Last month I figured out if life goes to plan, I am 78 weeks from retiring. While that is a long time, It's less time than I have been blogging, and about the same time since I changed career opportunity. Both seem like yesterday. To recap, my target date is November 26, 2027, give or take a month. I would be exactly 62, and if planned right, following my husband who should retire four years earlier. My intent will be to post this on the last Monday of each month to November 29th, 2027.
Without going into details as we are all different in terms of income now, income needed, and priorities, I'll note where we are for at this point for the month as
- On Track
- Increased Investment Target
- Below Target
- Maintenance
- No Effort.
401K: On Track
Roth: No Effort-We tend to put into this in a lump Sum. I need to not to count twice with Savings when we make this shift. .
Pension: On Track
Social Security: Maintenance-as a reminder, we are not counting on social security as part of our plan, so anything we do get will be a bonus to a comfortable retirement.
Cash: Increased Investment
My goal is that we have 12 months of living expenses banked in liquid funds, and complete the spending/expenses as listed below as earmarked or with a placeholder in our cash flow for:
- Four semesters of college for DD2 (including a study abroad semester though she has earned those added costs herself)
- Bathroom remodel-upstairs
- Bathroom retouch-downstairs
- Bedroom redecorate
- Office redecorate
- Pull old deck, patio pour, furniture, backyard landscaping
- Supporting wedding costs for three kids
- Two cross country road trips
- At least one European vacation
- Mini vacations on years not doing the road trips or Europe
- Replace my car (though we pay ourselves each month and that would come out of a different account like the boat)
No dramatic shifts this month in either direction so holding steady. While July (and June) were both higher savings than the average per month goal, we know we will have months that we will not hit the target. I need to be cautious to not get too frivolous with spending, while hanging the occasional indulgence like taking my sisters out for drinks and appetizers or lunch for their birthdays, or treating my girls to a thrifting outing. That's where I am-and now, 77 months away from retirement goals.
So excited for you on this journey! I have a few time "buckets" in mind for our planning purposes. The first is between now & EOY 2022, where I plan to quit my current job. From there, I will likely find something I enjoy doing, which may or may not pay money, but very part time. We need enough money to get us through that four year period, until the kids are out of the house.
ReplyDeleteAfter the kids are out of the house, M will be able to tap into his 401k, should we decide to do that and/or need to. We may also sell our house & move somewhere cheaper. We're very much on the fence on that one. It will depend on fire risk (has it increased near us) & how we're feeling about property taxes. The house itself will be paid off, but our property taxes are $34k/year. Of course, selling a house comes with a huge amount of costs & fees, so that would need to be factored in. If we decided we're staying here, we would upgrade the bathroom/bedroom area & add a bath tub. (Currently, no bath tub, which I very much miss.)
Once those decisions are made, we will decide when to start drawing down our retirement. We've oversaved, as far as I can tell. We also don't plan for social security. If it happens, we'll put it aside to spend on the kids, donations, etc.
I figure we probably can't oversave. As you say, if there is excess, we can always donate more, have something for our kids. I figure not being a burden to anyone is worth small "sacrifices"now, but really, we live a pretty full life. Good luck with your plan.
DeleteYou know the saying "failure to plan is planning to fail" - well you're doing exactly the opposite and I'm absolutely certain you'll pull it off admirably!
ReplyDeleteIt's all just a guess though. We can plan and plan and have the rug pulled out from under our feet. I figure if we have heath and home taken care of, if I need to work longer I will.
DeleteIt sounds like you have everything planned out very well Sam. 2027 will be here in a flash!
ReplyDeleteNow, to make sure we enjoy the journey as well.
DeleteYou know that will go by in a flash my friend.
ReplyDeleteF lke the last 6 years, it surely will.
DeleteOh, how neat. To have retirement in your rear view mirror is wonderful!
ReplyDeleteIt's now crunch time. We don't have many years on our side now, so need to be very well planned.
Deleteadd a medical fund. We retired 3 yrs ago and that is the biggest increased account we have. Didn't plan for the health insurance to drop from 90/10 to 70/30 in 3 yrs and triple in costs.
ReplyDeleteI think you are so right. I sort of lumped with Roth and savings, but think separating it out is probably better. I have a small account I contribute to for work.
DeleteHow exciting to be counting the months down, Sam! Looking at the comments, I'm grateful that I don't have to save for medical expenses (thank you, Canada!).
ReplyDeleteIn all honesty, health insurance is the one factor that could derail my plan. Waiting until DH is 66 before I retire is an intentional part of the plan as much as waiting until I am 62. I can keep my really excellent insurance, but it is not going to be cheap.
DeleteOH, I like that you are counting down in months! I have to do that!
ReplyDeleteMaybe it will back fire on me and I'll get lcose and need to pull back. I'musing it as a plannign target fiscally.
Deletegoodforyou for planning so!
ReplyDeleteI hope it works out just this way.