August 2021 retirement goal update
September 3rd, 2021 at 08:47 pmWell, 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:
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%