As the year closes......

[docstudent]

I just wanted to get input on what I need to do to retire by 53.....current age:38

Current salary: $106,000
Money Market: 38K
403B: 60K
Retirement: STRS/ 90K
Credit debt: zilch....finally!!!

Home: 238K/ appraised value: 345
Mortgage: 1420, plus 330 HOA
Student Loan: 191K, 699 per month, in PSLFG, loans will be waived after ten years of repayment on IBR program. I will have one year down as of April 2016.

Yearly income fluctuates from 90K to low 100K. Though I base my lifestyle on a take home pay of 4150 per month.

Car: 424, Insurance: 131, Gas: 90, Gym: 176, Groceries: 200, 600 contribution to 403b pre-tax, Vacation account: 125, Disability insurance 165, Cable: 19, Electricity: 25, Phone 103. Life insurance: 121 every three month (term 500K), Home insurance: 156 every three months, 300 a month, fun money or additional vacation contribution.

Once I pay off my student loan, I will either pay more on mortgage or increase contributions to my 403b.

38, currently single.

My student loan payment is IBR....so I monitor my work and cut back as needed.

[Jluke]

Why do you have term life insurance if you're single?

To retire at 53, you'll need to have the mortgage paid off.

Then you need enough money to last about 30 years in retirement. I'm guessing you'll need at least 1 million.

good luck.

[docstudent]

Yeah, the plan is to definitely have the bulk of the mortgage paid off or sell and live in a slightly lower cost area. I've monitored the retirement plans of several of my colleagues....with like circumstances and they retired with far less than 1M, and some with 1M+. On average, most receive a minimum of 5K a month take home in retirement and that's a very conservative number, plus a 403B payout of 1G per month. At the moment, the retirement system is strong, but fast forward 20 years things might be a bit different. As far as insurance is concerned, I don't see it as too costly. I most likely will marry, and I want to have things in place, plus I have family members that I help out and would like to see provided for if I had an untimely passing. I think it's important to pass down wealth....

[Fishindude77]

With current income, current savings accumulated, and current spending rate I think it's a long shot, but good that you are looking at it now.

Maybe you are in a high cost of living area, and this is as cheap as you can get by, but $1,750 a month housing expense seems pretty high housing expenses for one person, plus I'm sure there is upkeep expense not mentioned. Could look for something else cheaper or consider a roommate to lower housing costs.

Although car payments aren't horrible, should try to drive something paid for to eliminate that monthly drain. Also need to work hard to knock off those student loans.

In summary, get your expenses down and start socking a bunch more away towards retirement. Good luck !

[autoxer]

According to MMM's shockingly simple math behind early retirement, to retire in 15 years, you would need to save 55% of your take home pay. You have a little bit of a headstart, so you can probably reach that goal on a bit less.

[feh]

Run some numbers here:

http://firecalc.com/

[Petunia 100]

Tell us about the pension. Can you begin receiving payments at age 53? Do you have a rough idea of how much to expect?

[Petunia 100]

According to MMM's shockingly simple math behind early retirement, to retire in 15 years, you would need to save 55% of your take home pay. You have a little bit of a headstart, so you can probably reach that goal on a bit less.

Yes, but that assumes no pension. The pension changes things.

[docstudent]

I'm eligible to retire under the rule of 80, your age/ and years must equal 80. I'm expecting to bring home $4500 to $5000 a month, plus a monthly payment from my 403b account. I will qualify under the rule at age 53..and I have full lifetime health benefits as well.

[tripods68]

Since you are under CalSTRS, you don't qualify for social security correct?