4.2 as of this morning. also have two pensions - 1 fed and 1 private (small). i think we are okay and can go today if we wanted to |
We have a $70K pension and probably another $80k from SS for both of us if we wait until 70 so our magic number is $5 million (not including equity in our home and our kid's 529). Hope to get there in 8 years (but only at $2+ million today). |
Correct. That rule of thumb is for people earning actual middle class salaries. On this board of 1%ers, it's a stupid rule. For us 10%ers, because we will have 2 pensions (at 4% draw, we'd need $2.5M to generate these amounts) plus SS (at 4% draw, we'd need $1.8M), plus current $500k home equity, our magic number is $1M. But if we had $0 in the bank, we'd live very comfortably on just the pensions and the SS-- about $175k per year, or 60% of current HHI. More than enough, even if we still carry a mortgage. We are late 50s and plan to retire at 65. |
I guess $5m. We are 47 and 53. We have about $3m in 401ks/iras (some are inherited so we have to take out over the next 10) and in non retirement accounts, plus $250k in college savings for a 14 yo and an 11 yo. Aim to work 10 more years. |
We'd be at our magic number if we were older. But we're in our mid/late 40s with young kids so the general unknowns of the trajectory of the next 10 years makes the ultimate number much more of a question mark. |
This does not make sense because I’ve had a magic number when I was 40 and I had a three-year-old at the time. |
It’s interesting you’d equate older with slower. |
Wow! |
If you stay with an organization that offers a pension for a very long time - think 25, 30 years or more - you can build up an enviable pension. |
No, you can do this at your garden variety agency. My DH started working for them while getting his grad degree, so he has almost 40 years in service and he has always maxed his contributions to the tsp. They look at your high 3, so if you have been successful, you will do well. |
$1.5 M is nothing to sneer at. You will be fine, esp if you leave the high cost DMV. |
Yes, we learned this way too late! |
Exactly! I saw a family member do that to his mother. He was so thrilled when she left a small inheritance. |
Your garden variety agency gets the standard pension of 1% of your top three per year- boosted up to 1.1 percent if you retire at 62 or older. So a 62 year old retiring with 40 years of service and a high 3 as a GS-15/10 would get 84k per year….a nice pension but nowhere near the numbers being bandied about above. |
Agree. We have 2.2 million (mid-forties) with a toddler. We both aren’t loving our jobs, so we’re prepared to pull the plug in a year or two if worst comes to worst. |