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What percent of salary you guys are investing?
I've worked at the same engineering firm for 4 years. I'm currently making $161k with only a $750 bonus, but excellent vacation (4 weeks, cash out anytime, rolls over indefinitely), 45 hours a week. I have an interview with a recruiter at Guidehouse this week for a Technical Project Manager role. It seems to be focused in the government space and requires a security clearance. What sort of salary and benefits could I expect for this sort of role at Guidehouse?
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Make sure you have an emergency fund somewhere safe. Get full match if any in 401k, max HSA if applicable, max Roth IRA, more to 401k up to match. Then use a brokerage account. If you are trying to retire early, getting started late is not ideal, but can be done if you save a ton and cut expenses. You need to look at what you have now, how much can you save and what will your expenses be in retirement
This is good advice. To add, make sure to put investments in a moderately aggressive fund, not something too conservative.
The biggest benefit you will get from maxing out your tax advantaged instruments is forcing yourself to live on less. If your $140k salary FEELS like a $110k salary or less, it will help you set expectations for retirement.
Couple things:
1) What constitutes “early”? Are you aiming for retirement at 50? Or before full retirement age (assuming you are US based). Time horizon means a lot.
2) When you can retire is largely based on your net worth. You mention income and a couple of savings vehicles, which is good, but there’s also the debt side of things (mortgage obligations, credit card debt, car note, etc). Similarly, note how much you plan to contribute/set aside to your children’s education.
I would recommend using one of a myriad of online retirement calculators to see what your current trajectory is based on current income, saving rates et al to see where you are tracking towards. Then you can play with the assumptions of how much more you need to save on a monthly/annual basis to save to hit your “number” sooner. Good luck!