $ 0.30K
SS : $ 1.53K
Tot : $ 3.42K
Goal: $4.00K (Adjusted)
The mood is sell some on big ups.

[LivingAlmostLarge]

Random, what are you using to live in year 55? If you have $20k/year for 56-60, then what about year 55 when you retire?

[Randomsaver]

Random, what are you using to live in year 55? If you have $20k/year for 56-60, then what about year 55 when you retire?

Excellent question, I will be working through most of 55 to retire prior to 56.

I just turned 52 this month so for simplification, let's assume I turned 52 on Jan 1 next year so...

52 = 2025
53 = 2026
54 = 2027
55 = 2028
56 = 2029 retired but might work (or not) since youngest still in HS
57 = 2030, youngest leaves home for college / eldest kid to look after him / I go abroad to retire

[EasyMoney00]

So you currently have $3.5 million? Is that what 3.50k means? Why even continue working?

[ua_guy]

So you currently have $3.5 million? Is that what 3.50k means? Why even continue working?

I read his statement as 3.50k = "Monthly retirement check amounts". That's $3500/month gained through a combination of SS, IRA, 401, etc.

[EasyMoney00]

I read his statement as 3.50k = "Monthly retirement check amounts". That's $3500/month gained through a combination of SS, IRA, 401, etc.

That makes sense. I still don't know why someone would type it out that way.

On other sites I've seen users type out a million by saying $2500k, meaning $2,500,000. That still throws me off too.

[Randomsaver]

Savings to Retire at 55 to be used for Age 56-60
Balance: $ 55K
End-Goal by 55: $100K (that means a living budget of $20K/year for age 56, 57, 58, 59 and 60)
Retirement Condo $400K: Fully Paid (No Renting expense!)

At 61, saved rent income will cover it; at age 62, it is SS onwards
401K Retirement Savings: $ 305K
IRA Retirement Savings: $ 63K
Total Retirement Savings: $ 368K (market dropped 5% the past 30 days)


My Forecasted Monthly Retirement Check Amounts, if to retire starting 2026 (actual withdrawal can only start in Jul of 2031):
401 : $ 1.49K
IRA : $ 0.30K
SS : $ 1.52K
Tot : $ 3.31K
Goal: $4.00K (Adjusted)
The mood is keep buying those yummy discounts!

[Randomsaver]

Savings to Retire at 55 to be used for Age 56-60
Balance: $ 56K
End-Goal by 55: $100K (that means a living budget of $20K/year for age 56, 57, 58, 59 and 60)
Retirement Condo $400K: Fully Paid (No Renting expense!)

At 61, saved rent income will cover it; at age 62, it is SS onwards
401K Retirement Savings: $ 314K
IRA Retirement Savings: $ 64K
Total Retirement Savings: $ 378K (market recovered some but still down)


My Forecasted Monthly Retirement Check Amounts, if to retire starting 2026 (actual withdrawal can only start in Jul of 2031):
401 : $ 1.62K
IRA : $ 0.30K
SS : $ 1.52K
Tot : $ 3.44K
Goal: $4.00K (Adjusted)
The mood is keep buying those yummy discounts!

[james.hendrickson]

All - just piping up here, my immediate goal is 100k

Here are the current balances:

TSP: $4,750.36
SEP IRA: $21,294.16
ROTH IRA: $16,600.63

More slow and steady progress.