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WOW....good timing....
I turn 62 this year.... Just got off the phone with the wife and told her I want to be "retired" by end of this month.
You need to understand what your costs will be. But you are 20 years out.... Inflation will be a factor.
Will your house be paid for?
I am targeting $100k annually (before taxes) in retirement....
Pension will be about a third, SS will be a third, but I will try to postpone taking that until 65-66
Investment income will be the rest.... Maybe think about a 5% annual return... be conservative...
And I am lucky... Have great health insurance until Medicare kicks in... Then my previous will assist in funding Supplemental plans
Thanks... Have sons 31 and 28.... I wish I could get them to think and plan like you are...
I will say congratulations to you.. I didn't start thinking this way until I was 40....
Fortunately you actually have 3 different retirement plans. TSP, FERS and S.S. The S S. I don't even count on. The FERS is based on the # of years employed and your high 3. The one you can control is your TSP. Dump as much as you can in TSP and every time you get a cost of living increase or a pay raise increase your percentages. I'm figuring I need at least 600k to retire in 10 years.
A few million
Its never enough if you are 20 yrs out. I think people are in for a rude awakening soon. People look at the "increase" of their property value or investments. Lets use property values as the example. Have you ever looked at what you can replace your home with if you were to sell? How far out would you have to go to increase to a nicer property for what you could sell your home for? Most investments and property are NOT increasing in value because you can not sell and purchase any more goods than you would have if you had taken the original amount and bought goods with it at the time. In fact I would contend you would get a lot less now than then. While values look good on paper what you are looking at is inflation not an increase in assets. And its only going to get worse as we continue to expand the supply of currency. We have been exporting our inflation successfully for a while by selling our debt (increase in currency supply) overseas. Now we are talking about bringing back overseas funds that will only increase the currency supply, and thus inflation, further. Retirement funds is a dream whose ship has sailed for people our age. Unfortunately I do not have an answer for you besides that. I think we are all ****ed. Once inflation hits the point where people have to spend 40% of income on food then , as is shown historically, we will see social unrest. At what point all that turns into deflationary meltdown I dont know but I dont give us too many years. Only real wealth is no debt, land with access to clean water, the ability to produce basic necessities off of that land and the ability to protect it. The sooner we all accept reality and start making moves to protect us and ours in this situation the less dismal our future will be. Just my 2 cents.
You make some strong points. My new neighbor bought his house next door to mine and paid $20k more than I paid for mine 9 years ago. I'd love to sell mine and pocket the money, but I'd have to move into an apt lol...