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Archive for May, 2021
May 29th, 2021 at 08:24 pm
1
I started trying a retirement calculator, realized I needed our current investment numbers which I hadn't run in a few months, and decided to do a full net worth update while I was at it...
Assets: NT's UK pensions: AV: 22,397 pounds ($27,996) SW: 27,225 pounds ($34,031) FL: 6,462 pounds ($8,078) NT's trad. IRA: $110,382 NT's Roth IRA: $64,842 AS's trad. IRA: $27,759 AS's Roth IRA: $93,245 AS's SEP IRA: $71,038 CJ's 401(k): $224,575 CJ's Roth IRA: $70,741 NT's flat: $212,500 (200,000 pounds value x1.25 15%) CJ/NT/AS house: $592,200 ($630,000 value 6%)  TOTAL ASSETS: $1,537,387
Debt: US Mortgage $368,556 Loan from friends (duplex) $9,000 UK Mortgage 1 $26,005 UK Mortgage 2 $5,483 UK Mortgage 3 $5,773  TOTAL DEBT $414,817
Current Estimated Net Worth: $1,122,570
January 2021 estimate: $1,039,463
Change in net worth: +$83,107
Summary: It's kind of fun skipping a few months of calculations; much more dramatic drops in debt and increases in net worth! We averaged about $20K of gains in net worth per month since January.
Notes on the numbers above: House value estimates are usually approximate. UK pension values updated about once a year. UK asset values and debt amounts are calculated figuring $1.25 for every British pound.
asdf123
I started trying a retirement calculator, realized I needed our current investment numbers which I hadn't run in a few months, and decided to do a full net worth update while I was at it...
Assets: NT's UK pensions: AV: 22,397 pounds ($27,996) SW: 27,225 pounds ($34,031) FL: 6,462 pounds ($8,078) NT's trad. IRA: $110,382 NT's Roth IRA: $64,842 AS's trad. IRA: $27,759 AS's Roth IRA: $93,245 AS's SEP IRA: $71,038 CJ's 401(k): $224,575 CJ's Roth IRA: $70,741 NT's flat: $212,500 (200,000 pounds value x1.25 15%) CJ/NT/AS house: $592,200 ($630,000 value 6%)  TOTAL ASSETS: $1,537,387
Debt: US Mortgage $368,556 Loan from friends (duplex) $9,000 UK Mortgage 1 $26,005 UK Mortgage 2 $5,483 UK Mortgage 3 $5,773  TOTAL DEBT $414,817
Current Estimated Net Worth: $1,122,570
January 2021 estimate: $1,039,463
Change in net worth: +$83,107
Summary: It's kind of fun skipping a few months of calculations; much more dramatic drops in debt and increases in net worth! We averaged about $20K of gains in net worth per month since January.
Notes on the numbers above: House value estimates are usually approximate. UK pension values updated about once a year. UK asset values and debt amounts are calculated figuring $1.25 for every British pound.
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May 29th, 2021 at 07:55 pm
1 Had to change the retirement goal due to a raise I got last month! Old goal was $814,292 by March 2024.
New goal: $820,892 by March 2024
Current retirement balance: $732,687
November 2020 balance: $632,504
Progress since last update: $100,183
Still needed: $88,205
This interim goal is based on getting my and NT's retirement to 4x my current and his last fulltime salary (currently $84,150 and $64,118) by the time we turn 50 and AS's retirement values to 3x her highest annual income ($75,940 in 2018) by the time she turns 45. $84,150 x 4 = $336,600 $64,118 x 4 = $256,472 $75,940 x 3 = $227,820
It will shift anytime our salary/annual income changes. (The only exception is I won't lower if there's a lowerincome year.)
There are 34 months to go before March 2024, so that means we need to gain $2594 per month on average to meet our goal. (Seeing as how we contribute a minimum of $2K per month and average out to more than $2700, that shouldn't be a problem!)
The ultimate goal we're working toward is 8x our annual income by the time we retire at 65. asdf123
Had to change the retirement goal due to a raise I got last month! Old goal was $814,292 by March 2024.
New goal: $820,892 by March 2024
Current retirement balance: $732,687
November 2020 balance: $632,504
Progress since last update: $100,183
Still needed: $88,205
This interim goal is based on getting my and NT's retirement to 4x my current and his last fulltime salary (currently $84,150 and $64,118) by the time we turn 50 and AS's retirement values to 3x her highest annual income ($75,940 in 2018) by the time she turns 45. $84,150 x 4 = $336,600 $64,118 x 4 = $256,472 $75,940 x 3 = $227,820
It will shift anytime our salary/annual income changes. (The only exception is I won't lower if there's a lowerincome year.)
There are 34 months to go before March 2024, so that means we need to gain $2594 per month on average to meet our goal. (Seeing as how we contribute a minimum of $2K per month and average out to more than $2700, that shouldn't be a problem!)
The ultimate goal we're working toward is 8x our annual income by the time we retire at 65.
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May 29th, 2021 at 07:54 pm
1 I usually get confused and overwhelmed when I try using retirement calculators. That's why I use the 8x rule of thumb as my goalposts for our retirement. But Firefly's post about Coast FIRE made me curious to try that calculator. (https://walletburst.com/tools/coastfirecalc/)
I ran the numbers once, and it said at our current pace we'd reach Coast FIRE in 11 years! That would be incredible!
But then I realized what they meant by "net worth" was total invested. My net worth calculations count the value of our home, so I had to redo it. But, I also realized that initially I had $1500 listed for housing because even after we pay off the mortgage we'll have property taxes and insurance. I forgot that we do intend to still have rental properties, so the money from those should at least offset our housing expenses. Also, I estimated we put aside $2,500 but realized it's closer to $2,700 (conservatively). So I lowered my "net worth," raised retirement contributions, removed the line for housing expenses and tried again.
Here's my attempt at a retirement budget. (Let me know if you see any glaring omissions here.) Keep in mind this is for three adults.
Ideal budget 
Monthly 
Housing 
$0 
Healthcare 
$1,500 
Groceries 
$1,000 
Fun 
$1,500 
Travel 
$1,000 
Utilities 
$500 
Giving 
$500 
Home improvement 
$500 
Gifts 
$250 
Transportation 
$250 
Total monthly 
$7,000 


Annual 
$84,000 
I'm in between my spouses' age, so I used my age but our combined retirement investments.
Current age: 47
Retirement age: 65
Annual spending in retirement: $84,000
Current net worth (retirement balance): $732,687
Monthly contribution: $2,700 (varies, but this is a conservative approximate average)
Investment growth rate: 7%
Inflation rate: 3%
Withdrawal rate: 4%
Coast FIRE number at current age: $1,036,619
Result: You're 12 years from Coast FIRE!
Unbelievable. I only seem to have added one year in my new calculation. Is this telling me at this rate I'll be done saving for retirement by 59 and be able to retire at 65? If so that's amazing, because if you'd asked me when I'd have enough saved I'd've said "never." I'm sure I'm doing something wrong in the above calculations. Can you poke holes in this scenario? asdf123
I usually get confused and overwhelmed when I try using retirement calculators. That's why I use the 8x rule of thumb as my goalposts for our retirement. But Firefly's post about Coast FIRE made me curious to try that calculator. (https://walletburst.com/tools/coastfirecalc/)
I ran the numbers once, and it said at our current pace we'd reach Coast FIRE in 11 years! That would be incredible!
But then I realized what they meant by "net worth" was total invested. My net worth calculations count the value of our home, so I had to redo it. But, I also realized that initially I had $1500 listed for housing because even after we pay off the mortgage we'll have property taxes and insurance. I forgot that we do intend to still have rental properties, so the money from those should at least offset our housing expenses. Also, I estimated we put aside $2,500 but realized it's closer to $2,700 (conservatively). So I lowered my "net worth," raised retirement contributions, removed the line for housing expenses and tried again.
Here's my attempt at a retirement budget. (Let me know if you see any glaring omissions here.) Keep in mind this is for three adults.
Ideal budget 
Monthly 
Housing 
$0 
Healthcare 
$1,500 
Groceries 
$1,000 
Fun 
$1,500 
Travel 
$1,000 
Utilities 
$500 
Giving 
$500 
Home improvement 
$500 
Gifts 
$250 
Transportation 
$250 
Total monthly 
$7,000 


Annual 
$84,000 
I'm in between my spouses' age, so I used my age but our combined retirement investments.
Current age: 47
Retirement age: 65
Annual spending in retirement: $84,000
Current net worth (retirement balance): $732,687
Monthly contribution: $2,700 (varies, but this is a conservative approximate average)
Investment growth rate: 7%
Inflation rate: 3%
Withdrawal rate: 4%
Coast FIRE number at current age: $1,036,619
Result: You're 12 years from Coast FIRE!
Unbelievable. I only seem to have added one year in my new calculation. Is this telling me at this rate I'll be done saving for retirement by 59 and be able to retire at 65? If so that's amazing, because if you'd asked me when I'd have enough saved I'd've said "never." I'm sure I'm doing something wrong in the above calculations. Can you poke holes in this scenario?
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