Natebonebusta
Eight Pointer
This is pretty much the road map that my wife and I are following. I don’t plan on working a day past 60. My current plan is to step away from the state in 5.5 more years with 26 years worked. Then I’ll pick up part time work somewhere 20-30 hours a week.My retirement planning stage is over. I'm in retirement. I already mentioned how much savings I needed in retirement. I determine what are my expected annual expenses. From that number, I subtract my pension. I need 25 times my expenses (after pension) in savings. This is based on the 4% safe withdrawal rule that's been studied by many. It is based on historical 30 year periods back to the Depression. As always, past results don't guarantee future results. Therefore, my wife and I didn't retire until we met our calculated savings number plus some extra as a cushion for the unexpected.
I am planning to live to 95 years old based on family history. I may die tomorrow. But I would rather die with money still in the bank than under a bridge under a cardboard box. The 4% rule above assumes a person still having 50-70% in the stock market. If you completely conservative with bonds and CDs, the plan will likely fail. Therefore, I am still maintaining that percentage. I moved from 100% stock investments up until retirement. I have moved some to 1-3 year Treasuries ETF and some to 6 month Treasuries. Also have some 1 year CDs. The stock investments are divided up into S&P 500 ETF, small company value ETF and total international stock ETF.
As for revenue streams, I will have three traditional ones - pension, SS, and investments. I do not have an interest in rental properties. I just don't want to be a landlord and deal with people. Yes, I know I could hire a management company. I just don't want to deal with issues like tenants trashing a place or the government allowing tenants to stay without paying like during Covid.
My number, well I’d love to be at 3.5 mil by 60. I started too late for that. Current estimations show 2mil at 60, with pensions and future SS the gap should be much less than that.
What I will say to the young in the audience is save early and often. Open a Roth IRA . Don’t steal from your future self, they will be pissed!! If you have a lot of TIME that is your biggest asset. If you start early, small amounts will secure your retirement. Even delaying 5 years can cost you hundreds of thousands in growth.
If you delay, you have to buy your time back at a much higher cost.
YouTube is loaded with some quality info, and lots of get rich quick mixed in. Slow and non exciting is the way.
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