Retirement Savings -- Countup

[LivingAlmostLarge]

i don't check enough to care. I probably should check and rebalance more. But truthfully because most are in ETFs and I do have more than 3 with mostly tech sector etfs, I figure enough diversification that I am passing on doing more activity.

[Randomsaver]

I went 100% back today.

[james.hendrickson]

Slow but steady progress:

TSP: $4,426.46
SEP IRA: $2,735.64
ROTH IRA: $16,793.92

[Randomsaver]

401K Retirement Savings: $ 279K (market gone up)
IRA Retirement Savings: $ 55K
Subtotal Retirement Savings: : $ 334K
Pre-Retirement Savings: $ 28K


My Forecasted Monthly Retirement Check Amounts, if to retire starting 2025 (actual withdrawal can only start in Jul of 2031):
401 : $ 1.34K
IRA : $ 0.27K
SS : $ 1.47K
Tot : $ 3.08K
End-Goal : $3.50K
The mood is sell some if up.

[disneysteve]

The market has recovered nicely from that little blip a few weeks ago. Our portfolio is up $391,000 YTD. I'm very pleased with that considering I'm already retired and drawing from our portfolio to live on. So far, we've taken out $41,000 this year. Our total spending in 2023 was about $135,000 and should be roughly the same this year so that gain represents over 2.5 years worth of spending. I've also sold off over $100,000 worth of stock holdings so far this year and plan to sell more to further reduce our stock allocation.

[srblanco7]

The market has recovered nicely from that little blip a few weeks ago. Our portfolio is up $391,000 YTD. I'm very pleased with that considering I'm already retired and drawing from our portfolio to live on. So far, we've taken out $41,000 this year. Our total spending in 2023 was about $135,000 and should be roughly the same this year so that gain represents over 2.5 years worth of spending. I've also sold off over $100,000 worth of stock holdings so far this year and plan to sell more to further reduce our stock allocation.

The "blip" is now forgotten. As I looked at the end of this week, we're at a new high for our investments (fully recovered from the "blip" plus some). Returns YTD (plus investments) are in excess of 4x planned annual spend. Been taking some $$$ "off the table", moving our AA closer to 70/30 from 76/24 at the end of 2023.

DisneySteve how are you managing the tax on the cap gains from your stock sales? Is this part of you $135k total spending?

[disneysteve]

DisneySteve how are you managing the tax on the cap gains from your stock sales? Is this part of you $135k total spending?

Great question. Our actual spending is down a bit thanks to switching to ACA insurance, dropping my disability insurance, and a couple of other things, so we’ve got some wiggle room to add in capital gains taxes and keep total spending about the same or just a little higher. I’ve also done some rebalancing within retirement accounts where there is no tax impact. I also can withhold most or all of my inherited IRA RMD for taxes as needed.

I won’t know until tax time how successful I was but I’m hoping I end up somewhat close to target. If not and we pay some extra taxes, that’s not a terrible thing.

[Randomsaver]

Congrats to you guys!

[Randomsaver]

401K Retirement Savings: $ 288K (market gone up)
IRA Retirement Savings: $ 58K
Subtotal Retirement Savings: : $ 346K
Pre-Retirement Savings: $ 31K


My Forecasted Monthly Retirement Check Amounts, if to retire starting 2025 (actual withdrawal can only start in Jul of 2031):
401 : $ 1.39K
IRA : $ 0.28K
SS : $ 1.47K
Tot : $ 3.14K
End-Goal : $3.50K
The mood is sell big if up.

[james.hendrickson]

Great work Random Saver, that's better than a lot of people these days.

[Randomsaver]

^ Thanks James but I don't know about that. If I were 5 years younger or 46y instead of 51y I would agree with you.

But yeah, looks like I'm on track to reaching goal of monthly check of $3.5K on or before I turn 55. I'm almost 52 so I have 3 full years of getting to it.

[LivingAlmostLarge]

^ Thanks James but I don't know about that. If I were 5 years younger or 46y instead of 51y I would agree with you.

But yeah, looks like I'm on track to reaching goal of monthly check of $3.5K on or before I turn 55. I'm almost 52 so I have 3 full years of getting to it.

I think you will make it! $3500 x 12 = $42k/year. You need 7 years of that or $294k in taxable savings to survive to SS at age 62. Or are you thinking 5 years? $210k till age 60. Then 401k until age 62? $3.5k - $1.5k = $2k from your accounts. $24k/year +18k SS = $42k living expenses.

Where is your roth savings? Are you not doing a roth IRA every year? Or is the IRA a roth? it might make sense (depending on health and longevity of your family to wait on ss).

[Randomsaver]

I think you will make it! $3500 x 12 = $42k/year. You need 7 years of that or $294k in taxable savings to survive to SS at age 62. Or are you thinking 5 years? $210k till age 60. Then 401k until age 62? $3.5k - $1.5k = $2k from your accounts. $24k/year +18k SS = $42k living expenses.

Where is your roth savings? Are you not doing a roth IRA every year? Or is the IRA a roth? it might make sense (depending on health and longevity of your family to wait on ss).

The 3.5K monthly target is gross monthly. I'm 66% post tax; 33% pre tax on my 401K, 100% post tax on my IRA. The SS check we are going to get, is that post tax? The SS is like 45% of my total income right now (1.47 of 3.15).

401K Retirement Savings: $ 293K (market gone up)
IRA Retirement Savings: $ 60K
Subtotal Retirement Savings: : $ 353K
Pre-Retirement Savings: $ 37K


My Forecasted Monthly Retirement Check Amounts, if to retire starting 2025 (actual withdrawal can only start in Jul of 2031):
401 : $ 1.40K
IRA : $ 0.28K
SS : $ 1.47K
Tot : $ 3.15K
End-Goal : $3.50K
The mood is sell if up.

[Randomsaver]

I think you will make it! $3500 x 12 = $42k/year. You need 7 years of that or $294k in taxable savings to survive to SS at age 62. Or are you thinking 5 years? $210k till age 60. Then 401k until age 62? $3.5k - $1.5k = $2k from your accounts. $24k/year +18k SS = $42k living expenses.

Where is your roth savings? Are you not doing a roth IRA every year? Or is the IRA a roth? it might make sense (depending on health and longevity of your family to wait on ss).

At 59.5y, I can start living on my 401K, be frugal, and then receive the SS at 62 to combine with my 401K and IRA for $3500.

My pre-retirement is only $37K today. This is the amount I'm focusing now so I can pre-retire say at 56y instead of 59.5y. That leaves a hole of about 3.5 years without work cash inflow, hence the need to build up my pre-retirement now until 56y. I'm almost 52y so I have a good 4 years of work ahead of me (52, 53, 54, and 55) to build something to survive from 56y up to 59.5y when I plan to start with 401K withdrawals. In the back of my mind, my number I need to hit is at least $80K for my pre-retirement. That currently means I have to continue to save $43K more from my current balance of $37K. Will I hit 80K by Jun 30, 2028?

[LivingAlmostLarge]

At 59.5y, I can start living on my 401K, be frugal, and then receive the SS at 62 to combine with my 401K and IRA for $3500.

My pre-retirement is only $37K today. This is the amount I'm focusing now so I can pre-retire say at 56y instead of 59.5y. That leaves a hole of about 3.5 years without work cash inflow, hence the need to build up my pre-retirement now until 56y. I'm almost 52y so I have a good 4 years of work ahead of me (52, 53, 54, and 55) to build something to survive from 56y up to 59.5y when I plan to start with 401K withdrawals. In the back of my mind, my number I need to hit is at least $80K for my pre-retirement. That currently means I have to continue to save $43K more from my current balance of $37K. Will I hit 80K by Jun 30, 2028?

Depends on how the $43k is invested. Are you investing it?June 2028 you will be 55? what are ou saving now?