Author Topic: What counts towards your retirement fund?  (Read 2818 times)

Popinjay

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What counts towards your retirement fund?
« on: April 12, 2013, 05:05:04 PM »
I am trying to figure out what I need to do to retire early. At the moment I have some debts that will be paid off at the end of the year and then my next goal is to pay off my mortgage(104k). My house is currently appraised for 126k

If in 10 years I can save up about $300,000 after paying off my house, where does that put me? Right now I have $90,000 in my 401k and I put in about $13,000 a year(myself + employer).

I expect my month expenses will be about $1400 after my mortgage is paid off.

arebelspy

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Re: What counts towards your retirement fund?
« Reply #1 on: April 12, 2013, 05:25:08 PM »
Things vary wildly based on your personal situation.

Best thing to do, IMO, is run your situation through FIRECalc.

But, making massive assumptions based on what isn't known, 300k at a 4% SWR is 12k/yr, or 1k per month.  If your spending is 1400/mo, you're 400/mo. short.  You'd need a stache of 420k (so you'd be 120k short) to support 1400 per month.

(And, of course, all the unknowns I've mentioned, kids, college, healthcare, travel, whatever.)
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Popinjay

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Re: What counts towards your retirement fund?
« Reply #2 on: April 12, 2013, 05:45:21 PM »
Thank you for your reply arebelspy.

I am kind of new to all of this so this may be a stupid question, but am I supposed to plan until I start taking money out of my 401k?

Looking at the bloomberg 401k calculator if I continue to put in 6 percent in my 401k for the next 10 years I should have $413,511 when I am 41.

I assume that will continue to grow as long as I don't take money out right?

How do I factor this money in to my early retirement? Do I just need to plan from 41 to 65?

arebelspy

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Re: What counts towards your retirement fund?
« Reply #3 on: April 12, 2013, 05:50:40 PM »
No problem. :)

Check out this article.

www.mrmoneymustache.com/2011/11/11/how-much-is-too-much-in-your-401k/

That should help with your latest round of questions. Then come back with the next set. :)
We are two former teachers who accumulated a bunch of real estate, retired at 29, spent some time traveling the world full time and are now settled with three kids.
If you want to know more about us, or how we did that, or see lots of pictures, this Business Insider profile tells our story pretty well.
We (rarely) blog at AdventuringAlong.com. Check out our Now page to see what we're up to currently.