Anonymous wrote:

Anonymous wrote: I think you can do it. But you need to do 2 things:

-Increase college savings. We have been savings $8k a year for our kid since she was 1 and we will not have enough (she is now going into 10th) for private. I would say 12K a year if you want it fully funded.

-Start saving in a brokerage and/or a HYSA too. You need 4-5 years of cash you can draw on between 55-59.5 to supplement your pension before you can get to your retirement vehicles.

You must have done something wrong. How much do you have? and how much do you need?
We have have been saving about the same $8k for our child since he was born. We have about 420k right now. He is starting college this year.

. Impressive returns.

Congratulations on being responsible !

I just retired (older than your plan). I can advise you that retiring younger would have made traveling much more appealing (ie, it is difficult now, and I am more fearful of off-the-beat destinations).

I will say , however, that there is a lot of empty time on my plate now. So put thought into how you will want to fill that time.

maybe explore different careers /hobbles / volunteer jobs that you could do part time, intermixed with lots of travel.

Anonymous wrote:Have another kid that will cure you.

Look I had my last one at 45 and wife 43. I have an amazing job I love, doing college tours now youngest kid. Looking forward to senior year next year, my middle kid just moved home after graduating college for a year or two, got a new puppy.

If I just has the oldest kid who moved out already and retired at 55 I might as well shoot myself in head I be so bored. Unemployed wirg no kids at 55 is sad.

May sound like a dream it is not.

Here’s a fun fact men live 3-7 years post retirement regardless of year retired.

My two uncle ms retired by 55/56 dead by 62. My uncle who worked to to 83/85 one died last week at 88 the other still alive

I can't have anymore children, but thanksv

A different perspective! I could have retired at around 52 but I still had two kids in HS so what was I going to do in retirement? I had no desire to hang around with guys in their late 60s and 70s. Our college accounts were fully funded and we had plenty for health care, our retirement, whatever. But I felt I was too young to retire so I went back to work. I finally retired from full time at 61 but I still work part time and I have plenty of time for fun, travel etc. Our net worth is likely 3x what it would have been if I fully retired at 52 and that means my kids and grandkids have a big safety net if needed. If the stock market drops 20% I’m not going to lose any sleep and that is the ultimate luxury for far exceeding what you think you need.

Have another kid that will cure you.

Look I had my last one at 45 and wife 43. I have an amazing job I love, doing college tours now youngest kid. Looking forward to senior year next year, my middle kid just moved home after graduating college for a year or two, got a new puppy.

If I just has the oldest kid who moved out already and retired at 55 I might as well shoot myself in head I be so bored. Unemployed wirg no kids at 55 is sad.

May sound like a dream it is not.

Here’s a fun fact men live 3-7 years post retirement regardless of year retired.

My two uncle ms retired by 55/56 dead by 62. My uncle who worked to to 83/85 one died last week at 88 the other still alive

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FYI

My health insurance for one person age 60 through ObamaCare under the Affordable Care Act runs me $1300 per month with a $7000 deductible. This is a bronze plan and the cheapest option in my state. I do not qualify for subsidies in my state as I earn over $46,000 per year.

How much do states differ? Our income will be 120k (pensions and rental income) and I am figuring $700 a month for both of us.

That’s far too low for adults in their fifties. I was covering one adult via Obamacare (no subsidies) and it was $900 and I was in my late 30s. It zooms up as you age.

No. I have no idea what bells and whistles you people are including in your plans, but I bought an Obamacare plan in MD last year (single, age 41) for under $200/month - no subsidies. Yes, it's got a $10K deductible, which is fine as I am in good health. Apart from the chronically sick, I honestly have no idea why healthcare is some big bogeyman eating tens of thousands of dollars in people's budgets each year.

You’re 41. Price it for a 60 yo man.

I'm sure it's a good deal more, but I was responding to the PP who said they pay $900/month for one person in their late 30s. Somehow, for healthcare, some people pay dramatically more than others, in a way you don't see in other areas of life. Apart from the chronically sick, I don't understand this.

State policies and choice of different policies. MD has one of the lower health insurance costs on the ACA market.

Go more toward your Plan B

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FYI

My health insurance for one person age 60 through ObamaCare under the Affordable Care Act runs me $1300 per month with a $7000 deductible. This is a bronze plan and the cheapest option in my state. I do not qualify for subsidies in my state as I earn over $46,000 per year.

How much do states differ? Our income will be 120k (pensions and rental income) and I am figuring $700 a month for both of us.

That’s far too low for adults in their fifties. I was covering one adult via Obamacare (no subsidies) and it was $900 and I was in my late 30s. It zooms up as you age.

No. I have no idea what bells and whistles you people are including in your plans, but I bought an Obamacare plan in MD last year (single, age 41) for under $200/month - no subsidies. Yes, it's got a $10K deductible, which is fine as I am in good health. Apart from the chronically sick, I honestly have no idea why healthcare is some big bogeyman eating tens of thousands of dollars in people's budgets each year.

You’re 41. Price it for a 60 yo man.

I'm sure it's a good deal more, but I was responding to the PP who said they pay $900/month for one person in their late 30s. Somehow, for healthcare, some people pay dramatically more than others, in a way you don't see in other areas of life. Apart from the chronically sick, I don't understand this.

Anonymous wrote:Of course you can retire early. Virtually anyone with a $300K HHI can retire far earlier than the traditional age. People here don't do it because DCUM believes that the meaning of life is found in business-class travel, luxury hotels and Michelin-rated restaurants ("Do you think I can retire now with $10M?"). Stay far away from these people, and you can easily retire early.

+1

You should estimate your expenses for 15 years down the road and your savings at that time to see if you can safely withdraw the amount you need to live.

The Money Mustache Forum has a section for those who have accumulated $2m and beyond. As you head toward your second million, the earnings grow fast. You can go tot hat forum and get ideas from a non-DCUM crowd, which tends to think no amount is enough to retire.

The other thing to take into consideration is: will you have more kids? if so, you need to save more. On the other hand its likely your salaries will rise, and you will make more, relative to your expenses and be able to save more.

We got a very late start on retirement for a variety of reasons (grad school, low paying non profit jobs, etc) and much of our money in early 40s when salaries started to creep up went to daycare, nanny, housing, etc. Now we are early 50s and salaries have both gone up but our expenses have gone down so we are finally able to save a siginficantly larger proportion of our salaries, thus the final 10 years of work before retirement will really be bulking as much as possible.

Anonymous wrote:

Anonymous wrote: I think you can do it. But you need to do 2 things:

-Increase college savings. We have been savings $8k a year for our kid since she was 1 and we will not have enough (she is now going into 10th) for private. I would say 12K a year if you want it fully funded.

-Start saving in a brokerage and/or a HYSA too. You need 4-5 years of cash you can draw on between 55-59.5 to supplement your pension before you can get to your retirement vehicles.

You must have done something wrong. How much do you have? and how much do you need?
We have have been saving about the same $8k for our child since he was born. We have about 420k right now. He is starting college this year.

+1 PP's numbers don't add up. They have put in 120k over 15 years so assuming an average return they should be in good shape.

But actually if OP is worried about the 529 I would consider superfunding it now so that they don't have to worry. They could put in 25k this year and next and that would enable them to reduce or even cease 529 contributions well before their kid hits college age. Similar to paying down a mortgage this can be a way to set yourself up for an earlier retirement by absorbing some of the pain now when you are younger and healthy and have a very good income.

Anonymous wrote:

Anonymous wrote:

-Start saving in a brokerage and/or a HYSA too. You need 4-5 years of cash you can draw on between 55-59.5 to supplement your pension before you can get to your retirement vehicles.

This isn’t necessarily true and depends on the retirement account. If it’s a 401k, you can withdraw at 55 under the rule of 55. https://www.schwab.com/learn/story/retiring-early-5-key-points-about-rule-55#:~:text=This%20is%20where%20the%20rule,pay%20taxes%20on%20your%20withdrawals.

I skimmed the OP and the retirement account structure wasn’t clear to me - may or may not apply to OP but sharing here for others.

OP here. My main account is in a 457(b) plan which I understand actually has no age restriction for distributions, but I do have to leave my job first.

Anonymous wrote:

-Start saving in a brokerage and/or a HYSA too. You need 4-5 years of cash you can draw on between 55-59.5 to supplement your pension before you can get to your retirement vehicles.

This isn’t necessarily true and depends on the retirement account. If it’s a 401k, you can withdraw at 55 under the rule of 55. https://www.schwab.com/learn/story/retiring-early-5-key-points-about-rule-55#:~:text=This%20is%20where%20the%20rule,pay%20taxes%20on%20your%20withdrawals.

I skimmed the OP and the retirement account structure wasn’t clear to me - may or may not apply to OP but sharing here for others.

Anonymous wrote: I think you can do it. But you need to do 2 things:

-Increase college savings. We have been savings $8k a year for our kid since she was 1 and we will not have enough (she is now going into 10th) for private. I would say 12K a year if you want it fully funded.

-Start saving in a brokerage and/or a HYSA too. You need 4-5 years of cash you can draw on between 55-59.5 to supplement your pension before you can get to your retirement vehicles.

You must have done something wrong. How much do you have? and how much do you need?
We have have been saving about the same $8k for our child since he was born. We have about 420k right now. He is starting college this year.

I think you can do it. But you need to do 2 things:

-Increase college savings. We have been savings $8k a year for our kid since she was 1 and we will not have enough (she is now going into 10th) for private. I would say 12K a year if you want it fully funded.

-Start saving in a brokerage and/or a HYSA too. You need 4-5 years of cash you can draw on between 55-59.5 to supplement your pension before you can get to your retirement vehicles.