Retirement Savings -- Countup

[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]

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: :$ 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]

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]

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.

[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?

[LivingAlmostLarge]

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.

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

[Randomsaver]

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.

[Randomsaver]

* Yes outside of America. Currency exchange and no rent helps a lot. $20k becomes $50K.

[LivingAlmostLarge]

Randomsaver is living on $20k feasible? Will it be awful? i ask that most seriously.

[james.hendrickson]

More slow but steady progress:

TSP: $4,720.00
SEP IRA: $6,229.95
ROTH IRA: $16,798.71

[Randomsaver]

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: $ 309K (Trump won, market gone up)
IRA Retirement Savings: $ 63K
Total Retirement Savings: $ 372K


My Forecasted Monthly Retirement Check Amounts, if to retire starting 2025 (actual withdrawal can only start in Jul of 2031):
401 : $ 1.47K
IRA : $ 0.29K
SS : $ 1.47K
Tot : $ 3.23K
End-Goal : $3.50K
The mood is sell if up.

[LivingAlmostLarge]

You're right, and I think "fear" was probably the wrong word. More just a concern, something to prepare against. The concern is not that I won't have enough money to retire at will.... Simply that it'll be locked up & effectively inaccessible for 15+ years. It's mostly just that I want to retain as much flexibility as possible.

Understandable. A lot like Random saver. But personally with prepping for SORR, if done responsibly for most early retirees you should be preparing honestly I think for a stacked 5 year bond tips ladder for early retirement. As a military pension you don't have the same problems the rest with a portfolio do. Having accessible cash for I think 5 years as you head into early retirement will buffer against most issues that come up. Of course like my friends if you make BOATLOADS of money and you will never have that much in retirement you might as well stash the cash you can and it doesn't matter where. At that income you can't stash enough tax deferred. So you have to pay taxes.

We are much in the same boat. We are maxing out our tax deferred space but at the same time we are just building the porfolio. There is only so much tax efficiency we can do. The bottom line is when you want to retire early or are able too you aren't going to be tax efficient. If you don't live in poverty level but instead have a "large shovel" then you are going to run out of space to maximize your tax deferred and your tax free space.

I mean it's only $69k per person into 401k even if all roth. Maybe $76k if over 50. Then $7k roth ira. Then max is $18k gifting. You are "only" looking at $100k savings before the taxable space is hit. And if you make a lot it's still not enough.

[Randomsaver]

You're right, and I think "fear" was probably the wrong word. More just a concern, something to prepare against. The concern is not that I won't have enough money to retire at will.... Simply that it'll be locked up & effectively inaccessible for 15+ years. It's mostly just that I want to retain as much flexibility as possible.

Also, if one is planning to retire abroad, US banks don't usually lend for properties abroad. So that million dollar opportunity to live 50 steps from the beach will have to wait when SS kicks and by that time the price is already doubled or tripled.

[kork13]

I'm not sure you have to worry. You are retiring with a military pension. Did you read that guy nords? He really lays it out well for military retirees in his book i heard.

You're right, and I think "fear" was probably the wrong word. More just a concern, something to prepare against. The concern is not that I won't have enough money to retire at will.... Simply that it'll be locked up & effectively inaccessible for 15+ years. It's mostly just that I want to retain as much flexibility as possible.