Side question.....we have about $200K in retirement funds now and an additional $80K in taxable - I am hoping to FIRE by the time I turn 50 in 10 years.....does this seem doable at our current savings rate?
Hey TC I'll just tackle this ^^ question. [I didn't verify your savings rates]
Based on the gross salary and savings rate you posted you need $4619/month or $55.4K/yr to live incl taxes.
That's 25 x $55.4K = ~$1.4M saved and invested.
http://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/Starting from zero getting there would take you ~20yrs. The fact you've got $280K saved and you get an employer match means you are not going to take that long.
A simple way to look at this is:
- saving ~50% with employer match = $36K/yr added
- starting $280K
- 10yr timeframe
- compound interest calculator test for 5% =$932K total
- compound interest calculator test for 7% = $1.1M total
Keeping mind:
- this assumes you need the same amount in FIRE as now
- this assumes your taxes scale down when they will probably be lower
- this assumes constant rates of returns which will never happen
- does not factor in Gov't retirement benefits
- this assumes a constant WR and no income during retirement
You can fine tune your simple calc by looking at each variable and putting in your best guess if you come up with a different number than I did.
You can also run a simulation at
http://www.cfiresim.com/ where you can play with different savings rates and WR scenarios to see what the impact is.
Just based on what this ^^^ you are in the ballpark to hit your goal. If you can bump your savings rate up that will really help because it not only means you will save more quickly, but the target you are heading for is coming down. If you have a side gig idea for FIRE that could earn a bit of income and/or you can work with a variable WR you can also reduce your FIRE prep time needed.