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# 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.

***

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%

### 3 Responses to “August 2021 retirement goal update”

1. Dido Says:
1630767281

nice progress.

question about your retirement budget: where are insurance costs? I assume health insurance is included in healthcare, but where do you include homeowner's insurance? Is auto insurance included in transport? And you have children, so will you have any life insurance coverage after retirement, or will you let policies lapse once the children are grown? And will you be able to self-insure for any long-term care needs or will you get some sort of LTC (these days more typically hybrid life/LTC) coverage?

2. ceejay74 Says:
1630771673

Hi Dido! Thanks for the thoughtful review of the budget. Here are our assumptions:
- Health insurance included in healthcare
- Homeowners insurance and property tax will be covered by rental income--once we sell the UK flat we plan to buy a rental property here in MN, plus we rent out the second unit of the place we live in. I don't include rental income in any of the calculations so I figure it'll cover home costs including maintenance.
- No car and no plan to get one.
- I only have life insurance through my employer, so it's not a big part of our estate planning. We're all employed/employable and the kids would have the properties and retirement funds if something horrible happened to all three of us!
- As there are three of us I'm not thinking we'll need too much outside LTC but I should probably do some thinking on that at some point! Thanks for noting it!

3. rob62521 Says:
1630781372

Looks like a good overall plan!

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