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Retirement goal progress

July 31st, 2017 at 10:46 pm

Goal: $494,743 by 2019

As a reminder, this is just an incremental goal along the way to 8x income by retirement. This mini-goal aims to get us to a milestone by the time I turn 45 and AS turns 40.

The milestone (which changes whenever our salaries change) is to get me to 3x my current salary, which is now $68,291, so $204,873; NT to 3x his, which is now $62,100, so $186,300; and AS to 2x hers, which in 2016 was $51,785, so $103,570)

Current balance: $344,108

June 2017 balance: $335,025

Progress: $9,083

Man, if we had progress like this every month, we'd be on track to hit our goal! (At least it looks like we'll pass our 2017 mini-mini-goal of $350K before the end of the year!)

To reach the goal by our birthdays in 2019, that's 19 months, so we'd need to contribute (or have assets appreciate) $150,635 -- $7,928 per month -- to reach it.

6 Responses to “Retirement goal progress”

  1. Myfinancekits Says:

    You actually made a remarkable progress. Going by your calculation, I am convinced you will reach your goal. It is true that you may not be able to make much savings as you made previous month on a continuous basis. But you will be able to average out the amount you need to contribute every month.

  2. snafu Says:

    I'm currently immersing myself in various theories of retirement planning and it continues to be an eye opener. What bothers me the most is the fact that computer algorithms I know from experience, having lousy genetics is really a game changer.

  3. snafu Says:

    sorry, computer is not co operating and dropping sentence...

  4. patientsaver Says:

    I just don't think 8x salary upon retirement is enough money to live on for possibly 20, 30 or more years. If I took $80k, salary (way more than I would need to live on) and divide by 8, that's just $640K. Depending on the stock market, that really might not last that long.

  5. ceejay74 Says:

    I don't quite get it either, but it gives me something to shoot for! I've tried retirement calculators and such, but none of them give me a concrete sense of what I should be doing. We're behind on it (crappy at saving in our 20s) so it's a really ambitious goal at this point. If we were by some miracle to catch up and/or surpass these milestones, I'd gladly make them even more ambitious.

    In theory, since I'm basing it on what we actually currently make, it would continue to become more ambitious as we all continue to make more money, but obviously I know THAT isn't necessarily the case in all instances! If NT and I were laid off simultaneously and we were scraping by on AS's income, I certainly wouldn't think "oh, now we can revise our retirement milestone down to her salary x8 and be just fine."

    So basically, it's a meaningless milestone to try and put some meaning on something I feel is amorphous and scary but vital and need some motivation to keep working on.

    Oh and interestingly, it looks like Fidelity (who I think invented this rule?) now says 8x is the milestone if you retire at 70. It's 10x for age 67, or 12x for 65.

    If in a perfectly predictable future NT and I retired at 67 with 8x, AS would continue working for five years before retiring at 67, which means we'd have income coming in until NT and I were 72. So that adds even more nonsense and noise to the whole thing. This is why I tend to just say, OK, let's go with this simple goal, and see if I can get our contributions up as much as possible. Being that we're so badly behind anyway, and are putting away what feels like a lot for our budget, at least it's helping me stretch beyond my comfort zone.

  6. rob62521 Says:

    A worthy goal and glad you are sticking with it and getting money saved.

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