Nearly 60, am I good, or about to go off the tracks?
Resume IA
L'auteur se demande si elle peut prendre sa retraite dans 5 ans avec une pension et des économies limitées, mais une bonne situation financière actuelle
Conseil cle
Évaluer les dépenses mensuelles pour déterminer la viabilité de la retraite
- Montant max
- 150k€
Updating for expenses: I appreciate the responses provided. We live in ExpensiveTown California. Our kids are13 (twins) and 16 and they want the things their friends have. I (embarrassingly) have never done a budget, but I'd guess our monthly outlay is $4500-$5000 (rent, utilities, food, life insurance, entertainment, charity, etc). My take home is only about $8500 because of retirement contributions, health insurance and taxes. We carry zero debt (credit cards fully paid, no mortgage, student loans paid off, cars are owned in full). My husband's car is now 15 years old and he needs a new one. I plan to pay cash for a used vehicle in the neighborhood of $25,000. Please be gentle, I am brand new to this. Within months, I will be 60. In five years I will qualify for a pension equaling 50% of my income (170k+ gross) and full medical. That's the good news. The bad news is the rest of my retirement plan is not large and is scattered. I have a 401k from a previous employer that I never rolled over. It does well, so I left it. It has about $128k. I have an inherited IRA that also has about $130k. It's subject to the 10 year limit, so I will need to do something with it in 6 years. Finally, I have a 403(b) with my current employer at $132k (it's a target plan, set at year 2030, I am maxing my contribution). I also have roughly $150k in high yield savings accounts. It would be nice to retire in 5 years. Is that possible, or laughable? My husband also has a government job, but he's nowhere near as close to the pension point as I am. We also have 3 teenagers still at home (husband funds a 529 for them). But, you know, kids cost money. Also, we rent (my savings was going to be for a down payment, but the market where we live has been too harsh for my comfort). Given these facts, what do you, savvy Bogleheads, recommend for the 401k from the previous employer, the cash, the inherited IRA and ways to maximize things for the coming years? And am I looking at working till I'm
“A pension and full medical is certainly better than a sharp stick in the eye. The key question is your monthly expenses (literally everything -- taxes, housing, medical, etc.). With that you can evaluate how close you are to your goal. FWIW, the FiRE subs are also really good at answering these questions. It may not feel "early" but the math is the same.”