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Archive for September, 2021

August 2021 retirement goal update

September 3rd, 2021 at 07:47 pm

Well, our goal just went way up because of a rise in income! Which means we're way behind, but for a good reason. (I also decided to round off salaries while I was at it so our goal could be a nice round number too!)

New goal: \$922,000 by March 2024

Current retirement balance: \$779,114

May 2021 balance: \$732,687

Progress since last update: \$46,427

Still needed: \$142,886

This interim goal is based on getting my and NT's retirement to 4x my current and his last full-time salary (approximately \$84,000 and \$64,000) by the time we turn 50, and AS's retirement values to 3x her current salary (\$110,000) by the time she turns 45.
\$84,000 x 4 = \$336,000
\$64,000 x 4 = \$256,000
\$110,000 x 3 = \$330,000

It will shift anytime our salary/annual income changes. (The only exception is I won't lower if there's a lower-income year.)

There are 31 months to go before March 2024, so that means we need to gain \$4609 per month on average to meet our goal.

The ultimate goal we're working toward is 8x our annual income by the time we retire at 65.

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Coast FIRE Goal

I've also started using this Coast FIRE calculator (https://walletburst.com/tools/coast-fire-calc/) and according to it,  our retirement goal is \$2.1 million by the time I'm 65 (18 years). It says we're currently 10 years from our Coast FIRE number of \$1.5 million!

Here are the Coast FIRE parameters I use:

 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

Monthly contribution: \$2,700

Investment growth rate: 7%

Inflation rate: 3%

Withdrawal rate: 4%

August 2021 net worth update

September 3rd, 2021 at 07:30 pm

Assets:
NT's UK pensions:
AV1: 22,397 pounds (\$27,996)
SW: 27,225 pounds (\$34,031)
AV2: 7,567 pounds (\$9,459)
NT's Roth IRA: \$71,485
NT's SEP/SIMPLE: \$1,291
AS's Roth IRA: \$99,716
AS's SEP IRA: \$76,485
CJ's 401(k): \$238,074
CJ's Roth IRA: \$76,104
NT's flat: \$212,500 (200,000 pounds value x1.25 -15%)
CJ/NT/AS house: \$592,200 (\$630,000 value -6%)
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TOTAL ASSETS: \$1,583,814

Debt:
US Mortgage \$365,279
Loan from friends (duplex) \$9,000
UK Mortgage 1 \$25,233
UK Mortgage 2 \$5,319
UK Mortgage 3 \$5,601
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TOTAL DEBT \$410,432

Current Estimated Net Worth: \$1,173,382

June 2021 estimate: \$1,138,177

Change in net worth: +\$35,205

Summary: Good healthy rise in value over two months, mainly due to retirement contributions & gains!

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 (just to have a system, even though I checked the exchange rate and it's more like 1 to \$1.38).