Planning for Full time Finances
“Money is the last thing you want to worry about when you retire, yet too many retired (and soon-to-be-retired) RVers face the prospect of outliving their earnings or compromising their standard of li...
Forum Discussion
At 30, when DH and I got married, we decided we wanted to retire at 45. So we started living way below our means. We bought a small house about 1/2 the price of what the banks were offering us. We bough new cars, but paid them off quickly and kept them for a while. We pushed the max amounts into our 401s. Halfway through our plan, I switched to a job that offered a 457 - he already had one. My new job paid less, but put a lot more money into my retirement (the previous job put virtually nothing). Our vacations were paid for with stock profits, which is where we invested our 'left over' money. I stocked up at 1/2 price sales at the grocery store and end of season sales at clothing stores.
About 1/2 through our plan, I developed 'pre-existing conditions.' Turns out, I would not be able to get health insurance once I left the security of a job with health benefits. The ACA was passed and so, though we had to wait an additional two years, we were able to retire.
On December 20th, 2013, we were both officially retired at the age of 47. Our new (and much cheaper than COBRA) insurance started January 1. We are currently living on our 457s and a small pension. We draw less from the 457s than they make each month. The 457s were designed to get us through to 65, when SS and the 401s will kick in. At our current rate, figuring in inflation, our 457s and 401s will last us until we are 104, not including SS.
So, it took us 17 years to save up the money we felt we needed for retirement. The small pension helps, but it only replaces about 40% of our current income (which is about 50% of our pre-retirement income). If one is 40 now, one could easily start today and have enough money to retire comfortably at 62. It just takes a little work and planning.
About 1/2 through our plan, I developed 'pre-existing conditions.' Turns out, I would not be able to get health insurance once I left the security of a job with health benefits. The ACA was passed and so, though we had to wait an additional two years, we were able to retire.
On December 20th, 2013, we were both officially retired at the age of 47. Our new (and much cheaper than COBRA) insurance started January 1. We are currently living on our 457s and a small pension. We draw less from the 457s than they make each month. The 457s were designed to get us through to 65, when SS and the 401s will kick in. At our current rate, figuring in inflation, our 457s and 401s will last us until we are 104, not including SS.
So, it took us 17 years to save up the money we felt we needed for retirement. The small pension helps, but it only replaces about 40% of our current income (which is about 50% of our pre-retirement income). If one is 40 now, one could easily start today and have enough money to retire comfortably at 62. It just takes a little work and planning.
