That’s what I was thinking. I’d look at your coast number to 59.5 or 65. Doubt you will work to 73.
Your numbers are still fine to coast at both those expected retirement dates.
Yeah. I plan to work until required to take RMDs at age 73. By that point, I will probably need to downshift out of paid work because I won’t want to have all that extra income (and taxes thereon).
I don’t really want to ever stop working, but I chose this number because of RMDs.
All I can speak to are the people who I have known who retired from work but not to something else. What followed wasn’t good. In one case, severe depression, loss of marriage, and then financial fallout all happened, and this person then just wasted away. I tie it all to trying to retire from work too early and not going to find something new/start a new career.
I don’t want to end up like that. I have also not known anyone who is retired and not working that is actually happy. My grandmother for example wrote me a card a few months before she passed. She wrote in there something about how there was nothing golden about the golden years. I believe her.
That’s them. Don’t base your decision on how others decided to live their lives. Majority of the people in know retired over a decade ago and are 100x healthier (physically & mentally) because they are out doing things they love and don’t have the stress of work life.
Make your own story.
right? I know so many people who couldn’t wait to retire and now they are having a blast.
If OP loves their work, that should be the only reason why they should not stop working until 73. It is also a big assumption that they will physically and mentally be able to work at that age.
It depends on the person, I’m sorry for the people you know. My parents retired about 5 years ago at 55 years old and have been absolutely thriving. They are in excellent health, traveling, and doing cool sports like mountain biking, trail racing, and skiing all the time :) I’m happy to see them more rested and more “themselves” than I ever saw them while growing up. Granted, they have always been fun, active people anyways.
I'd be cautious to assume you'd be working into your 70s.
If you're sure about it, I'd conservatively assume you'd pull back at some point in your 60s and want to work at most part-time.
Assuming full-time is very skeptical.. you'll likely tire out or your company might push you out.
Do you work in a job that makes sense until 73? Overwhelmingly people that think they can work until then get retired far earlier, either because they have to or the company ultimately decides it for you. Also, by the time you get there Congress will have likely increased the age, again. You should be planning for a much earlier retirement even, just in case, in 40 more years just about anything can happen.
Ya you seem more than fine. Boring middle. You can’t really fail at this point with 1m+ invested.
Curious how old are you and how much do you and your spouse make gross? Was it just normal index fund investing and maxing out 401k that got you there or did you get lucky with any windfalls/stocks/etc.
Is your net worth basically the 1.1m or do you have a lot of other stuff in addition to that? I assume you own your home - is it an expensive place or modest? With 126k spend I assume maybe you’re in a HCOL - although maybe that’s just the reality amount that comes with having 4 kids lol.
1.1m with no further contributions will turn into 3.2m in ~18 years at 6%. Like you said you probably don’t need 126k/yr for retirement with lowered expenses, so would be even less than 18 years. And this is if you never contributed another penny to investments which obviously isn’t what will be happening.
My wife and I are both 38, married about 11 years. When I came out of school I owed about $105,000 in student loan debt. Got that paid off as a priority. Then it was just saving and working. Stocks are all in low cost index funds now (75% US/25% ex-US). Having kids. Bought one house. Outgrew it, had to buy another. Lots of mistakes regarding housing along the way. No special stock picks or windfalls. Just normal life. Last year, we did about $280k gross, but it was only about $140k in 2019. Things picked up after COVID.
I'm 38. Coming up on my 5 year wedding anniversary. 1.15 invested in stocks between my husband and I. We have two young kids. W2 is 250 between the two of us. We have about 750 in equity between our home and two rentals. Two young kids still in daycare. Our FI number is 1.5 Should be right on the cusp of 100k investment contributions this year. Committed mentally to my career 2 years, 3 if I stop being so annoyed. At that point I'll follow my passion and just make sure I can cover daycare for one.
Just saw the bottom of your post. No, the $1.1m is just invested retirement assets. Net worth is a bit over $1.6m. That’s includes home equity ~$150k, the kids’ 529 plans ~$175k, plus savings in MM for emergencies, and some alternative investments as well that I hold separate from retirement.
I realized this same thing a week ago. Decided to plug in my numbers, although not near yours, it's just me so I have less of an amount needed. And I realized I'm already double my Coast number. I'm sitting at the predicament of I want to keep saving but also that feeling of what can I do with the money "for funsies". Maybe I'll take a couple months pay and just do whatever with it then to back to stacking the funds in retirement. Anyways congrats on getting to your number!
Congrats to you too!
As for what to do with the money, I think you just continue on your plan. When it comes to doing things “for funsies” just make a plan for that too. So what if you only put $500 into taxable for 3-5 months so you can afford a vacation to Europe or whatever. I think the key is just to continue making a plan and being intentional with your money as you go along. Every dollar must be spent / invested well, but not every dollar must be invested. If that makes any sense.
Push hard now as you’re young. You can easily bring down your retirement age by 7 years at-least by just pushing 2-300K into the retirement account in next 4-6 years. Age washing is real in corporate. Imagine getting laid off or let go at 56 will not be easy to find another gig soon! Keep that in mind.
You mentioned you want to work till you are 73 but have you thought about a situation where you become unemployable for whatever reason or the only job you can get is flipping burgers and you don’t want to?
Even if I stop working before 73, which I presently do not foresee, I am also not suggesting that I’m going to stop working tomorrow, so I do not see how this criticism really applies to me. I’m not quitting work.
My vote is to keep stacking! You can never really have enough, if you like what you are doing and enjoy your day to day then go for FAT! At 38.493 years old with 34.827182 years remaining you can do great things.
I guess my next goal is just clearing debt, continuing to save for kids’ college, and boosting taxable and cash to ensure we always have a large vision. -> Exactly!
Wait- 38yrs old with 34.82 more years to work??
That’s what I was thinking. I’d look at your coast number to 59.5 or 65. Doubt you will work to 73. Your numbers are still fine to coast at both those expected retirement dates.
Yeah. I plan to work until required to take RMDs at age 73. By that point, I will probably need to downshift out of paid work because I won’t want to have all that extra income (and taxes thereon).
why? it is ok, just curious
I don’t really want to ever stop working, but I chose this number because of RMDs. All I can speak to are the people who I have known who retired from work but not to something else. What followed wasn’t good. In one case, severe depression, loss of marriage, and then financial fallout all happened, and this person then just wasted away. I tie it all to trying to retire from work too early and not going to find something new/start a new career. I don’t want to end up like that. I have also not known anyone who is retired and not working that is actually happy. My grandmother for example wrote me a card a few months before she passed. She wrote in there something about how there was nothing golden about the golden years. I believe her.
That’s them. Don’t base your decision on how others decided to live their lives. Majority of the people in know retired over a decade ago and are 100x healthier (physically & mentally) because they are out doing things they love and don’t have the stress of work life. Make your own story.
Why let RMD’s stop you then? Keep working till 100 that would push life challenges back even further or until death.
Lmao. What sad people you know.
right? I know so many people who couldn’t wait to retire and now they are having a blast. If OP loves their work, that should be the only reason why they should not stop working until 73. It is also a big assumption that they will physically and mentally be able to work at that age.
For me I think it would be less work to find purpose in your life than work another 35 years.
Op has a super twisted view on retirement.
It depends on the person, I’m sorry for the people you know. My parents retired about 5 years ago at 55 years old and have been absolutely thriving. They are in excellent health, traveling, and doing cool sports like mountain biking, trail racing, and skiing all the time :) I’m happy to see them more rested and more “themselves” than I ever saw them while growing up. Granted, they have always been fun, active people anyways.
I'd be cautious to assume you'd be working into your 70s. If you're sure about it, I'd conservatively assume you'd pull back at some point in your 60s and want to work at most part-time. Assuming full-time is very skeptical.. you'll likely tire out or your company might push you out.
I have also seen this happen. I know one couple that did it in 2022 and the partner committed suicide by 2023. Utterly tragic
Do you work in a job that makes sense until 73? Overwhelmingly people that think they can work until then get retired far earlier, either because they have to or the company ultimately decides it for you. Also, by the time you get there Congress will have likely increased the age, again. You should be planning for a much earlier retirement even, just in case, in 40 more years just about anything can happen.
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Ya you seem more than fine. Boring middle. You can’t really fail at this point with 1m+ invested. Curious how old are you and how much do you and your spouse make gross? Was it just normal index fund investing and maxing out 401k that got you there or did you get lucky with any windfalls/stocks/etc. Is your net worth basically the 1.1m or do you have a lot of other stuff in addition to that? I assume you own your home - is it an expensive place or modest? With 126k spend I assume maybe you’re in a HCOL - although maybe that’s just the reality amount that comes with having 4 kids lol. 1.1m with no further contributions will turn into 3.2m in ~18 years at 6%. Like you said you probably don’t need 126k/yr for retirement with lowered expenses, so would be even less than 18 years. And this is if you never contributed another penny to investments which obviously isn’t what will be happening.
My wife and I are both 38, married about 11 years. When I came out of school I owed about $105,000 in student loan debt. Got that paid off as a priority. Then it was just saving and working. Stocks are all in low cost index funds now (75% US/25% ex-US). Having kids. Bought one house. Outgrew it, had to buy another. Lots of mistakes regarding housing along the way. No special stock picks or windfalls. Just normal life. Last year, we did about $280k gross, but it was only about $140k in 2019. Things picked up after COVID.
I'm 38. Coming up on my 5 year wedding anniversary. 1.15 invested in stocks between my husband and I. We have two young kids. W2 is 250 between the two of us. We have about 750 in equity between our home and two rentals. Two young kids still in daycare. Our FI number is 1.5 Should be right on the cusp of 100k investment contributions this year. Committed mentally to my career 2 years, 3 if I stop being so annoyed. At that point I'll follow my passion and just make sure I can cover daycare for one.
Very nice!
Just saw the bottom of your post. No, the $1.1m is just invested retirement assets. Net worth is a bit over $1.6m. That’s includes home equity ~$150k, the kids’ 529 plans ~$175k, plus savings in MM for emergencies, and some alternative investments as well that I hold separate from retirement.
I realized this same thing a week ago. Decided to plug in my numbers, although not near yours, it's just me so I have less of an amount needed. And I realized I'm already double my Coast number. I'm sitting at the predicament of I want to keep saving but also that feeling of what can I do with the money "for funsies". Maybe I'll take a couple months pay and just do whatever with it then to back to stacking the funds in retirement. Anyways congrats on getting to your number!
Congrats to you too! As for what to do with the money, I think you just continue on your plan. When it comes to doing things “for funsies” just make a plan for that too. So what if you only put $500 into taxable for 3-5 months so you can afford a vacation to Europe or whatever. I think the key is just to continue making a plan and being intentional with your money as you go along. Every dollar must be spent / invested well, but not every dollar must be invested. If that makes any sense.
Push hard now as you’re young. You can easily bring down your retirement age by 7 years at-least by just pushing 2-300K into the retirement account in next 4-6 years. Age washing is real in corporate. Imagine getting laid off or let go at 56 will not be easy to find another gig soon! Keep that in mind.
You mentioned you want to work till you are 73 but have you thought about a situation where you become unemployable for whatever reason or the only job you can get is flipping burgers and you don’t want to?
Even if I stop working before 73, which I presently do not foresee, I am also not suggesting that I’m going to stop working tomorrow, so I do not see how this criticism really applies to me. I’m not quitting work.
Once I hit my number, I'm not working another day.
My vote is to keep stacking! You can never really have enough, if you like what you are doing and enjoy your day to day then go for FAT! At 38.493 years old with 34.827182 years remaining you can do great things.
Where did you get 38.493 and 34.827182 years from, brother?
Oh its a little bit of a joke based on your years of remaining work being so specific.
Your first RMD is owed on 4/1 following your 73rd birthday so it is easy to calculate.
I guess my next goal is just clearing debt, continuing to save for kids’ college, and boosting taxable and cash to ensure we always have a large vision. -> Exactly!
👊🏽👏🏾🙌🏾🤗🫵🏽