3 months after starting new job

**docstudent** · 09-20-2022, 05:59 PM

One addition: Robinhood account, $30,000

**kork13** · 09-20-2022, 07:21 PM

To your immediate question, your have a roughly 30% savings rate (I work off of gross income), which is definitely a healthy amount & very reasonable. Until we paid off our house, we were saving about 30-35% of gross. The balance is really a personal call. If you feel like you're running too tight & not enjoying life, you probably could ease up. If you're comfortable as is, maybe consider slowly increasing the amount you're saving until you get to a point that starts to feel like a pinch, then back it off a couple notches.

My real concern is if you'll have enough to retire in 8 years.

I know you've discussed the pension/annuity that your STRS will provide in retirement, I just don't recall. Do you estimate that your existing assets + future contributions will be sufficient to safely produce the income you'll need on retirement?

My other question is why you're sending $2k/mo to savings at a credit union (presumably earning 2% or less) rather than investing it more effectively? As in, with an IRA or taxable investments account? Or are you actively building that Robinhood account?

**docstudent** · 09-20-2022, 09:07 PM

My current payout would be approximately $5500 per month if I retire at age 53, and $8900 if I retire at 60. A supplemental annuity attached to STRS (would offer me $2000 for three years, $800 for 5 years or $580 for life on top of the monthly compensation). However, those numbers are based off a $125,000 base salary. Based on my current base, the numbers would increase and I have the potential to earn up $175,000 to $200,000 (over the course of the next 8 years), a safe number is probably in the $170,000’s.

At my current rate of savings, I should have my condo paid off by 2030. I will not need to access the 403b annuities until age 60.

I wanted to contribute more to my Robinhood (currently down 15%) investments, but the market has been on a downturn and I’m simply waiting for the right time to get back into it. I’m contributing $2000 per month and I’m currently making 4% per month on that transaction. But, there is a $2000 per month maximum.

**LivingAlmostLarge** · 09-22-2022, 12:55 PM

Do you like your balance? I think you are good to go in 8 years with the pension. But it depends on what you forsee your lifestyle in retirement being. Nicer? Maybe the answer is to spend more now and even out now and then.

**docstudent** · 09-24-2022, 08:55 PM

I think my current savings is sufficient and I will begin allocating the 2G a month to my brokerage account. At the moment, Robinhood is offering 3%, and I will put it there for now…with hopes of acquiring more stocks. I hope to have about 50G in the Robinhood account by June of 2023 (I will continue to add onto my three major holdings: Apple, Microsoft and Lucid.

**Snicks** · 09-25-2022, 05:33 AM

You are planning to retire at 53? What is your goal for that? And what type of lifestyle will you need to fund at that point?

**docstudent** · 09-25-2022, 08:25 AM

I simply plan to stop working and pursue acts of leisure. I have pretty much traveled to all of my favorite places around the world. I think the traveling bug is somewhat satisfied. I’ll probably spend 3 months abroad (places that are far less expensive per month than living in the states). I might establish a non-profit and do some good for lower-income communities. Mainly, I am feeling the growing desire to step back once I’ve contributed 30 yrs to the field and allow the next generation to take the lead.

**bjl584** · 09-25-2022, 04:33 PM

What do you estimate your net worth will be at 53?
How do you plan to finance your retirement?
You'll need some form of income until you can pull money from retirement
I'd assume you will want all debts paid by 53?

**docstudent** · 09-25-2022, 06:33 PM

At the current rate, I’ll definitely be able to have my single debt cleared by 53. There are some unknowns, but my salary can increase by 30%-40% based on how I foresee advancement in the field. If I don’t venture of my current course of action, I can easily hit a 150G base, which would single-handedly increase my monthly take home at retirement. But, right now I’m just basing it off a base of 125, which was my last recorded salary on file. Ideally, I will have about $6500 a month in take home, and the first year I can bank and live off liquid cash. I should have enough cash on hand to bank the first 3 to 4 years of retirement funds. I can access the 403b funds and get an extra $1200 a month for life, which will push take home closer to $7700 a month. If I opted to work till 60, it would be a game changer, but I don’t see myself putting in the extra 7 years.

**LivingAlmostLarge** · 09-26-2022, 09:01 PM

that sounds like a pretty good plan. So is it necessary to be saving more if you can see yourself having a higher retirement savings pension?

**docstudent** · 09-30-2022, 09:22 PM

My aim is to get liquid (money market) @ 75G, and then increase investments in the stock market. Overall, my job is more stable than most, but it’s good to be prepared for anything. And the way the market is looking, I would have lost a considerable amount if I made any contributions as of late. However, Microsoft has been looking really compelling, but it’s falling more and more each day. If anything, that’s where I feel comfortable putting money in the near future. I will continue to monitor and adjust accordingly.

3 months after starting new job