Related Posts
More Posts
Hi I'm looking for a job switch. Currently I'm working with WNS as Senior Associate. Can someone help me to get a bette opportunity
I'm working in healthcare process for a pharmaceutical client. Web content Management, SharePoint content specialist, SharePoint webparts, website maintenance,Internal communications and various email campaigns tools.
Tata Consultancy
Accenture
American Express
Genpact
Wipro
Infosys
Additional Posts in FIRE Financial Independence Retire Early
Personal finance book recommendations?
First, track your spending. Secondly, create a budget and be realistic. Tracking your spending will allow you to see if there's room for optimization (do you need 2x Starbucks a day as an example). That will tell you how much you need per month. You need 6 months of savings for an emergency fund (your monthly spending * 6). Then you take your monthly spend (how much you need to live) and multiply it 12x for annual spend, then multiply that number by 25x. This gives you the number you need to retire, based on only drawing down 4% of your net worth (as you should be making 6% minimum on investments so infinite money, amirite?). Then, you need to figure out your net worth (savings + investments + assets - debt) and see if you've hit your retirement goal (yearly spend * 25 = 4% rule). Good luck!
Thank you Manager 1
You still owe $1m on your mortgage? So your net worth is only $2m? I’d pay that off in full first.
It is 3% so might not make sense to pay it off. Further, don’t have cash to pay off either at this time.
You have $1M of mortgage debt left?
So if you paid it off completely today, you'd have about $2M... can you live on an estimated $60k drawdown?
Appreciate this op. I can’t pay off mortgage completely because all my savings is in 401K but plan to do this in the next 8-10 years.
Because of COVID it looks like I can withdraw some funds from 401k without too much penalty now if I decide to retire now vs. 59.5 yo.
A 4% withdrawal for planning is good advice, but you’re ignoring Social Security in that calc and at 58 that is awfully conservative. If you wait until 70 and you’re married the household social security can be substantial and with COLA. I would instead take the number, subtract out your SSI amount * years until 70 (the $s needed until you start payments), then take 4% of the remaining nest egg and add that amount to your ssi amount. See how this number compares to your expenses or you can work the calculation backwards to determine your required retirement nest egg from your expense amount.
Sorry meant this to be an add to M1’s post.
4% of $3m is $120k
If you can live on $10k/month, you're good.
Assuming the $3m is liquid
Why so much house?
HCOL & bought later in life