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Archive for September, 2021

August 2021 retirement goal update

September 3rd, 2021 at 08:47 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 08:30 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 trad. rollover IRA: $115,452
NT's Roth IRA: $71,485
NT's SEP/SIMPLE: $1,291
AS's trad. rollover IRA: $29,021
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
---
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).